Holiday atmosphere but fair activity
Despite the approaching holiday season transactions in a few large parcels were effected helping in the turnover for the shortened 4-day week. Friday was a holiday owing to Poya and Good Friday
On Tuesday, transactions in over 8.5 million shares in Commercial Bank were concluded, the value of which exceeded 50% of the day’s turnover. Foreign buying accounted for the bulk of this quantity while Harry Jayawardena's Melstacorp made a dip into the bank’s stake.
The high networth individual sold these shares after he had received the cash dividend and the scrip dividend which was accruing until the 30th March. Another substantial transaction effected on the 1st day of trading for the month was the 45.3 million shares in Piramal Glass in which the EPF was the buyer promoting the fund to become the largest local stakeholder in Piramal Glass. Of late shares in this stock has seen increased buying interest. Some analysts envisage that glass will be preferred over plastic which may become expensive due to rising oil prices. The foreign appetite was further observed in transactions of over 1.7 million shares in another leading financial institution, Central Finance, on Wednesday as well as in the high dividend-paying Ceylon Tobacco which reached Rs 600 per share. To support the banking sector over 10 million shares in Union Bank were concluded on Thursday. Maybe some of these deals are rushed through because next week is also a curtailed week of trading.
Nestle Lanka improved to Rs.949.90 on Thursday and Ceylon Bewerage Holdings (Ceylon Brewery) was also at improved levels to reach Rs.350.
Shares in the leisure sector were also in focus this week. Over 13 million shares in Fortress Resorts were transacted on Wednesday being a portfolio adjustment and around two million shares in Keells Hotels were also transacted. On Thursday Asian Hotels & Properties gained to Rs 84, while over 2.7 million shares in Sigiriya Village Hotels were traded.
Hatton National Bank has been on a bright cycle! It received a B1 international credit rating from Moodys Investment Services becoming the first local bank to receive such an accolade. Last week the bank was successful in raising $50 million through a 5-year, long term loan from the China Development Bank Corporation.
Access Engineering which commenced trading last week is already below its IPO price of Rs.25. It dipped to Rs. 24.20 but closed at Rs.25.10 on Thursday. The majority of the retail segment and those who were trapped in the IPOS which had private placements at very low levels and had bitter lessons are very careful about new issues. Most of them escaped subscribing in Access Engineering although some brokers recommended the IPO. Analysts now conclude that for an IPO to be successful it should be at a sensible price and should have genuine subscribers.
Changes in directorates: Ascot Holdings – Vijay Malalasekera, N.A.DE Mel and Chanika de Silva resigned on 30th March while Asoka Weerasooriya and Senaratne Weerasinghe were appointed direc- tors on the same day; Aviva NDB Insurance - Upul Wijesinghe was appointed Deputy Managing Director on 1st April, Lal De Mel ceased to be a director, and Lee Patrick Callaghan and Deepal Sooriyarachchi were appointed Non Executive Non Independent Director effectives; Softlogic Finance and Softlogic Capital – S.A.B. Rajapakse has resigned as a director effective 15th April from both these institutions.
The turnover for the four days was Rs. 4 billion as against Rs 4.2 billion last week. The All Share Price Index was just 10.60 points or 0.1% lower at 5420.49 while the Milanka was almost unchanged at 4899.72.