The Colombo bourse yesterday shrugged off the effects of previous day’s trade halts imposed on some high flying stocks, posting strong gains in both indices supported by a turnover of Rs.5.4 billion, up from the previous day’s Rs.4.09 billion, with JKH divesting 5% of Asian Hotel Properties at a price of Rs.170 per share.
Activity was also supported by trading in Odel which opened yesterday with several million shares transacted at twice the Rs. 15 issue price.
The All Share Price Index was up 58.01 points and the Milanka 45.93 points with Aitken Spence too seeing an unusually large volume with nearly 0.4 million shares done between Rs.1,900 and Rs.1,950 gaining Rs.45.50 to close at Rs.1,950 contributing Rs.725 million to turnover.
Asian Hotels generated the day’s top turnover of nearly Rs.2 billion on over 11.6 million shares traded between Rs.165 and Rs.170 losing Rs.1.75 to close at Rs.170.
There was no word on who the buyer was. JKH, retains dominant control of the company which owns the Cinnamon Grand Hotel, high rise residential towers and an upmarket mall on the prime Galle Road, Kollupitiya, location.
Trading in Odel began yesterday with 17.3 million shares transacted between Rs.29.80 and Rs.38.50 gaining Rs.17.90 from the issue price of Rs.15 to close at Rs.32.90.
"Many investors got only a fraction of what they wanted at the IPO and they had to go to the market to get their shares," Prashan Fernando of Acuity Stockbrokers said.
He said that the market initially dropped during early trading following the previous day’s trade halts but picked up to close comfortably up with large volumes in Asian Hotels, Spence, Odel, Richard Pieris and JKH keeping turnover buoyant.
Environment Resources Investments (ERI), where trade halts were imposed on the warrants though not on the parent stock, saw over 2 million shares traded between Rs.100.80 and Rs.128.70 gaining Rs.14 to close at Rs.126.
Those companies where trade halts were imposed made Stock Exchange filings stating that they were unaware of special reasons for the large trading volumes and price appreciation of their stock.
Touchwood said in its filing that while they were not aware of any specific reason behind the substantial increase in the share price, or of any information that is already not in the public domain, the CSE would be aware of continued public interest in the company following the successful rights issue and the disclosure on the utilization of these funds.
It said it had launched an advertising campaign using print and electronic media and also co-sponsored the UK Festival of Cricket. They were of the view that public trust and interest in the company had grown due to its future prospects and this is reflected in the share market activity.
The company requested that the trade halt be lifted "especially considering the fact that we are actively promoting foreign direct investment into Sri Lanka by way of deploying our staff members around the world."
Dankotuwa also said that they were not aware of any reason for the significant increase in their share price and drew attention to recent disclosures since May 11 expressing concern regarding the upward movement of the share price.
ERI too had said that it was unaware of reasons for the increase in trades and trading prices of their warrants and said they will promptly inform the CSE of any material information which may reasonably be expected to cause any fluctuation of price of their securities.
source - www.island.lk
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