CSE Highs and Lows

BY Madhusha Thavapalakumar 

The Colombo Stock Exchange (CSE) on Monday (11) was off to a red start with the All Share Price Index (ASPI) losing 29.63 points to close at 9,649.26. The turnover for the day was Rs. 2.57 billion while the share volume was 115.41 million. 

However, following news of its 53% price hike, Laugfs Gas PLC shares had a significant rally on this day. The non-voting share of Laugf Gas (LGL.X0) was the second-highest exchange gainer yesterday, increasing by over 21.4% (Rs. 3.6) to close at Rs. 20.4 from the previous day’s close of Rs. 16.8. With an intra-day high of Rs. 21.0, LGL.X0 was the fifth most traded share with over 1,255 trades made, at a volume of 2.8 million.

The voting share of Laugfs Gas (LGL.N0) surged during the first hour of trading to reach an intra-day high of Rs. 32.5, before settling due to selling pressure and closed the day at Rs. 28.9, up 10.7% (Rs. 2.8) from the previous day’s close of Rs. 26.1. With 1,525 trades, LGL.N0 was the fourth most traded share during the day with a volume of 2.8 million. 

The next day (12), ASPI continued to lose with the index closing at around 9,640.36 while the turnover fell further to Rs. 2.05 billion. 

“In the beginning, the index hit an intraday high of 9,684 as soon as the market opened and eventually reached a low of 9,630. Subsequently, it displayed massive volatility throughout the session over the looming uncertainty. Following an unstable trading session, a selling spree emerged, dragging the index down, losing nine points while closing at 9,640,” First Capital added. 

The day also witnessed Ex-Pack concluding its investor forum. Ex-Pack is making an initial public offering (IPO) of its shares, which is due to close on 22 October 2021 and will subsequently be listed on CSE. 

Managed by investment bankers, Capital Alliance Partners Ltd., and Asia Securities Advisors (Pvt.) Ltd., Ex-Pack Corrugated Cartons Ltd. will offer 83,333,333 ordinary voting shares (a 25% stake) at a price of Rs. 8.40 per share through its IPO, resulting in a projected market capitalisation of Rs. 2.8 billion. This translates into an estimated forward PER of 7.7x for FY22 and an implied TTM PER (as at August 2021) of 8.9x. 

ASPI lost on Wednesday as well (13). 

“Index set off on a downswing as the market commenced and plunged steeply within the first half hour, hitting an intraday low of 9,483. Thereafter, the market displayed a slight recovery and moved on a sideways drift followed by a downtrend during the latter part of the session owing to an intensifying selling spree and closed for the day at 9,498; losing,” First Capital added. 

However, on Thursday (14), ASPI managed to close the trading in a green note as it gained 124.16 points to close at 9,621.65. The turnover was Rs 2.6 billion. 

In other developments, investor Dr. T. Senthilverl became the second-biggest shareholder at Gestetner of Ceylon PLC due to his 20% stake in the company. He purchased an 11.77% stake amounting to 312,865 shares at Rs. 75 each in a deal worth Rs. 23.4 million last week. 

Meanwhile, Industrial Asphalts (Ceylon) PLC (ASPH) announced that it has entered into a Memorandum of Understanding (MoU) with Hiin Holdings Pte. Ltd. of Singapore. 

Under the MoU, ASPH and Hiin Holdings will seek to work together in studying and understanding the current and future business opportunities in the bitumen space encompassing Sri Lanka and the South Asian region. According to ASPH, this MoU shall enable the creation of the required platform to explore the possibility of establishing a joint venture (JV) company.   

On another note, Ceylon Hotels Corporation PLC (CHOT) has by corporate disclosure announced that its subsidiary Ceylon Hotels Maldives (Pvt.) Ltd. (CHML) has entered into a conditional sale and purchase agreement to sell its stake in Handhuvaru Ocean Holidays (Pvt.) Ltd. for $ 4.5 million. 

Under the conditional sale and purchase agreement, CHML agreed to transfer its 50% stake in Handhuvaru Ocean Holidays to China Travel International Investment Hong Kong Ltd. The conclusion of the sale and the eventual transfer of CHML’s stake is subject to due diligence and satisfaction of certain conditions precedent.