The dreaded 31st March ‘tsunami’ (deadline) passed, finally, but not without causing destruction at the Colombo bourse and to a section of its investors. Some expected the indices to take a heavy fall on the last day of the month but on the contrary a minor revival took place and extended to the next day, April 1 more emphatically as confidence returned to the market.
Among the developments during the week, the Banking and Finance sector moved into prominence with the debut of Union Bank on Tuesday when over 17 million shares were transacted between Rs 45 and Rs 38. Its price slipped as the week progressed but it made a minor recovery to end at Rs 36.50. The EPF purchased 4.5 million shares in Commercial Bank equivalent to a 1.2% stake, at a cost of over Rs.1.1 billion, which brought into the board, government nominee Lakshman Hulugalle. Later in the week Sampath Bank caught the fancy of a foreign investor, with a purchase of around 2.3 million shares, the seller being a high networth investor. Central Finance continued to generate interest with its price directed northwards.
Melstacorp, a Harry Jayawardena company, has made a mandatory offer at Rs 27.50 for the balance shares in Pelwatte Sugar Industries, but will this achieve any result, with the current price of the share being above Rs.27.50? .
t closed on Friday at Rs.33. Meanwhile, although the Dhammika Perera/ Royal Ceramics combine received less than 0.1% following the mandatory offer, they are unconcerned as they have on their agenda, plans to exploit the full potential in the well established and highly diversified Hayleys, overcoming all obstacles. Hayleys rose to Rs 395 but ended at Rs 391 on Friday. Guardian Capital Partners which is now under the price band recovered gradually from its depressed level and on Friday was pegged at Rs 319.60 because of the 10% limit. It should improve by another 10% on Monday. PC House, Pirarmal Glass and Richard Peiris had their usual following.
Directors Commercial Bank – Ranjit Fernando withdrew from the post of Director prior to considering his re-election by shareholders while Dinesh Weerakoddy was reappointed. Lakshman Hulugalle was appointed to the board. The All share Price Index ended at 7377.22, an increase of 136.95 points or 0.18% while the Milanka was 0.2% or 186.61 points better at 7024.63. The weekly turnover at Rs.9 billion was comparatively lower than the Rs.12 billion last week.
(Elton, our regular columnist on the stockmarket, could be reached at iepebert@gmail.com
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