Sri Lanka shares downturn continued following a mid-day crash

Mar 25, 2015 (LBO) – Sri Lanka’s shares dipped further on Wednesday with the benchmark index sinking below the 7,000 mark to a near seven-month low amid continuing political uncertainty, brokers said.

The downturn in Sri Lanka’s stock market deepened with the Colombo benchmark All Share Price Index closing 24.90 points lower at 6,973.03, down 0.36 percent while the S&P SL20 closed 15.86 points lower at 3,961.31, down 0.40 percent.
Turnover was 2.0 billion rupees, up from 395 million rupees a day earlier.

There was keen investor interest on Odel Plc stock following an announcement made Tuesday with 65,864,600 shares traded during the day and the stock closing at Rs. 21.40 up 0.40 rupees.

Odel,acquired Softlogic group’s branded retailing unit for 599.9 million rupees looking at purchasing power of customers in the island, the company said in a stock exchange filling, yesterday.

The statement said, the action was taken in a move to integrate their retail assets.

Odel Plc had bought 99.99 percent of Softlogic Brand (Pvt) Ltd, from Softlogic Retail (Pvt) Ltd and Dai-Nishi Securities (Pvt) Ltd, subsidiaries of Softlogic Holdings PLC.

“The group decision to enter into this transaction was mainly inspired by the post acquisition synergies, industry growth and favorable macro economy condition such as increasing purchasing power of consumers and the growth in the tourism industry ” the statement said.

Odel will also settle 1.1 billion rupees due to Soflogic Retail by Softlogic Brands on or before 31st March 2015, the statement said.