CSE posts second highest turnover in history
Colombo stocks recovered on Thursday after recording the biggest fall since the April 21 attacks in 2019 when Malaysia’s sovereign fund Khazanah Nasional’s Broga Hill Investments Ltd sold its entire 10.8 per cent of John Keels Holdings (JKH) in a Rs. 22 billion deal to Canada’s Fairfax Financial. Broga Hill was the second largest shareholder in JKH, behind high networth investor, Sohli Captain’s 11.4 per cent.
The turnover was a staggering Rs. 23.6 billion which is the second highest turnover next to the Japan’s Nippon Telegraph and Telephone Company (NTT) selling its 35.19 per cent stake of Sri Lanka Telecom (SLT) for Rs. 32 billion, the biggest ever single transaction in the Colombo Stock Exchange’s (CSE) history in November 2008.
JKH’s 141.8 million shares were traded at Rs. 160 each. Fairfax Financial, a leading insurance company that is part of the Canadian-based Fairfax Group. Serving individuals, businesses and institutions across this beautiful island, the company offers its out-of-the-box solutions via a versatile workforce, entered Sri Lanka in 2013 through HWIC Asia Fund, collecting 15 per cent in JKH subsidiary Nations Trust Bank. Now it has 3 per cent amounting to 39 million shares of JKH through HWIC Asia Fund and was the sixth largest shareholder as at September 30 last year. HWIC Asia Fund bought 2 per cent in the conglomerate in 2015 and subsequently increased the stake.
Two months ago, Perm Watsa, Chairman of Fairfax Financial Holdings along with other senior officials of the Fairfax Group visited the island and met with Fairfirst’s local shareholder John Keells Holdings, and their other invested companies, Nations Trust Bank, Fintrex Finance and Luxe Asia.
Broga Hill Investment Ltd entered Sri Lankan conglomerate John Keells Holdings (JKH) in 2012, buying an 8.8 per cent stake for $119.71 million.
Analysts were expecting shares to drop further due to the investor’s panic reaction after the face-off between Iran and the US, but this transaction saved the day.
The ASPI closed at 5,987.55, up by 1.5 per cent with the S&P index ending at 2,830.76, up by 1.74 per cent in the 4-day week.