Wednesday, June 22, 2011

CSE falls to lowest since January

The Colombo Stock Exchange saw both indices fall as turnover dipped to Rs. 1.6 billion on Tuesday (21) with Vallibel One Ltd’s Rs. 532 million IPO being oversubscribed on the opening day.

The stock exchange was notified that the IPO of Vallibel One Ltd , an investment holding company controlled by Dhammika Perera, was oversubscribed minutes before 9 am. The issue was for 21 million shares at Rs. 25 each. Earlier this year, Vallibel One raised Rs. 4.9 billion through a private placement of shares which were also prices at Rs. 25 each. These funds will be used to construct a 300-room hotel in Negombo estimated at Rs. 5.6 billion as it plans to diversify into the leisure and power sectors.

The All Share Price Index dipped 0.63 percent to close at 6,996.64, down 44.04 points from the previous day while the Milanka Price Index of more liquid stocks fell 0.48 percent, down 31.86 points to close at 6,571.34 with 70 counters closing on a positive note and 127 counters closing negative.

"The day’s trading session opened on positive grounds but failed to maintain the momentum and closed in the red. Retail investor interest in low-valued stocks continued throughout the day. Speculative Interest was evident on East West Properties and E-channeling PLC. Specific interest was seen on finance sector stocks," Bartleet Mallory Stockborkerssaid.

John Keells Stockbrokers said the ASPI had fallen to its lowest level since January 2011, on the back of sustained selling pressure while activity levels remained driven by local investors.

Year-to-date the ASPI was up 5.44 percent while the Milanka was down 6.94 percent.

The Multi-Finance Company (MFL) was the biggest gainer during the day, up 20.82 percent from the previous to close at Rs. 37.10. The interest in the stock led to it being slapped with the 10 percent price band until June 28. A little more than 1.6 million shares changed hands.

Eastern Merchants (EMER) was the biggest loser down 25.92 percent to close at Rs. 1000.

Panasian Power saw 27.4 million shares change hands during the day, closing at Rs. 5.4, up 1.89 percent. East West Properties closed 16.15 percent higher at Rs. 15.1 with 11.8 million shares being traded.

In a stock exchange filling on Tuesday Softlogic Holdings said retail investors would receive their full allotment of shares. This category of investors had applied for 22.7 million shares. The Non-retail category had applied for 513.6 million shares but would receive only 84.9 million, two unit trusts will receive their full allotment of 3.5 million shares while employees would receive 27.8 million shares from the applied 37.9 million.

The stock exchange said it would permit Associated Motor Finance Company Ltd. To list 5.6 million shares by of an introduction while approving in principle Nanda Investments and Finance Ltd’s application to introduce 100.7 million shares as well.

Nimal Perera, Managing Director of Royal Ceramics PLC, controlled by Dhammika Perera, purchased over 3 million shares of People’s Merchant Bank, increasing his stake to above 10 percent, a stock exchange filing noted.

Citizens Development Bank announced it was planning a rights issue to raise Rs. 718.1 million to part finance leasing, hire purchase and loan disbursements for the financial year 2011/12 while improving its balance sheet. Its current equity capital stands at Rs. 396.8 million.

*Vellibel One IPO over subscribed

*Multi Finance attracts speculative interest, and price band

*Softlogic announced IPO allotment

*Two finance companies to introduce shares

*Nimal Perera increases stake in People’s Merchant Bank

*CDB in rights issue

source - www.island.lk

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