YTD Performance: Large NBFIs of CSE vs. ASI & LOFC

Overview

All major Non-Bank Financial Institutions (NBFIs) listed on the Colombo Stock Exchange (CSE) have significantly outperformed the All Share Index (ASI) in Year-to-Date (YTD) terms—with one exception.

YTD Returns (2025)

Institution / Index | YTD Performance
----------------------------------------------
ASI 37%
COCR 127%
CFIN 93%
LFIN 66%
PLC 64%
LOFC -1.47%

Underperformance of LOFC
LOLC Finance (LOFC), the largest NBFI on the CSE, not only underperformed its sector peers but also delivered a negative return of -1.47%, diverging sharply from the broader market trend.
While the divergence was visible since Feb. 2025, underperformance during recent months probably due to share buyback executed at LKR 6.

Sector Tailwinds
The NBFI sector's strong performance is largely attributed to the anticipated revival of the vehicle leasing segment, following the government’s decision to permit vehicle imports. This policy shift has fueled investor optimism across the financial leasing landscape.

Strategic Implication
Given its scale and market position, LOFC should theoretically be the primary beneficiary of this resurgence.

Will there be a catch-up trade?
As buy back is now closed, we should pay close attention for a Catchup trade opportunity together with other shares of the group.