Prime Residencies shares see slowdown in trading

By Hiran H.Senewiratne 

Trading at the Colombo Stock Exchange (CSE) was positive yesterday following a dip in the market on the previous day. Investors started purchasing large quantities of stocks from Prime Residencies, on the first trading day following the Initial Public Offering (IPO) overlooking other major stocks, stock brokers said.

“Investors had purchased large quantities from the previous IPO “Chrishworld” due to issuance of small quantities of shares to the public and they adopted the same approach to Prime Residencies stocks due its large quantity of shares in the market. Chrisworld had issued 7.5 million shares to the public in their IPO while Prime Residencies issued 187.5 million shares to the public,”stock market analysts said.

Due to these developments, Prime Residences share price quoted at Rs 10.40. On the previous day its share price moved upto Rs 11.90. Since investors’ expectations were not being fulfilled they did not go much for Prime Residencies stocks yesterday, therefore, its share price depreciated by 60 cent or 5 five percent. However, its share price started trading at Rs 11.90 and at the end of the day it moved down to Rs 11.30.

Amid those developments both indices moved upwards despite the turnover recorded a seven-day low.  All Share Price Index was up by 22.06 points and S&P SL20 up by 9.46 points. Turnover stood at Rs 1.48 billion without a single crossing.

In the retail market top five companies that mainly contributed to the turnover were Royal Ceramic Rs 117.2 million (3.1 million shares traded), Melstacope Rs 113.4 million (2.4 million shares traded), LOLC Rs 87.8 million (293,000 shares traded), Alumax Rs 84.4 million (6.1 million shares traded) and Dipped Products Rs 68.2 million (1.3 million shares traded). 

The market moved slowly but in a positive manner but strong market activities were witnessed in Melstacope and its share price moved up by four percent or Rs 2. Its share price startered trading at Rs 47 and at the end of the day it moved upto Rs 49. During the day 84 million share volume changed hands in 19,632 transactions.

Stock Exchange.. 

The original SEC Act No. 36 of 1987 had seen three amendments previously, in 1991, 2003 and 2009. Capital market stakeholders have been calling for a new Act for several years to ensure that regulation and market development keeps pace with modern era dynamics.