It was a story of continuous selling at the Colombo bourse. At the beginning of the year it was selling to meet the 31st March deadline, then to meet the 30th June deadline in which there was an abrupt change causing heartburn to many who sold their stocks before this deadline.
There was considerable selling to fund the stream of IPOs which kept the indices moving southwards, distancing itself from the highest level of 7811.82 achieved on 14th February 2011. The dip in the indices brings comfort to some foreign funds and a few high networth investors who can pounce on some bargains when available.
At present some are making arrangements for IPOs like Vallibel One which is offering 21 million shares at Rs 25. Extracting a massive Rs 4 billion from the market, Softlogic Holdings closed within minutes of its IPO opening on the 9th. All brokers will be kept busy tomorrow, 13th June when Expolanka will commence trading.
During the week Pan Asia Power caused many a ripple at the bourse as some of the high powered entrepreneurs took buying positions reflected by the volume of shares traded; 367 million shares on Tuesday and another 211 million on Thursday. Among the sellers were the Malaysian promotors. How many investors made a quick profit on this stock, and what level of profit did some of the prudent investors make?
While the dust was settling in Singer Sri Lanka, excitement was building up in Singer Industries. It reached the high level of Rs 455 on Friday. Speculation in Blue Diamonds moved its price to healthy levels, and both the voting and Non Voting shares were transacted in huge quantities. Alufab which announced a RIGHTS and private placement moved favourably touching Rs 140 on Friday. Pan Asia Bank which is now trading after its recent share split moved up to Rs 30.20 but eased off. A glance at the high value stocks and there is Kalamazoo at Rs.5499! and, Morisons Son & Jones Voting at Rs 3394. and the Non voting at Rs 2300. However Colombo Pharmacy went into erosion closing at Rs 2560.
Orient Garments will issue, through an introduction, 54,916,656 voting shares on the Diri Savi Board. Other registered financial institutions like Abans Financial Services Ltd will offer through an introduction on the same board 37 million voting shares, while Associated Motor Finance Co. Ltd will be offering 5,608,355 voting shares on the Diri Savi Board. There are a few more registered finance companies desperately trying to meet the Central Bank deadline of 30th June 2011.
Proce bands were imposed on Hunters, Alufab and Singer Industries while it was removed on Singer Sri Lanka.
Trading for the week improved, considering the turnover which was at Rs 19.8 billion as against Rs 18.5 billion. However both indices were disappointing, the All Share Index losing 165.84 points or 0 .02% to close at 7240.18 while the Milanka Index was 83.26 points or 0.03% lower at 6774.56. |
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