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Friday, July 1, 2011

Bourse closes in the red on selling pressure, CSE down 10.8% from year ago

Finco Holdings divests 20 percent stake in Orient Garments
Central Finance announces capitalization of reserves, subdivision of shares

June 30, 2011, 10:11 pm

The Colombo Stock Exchange (CSE) closed in the red on Thursday as selling pressure continued to drive lackluster performance of the bourse.

The All Share Price Index closed 0.76 percent lower on Thursday, down 52.21 points to settle at 6,825.94 while the Milanka Price Index of more liquid stocks fell 1.32 percent, down 84.29 points to close at 6,301.02 on a volume of 72.01 million shares changing hands generating a turnover of Rs. 1.88 billion with 98 counters closed positive against 127 closing in the red.

The Colombo bourse has declined 10.8 percent during the first half of 2011 from a year earlier while, the Milanka has gained 19.4 percent, broker said. Year to date, the All Share Price Index was up 2.9 percent while the Milanka was up a sharp 48 percent.

Foreign purchases amounted to Rs. 85.81 million while foreign selling amounted to Rs. 319.9 million.

"Selling pressure continued to drive the indices lower amid moderate turnover levels dominated by large trades on Distilleries Company of Sri Lanka PLC (DIST) and Aitken Spence Hotel Holdings PLC (AHUN)," John Keells Stockbrokers said.

AHUN featured as the highest contributor to revenue with a turnover of Rs. 191.9 million, ending the day at Rs. 75, up 0.93 percent from the previous close, while DIST generated a turnover of Rs. 181.8 million to close at Rs. 179, down 0.11 percent.

"Lackluster performance was seen in the overall market except for a few blue chips, AHUN and DIST. With the first quarter results of most companies expected in the following weeks, there may be renewed interest on sound counters on the back of healthy results," Bartleet Mallory Stockbrokers said.

Volume wise, SMB Leasing PLC (SEMB) saw 11.3 million shares change hands before closing at Rs. 2.40 followed by Panasia Power PLC (PAP), which saw 9.9 million shares change hands during the day to close at Rs. 4.90.

The top price gainers were Commercial Development Company PLC (COMD), up 15.62 percent to close at Rs. 127 followed by Capital Development and Investment Company PLC (CDIC), up 10.06 percent to close at Rs. 358.90.

HARI fell 36.64 percent to be the biggest loser, closing at Rs. 1,900.10 followed by SEMB (W0016), down 20 percent to close at 40 cents.

Finco Holdings (Pvt.) Ltd announced on Thursday (30) that it had sold a portion of its holding of recently listed Orient Garments on Wednesday (29). It divested a 20 percent stake in the apparels manufacturer by selling 10.9 million shares at Rs. 28.07 each. Prior to the sale, Finco held a 80.98 percent stake in Orient Garments.

Orient Garments gained 21.3 percent to close at Rs. 27.90 on its debut at the Colombo Stock Exchange last Wednesday, from a reference price of Rs. 23. Altogether 15 million shares changed hands Wednesday, hitting a high of Rs. 40 and a low of Rs. 26.50 during the day. A stock exchange filing said a 16.4 percent stake in Orient Garments was bought by T. Senthilverl at an average price of Rs. 28.01.

Orient Garments lost 3.1 percent to close at Rs. 25.90 on Thursday with a high of Rs. 29 and low of Rs. 25.20 with 150,100 shares being traded during the day.

In a stock exchange filing on Thursday, Central Finance Co. PLC announced a subdivision of 20.3 million shares on a 5:1 basis resulting in the number of shares reaching 101.5 million. The company also said it was planning to issue 3.3 million new shares, 1 for 30 held, by capitalizing reserves amounting to Rs. 365.4 million. These measures are subject to CSE approval.

Peoples Leasing Finance PLC announced a change in name, to be now known as People’s Finance PLC.

source - www.island.lk