Laugfs lights up Bourse

What is believed to be its first equity investment, Laugfs Holdings yesterday entered the market by picking up shares in Citrus Leisure and Ceylon Grain Elevators whilst shares in it were bought by two major players in the Bourse.

On a day which turned out to be negative overall for the Bourse, deals on Laugfs Gas involving 6.36 million shares changed hands via 642 trades and accounted for the highest turnover of Rs. 345.4 million. Within the quantity traded were three crossings of 4.6 million shares at Rs. 55 each.  Among buyers of Laugfs were high networth investor Nimal Perera whom brokers said bought around 2.3 million shares and Perpetual Capital of Arjun Aloysius fame bought 2.4 million shares.

Whilst Laugfs Gas was being under investor spotlight yesterday, its parent Laugfs Holdings on its part had entered the market picking up 1.5 million shares of Citrus Leisure at Rs. 90 per share and around 1 million shares of Ceylon Grain Elevators for Rs. 205 each. Brokers and market analysts said that these were the first equity investments by Laugfs Holdings.

The move by Laugfs Holdings appears to be to ride on the post-war boom in the Colombo Bourse and thereby cash in with some capital gains.

Grain accounted for third highest turnover of Rs. 237.6 million whilst Citrus Leisure produced fifth largest turnover of Rs. 144.2 million. However both shares closed lower yesterday as many others did with investors taking profit.

The All Share Index dipped by 2.34%, highest in recent weeks and Milanka Index declined by 1.7% whilst turnover was a respectable Rs. 2.7 billion.

Reuters linked the market’s dip to forced selling by brokers to comply with a directive by the Securities and Exchange Commission (SEC) which has directed all stockbrokers to collect all debts and stop credit transactions by June 30 and reduce their current debtors’ positions by at least 50 percent by March 31.

However John Keells Stock Brokers said: “The indices dipped sharply due to selling pressure evident across the board while activity levels remained moderate during the day.”

NDB Stockbrokers said: “Heavy selling during early trading saw the indices drop sharply. Profit taking continued while activity got subdued at the end amidst stagnant market conditions. However, Lanka Hospitals and Ceylon Guardian attracted investors.”

Lanka Hospitals saw 5 million of its shares traded generating a turnover of Rs. 247 million. With its share price up 30.4% or Rs. 12.20 Lanka Hospitals topped the list of gainers percentage wise. Its share peaked to high of Rs. 54.50 before closing at Rs. 52.30. Guardian Capital topped the list of losers percentage wise, down 31% or Rs. 677.80 to Rs. 1,500. It had a high of Rs. 1,900.

Bank, Finance & Insurance and Manufacturing sectors were the highest contributors to the market turnover while sector indices decreased by 2.34% and 2.37% respectively.