Dialog Finance seeking to raise Rs. 764 million from right issue to firm-up core capital

By Hiran H.Senewiratne

Dialog Finance is seeking to raise  Rs. 764  million through a right issue of shares, at Rs. 40 each, with the aim of strengthening core capital in order to comply with the Central Bank 's capital adequacy ratio rule, market sources said.

CSE sources said Dialog Finance will issue 19 million ordinary voting shares in the proportion of 32 new shares for every 121 existing ones. It is said that the company was previously known as Capital Alliance Finance and that it acquired around 97 percent of its shares from the stock market. The firm is the finance arm of Dialog Axiata, a dominant mobile phone operator, sources said.

The stock market yesterday, meanwhile, was relatively volatile but there was some improvement in investor sentiment because the Reserve Bank of India had agreed to provide US$ 400 million to the Central Bank of Sri Lanka as a currency swap, resulting in an appreciation of the rupee and a decline in the treasury bill yield.

Amid those developments, both CSE indices moved upwards marginally, ie, the All Share Price Index by 1.86 points and S and P SL20 by 0.66 points. The day's turnover stood at  Rs. 390 million with a single crossing/ arranged transaction. That crossing came from Sampath Bank, which crossed 196,000 shares to the tune of Rs. 42.8  million, per share value Rs. 217.50.

In the retail market, companies that mainly contributed to the day's turnover were; JKH Rs. 214 million (1.4 million shares traded), Sampath Bank Rs. 53.3 million (245,000 shares traded), Amaya Leisure PLC Rs. 7.2 million (132,000 shares traded), HNB Rs. 7 million (34000 shares traded) and Sanasa Development Bank Rs. 5.9 million (82,000 shares traded). During the day 5.5 million share volumes changed hands in 2836 transactions. Sri Lanka's bond yields were steady in mid-morning trade on Thursday ahead of a 98 billion rupee auction a day later, dealers said, while the rupee opened slightly firmer.

The rupee was quoted at 182.25/50 to the US dollar in the spot market, slightly firmer from Wednesday's close of 182.40/50 to the US dollar.

Twelve month treasury bills were quoted around 10.75/90 percent  after the auction weighted average fell 14 basis points to 10.85 on Wednesday from a week earlier.

Last Friday, a Rs. 98 billion bond auction had been announced for settlement on January 16. An estimated 80 billion rupees of bonds and 8 billion rupees of coupons are due to mature on January 15, sources said.

Meanwhile, JKSB adds -


ASPI: 5,984.05 (+1.86 pts; +0.03%); Val T/O: Rs. 390mn (US$2.14mn); Vol T/O: 5.5mn; Trades: 2,836

Advance/decline ratio: 73/95; Top gainer: SEMB.N (+25.00%) ; Top loser: BLUE.N (-16.67%)


=The ASPI ended marginally higher amid weak market turnover. JKH, SAMP, and CONN led activity levels including crossings with trading in JKH amounting to 55% of total turnover.

=Diversified Holdings was the most actively traded sector (-0.05%)

=Land & Property was the best performing sector (+0.81%), supported by gains on OSEA.N (+3.07%)

=Oil Palms was the worst performing sector (-1.22%), dragged down by declines on BUKI.N (-2.49%)

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