What was the reason for the sudden change of stance over the 30th June debt clearance deadline by the Securities & Exchange Commission? Why, this decision, after so many were compelled to sell to meet the deadlines of 31st March 2011 and 30th June 2011, incurring losses, in some cases very heavy losses. A few are lamenting that in some instances the brokers sold their shares despite the client begging for a few days grace.
On the positive side, this extension of credit came at the appropriate time, when the market was bordering on a wave of depression, worsened by the controversy over the IPOs. Midway during trading when the ruling was made known, sentiment was on top gear with buyers flooding the market. The turnover, though a short week owing to the Wesak holidays, was a mammoth Rs. 3 billion and the ASI leaped 128 points to 7487. Twenty million shares of Asiri Hospitals and one million HNB helped to bloat the turnover. However the anticipated spin off did not take place, as the pace slackened the following day.
Galadari Hotels had a minor upside following news of the conversion of its 6.5 billion debt into equity. Among the other hotels, Miramar Beach rose to Rs 429 on Friday and Nuwara Eliya Hotels also touched Rs 1720 the same day. The sub division of shares by JKH was announced on Friday but there was a spate of announcements from stocks within the same group the previous week.
Another gigantic IPO is scheduled for next month. Vallibel One is offering 20 million shares at Rs 25, which is the same price, at which there was a very successful private placement earlier. This appears to be a wise move and no one should complain about its pricing. Also on the agenda, Softlogic Holdings Pvt Ltd is also expected to come out with its IPO next month.
In announcements, Gamini Bandaranayake has been appointed Managing Director of Kuriwita Textile Mills with effect from 16th May.
Trading during the three days produced a fairly high turnover of Rs 8.2 billion when compared with Rs 8.5 billion for the 5-day week earlier. The All Share Index improved 159.69. points or 2.1% to close at 7479.63, while the Milanka likewise was 110.63 points or 1.63% better when closing at 6879.99.
(Elton Ebert, our stock market weekly correspondent, can be reached at iepebert@gmail.com) |
E-mail
