Foreign, local deals on JKH boosts Bourse turnover to Rs. 8.2 b
Wednesday, 20 August 2014 01:18
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Janus sheds 30 million shares at Rs. 240 each nRusi buys 14 m shares pushing Captain’s collective holding to over 20%; Foreign fund picks up 11 m shares
Foreign and local deals on premier blue chip John Keells Holdings (JKH) saw turnover at the Colombo stock market soar to Rs. 8.2 billion yesterday whilst the end to the overhang over stake of exiting Janus according analysts will bolster the Bourse.
JKH overall saw 30.28 million of its shares traded for Rs. 7.27 billion. Of that amount 29.99 million shares were done via 28 crossings at Rs. 240 per share. Foreign fund Janus was the major seller. JKH closed at Rs. 244, up by 1.7%.
As at end June 2014, Janus funds had around 49 million shares thereby becoming the second largest foreign shareholder. With yesterday’s shedding Janus is estimated to be holding a further 19 million shares.
Janus has been on the look out to sell as part of redemptions. Its inability had been an overhang and with JKH being the most favoured stock, the overhang had an impact on the overall resilience of the market as well.
“With 30 million gone, the market can breathe better. This is likely to give fresh fillip to the Bourse,” said analysts suggesting the net outflow yesterday of Rs. 4.6 billion shouldn’t be viewed in a negative context.
Despite that, CSE’s year to date net foreign inflow remains a positive Rs. 7.5 billion, down from Rs. 12 billion on Monday. JKH saw foreign holding decline by 18.9 million or Rs. 4.6 billion.
The foreign fund which was on the buying side of JKH yesterday was among list of top 10 shareholders.
With Rusi buying around 1.4% stake, the collective holding of Captains is estimated to be over 20%. Apart from Rusi, Capital Trust had bought around 3 million shares and around five individual investors had collective acquired 2 million shares. Employee Trust Fund too had collected some quantities.
Malaysia’s wealth fund Khazanah (Broga Hill Investments Ltd.), holds 10.5% stake in JKH.
Fifth largest shareholder in JKH is business tycoon Harry Jayawardena controlled Mesltacorp holds 3.7% stake.
As at 31 December 2013, Janus Overseas Fund held 77 million shares. When Janus shed stakes in February and April this year, Captains were the major buyers. In April they picked up 2% for Rs. 4.3 billion. It had been shedding JKH shares from a wide price range with a high of Rs. 260 and a low of Rs. 213.
Meanwhile rest of the market remained resilient. The indices closed with gains due to price gains on counters such as John Keells Holdings, Lion Brewery (up 2.4% to Rs. 624.50) and Dialog Axiata (up 1% to Rs. 11). NDB Securities said retail interest was witnessed in MTD Walkers and Seylan Bank nonvoting. Furthermore, foreigners remained active closing as net sellers due to selling in counters such as John Keells Holdings and Colombo Dockyard, which saw a turnover of Rs. 124 million.
Lanka Securities said out of 277 counters, 123 counters slipped, 100 counters advanced while 54 counters remained unvaried. Cash map advanced to 52% from 46%. 13 equities reached to 52 week high price levels while three equities touched 52 week low prices.
It also said MTD Walkers attracted heavy investor preference for the second consecutive day. Further, penny stock such as Seylan Merchant Bank, PC Pharma, Tess Agro were among heavily traded counters.
