Tuesday, August 3, 2010

Sri Lanka regulator halts trading in speculative stocks, demands explanation

Aug 03, 2010 (LBO) – Sri Lanka's Securities and Exchange Commission (SEC) has halted trading in shares in Environmental Resources Investments (ERI) warrants, Dankotuwa Porcelain, Blue Diamonds and Touchwood Investments, a stock exchange filing said.

"Trading has been halted until further notice in terms of a directive received from SEC due to unusual increases in the price and the number of transactions of the said securities during the period from 29th July 2010 to 02nd August 2010," a stock exchange filing said.

The stocks that come under the suspension from the ERI group were ERI warrants 01, warrants 02, warrants 03 and warrants 06, and Dankotuwa Porcelain, a tableware exporter the cash-rich investment company acquired recently.

Other stocks that come under the trade suspension were normal shares and non-voting shares of Blue Diamonds Jewellery Worldwide, and Touchwood Investments, a forestry company.

The SEC has ordered the immediate suspension of trading in listed securities whose prices have risen by 30 percent or more in the last three market days and which have had more than 1,000 trades within the period.

The CSE said the markets regulator has also called for an explanation from the companies whose shares were suspended for reasons for the price increases.

The suspension in trading of the securities will be in force until further notice from the SEC, the CSE said.

source - www.lbo.lk

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