A billionaire businessman buying two million shares in the highly capitalized and well diversified JK Holdings may be the tip of an iceberg, according to some leading business personalities. Some also think that a businessmen of the calibre of Harry Jayewardena with enormous resources and such entrepreneurial expertise is not going to waste his time in a sporadic purchase. This may be the gradual foray into JK Holdings, perhaps with the intention of combining the two companies into one big giant organization somewhat similiar to what has taken place in the West. Presently his holdings in JK Holdings (which drew extra attention this week) is estimated to be around 2.2%.
Another important factor was the provisional approval for the Cargills Agricultural and Commercial Bank. This is also a prudent decision because all the widescale group banking could be channelled to this new bank.Once this bank is established it will mean that this Group has covered all the commercial aspects of thiscountry. The market response to this announcement was the price improvement in both CT Holdings and Cargills. Over a million shares in CT Holdings were transacted on Thursday. It may be possible that in due course they would have to come out with an IPO after they have made a private placement!
In another development Amana Takaful is listing its subsidiary in the Maldives. This may be the reason for the massive transactions that have taken place recently. On Monday over 47 million shares were transacted. East West Properties which experienced heavy dealings of late has now entered the media industry with its purchase of a 51% stake in Peoples Media Network (pvt) Ltd.
Meanwhile Trade Finance & Investments Ltd will be listing on the Diri Savi Board 6 million ordinary shares at Rs. 20. Two recent IPOs which disappointed its subscribers, Browns Investments and Textured Jersey Lanka, made up for the losses this week, the former reaching Rs.6.50 midweek in very heavy dealings while Textured Jersey Lanka hit its highest of Rs.15.70 but retreated later on. Browns Investments announced an interim dividend of 10 cents per share this week, closing for the week at Rs.5.50. Blue Diamonds voting and non voting shares were transacted in unusual quantities and at high prices. Over 173 million Non Voting shares were transacted on Monday providing a boost to the days turnover. Seylan Merchant normal shares and warrants also provided the numbers.
Substantial dealings were also effected in Panasian Power, Free Lanka Capital Holdings, PC House and Renuka Agri, which rose to Rs 7.90 on Thursday, and advanced to Rs 8.10 the next day but declined. Ascot Holdings created many ripples when it escalated to Rs 155 before closing at Rs 150, while a similiar shock was in Associated Motor Finance when it reached Rs 590 also on Friday.
The ASI was above the 7000 mark for a fleeting moment on Thursday as well as on Friday but unable to pass this barrier.Will it overcome this obstacle next week ?
Pelwatte Sugar Industries will be having an extraordinary general meeting on September 30 with a view to approving a RIGHTS Issue to raise Rs 300 million.
PRICE BANDS: Imposed on Ceylon Tea Brokers from September 7-13 and on Blue Diamonds Non Voting, E.Chanelliing and Seylan Merchant Bank Warrants W0016 from September 6-12.
It was removed from Acme Printing & Packaging on September 9.
DIRECTORATES: First Capital Holdings PLC -- Lalith de Mel was appointed as Director and Chairman and Eardley I Perera as a Director; Asian Alliance Insurance PLC Resignations - H L L M Nanayakkara, S A Abeyesinhe, R.J.Wickramasinghe and Daya Muthukumarana. Ms D.P.Pieris’ position as alternate director to H L L M Nanayakkara was also revoked. Appointments as Directors effective 7th September 2011(Subject to approval by the Insurance board of Sri Lanka) -- Asoka. K. Pathirage, T M Iftikar Ahamed, Sujeewa Rajapakse, Ranil P Pathirana and Suraj N Fernando.
Turnover for the week was Rs.19.7 billion almost similiar to last week when it was Rs 19.3 billion but that covered only four working days.The All share Price index was 49.72 or 0.07% better than last week at 6990.33 while the Milanka was just 10.19 points or 0.01% lower at 6286.93 |
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