Cargills Bank take control of Capital Alliance Finance

Finance companies attract interest as bourse closes in the red

The Colombo bourse yesterday closed in the red on a turnover of Rs.1.57 billion, down from the previous day’s Rs.2.29 billion, with strong interest seen in finance companies, brokers said.

The new Cargills Bank acquired a 68.43% stake in Capital Alliance Finance buying slightly over 26.5 million shares at prices of Rs.15.40 and Rs.15.50.

Cargills Bank has a commercial banking license from the Central Bank.

The All Share Price index was down 6.73 points (0.10%) while S&P SL20 declined 17.30 points (0.46%) although 120 gainers outpaced 94 losers while 111 counters closed flat.

Block trades in six counters – Ceylinco Insurance (non-voting), Capital Alliance Finance, Aitken Spence, Distilleries and Chevron supported turnover to the extent of Rs.669.59 million.

Capital Alliance Finance saw over 26.5million shares crossed at Rs.15.50 and Rs.15.40 generating a turnover of Rs.410.7 million in block trades with control of the company changing hands.

"The main block of 21.2 million shares was crossed at Rs.15.50 and two smaller blocks of 2.2 million shares and three million shares at Rs.15.40," a broker said.

In addition to the block trades a further 2.3 million of this stock were transacted on the trading floor between Rs.15.10 and Rs.15.90 closing 50 cents up at Rs.15.50 and contributing Rs.35.5 million to turnover.

"There was considerable interest in finance companies with Chilaw Finance, Singer Finance, Central Investment and Finance and Vallibel Finance also showing volume and price gains," a broker said.

"Much of this activity was trading play, including among retailers, speculating on possible developments in finance companies under the Central Bank’s Financial Services Consolidation Trust."

He noted that some acquisitions have already been completed or announced.

Among the crossings, Ceylinco Insurance (non-voting) saw 85,000 shares crossed in a single parcel at Rs.85 contributing Rs.44.2 million to turnover, Aitken Spence 0.5 million shares crossed at Rs.108 in a trade worth Rs.54 million, Distilleries, nearly 0.6 million shares crossed in three parcels at Rs.201.50 (Rs. 114.2 million) and Chevron, 150,000 shares crossed at Rs.310 (Rs. 46.5 million) .

The biggest turnover generator on the floor was JKH which closed 50 cents down at Rs.236.50 on nearly 0.5 million shares done between Rs.236.20 and Rs.237.50 contributing Rs.112.5 million.

"Most of these trades were done in large parcels as were nearly 0.3 million Distilleries closing 50 cents down at Rs.202 and Hemas Holdings closing Rs.1 up at Rs.50.20 on nearly 0.7 million shares contributing Rs.34 million to turnover.

Along the finance companies, Chilaw Finance closed Rs.1.40 up at Rs.24.10 on nearly 2.2 million shares, Capital Alliance Finance closed 50 cents up on the floor at Rs.15.70 on nearly 2.3 million shares, Singer Finance closed 60 sent up at Rs.15.90 on nearly 1.8 million shares and Central Investment & Finance closed 10 cents up at Rs.2.10 on nearly 12.5 million shares.

O’nally Holdings and Senkadagala Finance made dividend announcements for 2013/14 with O’nally to pay a final dividend of Rs.1.50 per share, XD from August 14 and payment on August 25 while Senkadagla, will after shareholder approval at an AGM on August 17, pay a final dividend of 80 cents per share on September 26.

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