Expolanka PLC sees 3% decline despite DPS
View(s):Expolanka PLC saw a 3 per cent fall in share price (80 cents) to Rs.26.10 on Wednesday, on a volume of 11.8 million shares, despite a dividend per share (DPS) announcement of 50 cents after trading on Wednesday.
The decline in Expolanka’s share price in spite of its dividend announcement may be an indication of higher expectations built into the share price which has rallied steeply in recent months on record volumes and a very large high net worth and retail participation. The share was bought targeting short term trading gains, analysts said.
It hit a record high of Rs. 39 on November 9, after slumping to a record low of Rs.1.7 in May.
Investors had earlier priced the share on high hopes for dividends from Expolanka. Analysts said that speculation of a Rs. 1.5 dividend was doing the rounds. “When ‘only’ 50 cents was announced as a dividend, some traders (looking mainly at short term gains) were probably disheartened, and looked to exit,” an analyst said.
Latest trading in Expolanka has been led by high net worth individuals such as Nimal Perera, Ajith Devasurendra etc, retailers and a few local companies such as Galle Face Hotel Group, Hi Line Group, and Almas Group etc. There has not been much buying from unit trusts, and foreigners didn’t purchase this share.