Thursday 3 July 2014

Franklin Templeton buys into Hemas, EPF sells

By Paneetha Ameresekere and Ravi Ladduwahetty

Ceylon FT: Franklin Templeton Fund, a large US based foreign fund, bought a 4.75% stake in blue chip Hemas Holdings for Rs 1.5 billion from the Employees' Provident Fund (EPF) yesterday (2), sources told Ceylon FT.

This seemingly is Mark Mobius managed Templeton's, first entry to the local equities market this year, having had previously invested in Com Bank last year, market sources said.

"The market is bullish, because foreigners are once more entering the market," market analysts said. Retailers are also starting to come in.

With a low interest regime in operation and banks swamped with liquidity, indications are that interest rates will further come down. This has given a boost to the bourse, they said.

With net foreign inflows (NFIs) led by Hemas, complemented by an overall contribution of Rs 1.6 billion to the day's turnover by this blue chip company, pivoted full turnover at the bourse to Rs 2.4 billion yesterday, data showed.

Hemas closed the day at Rs 45.50 a share, up 3.17% over its previous day's close. 


NFIs recorded yesterday were Rs 1.66 billion, taking NFIs in the year to date to Rs 8.9 billion.

With 167 gainers as opposed to 51 losers, the benchmark ASPI increased its value by 0.89% yesterday over Tuesday to end the day at 6,432.52 points; while the S&P SL 20 Index gained by 0.97% to close the day at 3,577.94 points.

Among the other major contributors to yesterday's turnover was PCH Holdings ranked 243rd in terms of market capitalization (Rs 192.1 million). PCH Holdings closed at Rs 2.10 a share, up 16.67% over its previous day's close.

Chevron, ranked 15th in terms of market capitalization (Rs 71.4 million). Chevron closed the day at Rs 304 a share, up 1.33% over its previous day's close, and JKH, number one in terms of market capitalization (Rs 50.4 million) closed at Rs 226.10 a share, up 1.71% over its previous day's close.

Templeton has been investing in the Sri Lanka Stock Market for the last two decades and they have been very active in the 1990s. Of late, they have been investing very heavily in fixed income securities and government securities at times when interest rates were high.

Meanwhile, the Colombo Stock Exchange has performed exceptionally in the past two days, showing significant signs of the market continuing on a positive trajectory, sources said.
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