The Colombo share market in March saw a host of activities such as acquisitions, resignation of directors and large negotiated deals while hitting a highest ever point last month with some analysts saying that the month saw some high levels of price sensitive activity when compared to the recent past in stock market history.
“March 12 saw the All Share Index reaching a high of 3844.84,” an analyst said, adding that some state institutions were mainly behind this surge in the indices. This week on April 7 saw the index rise further to 3,909.61, the highest on record.
“Ahead of the polls the government wanted to send a strong message to the market which was why many state entities were lapping up some major entities on Tuesday and Wednesday,” he said.
However some say the market is slated to grow in leaps and bounds now that the war is over and when considering the flow of activities and announcements made by the listed firms during March.
All five Initial Public Offerings (IPOs) seen after the war were oversubscribed. This is a good indication that the economy is taking off, said Udayasri Kariyawasam, Chairman Securities and Exchange Commission recently.
The last IPOs offered were, Capital Reach Holdings, Hemas Power, Ceylon Tea Brokers, Raigam Wayamba Saltern, the last named establishing a record with 19.5 times oversubscription, and Vallibal Finance.
Early March saw Ceylinco Insurance, battered by its group company Golden Key’s crash, announce their turnaround with a 42% growth in its profits with Rs. 691.8 million for 2009.
The NDB Bank announced a share option plan for its employees, while Lanka Cement, for the first time in three years, posted a Rs. 1.5 million profit for last year against a Rs. 1 million loss in 2008. March also saw Fast Gain International, a foreign firm buying 19.35% in Asian Alliance an Asia Capital subsidiary.
Sri Lanka Accounting and Auditing Standards Monitoring Board appealed against Touchwood’s Court decision.
Hayleys PLC bought Ceylon Continental’s 51% on March 14, while it sold 10% in Light House Hotel to Employee’s Provident Fund (EPF). The Lankem Group bought C.W. Mackie’s while the Softlogic Group raised Rs 1 billion in a private placement to strengthen their network and also retire their debts. NDB's state stake is estimated to have gone up to nearly 25% and the bank saw its former chief executive Eran Wickramaratne stepping aside to go into politics with Sri Lanka's main opposition and was replaced by Russell de Mel, another career banker.
Later NDB Bank said directors Nihal Welikala, Lal de Mel and G C B Wijeyesinghe would not stand for re-election "to enable certain shareholder interest to be represented on the board of the bank." However at its Annual General Meeting these positions were not filled.
Aitken Spence Hotel Holdings on March 19 acquired 100% in Golden Sun Resorts for Rs 350 million. Distilleries Company announced its associate Madulsima Plantations’ owned Kirkoswald Estate in Bogowanthalawa will house a 4000 kilo watt capacity, Rs 750 million hydro power plant through Distilleries’ subsidiary Bogo Power. Bogowanthalawa Tea Estates said that it is negotiating a Joint Venture with a US firm for the supply of packaged tea.
The Lanka Milk Foods owned Ambewela Products on March 25 said that it has started producing yoghurt, cheese and also flavoured milk. |
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