Bourse edges up; block deals boost turnover

Friday, 25 April 2014 03:20 - - {{hitsCtrl.values.hits}}

REUTERS: Shares ended a tad firmer on Thursday, led by telecom and banking stocks while block deals in George Steuart Finance PLC boosted turnover amid continued moderate foreign inflows into the island nation’s risky assets. George Steuart accounted for 30% of the day’s Rs. 1.13 billion ($ 8.65 million) turnover, the highest since 9 April, and more than this year’s daily average of Rs. 965.9 million. The stock soared 76.24% to Rs. 53.40. The company said in a disclosure to the bourse that its largest shareholder, Divasa Equity, sold 11.4 million shares, or 50.8%, to George Steuart & Company Ltd. at Rs. 28.80 a share. Sri Lanka’s main stock index rose 0.09%, or 5.36 points, to 6,178.13. The bourse saw net foreign inflows for an 11th straight session with offshore investors buying Rs. 355.8 million worth of stocks, but they have sold a net Rs. 7.23 billion of shares so far this year. Lower interest rates have helped the market gain in the past weeks, also helping some retail investors, stockbrokers said.

George Steuart adds finance company as subsidiary

Divasa Equity Ltd. yesterday sold its 50.8% stake in George Steuart Finance PLC to George Steuart and Co Ltd., for Rs. 329 million. The parties to the deal are related.

The benchmark 91-day Treasury bill yield dropped to its lowest since January 2007, data showed on Wednesday, a day after the Central Bank kept policy rates steady at multi-year lows. Shares in Bukit Darah PLC rose 9.98% to Rs. 595, while Sri Lanka Telecom PLC rose 3.64% to Rs. 48.40. Commercial Bank of Ceylon PLC, the nation’s biggest listed lender by market capitalisation, rose 0.39% to Rs. 127.30. Stockbrokers expect the nation’s bourse to gain in the short term due to prevailing lower interest rates. Analysts, however, said foreign investors could shift from the island nation’s risky assets depending on Sri Lanka’s moves in an international probe by the Office of the United Nations’ High Commissioner for Human Rights into the country’s alleged war crimes and human rights abuses. Sri Lanka’s Foreign Minister had said earlier this month that the country would not cooperate with the inquiry.