Deal in Hatton Plantations lifts CSE turnover

Sri Lanka, May 28 (Capital Leads) – The daily market turnover in the Colombo Stock Exchange (CSE) reached its highest in more than a month today as Lotus Renewable Energy acquired a majority stake of Hatton Plantations (HPL) in a deal worth more than LKR1 bn.

As a result, the market edged up after back-to-back sessions of losses with the broad market All Share Price Index (ASPI) gaining 2.00 points to stand at 5,293.49 points, an increase of 0.04 percent from yesterday. Meanwhile, more liquid S&P SL20 Index moved 4.83 points higher to reach 2,464.15 points, an increase of 0.20 percent from the previous session.

Hatton Plantations (HPL), John Keells Holdings (JKH), Seylan Bank – Non-voting (SEYB.X), and Janashakthi Insurance (JINS) witnessed off-board trading which made up 87 percent of the total turnover. Backed by the deal in Hatton Plantation (HPL) where Lotus Renewable Energy acquired 51 percent stake in HPL through a crossing of 120.7 mn shares traded at LKR8.30 apiece, the total number of shares traded improved to at 146.1 mn. The daily market turnover meanwhile reached LKR1.8 bn (USD10.3 mn), its highest since April 24, while YTD average daily market turnover expanded to LKR561.9 mn (USD3.2 mn).

The turnover contribution from Hatton Plantations (HPL) stood at 56 percent as the stock driven by local selling and mixed buying edged up 29.51 percent to reach LKR7.9 at the close of the session.  With 1.7 mn shares of John Keells Holdings (JKH) trading off-board at LKR136.0 apiece, the stock inched 0.73 percent higher driven by local selling and mixed buying to make up 17 percent of the day’s turnover.

The plantation sector spearheaded the sectoral contribution to the turnover with 56 percent of the total turnover generation, followed by 25 percent from Diversified Holdings.  

Led by foreign interest in John Keells Holdings (JKH), net foreign buying continued for the second straight session today as overseas investors bought shares worth a net LKR63.5 mn (USD0.4 mn), narrowing the YTD net foreign outflow to LKR5.6 bn (USD32.1 mn).

Disclosure: I/We have no investments in the stocks mentioned in the above article and don’t intend to open any within the next 72 hours. I wrote this article for myself, and it expresses my opinion. I/We receive no compensation, nor do I/We have any business relationship with any companies whose stocks are mentioned in the article.

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