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Following the heavy foreign activity in the previous week local buying was the order of the week consolidating gains made by the ASPI with strategic stakes being snapped up followed by speculative retail buying. Local buying contributed to 81% of the week's turnover of Rs.780.8 million. During the course of the week the ASPI gained 26.79 to reach a high for the year of 668.79 before closing 3 points lower at 665.72 due to profit taking on the final day of trading. HNB Ups stake in DFCC and spurs market interest

Over 1 million shares a 2.3% stake in DFCC changed hands on Tuesday contributing over Rs.150 million. The buyer Hatton National Bank is now the second largest shareholder with a 12% stake in the Development Bank. The seller in the transaction was believed to be the State run National Savings Bank. The sale, which was concluded at Rs.140 per share, was subsequent to DFCC declaring a 50% first and final dividend over the last few weeks. The DFCC and HNB shares appreciated 8% and 4% to close at Rs.140 and Rs.57 respectively.

Ceylon Brewery share up 44% amidst strategic buying of 5.8% stake.

A total of 1.27 million shares of Ceylon Brewery changed hands on Wednesday with Carsons group believed to have increased their controlling interest to 56.5%. The seller in this Rs.62.4 million transaction was rumoured to be Ayojana Fund Ltd. The previous day the company had generated a turnover of Rs.43.7 million with over 1 million shares being traded. Subsequent interest in the share saw the price move up to close the week at Rs.62 up 44% from the week's opening of Rs.43. The company contributed Rs.109 million to the week's turnover. Carsons rumoured to have exited NDB

Carsons was again the focus on Wednesday when it was believed that the highly diversified Group had exited from NDB by selling its remaining 2.3% stake in the Development Bank for Rs. 84 million. The identity of the buyers of the stake was rumoured to be Ishara Nanayakkara, who also holds approximately a 25% stake in LOLC and a foreign investor.

With the two trades in Ceylon Brewery and NDB, Carsons was responsible for generating over 52% of the day's turnover of Rs.308.9 million. Speculative interest in Asian Hotels despite investor complaints

Asian Hotels Corporation Limited, which owns and manages The Hotel Lanka Oberoi, Crescat Development and the Trans Asia Hotels Limited, is currently under probe by the Registrar of Companies following shareholder complaints of irregularities resulting in mismanagement and putting shareholder interest at stake. Retired Judge Patrick Fernando has been mandated to investigate the affairs of Asian Hotels under the provisions of the Companies Act. The share closed the week at Rs. 7.25 generating a total turnover of Rs. 9.2 million dominated by speculative retail activity as it is rumoured that a foreign fund has been scouting around for a stake in the company. Whilst there was also speculation a large local Group of companies is also interested in acquiring a controlling stake. Finlays continues to spark foreign interest

The final day of trading for the week saw foreign activity in the diversified tea conglomerate which last week had been the focus of much foreign buying interest. The stock accounted for 18% of the day's turnover on the strength of 1.24 million shares traded, of which 1.23 million shares worth Rs.34 million were purchased by foreign investors. The share closed up 3% at Rs.27.75. E channelling makes debut on Second Board of Stock Exchange

Last week the Colombo Stock Exchange introduced the Information Technology sector following the listing of 10.4 million shares of E-channelling on the second board. The public issue was priced at Rs.15 but 100 shares were traded at Rs.10.50, which could not be taken as an indicator considering the earning potential projected by the company. E channelling has implemented an automated, centralised channelling system for the healthcare market that enables patients to channel doctors at banks, pharmacies, supermarkets and via the internet. Touchwood listed in land and property sector

Touchwood has received approval from the Stock Exchange to list 2.2 million ordinary shares on the second board of the land and property sector. The company, which is involved in farming and marketing Mahogany plantations, offered shares to the public at Rs.10. Widespread Buying interest by High Net Worth individuals (HNWI), companies

A salient feature of the week's trading was the relative inactivity of foreigners, which had contributed 66% of the previous weeks turnover and the commanding presence of HNWI and Companies in the acquisition of strategic stakes, which sustained the market following the surge in the previous week.

Among some of the other heavily traded stocks contributing to the healthy turnover for the week were Caltex Lubricants Rs.27 million, Asia Capital Rs.13.8 million, Lion Brewery Rs.7 million and blue chips John Keells Rs.20 million and Commercial Bank (voting) over Rs.35 million.

Some of the stocks that witnessed substantial appreciation in price were Sampath Bank and Ceylon Tobacco, which gained 13% and 16% respectively. It was noteworthy that Hayleys, which generated a turnover of Rs.7 million for the week was able to sustain the previous weeks closing of Rs.140 as investors held fast to their shares in the blue chip.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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