Carson Cumberbatch pushes up ASPI

BOURSE: The indices headed in opposite directions yesterday with the All Share Price Index (ASPI) gaining 23.71 points while the Milanka Price Index (MPI) losing 36.83 points.

Selling pressure on blue chips including Dialog, Sri Lanka Telecom (SLT) and John Keells Holdings (JKH), resulting on the decline of the MPI which closed at 3,937.04 points.

However, an announcement by Carson Cumberbatch Company Ltd. of a bonus issue propelled its share price which helped the ASPI also to move up. Carson Cumberbach announced that it has proposed to issue 30,561,300 fully paid ordinary shares of Rs.10 at a ratio of five new ordinary shares for every one ordinary share held.

The company ended up as the highest gainer with the share price gaining an impressive 76.74 percent increasing from Rs. 2,150 to Rs.3,800. The stock contributed about Rs.19 million to the day’s turnover with 4,800 shares being traded.

The share price of Bukit Darah also increased by 29.68 percent becoming the second highest gainer yesterday.

The company holds 46 percent of Carsons Cumberbatch. The share prices of related companies Ceylon Investment and Ceylon Guardian also increased considerably.

Carson Cumberbatch informed the CSE that it is planning to increase the authorised share capital of the company in order to accommodate the proposed bonus issue.

“The bonus share will be issued by utilising the Capital Redemption Reserve, capital Accretion Reserve and the Revenue Reserve,” the company said in a statement.

SLT share price moved down to Rs.38 from Rs.39.50 and the other telecom sector company Dialog also recorded a loss.

Over 1.3 million Dialog shares traded yesterday and the share closed at Rs. 25.75. JKH also lost Rs.1.25 to close at Rs.160 causing the Milanka to decline.

Analysts said however, the activity levels have improved during the week. Yesterday’s total turnover was Rs. 591 million. (CK)