Hotels going in for right issues in preparation for tourist season

By Hiran H. Senewiratne

A share right issue trend was noticeable among hotel sector counters at the CSE yesterday and on previous days aimed at generating equity for hotels to enable them to revamp their properties for the upcoming tourist season, market analysts said.

Yesterday, three hotels announced right issues. They were: Waskaduwa Beach Resort, Hikkaduwa Beach Resort and Citrus Leisure. In the right issue in Waskaduwa Beach Resort, every shareholder will get 35 ordinary shares for every 52 shares at Rs 1.80 per share. At Hikkaduwa Beach Resort, 19 ordinary shares will be given for every 21 shares at Rs 3.50 per share and at Citrus Leisure every 101 ordinary shares will get 143 new shares at Rs 4.20 per share. Citrus Leisure said it is seeking 1.5 billion rupees from shareholders through the rights issue.

However, the stock market was in a downward trend. All Share Price Index went down by 42.12 points while S and P SL20 declined by 15 points. Turnover stood at Rs 523 million without any crossings. In the retail market, the top seven companies that contributed to the turnover were; JKH Rs 139. 7 million (746,377 shares traded), Sunshine Holdings Rs 84.3 million (1.56 million shares traded), Sampath Bank Rs 38.4 million (548,500 shares traded), HNB Rs 19 million (114,680 shares traded), Associated Motor Finance Rs 18.8 million (831,031 shares traded), Commercial Bank Rs 11.4 million (132,183 shares traded) and Browns Investments Rs 11.3 million (2.4 million shares traded). During the day 23 million share volumes changed hands in 6700 transactions.

Yesterday the rupee opened at Rs 322.80/95 to the US dollar from Rs 322.50/70 the previous day, dealers said.

Bond yields were broadly stable. A bond maturing on 01.02.2026, was quoted at 13.80/95 percent from 13.80/90 percent. A bond maturing on 01.07.2028 was quoted at 14.25/30 percent.