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Wednesday, March 30, 2011

Profit taking by early investors in private placement - Bourse edges down despite Union Bank debut

The Colombo bourse closed down yesterday on a turnover of Rs.3.23 billion, up from the previous day’s Rs.1.6 billion, with the All Share down a marginal 2.23 points (0.03%) while the Milanka lost 21.01 points (0.35%) with 105 losers ahead of 68 gainers. Union Bank made its debut on the trading boards yesterday with more shares than issued at the IPO traded, gaining Rs.13.40 to close at Rs.38.60 on 17.5 million shares that were transacted.

"It looks as though some shareholders who bought in private placements ahead of the IPO had sold," Prashan Fernando of Acuity Stockbrokers said. "It is also possible that the same shares were sold more than once but given that the share came down from Rs.45 to Rs.38, these numbers could not have been high.’’

Union Bank traded between Rs.38 and Rs.45 yesterday going up from Rs.38 to Rs.40 and then coming down again to Rs.38.60 brokers said.

Yesterday’s biggest trade was in Commercial Bank where 13.7 million shares were done between Rs.268.10 and Rs.271 gaining 90 cents to close at Rs.268.10. The transactions totaled to 1.2% of the company.

There were several crossings on ComBank at a price of Rs.270 accounting for nearly the total number of shares traded yesterday.

Union Bank too saw five crossings – two at a low price of Rs.31 and three others accounting a million shares each at Rs.42.

Other big trades yesterday included Asian Alliance Insurance where 3.6 million shares were done including three crossings of 1.2 million shares each at Rs.190. The counter traded between Rs.155 and Rs.175 losing Rs.6.10 to close at Rs.165.90.

Hayleys too with over 1.1 million shares traded between Rs.388 and Rs.390 closed 30 cents down at Rs.388 with one crossing of over 0.5 million shares done at the Rs.380 price at which Mr. Dhammika Perera and connected parties made their mandatory offer.

Ascot Holdings gained Rs.6.50 to close at Rs.122.40 on nearly 1.4 million shares traded between Rs.116.30 and Rs.124 while Central Finance closed Rs.24.20 up at Rs.1,120 on 0.1 million shares done between Rs.1,101.10 and Rs.1,170.

CT Holdings announced a rights issue of one for 55 at Rs.210 to issue approximately 3.1 million new shares XR on April 29 and payment on May 24. Ceylinco Insurance announced a dividend of Rs.5.50 per share.

source - www.island.lk