Retailers boost Bourse

The stock market recorded its third consecutive gain in the New Year with benchmark index ASPI touching its highest level since mid October.

Bullish sentiments were spearheaded by retailers with ASPI up near 0.8%, its highest for the week and topping the year to date gain to 1.78%. Turnover was a healthy Rs. 3.6 billion, also the highest for the New Year as well as since 13 December.

“Sustained local retail buying mainly on second tier counters pushed the indices higher while activity levels remained strong during the day,” John Keells Stockbrokers said.

“Mid cap counters continued to gain backed by retail investors. Sustainability of the bull run over the next few weeks would depend on the involvement of the foreign and institutional investors,” NDB Stockbrokers added.

Bank, Finance & Insurance and Manufacturing sectors were the highest contributors to the market turnover while both indices increased by 1.11% and 1.50% respectively. Best performing sector was Land & Property (+5.57%) whilst worst performing was Information Technology (-8.13%) on account of 9.94% dip in PC House share price after it came under the SEC”s price band.

Hotel Reefcomber (now Citrus Leisure) made the highest contribution to the market turnover while the share price increased by Rs. 6.10 (9.04%) and closed at Rs. 73.80.

The market also saw two crossings being recorded for 100,000 shares of NDB Bank at Rs. 360 and 645,000 shares of Ascot Holdings at Rs. 90.

Foreigners remained net sellers with purchases amounting to Rs. 181.53 million and sales worth Rs. 268.18 million.

The traded share volume hit a five-week high of 331.6 million, against a five-day and 30-day average of 56.6 million and 53.2 million respectively. The 90-day average volume is 63.3 million. The daily average volume was 69.2 million last year.

The bourse is trading at a forward price-to-earnings (P/E) ratio of 17.6, the highest among emerging markets, compared with 13.3 in Asian markets and 12.4 in global emerging markets, Thomson Reuters StarMine data showed. Its 14-day relative strength index is at 70.5, beyond the overbought limit of 70.

Sri Lanka’s rupee edged up to 110.80/.85 a dollar, its highest since 11 December, 2008, from Tuesday’s 110.85/86 as exporters sold dollars, currency dealers said. The rupee rose 3.07 percent in 2010.

Panasian Power shares debut today

Panasian Power Ltd’s shares will have their debut trading today on the Colombo Stock Exchange, following a successful Initial Public Offering late last year.

The Company’s 500,000,000 million shares will be listed on the main board of the CSE and classified under the Power and Energy Sector. Its assigned code is PAP-N-0000.

Via its IPO, the Company issued 200 million shares at Rs. 3 each raising Rs. 600 million. It was oversubscribed by seven times.

Last week the Company said it has taken steps, as stated in the prospectus of its IPO, to expand its plant capacity of the Mini-hydro plant at Rathganga, Ratnapura.

The present capacity of 2MW will be increased to 3MW, which will increase its supply of electricity to the CEB. The company has already obtained the approval of the CEB for this expansion.

Chairman, Panasian Power Limited, Dr. Prathap Ramanujam said, “The Company will continue to increase its capacity with new acquisitions as part of its strategy to increase its capacity to 15MW of Mini hydropower generation. The company is also considering expanding investment into other sustainable renewable energy sources.”

The construction agreement to implement this was signed between Panasian Power Limited and Vidullanka Plc on 30 December 2010. The plan is expected to be in operation by December 2011.

PAP is a 100% fully owned subsidiary of Power Hub International (PHI), Malaysia, which is a subsidiary of Malaysia’s Majulia Group, responsible for the first plant under the Malaysian Government’s Small Renewable Energy Programme, and are providing the expertise for renewable energy solutions through mini hydro-electric plants in the country. 

The latter under the Malaysian Government’s small Renewable Energy Programme, was the first to undertake the development of a mini-hydro plant in Malaysia. This same expertise is at the forefront of efforts by PAP to develop the use of renewable energy in Sri Lanka.

PAP owns and operates a 2.0 MW Mini Hydropower plant in Ratnapura District and supplies electricity directly to the CEB. In September it acquired 100% shareholding of Manelwala Hydropower (Pvt) Ltd (MHPL) producing 2.4 MW at Walapane in the District of Nuwara Eliya for Rs.  565 million from PHI. Funds raised via the IPO will be used by PAP to settle PHI over its latest acquisition.

source - www.ft.lk