CSE suffers sharper dip post JKH’s Rights move; Deals on Overseas Realty boost turnover

Despite crossing-led high turnover the Colombo stock market yesterday fell sharply reinforcing the agony of investors influenced by over 9% dip in John Keells Holdings post its rights announcement.

The active S&P SL20 declined by over 2% and the benchmark ASPI by 0.9%. Turnover was Rs. 3.96 billion due to four crossings worth Rs. 2.93 billion on Overseas Realty thereby accounting for 74% of the turnover.

During the month of July, the ASPI and the S&P SL20 lost 6.1% and 9.0% respectively, whilst recording an average daily turnover of Rs. 1.01 billion.

Overseas Realty in a filing to the CSE said third largest shareholder Shing Kwan Ltd., disposed 12.77% stake amounting to 158.77 million shares at Rs. 18 each. It also said Orthopaedic Clinic Ltd., purchased 13.1% stake amounting to 163 million shares at the same price. 

Shing Kwan Investment Company Ltd., and related party Shing KWan Investment (Singapore) Ltd., remains the single largest shareholder with 41.43% stake in Overseas Realty. The new shareholder is a related party.

First Capital said the Colombo Bourse experienced a complete down trend as pessimistic investor sentiment dominated the market with JKH heavily dragging the index down by 57 points.

JKH experienced an unexpected 9.3% price drop following Rs. 24 billion worth rights issue and subdivision announcement.

HHL became one of the top negative contributors to the index following the subdued quarterly performance. SAMP, MELS and COMB emerged as the remaining top negative contributors. As a result, ASPI closed the day in red for the 5th consecutive day at 11,407, losing 104 points and slipping to over 4-months low.  Turnover marked an over 100% increase from the month’s average standing primarily driven by a significant off-board transaction witnessed by OSEA, which contributed 74% to the overall turnover. Furthermore, through 4 off-board transactions, OSEA traded 163 million shares collectively at Rs. 18.0 per share, representing a 13.1% stake, resulting in the Real Estate sector contributing 74% to the turnover, followed by the Capital Goods and Diversified Financials sectors jointly contributed 15% to the overall turnover.

Foreign investors remained net sellers, with a net outflow of Rs. 66 Mn.

NDB Securities said crossings were witnessed in Overseas Realty accounting for 74.0% of the turnover. Mixed interest was observed in Hatton National Bank, Sunshine Holdings and Browns Investments whilst retail interest was noted in LOLC Finance, Dialog Axiata and Nation Lanka Finance.

The Real Estate sector was the top contributor to the market turnover (due to Overseas Realty) whilst the sector index edged down by 0.01%. The share price of Overseas Realty increased by 10 cents to Rs. 17.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 5.81%. The share price of John Keells Holdings lost Rs. 17.50 (9.25%) to Rs. 171.75.

Hatton National Bank, Dipped Products and Sunshine Holdings were also included amongst the top turnover contributors. The share price of Hatton National Bank moved up by 50 cents to Rs. 188.50. The share price of Dipped Products recorded a loss of 20 cents to Rs. 34. The share price of Sunshine Holdings closed flat at Rs. 60.50.