Bourse ends weaker; turnover up on block deals

Saturday, 6 December 2014 00:25 - - {{hitsCtrl.values.hits}}

Reuters: Stocks ended down on Friday with lower retail participation, but block deals pushed up the turnover amid caution due to political uncertainty ahead of the 8 January presidential poll. The main stock index fell 0.22%, or 15.88 points, to end at 7,238.92, its lowest close since 2 December. Turnover was Rs. 2.14 billion (16.3 million) on Friday, exchange data showed, well above this year’s daily average of Rs. 1.44 billion, as Hemas Holdings Plc divested its stake in the Hemas Power Plc. Hemas Holdings in a filing to the Bourse said it is divesting its stake in Hemas Power to a consortium of buyers consisting of NDB Capital Holdings Plc, ACL Cables Plc and Trydan Partners Ltd. for Rs. 1.68 billion. Foreign investors were net buyers of Rs. 55.5 million worth of shares on Friday, extending purchases during the year to Rs. 21.75 billion, exchange data showed. “The market is taking a wait-and-see approach ahead of the elections but there are takers. Sellers are a little cautious,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd. Analysts expect volatility to continue and the overall index to be flat until the elections on 8 January with speculation over more defections and likely violence ahead of the polls also weighing on sentiment. Nine loyalists from President Mahinda Rajapaksa’s United People’s Freedom Alliance, including Health Minister Maithripala Sirisena, have defected since he announced a snap poll on 20 November. Sirisena is contesting against Rajapaksa as the consensus candidate of a united opposition. Ceylon Tobacco Company Plc led the fall, ending 1.04% weaker, while John Keells Holdings Plc fell 0.71%.

Hemas sells 75% stake in power venture for Rs. 1.68 b

Hemas Holdings Plc yesterday sold 93.9 million shares constituting approximately 75% of the total issued share capital of Hemas Power at Rs. 17.90 per share. The buyers were ACL Cables (34.49% stake) and NDB Capital Holdings (32.35%) together with and Trydan Partners (8%). The consortium will make a mandatory offer shortly. The deal was first announced in October when Hemas signed a share sale and purchase deal with the consortium of buyers. As part of the deal Hemas sold the 50% stake (60 million shares) in Heladhanavi, which produces thermal power, for Rs. 531.75 million to Lakdhanavi Ltd., at Rs. 8.86 per share.