Business Times

Colombo bourse under a cloud

By Elton P. Ebert

Despite global stock markets coming under strain, Facebook is venturing out with a US$5 billion IPO much in contrast to our share market which is still languishing in despair, aggravated by the spate of holidays.

On Friday when trading closed at 12 noon the turnover was a paltry Rs 420 million, the dull sentiment attributed to the holiday fever. Some clients were informed that many brokers and Fund Managers are utilising the holidays (if one day's leave is taken on Monday, it becomes a 4-day weekend) to go out of Colombo. The IPOs that were on the agenda have been placed on the backburner as a result of the depression at the Colombo bourse and the fact that the prices of last year IPOs like Textured Jersey are now at Rs 8.10, Expolanka at Rs.6.90, Browns Investments at Rs 3.60 and Softlogic Holdings at Rs.14.60.

These losses and the margin calls are detrimental to the current market. This sentiment has been prevalent for the past few months, interpolated by sudden jerks of a few days of upward movement just like what was evident last week with the foreign buying of JKK. A segment in the market expects some improvement to be visible following the Central Bank's ruling allowing foreign owned firms to do margin providing.

Most companies have reported nourishing growth numbers. Ceylon Tobacco has reported a profit after tax of Rs.6.6 billion for the last year of which an astonishing Rs.6 billion went to the state! This was an increase of Rs.9.5 billion over the figure last year.

The price of this share has been hovering around Rs.500. In response to the healthy earnings released by NDB Bank, around 2.8 million shares were transacted on Monday with a moderate price improvement seen, but that proved to be temporary. It closed for the week at Rs.126.

Haycarb and Keells Hotels also released good figures, the closing price for the former being Rs.139.80. In an exercise depicting future growth, Chemcel Ltd, a subsidiary of Chemanex which is under the CIC Holdings umbrella had a soft opening of the company's Carboxy Methylated Starch extrusion plant on January 28 at Mirigama in the EPZ using patented technology from US firm Archer Daniels Midland. Chemanex shares are rarely traded, unlike CIC Voting and Non-voting. CIC Voting shares were at Rs 98.90. Asia Asset Finance continued to remain in the active list for another week, although on a reduced scale, its closing level being Rs. 5.90. Regnis Lanka came into the picture after a long absence with a gradual price improvement reaching Rs. 353 and cooling off to Rs. 339.80 on Friday.

A high volume of around 27 million shares were transacted in Acme Printing for four days of the week, with a daily price improvement until Thursday when it reached Rs. 34.50, but suddenly veered down to Rs 23.70 surprising many. Commercial Bank Voting and Non-voting shares were moderately active. Analysts expect favourable earnings figures.

Environmental Resources Investments Warrants W 00002 came in for a hefty transaction during the week. A continuous rise was noticed in Swarnamahal Financial Services and the stock was Rs. 157.50 at close.

Changes in Directorates: Vallibel Power Erathna - S. Shanmuganathan was appointed a Non-Executive Director from 25th January; Swarnamahal Financial Services - Ms Soma Edirisinghe resigned as Chairperson and her son, Jeewaka Edirisinghe appointed to this position on 31; Sampath Bank - D. Sooriyaarachchi was appointed alternate Director to Prof. K A Malik Kumar Ranasinghe; Hayleys MGT Knitting Mills - Dr Emerick Fernando was appointed as Executive Director, and Haresh Somsahantha and Nandajith Somaratne as Non-Executive Directors.

The weekly turnover was Rs.4.9 billion, much lower than the Rs. 6.7 billion registered last week. Both indices were also disappointing, the All share Price Index losing 139.34 points or 0.125% to end at 5586.10 while the Milanka was 108.78 points or 1% lower at 4813.03.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Two major conglomerates in the fray to buy Golden Key Hospital
CB seeks clarity from IMF on interest rates
SL's Expropriation Bill: A thorn in US funding
Textured Jersey plans new unit here or abroad
New operator sought for India-SL ferry service
Comment - Helping local creators cum entrepreneurs
On stock misfortunes and expert explanations
World faces a 600 mln-jobs challenge, warns ILO
Addressing the brain drain: To return or not?
Sri Lanka’s top driving school ventures into Social Network Marketing
Microimage to showcase best in HR technology and services
Australia’s IIBT to use Sri Lanka as base for South Asia
Sri Lankan-led Beijing firm to light up rural homes
Should top, retired Central Bankers join private institutions under their supervision?
Global volatility may affect SL bank assets : Fitch
Judicial independence and judicial bias
Inflation fell last month
Banking sector buoyant for 2012
2% SL GDP growth lost due to corruption : Top economist
Business Community to pass the pillow on AIDS awareness
Basic guide to shipping and exporting (products)
Sri Lanka objects to ‘Carbon footprint’ and “Water print” proposal as requirements for future tea exports
Expolanka Holdings reports post-tax profit of Rs. 903 mln in latest review
BIA to handle 15 million passengers by 2015
Weaving a tale of life, commitment and entrepreneurship
Sri Lanka's first LPO conference opens on Thursday
Aviation policy to boost air cargo, transshipment
CB, SEC considering T-Bills and bonds index
Proposal for Govt. research scientists to resort to ‘private consultancies/practice’ like state doctors
Master plan for Colombo transport includes pedestrian path planning
LOLC’s strong commitment to renewable energy recognized
New food regulations permit added substances to bread
Government to assist Sri Lankan inventors to explore foreign markets
Sampur coal power project to proceed under Indian pressure
Government pledges that it will never privatize Sevanagala Sugar Co. again
Colombo bourse under a cloud
Next attraction for Chinese tourists in Sri Lanka: Zheng He
Central Bank unveils second memorial for bomb victims


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution