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.

Wednesday, April 4, 2012

Big seller of Com Bank disposes further 8.5 million shares

* Bourse edges down but turnover tops billion

* SEC re-imposes restrictions on warrants

Six crossings yesterday in the voting shares of Commercial Bank involving a total of 8.5 million shares at a price of Rs. 100 per share helped boost turnover on the Colombo bourse to Rs. 1.53 billion, up from the previous day’s Rs. 694.6 million, though both indices were marginally down - the All Share by 13.33 points (0.25%) and the Milanka by 2.78 points (0.06%) with 65 gainers trailing 127 losers.

The Com Bank crossings contributed Rs. 850 million to the day’s turnover, and with a crossing of nearly 0.4 million JKH at Rs. 210 generating a turnover of Rs. 83.3 million, yielded most of the day’s business volume.

Brokers said that the Japanese bank which acquired the Com Bank stake sold by the DFCC Bank on a regulatory direction was the seller. This investor who is estimated to have some 1.5 million Com Bank shares left has been selling at the Rs. 100 price recently. There was no word on the buyer/s.

Apart from the Com Bank crossings, over 0.3 million shares of this counter were done on the trading floor, closing 70 cents up at Rs. 100.

Swarnamahal Financial Services was the second biggest business generator yesterday with retail activity evident in the counter where 9.8 million shares, were traded closing 10 cents up at Rs. 9 contributing Rs. 89.6 million to turnover.

JKH also saw nearly 0.3 million traded on the floor closing 60 cents up at Rs. 209 contributing Rs. 53.3 million to turnover.

Cargills with 0.1 million shares transacted closed Rs. 3.70 up at Rs. 175 while Keells Hotels, with a block of 1.9 million shares crossed at 12.70 and nearly 0.8 million done on the floor, closed 10 cents up also at 12.70.

The SEC announced re-imposition of restrictions on extending trading periods on warrants saying this had been done after considering the impact on investors in the secondary market due to actions taken by some listed companies relating to warrants.

Under the listing rules of the CSE, a listed company is required to announce to the market terms and conditions of warrants at the time of their issue, the SEC announcement said.

"The terms and tenure of a warrant is determined by the risk attached to such financial instrument," it explained. "Thus the warrant holders should not be allowed to transfer the risk attached to the terms of such warrants after the risk event has occurred, by extending the cut-off date."

source - www.island.lk