Wednesday, 2 October 2013 01:52
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Troubled Touchwood Investments Plc’s (TWOD) share price dipped by 43% yesterday with some linking it to investors losing heart over the resignation of MP Duminda Silva from the Board of Directors.
Returning to the league of top losers, TWOD saw 21 million of its shares change hands via 2,395 trades for Rs. 75 million. It hit an intra-day low of Rs. 2.90 before closing at Rs. 3.10, down by 39.2% from Monday.
Confirming the Daily FT expose, the company formally announced yesterday that Duminda Silva has resigned as Non Executive Independent Director, barely a week after he was appointed. News of his original appointment last week boosted TWOD’s share price 72%.
Most analysts linked TWOD’s dip yesterday to investors losing confidence over a revival of the Company which is facing multiple litigation as well as customer wrath over default. Others linked it to overall eroding confidence whilst Softlogic Stockbrokers pinned it to heavy selling pressure due to profit taking.
TWOD’s share price plunged to an all time low of 90 cents a few weeks ago but peaked to a high of Rs. 6 on Monday. From its 2012 closing the stock is down by 50%.
Applications for winding up as well as appointment of provisional liquidator are coming up in Court tomorrow whilst the Securities and Exchange Commission is persisting with its full scale investigations into the affairs of TWOD.
However, the newly-constituted Chairman and Board of Directors have reassured customers and shareholders of efforts to revive the company with promised infusion of capital and restructuring.
