Mega IPOs, a multitude of RIGHTS issues and the deadlines on credit restriction of March 31 and June 30 were the main factors which pushed the Colombo stockmarket indices into dire straits.
For most of the year the indices have been in the southern direction. There is some hope that the new quarter may bring in a turn of fortune. Many suffered losses due to the March 31- June 30 deadline (which was suddenly altered) since brokers followedstrict credit control and in some cases shares were sold without any prior warning to the client.
This created an unpleasant relationship detrimental to the market expansion and growth, as depicted by the current trading pattern.
There was another segment caught up in the sad story of Expolanka and Free Lanka Capital, whose current prices are below its issued sale price. Someone in the market mentioned that this is a story of Robin Hood in reverse and this statement is often repeated when the retail clan gets together for any discussion. Therefore drawing these losers back into the market may be almost impossible. Owing to the prevailing market depression, some companies have put their intended IPOs on hold but Textured Jersey Lanka Ltd is on schedule with its 80 million voting share issue at Rs 15,which also should close on day one based on its pricing. There should be no controversy or arguments since its private placement was also at this price.
There was a category of analysts who mentioned that prices were too high, and foreign investors were postponing investments hoping for an easing off in prices. Maybe this is the climate for them to take positions. However foreign selling has been characteristic for the past few months.
Shareholders in Softlogic Holdings should have their shares credited to their CDS accounts by July 7 and trading should commence a few days later. Vallibel One which was oversubscribed almost 12 times, has moved further into the garment export area through Orit Apparels, besides their hold already in Hayleys MGT (during Dhammika Perera). Are they attempting to create a heavy impact in this sector with all the resources available?
As was expected Central Finance came out with its share split but it did not experience a price escalation because this was already factored in.
Institutional activity was prevalent in Central Finance, Ahungalla Hotels and Aitken Spence. A sudden burst of activity was seen in Environmental Resources Investments’ normal shares and its warrants. Amana and Panasian Power were again in the fancied lot. From the high price illiquid category E B Creasy was at Rs 2200 and J L Morison Sons & Jones Voting shares at Rs 4000.
Orient Garments commenced trading on Wednesday when over 15 million shares were transacted, its highest price for the day being Rs.40.
A massive 2.8 billion shares in Lanka Orix Finance Co. Ltd will be issued by way of an introduction on the Diri Savi Board .
Changes in directorates: HAYLEYS - Lalin Tusith Samarawickrama, Ranil Prasad Pathirana and Don Saddhamangala Goonatilleke were appointed independent directors.
Central Finance - Messrs M.S.Wijenaike, G.C.B. Wijesinghe and Mrs C Kiriella resigned from the board of directors and the following were appointed: Chandima Lalith Kumar Perera Jayasuriya, Dhammika Prasanna De Silva and Sunil Wickramasinghe.
Pelwatte Sugar - M J C Amarasuriya resigned from the board as chairman. on 28th June 2011.
JKH - Anthony Ranjit Gunasekara was appointed to the Board of directors.
Turnover for the week of Rs 10.4 billion was an improvement from last week’s Rs.8.8 billion. However the indices continue to disappoint with the All Share Price Index losing 47.54 points or 0.6% to close at 6844.71 while the Milanka Price Index lost 94.67 points or 0.1%, closing at 6344.43 |
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