Govt. publishes invitation to pre-qualify and bid for 51.34 percent stake in LHCL

By Hiran H. Senewiratne

The government has published the invitation to pre-qualify and bid for a 51.34 percent stake in Lanka Hospitals Corporation (LHCL). The divestiture will be completed through a two-stage competitive bidding process.

International Finance Corporation (IFC), a member of the World Bank Group, is advising the government on the sale of LHCL and several state owned entities as a part of the SOE reforms process. This has resulted in an appreciation of its shares in the CSE, market analysts said.

It is said that the share price gained on the previous day by 7 percent or Rs. 8 to close at Rs. 120.50, following the calling for Expression of Interests from interested parties for the government stake in the entity.

The gain was on thin volumes of 209,777 shares changing hands via 392 trades for Rs. 25 million.LHCL’s highest share price in the past 52 weeks was Rs. 139 and the lowest was Rs. 86. Last week it declined by Rs. 7.25 to close at Rs. 106.50.

Amid those developments, stock market activities were positive yesterday with a healthy turnover. Both indices moved upwards after experiencing a dip in the last few days. The stock market has suffered a Rs. 254 billion loss of value so far in October due to negative investor sentiments over the lack of credible progress in resolving some major macroeconomic issues.

Both indices moved upwards. The All- Share Price Index was up by 33.26 points and S and P SL-20 up by 18.32 points. Turnover stood at Rs 1.1 billion with two crossings. Those crossings were reported in RIL Properties, which crossed 20 million shares to the tune of Rs 130 million; its shares traded at Rs 6.50 and NTB 200,000 shares crossed for Rs 20 million; its shares traded at Rs 100.

In the retail market top seven companies that mainly contributed to the turnover were; First Capital Holdings Rs 158 million (three million shares traded), First Capital Treasuries Rs 113 million (2.7 million shares traded), JKH Rs 85.5 million (448,000 shares traded), Lanka IOC Rs 81.3 million (820,000 shares traded), LB Finance Rs 54.9 million (899,000 shares traded), Capital Alliance Rs 38.6 million (656,0000 shares traded) and Expolanka Holdings Rs 36.7 million (294,000 shares traded). During the day 50.2 million share volumes changed hands in 12000 transactions.

It is said high net worth and institutional investor participation was noted in C T Holdings, JKH and LB Finance.Mixed interest was observed in First Capital Treasuries, Lanka IOC and First Capital Holdings, while retail interest was noted in Browns Investments, Eden Hotel Lanka rights and UB Finance Company.

The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Treasuries and LB Finance), while the sector index lost 0.70 percent. The share price of First Capital Treasuries moved down by 30 cents to Rs. 40.70. The share price of LB Finance appreciated by 30 cents to close at Rs. 61.30.

The Capital Goods sector was the second highest contributor to the market turnover (due to JKH), while the sector index decreased by 0.48%. The share price of JKH gained 25 cents to reach Rs. 190.25.Yesterday, the US dollar buying rate was Rs 319.29 and selling rate Rs 329.81.