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Saturday, September 10, 2011

ERI parent Lionhart, PC House in win-win deal

In a seemingly mutually beneficial deal, ERI’s parent and PC House bought stakes in each other yesterday whilst overall investor interest on the two also boosted turnover.

ERI’s controlling shareholder Lionhart shed 1.5% stake or 4.5 million shares in ERI at Rs. 68 each as well as 5 million warrants at Rs. 32.60 each to PC House for Rs. 469 million. In turn PCH House major shareholder M. Rishan sold 9.6% stake or 22 million shares in the company to Lionhart at Rs. 22 each in a deal worth Rs. 486 million. The two counters overall accounted for slightly over 30% of the day’s turnover.

PC House saw 28.5 million of its shares traded for Rs. 611.25 million whilst ERI saw 6 million of its shares traded for Rs. 414 million.

PC House share price rose by 30 cents or 1.55% to close at Rs. 19.70 after hitting a peak of Rs. 20.60.

ERI purchase was done via crossing of 21.1 million at Rs. 22 each whilst the ERI block too was traded via crossing. The share price of Environmental Resources increased by Rs. 3.20 (4.75%) and closed at Rs. 70.10.

PC House embedded Information Technology sector was the main contributor to the market turnover and the sector index increased by 1.71%. The price index of Investment Trusts sector, under which ERI trades, dipped by 1.85%.

NDB Stockbrokers said ASPI and MPI closed marginally in red while for the week the ASPI declined by 0.11% and the MPI gained 0.80%. Yesterday turnover improved to Rs. 3.34 billion, up from Rs. 2.9 billion on Thursday.

Vallibel One saw nearly 7 million of its shares traded for Rs. 201.4 million whilst Blue Diamonds accounted for Rs. 163 million with 13.58 million shares traded and Renuka Agri produced Rs. 162 million turnover on account of 21.47 million shares traded.

United Motors (UML) traded actively which also was accompanied by a notable price appreciation of 12.45% (Rs. 19.20). A volume of 773,100 shares transacted during the day. UML closed at Rs. 173.40 for the day.

SC Securities said Foreign buying and selling was almost on par with each other with foreign sales amounting to Rs. 599.70 million against foreign purchases of Rs. 595.10, resulting in a marginal net foreign outflow of Rs. 4.6 million.

source - www.ft.lk