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, March 2, 2012

Share swaps between Dhammika & related companies buoys CSE

Royal Ceramics sell Hayleys and buys LB Finance

Share swaps between Mr. Dhammika Perera and related companies buoyed the Colombo bourse yesterday with turnover at Rs.2.6 billion, up from the previous day’s Rs.1.7 billion, and both indices up – the All Share by 11.59 points (0.21%) and the Milanka by 12.13 points (0.26%) with 122 losers outpacing 90 gainers.

Brokers said that big deals in Hayleys and LB Finance accounted for most of the turnover with Royal Ceramics (RCL) raising its stake in LB Finance to 25%, enabling accounting that company as an associate, and reducing its 7% stake in Hayleys to a modest 0.2 million shares by selling out to Mr. Dhammika Perera.

The Hayleys deals generated approximately Rs.1 billion which RCL used to beef-up its LB Finance stake. Analysts noted that these swaps were similar to what was done last week.

Mr. Dhammika Perera sold off his personal shares in LB Finance but Vallibel One which he controls continues to be the controlling shareholder of LB.

Brokers said that 2.7 million Hayleys were crossed yesterday at a price of Rs.380, the price at which Mr. Dhammika Perera made a mandatory offer for Hayleys recently, while 5.9 million LB Finance were crossed at Rs.150 per share.

Additionally around a million LB Finance were traded on the floor.

Brokers said that there were two crossings of Distilleries at Rs.137 per share while JKH where nearly 0.2 million shares were traded closed Rs.2.50 up at Rs.178.

Distilleries closed Rs.3.50 up at Rs.138.50 while Hayleys closed Rs.19.90 up at Rs.379.90 and LB Finance closed Rs.2.20 up at Rs.140.20.

"If you discount the crossings and the other big trades, the rest of the market was worth just Rs.330 million demonstrating low activity levels," a broker said.

Melstacorp where a mandatory offer for Aitken Spence is pending said that its purchase of 1.3 million Spence at Rs.115 had boosted the total holding of itself and parties in concert to 167.2 million shares comprising 41.18% of Spence.

source - www.island.lk