Sri Lanka shares rise, CDIC stake changes hands

July 11, 2008 (LBO) – Sri Lankan share prices ended higher Friday with a big deal between two banks pushing up turnover to over a billion rupees and indices rising on gains in Dialog Telekom and John Keels Holdings. There was some trading in plantations stocks although volumes were thin, he said.

Updated The All Share Price Index ended up 0.82 percent (19.82 points) at 2,425.42 while the more liquid Milanka closed 0.87 percent (25.24 points) higher at 2,920.98.

Turnover was boosted to 1.28 billion rupees with National Development Bank buying out the 24 percent stake (almost 10.5 million shares) owned by Bank of Ceylon in Capital Development and Investment Company (CDIC).

Bank of Ceylon officials said the stake was sold at 110 rupees a share in a deal worth 1.15 billion rupees, accounting for most of the day’s turnover.

NDB already had almost 76 percent of CDIC before the deal and now owns 99.66 percent of the company, CDIC said in a statement to the stock exchange.

Dialog Telekom gained 25 cents to 14 rupees with 486,900 shares traded while JKH rose 25 cents to 107.25 rupees with 262,700 shares changing hands.

“The indices moved up mainly because of the rise of JKH and Dialog,” said Nikita Tissera, manager research at SC Securities.

“Most of the day’s activity came from the strategic transaction in CDIC and trading in JKH. We also saw a little bit of AMW moving.”