JKH share plummets to Rs. 67

Ravi Ladduwahetty

The run down on the premier blue chip John Keells Holdings PLC share continued yesterday with the share falling to Rs. 67 from the Rs. 69.75 where it started trading with some Unit Trusts, corporates and local high networth investors exiting the blue chip.

Market analysts were speculating whether JKH would cancel the share buy back option with the share getting a beating across the board. Some analyst's points out when they can JKH is not reading the supply and demand factors along with market dynamics. They query as to why the company should be offering Rs. 90 when it can buy back the share at the JKH at Rs. 67 yesterday. There are more sellers in the market than buyers, they said

Some of the reasons attributed for the large scale selling was due to anticipation of the share plummeting further and rife speculation that public activist and Chartered Accountant Nihal Sri Amerasekere would file action in the Supreme Court about the manner in which the South Asian Gateway Terminals divestiture and agreement was based on.

Some of the other reasons which were attributed was the possibility of the reduced earnings of the Second Quarter for 2009 which are not released yet and also in the light of the reduced earnings from Lanka Marine Services not within the umbrella of the JH Group.

However, when contacted or comments on the legal implications if the JKH Group withdraws the buy back offer, Colombo Stock Exchange Director General Surekha Sellahewa said that it was up to the company to decide whether to pursue the offer or withdraw it.