Wednesday, February 29, 2012

Bourse down despite Rs. 5 bn. Aitken Spence deal

Insurance Corp. sells out to Melstacorp

The Colombo bourse declined yesterday for the second consecutive day despite a Rs.5 billion deal where Sri Lanka Insurance Corporation (SLIC) sold its long held stake in Aitken Spence at Rs.115 per share to Melstacorp Limited, a 100% subsidiary of the Distilleries Company of Sri Lanka.

The market closed with the All Share Price Index dropping 44.92 points (0.82%) and the Milanka down 33.96 points (0.71%) on a turnover of Rs.5.86 billion, up from the previous day’s Rs.616 million, with 124 losers comfortably outpacing 72 gainers.

Brokers and analysts said that the market was unable to sustain the previous week’s rally that ended a protracted slump.

"Most of the day the turnover was around the Rs.170 million range until the big deal went through in early afternoon trading," a broker said. "Other than for the Spence transaction and some big trades in Ascot Holdings and PC House, the market was virtually dead."

The General and Life Funds of the SLIC sold their Spence stakes by crossings – the General Fund selling slightly over 26 million shares (6.14%) and the Life Fund 18 million shares (4.43%).

SLIC was the fourth biggest shareholder of Aitken Spence and broking circles said that these shares had been available for some time. The deal went through above the Rs.112.83 mandatory offer by Melstacorp for Spence that is pending right now.

A total of 1.6 million Ascot was transacted at Rs.225, up Rs.47.20 from its previous close. The share however closed at Rs.206.40, gaining Rs.28.60.

A total of 5.2 million PC House was traded yesterday closing flat at Rs.10.90. Brokers said that Acme Printing and Packaging was also heavily traded gaining 50 cents to close at Rs.27.10.

source - www.island.lk

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