Matthews Emerging Asia Fund reduces Sampath, LOLC stakes

Matthews Emerging Asia Fund has sold nearly 1.5 million shares in Sampath Bank and slightly reduced its holding in LOLC in 3Q20, data show.

BBH-Matthews Emerging Asia Fund which was the seventh largest shareholder at Sampath with 14,011,415 shares in September last year was down to 12,474,412 shares (3.27 per cent) as at last December.

P. Subasinghe who held 2,568,000 shares as at last September has exited the top 20 shareholders at Sampath. The main buyer (among top 20 shareholders) during 3Q20 was ETF, which bought just over 1 million Sampath shares during the quarter, raising its total stake to 5,054,604 shares as at last December.

Matthews Asia Growth Fund which was also the ninth largest shareholder slightly reduced its stake in LOLC in 3Q20. They had 12,121,473 shares as at last September and this was down to 11,792,496 shares (2.82 per cent), last December’s data in LOLC show.

Businessman Nimal Perera and Capital Trust Holdings entered the top 20 LOLC shareholders in 3Q20. There was no change in EPF's 15.2 million share stake during 3Q20.

Matthews Emerging Asia Fund in their report last December has said that they expect the business cycles in Indonesia, Pakistan and Sri Lanka to pick up in 2020 after a number of difficult years. “We believe these recovering economies and more-stable currencies will deliver strong earnings growth in future years. Valuations for the Fund's holdings are the lowest we have seen since the Fund's inception, suggesting considerable room for upward movement. Improving business cycles should support both earnings growth and better stock-market performance over the long term. We continue to offer exposure to the most underdeveloped markets in Asia, with a focus on valuations and consumer-facing growth opportunities.”

Matthews Asia Growth Fund which was also the ninth largest shareholder slightly reduced its stake in LOLC in 3Q20. They had 12,121,473 shares as at last September and this was down to 11,792,496 shares (2.82 per cent), last December’s data in LOLC show.