CSE turns negative; 24% stake worth Rs. 4.4 b of Overseas Realty dominates in foreign crossing

Wednesday, 18 September 2019 00:00 - - {{hitsCtrl.values.hits}}

The Colombo stock market turned negative yesterday, whilst turnover soared to Rs. 4.6 billion, singularly owing to a foreign-to-foreign crossing of 24% stake in Overseas Realty (Ceylon) PLC.

Around 299.5 million shares of Overseas Realty were traded at Rs. 14.70 via two crossings, generating a turnover of Rs. 4.4 billion. The stake, amounting to 24%, is held by Jiangsu Tao Shing Pee Education Foundation, linked to Singapore tycoon and company founder and Chairman S.P. Tao.

The stake was bought by Shing Kwan Ltd (11.47%) and Peeli Ltd (12.62%) who are said to be related parties to the seller. Shing Kwan Investment Ltd is the major shareholder with 38.43% stake.

That apart, the Bourse was lacklustre, with the ASPI down 0.29% or 17.07 points, while the S&P SL20 Index declined 0.76% or 21.36 points, according to Acuity Stockbrokers.

First Capital said, “ASPI surged during the first 30 minutes of trading to reach 5,834, thereafter, tumbled downwards to the day’s low of 5,805 prior to closing at 5,811, losing 17 points.” Foreigners continued to be the net seller for the 12th consecutive day amidst high foreign participation, it added.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Melstacorp, John Keells Holdings and LOLC Holdings. “Mixed interest was observed in Sampath Bank and Ceylinco Insurance, whilst retail interest was noted in Browns Investments,” it added.

The Banks, Finance and Insurance sector was the second highest contributor to the market turnover (due to Sampath Bank and Ceylinco Insurance) whilst the sector index decreased by 0.19%. The share price of Sampath Bank lost Rs 1.50 to close at Rs 156.60. The share price of Ceylinco Insurance moved down by Rs 2.80 to close at Rs 1,854.20.

Dialog Axiata and Richard Pieris were also amongst the top turnover contributors. The share price of Dialog Axiata closed flat at Rs 10.60 and that of Richard Pieris declined 1.96% to close at Rs 10.00.

LOLC Securities said during the day, losers surpassed gainers, 78 to 33.