Friday, November 26, 2010

Turnover Rs. 1.4 bn., indices down Hydro Power Free Lanka up 50% on opening day

The Colombo bourse was unable to sustain Wednesday’s gains and declined sharply despite a turnover of Rs.1.44 billion, down from the previous day’s Rs.2.45 billion, thanks partly to Hydro Power Free Lanka (HPFL) shares beginning to trade.

The All Share Price Index was down 48.80 points (0.76%) while the Milanka lost 54.13 points (77%) with 33 gainers trailing 116 losers.

The market, however, was up in early trading with the ASPI up about 40 points over the previous close but began to slide thereafter with brokers saying that credit given to market players required to liquid debt granted by broking houses by year-end was part of the issue.

HPFL saw as many as 22.2 million shares traded, up Rs.5.70 from the issue price of Rs.10, generating the day’s top turnover of Rs.343.3 million with the counter trading between Rs.15 and Rs.16 and closing at Rs.15.70.

Brokers said that the bulk of the shares issued on the IPO had been traded yesterday. Several stock market punters applied for all the shares on offer on the basis of bank guarantees costing them Rs.350,000 rather than cash upfront.

"Given that the share moved up more than 50 per cent from the issue price, they covered their investment," a broker said.

There was heavy trading in Royal Ceramics which was up Rs.15.90 to close at Rs.304.90 on 0.7 million shares done between Rs.290 and Rs.319.

Brokers said that the surge in the price of the share was on rumours of a bonus issue which was announced during the day – one for one by way of capitalization of reserves subject to shareholder and regulatory approval.

"The share surged from the previous day’s closing price of Rs.290 to Rs.319 and then came down to around Rs.305 after the formal announcement by the company," a broker said.

There was interest in Commercial Bank too with over 0.5 million shares done between Rs.270 and Rs.275 with the counter losing Rs.3 to close at Rs.272.90 generating a turnover of Rs.143.5 million behind HPFL and Royal Ceramics which saw a turnover of Rs.214.6 million.

Interest in Seylan Merchant Bank (now SMB Leasing) continued with nearly 53.4 million shares traded between Rs.1.30 and Rs.1.50 gaining 20 cents to close at Rs.1.50.

JKH was down 50 cents to Rs.194 on over 0.1 million shares while Dialog (nearly 2 million shares) and Seylan Merchant Bank X (over 24.6 million shares) closed flat at Rs.11.90 and 90 cents respectively.

CIC held its Rs.136.10 price on nearly 0.2 million shares traded between Rs.136 and Rs.136.10 while Sampath, LOLC, Browns, Asian Hotels and DFCC were among the blue chip losers.

On’ally Holdings announced an interim dividend of Rs.1.10 per share for 2010/11 XD from December 6 and payment on December 13.

The Royal Ceramics announcement said that it would capitalize its revaluation and revenue reserves for the one for one bonus issue valued at Rs.10 per share.

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