Touchwood Investments share price plunges on winding up case
Tuesday, 3 September 2013 00:00
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Shares of Touchwood Investments Plc yesterday hit an all-time low price of Rs. 1.80 with a quantity of nearly seven million traded on the news of a winding up case.
The company topped the list of percentagewise losers yesterday as the share price lost 22% or 50 cents to close at Rs. 1.80. Around 6.5% stake or 6.9 million shares transacted via 637 trades reflecting hive of retail activity.
Yesterday’s dip brought the total decline since early last week to 50%.
Last week Touchwood also ended up topping the losers list, down by 35% or Rs. 1.30 with 8 million shares changing hands via 1,264 trades for Rs. 21.5 million. The bulk of it (5.5 million), traded on Friday as the share price dropped by 23% to close at Rs. 2.30.
Yesterday Touchwood Investments was the mostly traded stock and according to Lanka Securities, the bid side of the stock’s order book was represented with zero buyers during most of the trading time.
Investors were apparently reacting to a notice of Western Province High Court listing a petition to be heard on 3 October over winding up Touchwood Investments following an application filed by a customer.
The notice placed by legal firm F J & G De Saram said “any creditor contributory” to the firm who may want to support or oppose the action could get a copy of the court petition and be present at the hearing. Interested parties could make submissions before 2 October.
Despite this notice, there has been no disclosure from the company to the stock market by yesterday.
According to accounts as at June 2013, the net asset per share of Touchwood was Rs. 30.78 at Group level and Rs. 31.23 at Company level. However it has retained losses of Rs. 500 million.
In the quarter ended on 30 June, revenue had improved to Rs. 234 million from Rs. 195 million a year earlier, whilst net profit was Rs. 18 million, as against a loss of Rs. 2.7 million.
