Merchants Bank Plc turns to a rights issue to raise Rs 2.24bn
Hiran H. Senewiratne
Investor sentiment at the Colombo Stock Exchange (CSE) rebounded to a great extent yesterday spurring a bullish session while also attracting a modest net foreign inflow into the market, stock market analysts said.
During the day 107 counters indicated positive gains and only 71 counters negatively contributed to the market. Both stock prices gained considerably whilst turnover touched to Rs 3. billion mark with seven crossings. Both indices moved upwards. All Share Price Index was up by 36.9 points and S&P SL20 up by 29.96 points.
Turnover stood at Rs 3.22 billion while crossings reported in HNB (Non Voting) 5.6 million shares crossed for the tune of Rs 604 million and its share price traded for Rs 107.50, Cargills 350,000 shares crossed for Rs 84.8 million and its share price traded at Rs 242, Pan Asia Power 7.5 million shares crossed for Rs 30.7 million and its share price traded at Rs 4.10, Access Engineering one million shares crossed for Rs 20.8 million and its share price traded at Rs 20.80, Alumex 1.5 million shares crossed for Rs 21.9 million and its share price traded at Rs 13.90, Prime Residencies 1.9 million shares crossed for Rs 21.6 million and its share price traded at Rs 11 and Softlogic Capital 5.2 million shares crossed for Rs 20.2 million and its share price traded at Rs 20.2 million.
In the retail market, the top five companies that mainly contributed to the turnover were Royal Ceramic Rs 181 million (4.6 million shares traded), Alumex Rs 151 million (10.6 million shares traded), LOLC Rs 132 million (348,000 shares crossed), HNB (Non Voting) Rs 112 million (1.07 million shares traded) and Swisstek Rs 89.9 million (2.8 million shares traded).
Amid those developments Merchants Bank Plc announced a rights issue to raise Rs 2.24 billion. The proposition of the rights issue is that nine new shares will be issued to four existing shares at Rs six for a share. The company intends to issue 373 million new shares under the rights issue. The purpose of the issue is to meet the capital adequacy requirement imposed by the Central Bank of Sri Lanka.
During the day 140.8 million share volumes changed hands in 25,786 transactions. High net worth and institutional investor participation remained subdued during the day. Mixed interest was observed in Prime Lands Residencies, HNB and Alumex, whilst retail interest was noted in several counters.
U.S. confident SL would ensure required facilitation for U.S. investors
Sri Lankan government has pledged to address the pending policy issues and I am confident that once the pandemic subsides, concrete efforts will begin to improve ease of doing business and ensure the required facilitation for US investors, Martin Kelly, Charge d’ Affairs of the Embassy of the United States of America in Sri Lanka said recently speaking at the Sri Lanka Invest Forum 2021 held virtually through June 7-9, 2021
“Sri Lanka was among the first countries in the region to open its economy and offers the highest standards of living among other advanced indicators in South Asia. Over the last seventeen years, the country continued to transition from an agriculture commodity based economy to become world leader in textile and apparel, a major exporter of IT and communication related services and of course a world class destination for international tourists,” he said.
“Promoting trade and investment opportunities is one of the embassy’s top priorities, and a vital component of our efforts to encourage private sector led development and toward stronger ties between the two countries,” he said.
Kelly said that the government of Sri Lanka has promoted pro-business policies including tax benefits, to attract the U.S. and other foreign direct investments.
ComBank donates ICU beds to Kegalle Teaching Hospital
Commercial Bank Chairman Justice K. Sripavan and Managing Director S. Renganathan with representatives of the Bank and the Kegalle Hospital
The Commercial Bank of Ceylon has donated three Intensive Care Unit (ICU) beds to the Teaching Hospital Kegalle, which receives over 80,000 admissions and 350,000 clinic visits, annually. The donation was made following a request from the hospital and will help it to provide seamless healthcare services to prevent non-pandemic related morbidities and mortalities while also treating patients who are COVID-19 positive.
The CSR Trust of the Bank has already gifted medical equipment and gear including Personal Protection Equipment (PPE) kits, face masks, surgical masks, hand sanitisers, Slit lamps, pulse oximeters, multipara monitors and oxygen concentrators to over 16 government hospitals. Commercial Bank also made a monetary donation to the National COVID-19 Healthcare and Social Security Fund set up by the government last year.
Trading activity gets slower among retail investors
Lankem Ceylon Rights Issue undersubscribed.
By Hiran H.Senewiratne
Stock trading at the Colombo Stock Exchange (CSE) was marginally positive yesterday and the number of retail investor participation was lower compared to previous trading days. Index heavy LOLC group which accounted for more than 30 percent of the turnover, contributed 20 points to the All Share Price Index, stock market analysts said.
Both indices moved upwards. All Share Price Index was up by 35.75 points and S&P SL20 up by 2.01 points. Turnover stood at Rs 1.74 billion sans a single crossing. In the retail market top six companies that mainly contributed to the turnover were LOLC Rs 510 million (1.28 million shares traded), Expolanka Holdings Rs 197 million (4.1 million shares traded), Melstacorp Rs 137 million (2.6 million shares traded), Browns Investments Rs 71.5 million (11.3 million shares traded), Windforce Rs 68.2 million (3.5 million shares traded) and Hayleys Holdings Rs 54.8 million (730,000 shares traded).
Index heavy LOLC, which contributed 20 points to the All Share Price Index, appreciated its share price by Rs 18.75 or 4.85 percent. Its share price started trading at Rs 386.25 and at the end of the day it moved up to Rs 405.
A pioneer in renewable energy, Vidullanka PLC has successfully completed raising additional capital of Rs. 253 million to fuel its expansion drive in the solar power sphere.
Lankem Ceylon Plc, Rs. 677 million worth Rights Issue has been undersubscribed. When the issue closed the Company managed to draw only subscriptions for 17.6 million shares worth Rs. 352.3 million. The original plan was to issue 33.85 million shares at Rs. 20 each aiming at raising Rs. 677 million. The basis was one new ordinary share for every one share held. Funds were to be raised to augment working capital requirements.
During the day 67.9 million share volumes changed hands in 17564 share transactions.
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