Swarnamahal Financial Services’ quest for fresh capital peps CSE

By Hiran H.Senewiratne

Retail investor activity at the Colombo Stock Exchange (CSE) improved further yesterday due to corporate action taking place  in several companies,  such as, Swarnamahal Financial Services  PLC, Janashakthi and Softlogic Holdings.Swarnamahal Finance, one of the subsidiaries of Swarnamahal Group, is looking for potential investors, due to an acute financial crisis.

The company is consulting with the Central Bank in order to infuse fresh capital by way of a right issue or issuance of new shares to bail out the company. Therefore, a potential investor has submitted a proposal to the Monitory Board of the Central Bank seeking their approval, sources said.

The Central Bank handed over Swarnamahal's management to the People's Bank. Further, corporate activities that are about to happen in Softlogic Finance and Janashakthi Insurance have revitalized the retail market, rather than institutional activities.

Amid those developments both CSE indices moved up yesterday, and the day's turnover touched Rs. 1.34 billion with four crossings. Those crossings were:: Ceylon Cold Stores 115,000 shares crossed for Rs. 103.5 million at a per share value of Rs. 900, Commercial Bank (Non Voting) 221,000 shares crossed for Rs. 23.5 million at a per share value of Rs. 106, JKH 306,000 shares crossed for Rs. 45.4 million at a per share value of Rs. 158 and Softlogic Holdings 4.7 million shares crossed for Rs. 78.4 million, the per share value being Rs. 17.

When it comes to retail market companies that mainly contributed to the day’s turnover; Janashakthi Insurance Rs. 269 million (nine million shares traded), Softlogic Holdings Rs. 224 million (13.3 million shares traded) and Orient Finance Rs. 84.5 million (4.4 million shares traded)  During the day 69.66 share volumes changed hands in 9589 transactions.

"Local investors are on a wait-and-see mode ahead of the elections and that is the main reason why we don’t see much local activity. We expect this trend to continue for the next few days, market analysts told The Island Financial Review

Sri Lanka will hold the long-delayed local government election on Feb. 10, amid worries about the future of the country’s coalition government.

Meanwhile, JKSB adds -

ASPI: 6,542.90 (+35.65 pts; +0.55%); Val T/O: Rs. 1.34bn (US$8.76mn); Vol T/O: 69.6mn; Trades: 9,589

Advance/decline ratio: 120/66; Top gainer: SFS.N (+75.00%) ; Top loser: OFEQ.N (-21.39%)


• The ASPI ended higher amid healthy market turnover. JINS, SHL, and CCS dominated activity levels including crossings also seen in JKH and COMB.X. Trading in JINS amounted to 20% of total turnover.

• Banks, Finance, & Insurance was the most actively traded sector (+0.71%)

• Footwear & Textiles was the best performing sector (+2.62%), supported by gains on MGT (+0.72%)

• Oil Palms was the worst performing sector (-1.10%), dragged down by declines on SHAL(-13.13%)


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