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Wednesday, February 23, 2011

Citrus to list two resort hotels : Correction begins on high-flying CSE

The anticipated correction on the Colombo bourse hit yesterday with both indices declining sharply – the All Share by 102.45 points (1.34%) and the Milanka by 78.93 points (1.09%) on a turnover of Rs.2.1 billion, down from the previous day’s Rs.2.2 billion. Analysts said that profit taking was evident from last week and the correction that is taking place was "definitely warranted." Some brokers attributed the market slump to the forthcoming Union Bank IPO with many players scrambling to raise cash to back their applications.

Citrus Leisure PLC announced it would seek to list two beach resort subsidiaries at Waskaduwa and Kalpitiya on the CSE. The big turnover generators yesterday were Aitken Spence, JKH, Sampath, Lanka Walltiles and Colombo Fort Land and Buildings with several crossings in the two conglomerates, Spence at Rs. 170 and JKH at Rs. 292, and Sampath.

Spence, the top turnover generator closed 50 cents down at Rs.170.90 on nearly 1.2 million shares done between Rs.169 and Rs.172 while JKH was down Rs.2.80 to close at Rs.295 on 0.6 million shares done between Rs.292 and Rs.295.

Sampath lost Rs.3.60 on 0.4 million shares traded between Rs.290 and Rs.293.10 closing at Rs.290.20 while Walltiles edged up 50 cents to close at Rs.160 on 0.5 million shares done between Rs.159 and Rs.165.

The big losers were mainly on very thin volumes other than Dimo, down Rs.110.60 to close at Rs.1,685 on a modest 11,800 shares.

Other big losers including some of the Carsons oil palm companies like Good Hope, down Rs.150 on 700 shares, Shalimar down Rs.40 on 2,800 shares, Autodrome down Rs.71.70 on 400 shares and Brewery down Rs.54.30 on 100 shares demonstrated very thin volumes.

Losers on fairly substantial volumes included Seylan Bank which dropped a rupee to close at Rs.90 on 0.5 million shares, the Colombo Fort Land Buildings lost Rs.21.90 on nearly 0.2 million shares, Lankem was down Rs.23.80 on over 0.1 million shares and Grain Elevators down Rs.6.10 on over 0.2 million shares.

Citrus Leisure PLC announced that it has invested Rs.880 million in a subsidiary, Waskaduwa Resorts Limited taking 62.85% of its equity and over one billion rupees on Kalpitiya Resorts Limited taking 72.18% of that company.

Private placements have also been made at Rs.10 per share in both beach resort companies with Waskaduwa placing 52 million shares and Kalpitiya 40.35 million shares. Citrus announced that both these companies will apply for a listing on the CSE.

source - www.island.lk