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Monday, February 14, 2011

Watapota becomes most expensive stock

* Share price rockets by Rs. 4,287.50 to close at Rs. 10,012.50

Share price of Guardian Capital, formerly Watapota, last week created a sensation by crossing the Rs. 10,000 mark.

Dumbfounding even its controlling shareholder Carson Group, around 1,300 shares of the company traded between low of Rs. 5,720 and a high of Rs. 10,012.50 before closing at the latter level, up by a massive Rs. 4,287.50.

The closing price boosted the 671,008 shares-in-issue Guardian Capital’s market capitalisation to Rs. 6.7 billion from Rs. 3.8 billion. The previous week it closed up Rs. 531 whilst in the last week of January the share price rose by Rs. 1,194 to close at Rs. 5,194.

Most analysts term Guardian Capital as highly speculative though the company has announced a mega rights issue to boost capital.

A mega 75 for two Rights Issue at Rs. 20 each is on now raising Rs. 503 million to fund equity investments.
Meanwhile, related party Bukit Darah last week rose to become the second most valuable stock in the Colombo bourse with a market capitalisation of Rs. 122 billion after the share price rose by Rs. 338.70 to close at Rs. 1,195.70. It had an intra-week peak of Rs. 1,200.

Bukit’s 52-week highest share price is Rs. 9,000. Its parent Carson Cumberbatch was ranked third with a value of Rs. 118 billion after its share price gained by Rs. 50 to close at Rs. 601.80.

In September last year share price of Watapota zoomed to Rs. 1,900 as at least five different parties vied for its control despite it being almost a shell company having liquidated most of its investments and reserves distributed among shareholders.

Among parties which vied for control of Watapota were Capital Alliance (at Rs. 40.60 per share), a client of IIFL Securities at Rs. 81.20 per share, K.V. Vignarajah at Rs. 83 per share, a client of Acuity Stockbrokers at Rs. 89.40 per share and a client of Taprobane Securities at Rs. 95 per share.

The offers were conditional upon different stakes ranging from 57% and entirety of Carson’s holding.

Four firms over Rs. 100 billion in value

With two Carson Group firms seeing massive rises, the Colombo Bourse last week had the rare distinction of closing with four companies worth over Rs. 100 billion each.

Premier blue chip JKH remained top with Rs. 183.9 billion followed by Bukit Dhara at Rs. 122 billion followed by Carson Cumberbatch at Rs. 118 billion.

Sri Lanka Telecom was ranked fourth Rs. 111.5 billion after its share price closed at Rs. 61.80, up 10 cents whilst it hit a peak of Rs. 64.50.

Investors are awaiting stellar results for the financial year ended on 31 December 2010 from SLT this week.

source - www.ft.lk