Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Friday, February 24, 2012

Bourse continues to rise on back of heavy trades in LB & Hayleys

* Share swap between Dhammika companies

The upward momentum on the Colombo bourse continued yesterday with both indices rising sharply on a turnover of Rs.3.7 billion, up from the previous day’s Rs.1.52 billion, largely on account of heavy trades in LB Finance and Hayleys.

Brokers said that there was a share swap between Hayleys and LB Finance where Mr. Dhammika Perera has substantial stakes with Royal Ceramics, also a Perera controlled company, selling 7% of Hayleys to Perera and using the cash generated to buy into LB Finance from Perera.

A substantial volume of LB Finance was crossed at a price of Rs.150 while the big blocks of Hayleys changed hands at Rs.380 also by way of crossings.

Well informed sources said that Perera paid the Rs. 380 mandatory offer price for the Hayleys stake while Royal Ceramics paid Rs. 150 for LB Finance.

The All Share Price Index was up 86.63 points (1.60%) and Milanka by 70.44 points (1.49%) with 154 gainers leaving 63 losers trailing.

LB Finance closed 20 cents down at Rs.145 with nearly 7.4 million shares traded between Rs.144 and Rs.151 generating a turnover of Rs.1.1 billion while Hayleys closed flat at Rs.380 on over 2.8 million shares done between Rs.379.80 and Rs.380 contributing Rs.1.07 billion to the day’s turnover.

Analysts noted that the transaction value of both counters yesterday were approximately Rs.1 billion each.

Apart from LB Finance and Hayleys, Aitken Spence attracted interest with nearly 4.5 million shares done between Rs.115 and Rs.115.80 closing 50 cents down at Rs.115.

"There appeared to be foreign interest in the share," a broker said.

JKH continued its upward trend closing Rs.3.30 up at Rs.178 with over 0.4 million shares done between Rs.173 and Rs.178.

Other shares that showed both volume and price gain included ERI up 10 cents to Rs.22.20 on over 3.1 million shares, Colombo Fort Land up Rs.4.60 to Rs.40.10 on over 1.2 million shares and Vallibel One up 50 cents to Rs.21.30 on over 1.9 million shares.,

Royal Ceramics was down 50 cents to Rs.154.50 on over 0.2 million shares done between Rs.124.50 and Rs.129.

Pegasus Hotels announced the dates for its forthcoming rights issue of one new share for every nine existing shares priced at Rs.36.50 with an EGM scheduled for March 20 to obtain shareholder approval. The share will trade XR from March 21 and provisional letters will be issued on March 26.

Textured Jersey announced a dividend of 12 cents per share for 2011/12, XD from March 5 and with payment on March 15.

source - www.island.lk