Expolanka, Commercial Leasing and Finance and LOLC Holdings drive Sri Lanka market gains

COLOMBO: Sri Lank stocks jumped 2.56 percent led by export companies a day after licensed banks started to trade the local rupee currency exchange rate at a lower rate, brokers said.

On Tuesday banks published rates on their websites indicating 211 rupees per US dollar for telegraphic transfers though some importers have been paying higher rates.

Market participants also said banks were asked to keep the rupee firm by the central bank rather than weaken it.

“The rupee devaluation story helped export companies and those firms which have dollar assets. The move will boost the gains and profitability of those companies in rupee terms,” a stock broker said.

The central bank meanwhile said it had not announced any devaluation on the rupee.

Colombo All Share Price Index (ASPI) gained 208.33 points to close at 8,342.85 while S&P SL20 index of more liquid stocks up 1.71 percent or 52.02 points to close at 3,086.00.

The gain was led by Expolanka, which has a significant export component in its business, Commercial Leasing and Finance, and LOLC Holdings.

The gains due to the weakening rupee overshadowed the concerns over spike in Covid-19 deaths and spreading. The government has imposed some restrictions, though health sector had demanded a full lockdown.

The day’s turnover was 6.3 billion rupees, well over this year’s average daily turnover of 3.9 billion rupees.

Foreign investors bought a net 26.5 million worth of shares on Tuesday, and the market has suffered a net foreign outflow of over 36 billion rupees so far this year.

The bourse saw 92 stocks gaining against 71 falling on Tuesday.

Cross-border freight forwarder Expolanka Holdings, which accounted for nearly 40 percent of the day’s turnover, closed 14.00 rupees or 16.4 percent up at 99.60 rupees a share.

LOLC Holdings closed 23.00 rupees up at 475.00 rupees a share, after it posted a 74 per cent fall in its June quarter earnings, while LOLC Development Finance, a subsidiary of LOLC closed 26.25 rupees up at 505.00 rupees a share.

Browns Investments, another subsidiary and the investment arm of LOLC group closed 40 cents up at 7.10 rupees a share.

Commercial Leasing and Finance gained 2.90 rupees to close at 14.70 rupees.

The transportation industry index was the most active gaining 15.2 percent.