The market yesterday failed to cheer HNB over what is perceived to be a strategic entry into the NDB Bank on Monday.
As exclusively reported by the Daily FT, HNB on Monday paid Rs. 690 million for a 2.6% stake in NDB Bank.
However yesterday investor reaction wasn’t overly exciting with HNB voting share price declining by Rs. 4.90 to Rs. 245.10 though it touched an intra-day high of Rs. 250.50. On the other hand investors were optimistic on NDB Bank as its share price moved up though marginally by Rs. 1.70 to close at Rs. 167.80. It peaked to a high of Rs. 169.50. HNB on Monday paid Rs. 161.20 per share to buy the block from a US based fund.
Most analysts believe HNB’s foray into NDB Bank to be a strategic probably trying its luck for prospects for an alliance. Apart from Bank of Ceylon (10%), HNB is the only other commercial bank which owns shares in NDB Bank which on its part has been scouting for a merger with a willing peer.
Despite hopes of consolidation and positive outcomes from same, overall investor interest on the banking sector was subdued mirroring the sentiments on the very market itself.
The Bank, Finance and Insurance sector though contributing second highest (Rs. 254 million) in terms of turnover, the price index decreased by1.27%. NDB Stockbrokers linked the latter to a Rs. 30.50 dip in Central Finance to close at Rs. 1,368.50. However apart from HNB, private sector leader Commercial Bank also dipped by Rs. 5.80 to Rs. 268.
Alufab braves the band
Alufab Plc yesterday braved the Securities and Exchange Commission (SEC) imposed 10% price band with its share price gaining further mid-day from Monday’s all time high though closing marginally lower.
The Company’s stock price peaked to a high of Rs. 106.70, beating Monday’s all time high of Rs. 100 before closing at Rs. 94.20, down by Rs. 2.80 from Monday’s closing of Rs 97. The movement within the band was on a thin volume of 109,300 shares.
source - www.ft.lk
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