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Thursday, July 7, 2011

Bourse ends positive for second straight day

= Heavy trading of Expolanka, below IPO price

= Textured Jersey Rs. 1.2bn IPO opens today with strong broker backing

= Lanka Orix Finance shares to trade today, price set at Rs. 5

The Colombo Stock Exchange inched up marginally to close on a positive note for the second straight day on Wednesday with retail interest on speculative counters and high net-worth individuals and institutional investors showing interest on selective counters, brokers said of an otherwise dull day.

The All Share Price Index moved up 21.27 points to close 0.31 percent higher at 6,884.06 while the Milanka Price Index of more liquid stocks closed 0.28 percent higher, up 18.23 points at 6,467.81 with 102 counters closing on a positive note while 84 counters closed in the red.

Turnover reached Rs. 1.02 billion on a little more than 53.5 million shares changing hands on Wednesday. Foreign investors were net buyers with a net inflow of Rs. 76 million.

"The overall market activity took a quit stand today, however both indices closed on marginally positive note. We saw retail investor interest towards the speculative penny stocks. However, institutional and high net-worth individual investor interest was evident on selective stocks," Bartleet Mallory Stockbrokers said.

"Thin buying interest across most sectors pushed the indices higher amid low activity levels," John Keells Stockbroker said.

The highest contributor to the day’s turnover was Expolanka Holdings, generating a turnover of Rs. 108.7 million with 7.89 million shares changing hands to be the highest traded stock on Wednesday as well. There was one crossing of 5 million shares at Rs. 13.80 each. The stock closed at Rs. 13.60. Expolanka’s IPO price was Rs. 14.

Touchwood Investments generated a turnover of Rs. 53.3 million to close at Rs. 28.

Commercial Bank contributed Rs. 42.5 million to the day’s turnover and saw a crossing of 100 thousand shares at Rs. 260 each and the stock closed on the same price.

Lanka Orix Finance Company will begin trading today and an indicative price has been set at Rs. 5 per share, the company said in a stock exchange filing.

Textured Jersey Lanka (Pvt) Ltd’s Rs. 1.2 billion initial public offering of 80 million voting shares, opens today at Rs. 15 per share. Several brokers have recommended the issue for investment.

John Keells Stock Brokers, Taprobane Securities, Arrenga Capital Research, Asia Wealth Management, New World Securities, SC Securities, Asha Phillip Securities, CT Smith Stockbrokers, Bartleet Mallory Stock Brokers and Acuity Stockbrokers Research, had issued research reports to the lead up to the IPO recommending their clients to subscribe to the issue.

In a stock filing yesterday, Vallibel One said it used a lottery process to allocate shares to applicants after having followed allocation recommendations issued by the regulator the Securities and Exchange Commission of Sri Lanka.

"As announced earlier a minimum allotment of 100 shares and a pro-rated allocation of 34.21 percent of the balance was made to retail category investors. Due to rounding of allotments to the nearest 100 shares, there remained an excess of 178,800 shares available for allotment within the retail category. The said shares were allotted as follows, an additional fixed allotment of 100 shares each per applicant was made on account of all 1,625 valid applicants who had subscribed for between 3,100 to 4,000 shares, amounting to a total of 162,500 shares leaving a balance quantity of 16,300 shares," the company said.

"There were 410 valid applicants who had subscribed for 3,000 shares each. A lottery process was used to select 163 applicants out of the said 410 applications. The selected 163 applicants were allotted an additional fixed allotment of 100 shares," it said.

Overall, the retail individual investor category were allotted 9,855,900 shares out of the total 23,152,100 shares applied for, non-retail investors got 8,524,870 shares from the applied for 217,900,600 shares while the unit trust category received a 100 percent allocation of their applied for 800 thousand shares and employees received 2,131,100 shares out of an applied for 3,928,200 shares.

source - www.island.lk