Giving back to the nation that nurtured it – The Island


By Hiran H. Senewiratne

The CSE’s trading started on a positive note and continued for about half an hour yesterday as blue-chip LOLC Holdings posted positive numbers in its internal financials. But the CSE then turned negative following data releases on the state’s latest tax review, stock analysts said.

LOLC Holdings, which has interests in financial services, entertainment and real estate, including overseas operations, reported profits of Rs 39 billion for the March 2022 quarter, up 442% from compared to the previous year. As a result, other companies also started to perform well early in the day, stock analysts said.

Several stock market investors are concerned about the corporate gains tax which has been raised to 30% from 24% previously in 2019. Besides, other tax systems, such as domestic income tax, withholding tax and value-added tax are also likely to be overhauled, the stock analysts added.

In addition, Lanka IOC stock prices have also appreciated with the latest increase in fuel prices due to the increase in global oil prices, which recorded 120 US dollars per barrel. Its shares rose by six percent or Rs 3.80. Its share price climbed to Rs 59.50 from Rs 55.70.

Amid these developments, stocks fell in the first hour of trading yesterday as a liquid index fell more than 1%, dragged down by weak sentiment following the decision to raise rates to lows. of 2019.

The main All-Share Price Index fell 43.4 points and the liquid S&P SL20 Index slipped 1.1% or 21.4 points. The market generated a turnover of Rs 1.2 billion with a single pass. The crossing was reported at Cargills, which crossed 150,000 shares to the tune of Rs 24.2 million; its shares traded at Rs 161.

In the retail market, the top seven companies that primarily contributed to revenue were; Browns Investments Rs 310 million (30.8 million shares traded), Expolanka Holdings Rs 207 million (979,000 shares traded), LOLC Holdings Rs 66.2 million (111,000 shares traded), Lanka IOC Rs 65 million (1, 1 million shares traded), LOLC Finance Rs 51.4 million (5.9 million shares traded), Aitken Spence Rs 40 million (476,000 shares traded) and Dialog Rs 31.7 million (4.3 million shares traded). shares traded). During the day, 77 million volumes of shares changed hands in 14,000 transactions.

He said high net worth and institutional investor participation were noted in Commercial Bank, JKH and Printcare. Mixed interest was seen from Expolanka Holdings, Lanka IOC and JKH, while retail interest was noted from Voting and Non-Voting Browns Investments, LOLC Finance and SMB Leasing.

The Food, Beverage & Tobacco sector was the largest contributor to market revenue (thanks to Browns Investments), while the sector index lost 2.21%. Browns Investments’ share price declined by Rs. 40 cents (3.85%) to close at Rs. ten.

The transportation sector was the second largest contributor to market revenue (due to Expolanka Holdings) while the sector index fell by 2.91%. Expolanka Holdings’ share price fell Rs 6.50 (2.92%) to close at Rs. 216.25.

Separately, Royal Ceramics announced an interim dividend of 75 cents per share, while Malwatte Valley Plantations and United Motors Lanka announced their final dividends of 12 cents and 50 cents per share respectively.

Yesterday the Central Bank announced the US dollar rate. The buy rate was Rs 355.12 and the sell rate was Rs 365.09

The main losers were Expolanka, John Keells and Commercial Bank.


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