People’s Merchant Finance goes for right issue

By Hiran H.Senewiratne 

Peoples’ Merchant Finance PLC will go for a right issue to raise Rs. 812 million to comply with the  minimum capital requirement level under the Central Bank ruling. Under the right issue 11 new shares will be on offer for every 20 shares at Rs. 7.

Amid those developments the CSE was extremely bullish and touched the 8000 mark and the All Share Price Index went up by 280 points during the early part of the day. However, due to profit taking the ASPI’s momentum slipped and settled at 188.09 points.

The turnover stood at Rs. 12.2 billion with eight crossings. Both indices moved upwards. All Share Price Index went up by 188.09 points and S and P SL20 went up by 100.32 points.

The crossings were reported in Renuka Capital, which crossed 12.5 million shares to the tune of Rs. 102.5 million, its share price traded at Rs. 8.20, Kelani Cables 365,000 shares crossed for Rs. 66.6 million, its shares traded at Rs. 182.50, Expolanka one million shares crossed for Rs. 55.5 million, its shares traded at Rs. 55.50, Dipped Products 116,000 shares crossed for Rs. 50.1 million and its shares traded at Rs. 435. Meanwhile, HNB (Non Voting) 400,000 shares crossed for Rs. 44 million, its shares traded at Rs. 110, HNB (Voting) 265,000 shares crossed for Rs. 35.3 million, its shares registering a price of Rs. 133, JKH 190,000 shares crossed for Rs. 30.4 million, its shares traded at Rs. 160 and Commercial Bank 300,000 shares crossed for Rs. 26.4 million, its shares trading at Rs. 80.

In the retail market, top five contributors to the turnover were, Expolanka Rs. 1.6 billion (28 million shares traded), Browns Investments Rs. 1.36 billion (183 million shares traded), LOLC Rs. 1.3 billion (4.95 million shares traded), Access Engineering Rs. 796 million (27.8 million shares traded) and Dipped Products Rs. 400 million (940,000 shares traded). During the day 506 million share volumes changed hands in 65520 transactions.      

Last Friday’s Rs. 12.4 billion turnover, the highest in a year, at the Colombo stock market is being credited by brokers to ‘near-pure retail play’, as investor sentiment gathered more momentum, spearheaded by high-net-worth individuals.