Senkadagala Finance begins trading, no selling

Charumini DE SILVA

Senkadagala Finance which was listed in the Colombo Stock Exchange (CSE) via an introduction commenced trading yesterday.

Although there were plenty of investors that were keen on buying the stocks of the company, the shareholders did not lodge shares in the central depository system (CDS) to sell. Speaking to Daily News Business Bartleet Mallory Stockbrokers Director Sujeewa Peiris said the market was interested in this particular share issue, but there was no liquidity or supply to cater to the demand. However holding into these will benefit the company's depositors and customers.

Senkadagala Finance is one of the companies that listed in the CSE in response to the Central Bank regulation. It is a good indication that these companies enter the market as there is better transparency and better corporate governance.

He said it is important to address liquidity aspects once a company is listed and from the investor point of view it is not encouraging.

Fitch Ratings Lanka has assigned Senkadagala Finance Company Ltd's (SFC) proposed senior unsecured redeemable listed debentures of upto Rs one billion a 'BBB+(lka)' rating. The agency has simultaneously affirmed SFC's National Long-Term rating at 'BBB+(lka)'.

The outlook is stable.

SFC is a mid-sized registered finance company (RFC) with an asset base of Rs 6.2 billion at December 31, 2010.

It operates through a network of over 30 outlets, employing over 200 staff.

At end-March 2010, SFC accounted for a share of three percent of local RFC sector assets.