Low valued companies’ stocks in demand

By Hiran H.Senewiratne 

Share price increases of low valued stocks were a highligh of CSE trading yesterday, market analysts said.

It is said that HNB Finance, which featured one of the smallest Initial Public Offerings (IPO) in February this year, witnessed more than a 75 percent share price increase, thus adding 21 index points to the All Share Price Index. According to stock-brokers,  when the HNB Finance shares started trading, it stood at Rs. 8.80 and at the end of the day it  shot up to Rs. 15.50, which was a Rs. 6.60 or 75 percent increase.

At the IPO  in February it is said that the  number of issued shares reported 10 million  at Rs. 5.70 per share. However, during the day  more than 1.9 million  shares or close to 20 percent  traded, which was an unusual occurrence, brokers said. 

Further, there was a significant price  increase in the stocks of several low valued companies, including Pan Asia Power, Mackwoods Energy, Laugfs Power, Vallibal Power Erathna, Vidula Lanka, Lotus Power, National Lanka Finance and many more. These listed companies’ share prices noticeably increased and traded well. Those companies’ share prices are all below Rs. 10, market analysts said.  

Amid those developments profit taking was noted since it is near to the month end and both indices showed mixed reactions. All Share Price Index was up by 18.23 points and  S and P SL20 went down by 16.06 points. The slight drop in the banking sector resulted in indicating a downward trend in S and P SL20, market sources said.

Yesterday, turnover stood at Rs. 2.53 billion with three crossings. Those crossings were reported in JKH, which crossed 540,000 shares to the tune of Rs. 73.44 million; its share price traded at Rs. 136, HNB 250,000 shares crossed for Rs. 32 million, its share price traded at Rs. 128 and Sampath Bank 150,000 shares crossed for Rs. 20.3 million, its share trading at Rs. 135.

In the retail market top five companies that mainly contributed to the day’s turnover were,  Kelani Tyre Rs. 151.5 million (91.9 million shares traded), Royal Ceramic Rs. 130 million (1.15 million shares traded), Hemas Holdings Rs118.3 million (1.68 million shares traded), Expolanka Rs. 112.6 million (11.8 million shares traded) and Richard Pieris Holdings Rs. 93.2 million (6.2 million shares traded). During the day  134.2 million share volumes changed hands in 26024 transactions. Sanasa Development Bank is going for a right issue, which was conveyed to the CSE yesterday

On the previous day, Hayleys PLC dominated turnover  at the CSE with 2 million of its shares trading for Rs. 467.3 million, accounting for 13 percent  of the total.  Finco had bought the shares (amounting to a 2.6 percent stake) done via two crossings at Rs. 230 per share.