DAILY NEWS ONLINE


OTHER EDITIONS

Budusarana On-line Edition

Silumina  on-line Edition

Sunday Observer


OTHER LINKS

Marriage Proposals

Classified Ads

Government - Gazette

Mihintalava - The Birthplace of Sri Lankan Buddhist Civilization

Dialog entry to add value to CSE

Dialog Telekom which will make its debut on the Colombo Stock Exchange today is expected to have a significant impact of the overall performance of the market and analysts believe that the All Share Price Index could even top 2000 points.

Dialog Telekom shares which were offered at Rs. 12 by way of the IPO are expected to trade at a price range of Rs.14 to 18 at the market according to analysts.

"We expect every one rupee movement of the dialog shares to move the ASPI by about 15 points," said Angelo Ranasinghe of Bartleet Mallory Stock Brokers.

"Dialog IPO was heavily oversubscribed mainly due to the interest shown by the foreign investors. We expect the foreign investor interest will still remain at the secondary market. This is a highly liquid stock with the largest market capitalisation. Entry of Dialog Telekom shares will undoubtedly add value to the Colombo stock market," he said.

Vajira Premawardana of Lanka Orix Securities said that he would not be surprised if the ASPI would even top the 2000 mark after today's trading due to Dialog's entry into the market.

Analysts said that although they expect a huge demand as far as the foreign investors are concerned the retail sector will respond according the share price.

"If the share price is high the retail sector will be largely on the selling side.

We don't expect the Qualified Local Institutional Investors to show much of an interest as they got the lion share from the IPO which is about 80 percent," Harsha Fernando of SC Securities said.

According to HNB Stock Brokers weekly review Dialog's entrance to the market could create further interest towards the telecom sector and they expected SLT to remain in strong investor appetite.

"Both indices are likely to be in positive territory during the week, with the All Share Price Index (ASPI) outperforming the Milanka Index. Dialog's price movements would be initially seen only in ASPI as it is yet to be included in the Blue chip Milanka index," HNB Stock Brokers said.

SLT shares drop

Meanwhile, the share prices of the other telecommunication sector player on the stock market, Sri Lanka Telecom Ltd., dipped sharply yesterday resulting the ASPI also to decline by about 13 points. The shares dropped from Rs. 24.50 to Rs.23.25 yesterday.

According to analysts share prices declined following the Appeal Court on Monday quashed Sri Lanka Telecom's 2003 tariff increase, which raised monthly rentals to Rs. 500.

The ruling requires SLT to revert back to pre-2003 tariffs and refund the difference in its customers bills for the entire period.

However, last Friday's gain in the market was mainly due to the rise in SLT shares.

Approximately 6 million of SLT shares trade for the week, of which nearly 3 million came on Friday alone.

FEEDBACK | PRINT

 

| News | Editorial | Business | Features | Political | Security | Sports | World | Letters | Obituaries |

 

Produced by Lake House Copyright © 2003 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Manager