Wednesday, October 27, 2010

Turnover up but indices down for second day Dhammika transfers control of Royal Ceramics

The transfer of slightly under 51% of Royal Ceramics at a price of Rs.325 per share by Mr. Dhammika Perera to Vallibel One Limited, a company wholly owned by him, was the highlight of yesterday on the Colombo Stock Exchange where a turnover of Rs.11.2 billion, up from Rs. 8 billion on Tuesday, was posted although both indices were down fairly sharply continuing the previous day’s trend.

Yesterday’s Royal Ceramics deal followed a similar exercise by Perera the previous day when he transferred over 50% of LB Finance personally held by him to Vallibel One which he plans to quote on the CSE down the road.

The All Share Price Index was down 87.17 points (1.31%) yesterday while the Milanka lost 96.25 points (1.33%) with 142 decliners way ahead of 30 gainers.

Brokers said that the current decline can be attributed to a variety of factors including fund raising mainly by retailers for IPOs, the month-end settlement cycle and a credit squeeze on funds advanced for share trading.

Royal Ceramics saw nearly 28.4 million shares done between Rs.320.10 and Rs.335 closing Rs.5.10 down at Rs.324.50 generating a turnover of Rs.9.2 billion which was mostly on the Dhammika Perera deal.

Foreign interest was seen in HNB where over 1.3 million shares were done between Rs.405 and Rs.409 gaining 60 cents to close at Rs.406.90 with several crossings done at a price of Rs.408.

Interest in JKH continued but at a lower price with over 1.4 million shares done between Rs.295 and Rs.300 with the counter closing Rs.6.10 down at Rs.295.

"We saw quantities in Commercial Bank and Sampath where the market closed slightly lower than on the previous day but DFCC was up Rs.9.30 to Rs.458 with the announcement that the one for one bonus shares will be allotted on November 1," Prashan Fernando of Acuity Stockbrokers said. Aitken Spence too saw over 0.6 million shares done closing 50 cents down at Rs.180 with the counter trading between Rs.176.50 and Rs.190.

Among banking stock Commercial Bank lost Rs.5.10 to close at Rs.256 on 0.4 million shares and Sampath was down Rs.4.20 to close at Rs.290 on over 0.3 million shares. NTB saw a slight price gain of 30 cents to close at Rs.88 on over 0.5 million shares traded.

``Among the banks where volume was seen,DFCC and NTB were gainers,’’ a broker said.

Hydro Power Free Lanka whose IPO opened yesterday was closed at 4.30 pm heavily over-subscribed. The company said in a Stock Exchange filing that the basis of allotment would be announced "in due course."

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