Thursday, September 2, 2010

Both indices up Retail surge on Reefcomber, LB Finance and SMB

The Colombo bourse yesterday continued its upward momentum with both indices gaining on a turnover of Rs.2.78 billion, down from the previous day’s Rs.2.89 billion, with business volumes coming mainly off JKH, Lanka Walltiles and Reefcomber among others.

The All Share Price Index was up 32.28 points (0. 57%) while the Milanka gained 20.16 points (0.34%) with 92 gainers outpacing 76 losers.

"There was considerable retail interest in Hotel Reefcomber and LB Finance as well as SMB Leasing (previously Seylan Merchant Bank)," Prashan Fernando of Acuity Stockbrokers said.

Reefcomber has announced a rights issue sweetened by warrants exercisable in 2011, 2012 and 2015 following the Dhammika Perera group selling out some weeks ago and the Triad/Derana group coming in to the leisure industry through a company called Emagewise.

"The market focus was mainly on JKH which generated the day’s top turnover of nearly 1.2 million shares traded between Rs.264 and Rs.266 closing 20 cents down at Rs.265. The counter generated a turnover of Rs.306 million," Asmath Iqbal of John Keells Stockbrokers said.

Lanka Walltiles was next on the turnover league with over 2.4 million shares traded between Rs.91 and Rs.99.50 gaining Rs.8.40 to close at Rs.99.50 while Reefcomber saw frenzied retail activity with nearly 29.6 million shares done between Rs.5.40 and Rs.6.10 gaining 50 cents to close at Rs.6.10.

``There were two large parcels of Walltile crossed at Rs. 100,’’ Fernando of acuity said. ``A little over 5% of the company was traded during the day.’’

Other shares that contributed substantially to business volume included DFCC, down 70 cents to close at Rs.323 on over 0.3 million shares done between Rs.320 and Rs.330 and Distilleries, up Rs.1.90 to close at Rs.147 on nearly 0.7 million shares traded between Rs.145 and Rs.149.90.

LB Finance was up sharply by Rs.17.60 to close at Rs. 194.10 with nearly 0.5 million shares done between Rs.178 and Rs.194.10 while Asia Capital gained Rs.3.30 to close at Rs.47.60 on over 1.9 million shares traded between Rs.43.10 and Rs.48.90.

SMB Leasing (previously Seylan Merchant Bank) also saw considerable retail play with nearly 35.3 million shares traded closing flat at Rs.2.60. The counter traded at a high of Rs.2.70 and a low of Rs.2.50 yesterday.

Central Finance lost a little steam dipping Rs.8 to close at Rs.775.10 on a wide trading range of Rs.676.10 and Rs.776.90 while Vallibel Finance and The Finance were both gainers – the former up Rs.4.40 to close at Rs.61.90 on 1.3 million shares and the latter up Rs.4.80 to close at Rs.53.40 on 1.3 million shares.

Reefcomber, subject to CSE and shareholder approval, will first reduce its issued shares to 15.7 million from 157.3 million by consolidating 10 shares into one and then float a two for one rights issue offering 31.46 million shares at Rs.25 each to raise capital to refurbish Hotel Reefcomber and invest in the hotel sector.

Each share subscribed will qualify for four warrants – one exercisable in 2011 at a price of Rs.30; a second exercisable in 2012 also at Rs.30 and two warrants for each share subscribed exercisable in 2015 at Rs.40.

Lanka Tiles announced the dates for its one for four rights issue at Rs.45 with a general meeting scheduled for September 24 to get shareholder approval. The counter will trade XC from September 24 with allotments made on that day.


source - www.island.lk

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