Friday, March 2, 2012

Related party deals boost Bourse

A fresh round of related party transactions involving Hayleys, Royal Ceramics and LB Finance yesterday boosted the Colombo Bourse’s turnover to Rs. 2.6 billion but the rest of the market was inactive with only 27.4 million shares traded and modest gain of indices.

“Despite intra-day volatility, the Bourse managed to remain in the green during most of the day’s trading as the benchmark index fluctuated between a high and a low of 5,484.3 and 5,465.1 points, before settling to close with a marginal 11.6 points gain at 5,469.7 points,” Arrenga Capital said.

“The day saw a mere 27.4 million shares being traded, despite the turnover was surging above Rs. 2.5 billion triggered by few large deals which took place during the day. Hence, nearly 81% of the total market turnover was taken up by a number of large-sized transactions which took place in Hayleys, LB Finance and Distilleries,” it added.

Conglomerate, Hayleys, continued to witness active institutional and high net worth participation as the counter registered six crossings accounting for circa 2.7 million shares being traded at a set price of Rs. 380 per share, which is identical to the price at which the three deals that took place in the counter over the last week. Following the deals, the counter closed the day at Rs. 379.9, advancing by 5.5%.

 Finance sector player, LB Finance, also continued to see large-sized parcels following its related company, Royal Ceramics increasing its stake in LB Finance during the last trading week. The counter registered further 6 privately handled deals being drawn at a set price of Rs. 150 (8.7% premium to the yesterday’s closing price).

 The crossing totalled to circa 5.9 million shares (a stake of around 8.5%), where the counter saw another large transaction carrying of one million shares being handled in the market, again at Rs. 150 per share. It closed the day marginally in the green at Rs. 140. Significant buying interest was also evident in Vallibel One and Royal Ceramics trading at attractive valuations.

 Further two crossings were recorded in another conglomerate Distilleries, which totalled to nearly 1.4 million shares, being handled at Rs. 137 per share each.

 Food & Beverage sector player Nestle Lanka also marked its appearance on the crossings board, as it saw a single block of 25,000 shares being dealt at Rs. 925.0 per share (2.5% premium to previous closing price).

 Following Access Engineering buying into Sathosa Motors yesterday, the counter advanced by 3.5% to close at Rs. 235.3. Heavyweight, John Keells Holdings, continued to see its price appreciating further as it closed with a 1.4% gain at Rs. 177.9.

 Retail play was observed in Regnis, PC House and Acme Printing & Packaging.

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