Union Bank shares appreciate following acquisition of controlling stake by CG Capital Partners Global

By Hiran H. Senewiratne

Union Bank shares had appreciated in the CSE yesterday after an announcement that the bank was acquired by CG Capital Partners Global Pvt. Ltd, stock brokers said.Nepali businessman Binod Choudhary’s CG group is now Union Bank’s ultimate controlling shareholder following the indirect acquisition by CG Capital Partners Global Pvt. Ltd. of the Bank’s main stockholder, as reported by us yesterday. It is said that the Nepali business magnate is the first dollar billionaire in Nepal. He has visited Sri Lanka multiple times, CSE analysts said.

Yesterday, stock market activities did not reach a satisfactory level as local and foreign investors were worried over new taxes to be imposed on corporates in the forthcoming budget, which would drain out their profitability.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 17.13 points and S and P SL20 declined by 6.61 points. Turnover stood at Rs 891 million with one crossing. The crossing took place in JKH, which crossed 115,000 shares to the tune of Rs 22 million; its shares traded at Rs 192.

In the retail market top seven companies that mainly contributed to the turnover were; First Capital Holdings Rs 196 million (4.6 million shares traded), JKH Rs 160 million (837,000 shares traded), Capital Alliance Rs 41.1 million (825,000 shares traded), Tokyo Cement (Voting) Rs 37.1 million (748,000 shares traded), Lanka IOC Rs 32.9 million (345,000 shares traded), Expolanka Holdings Rs 26.8 million (214,000 shares traded) and Sampath Bank Rs 25.3 million (402,000 shares traded). During the day 30.3 million share volumes changed hands in 11000 transactions.

Yesterday, the rupee opened stable at Rs 326.50/327.00 to the US dollar, similar to the close on the previous day, dealers said.Bond yields were up. A bond maturing on 01.08.2026 was quoted at 14.95/15.10 percent from 14.95/15.05 percent. A bond maturing on 01.07.2028 closed at 14.70/95 percent from Wednesday’s 14.60/80 percent.