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Sri Lanka shares end down 0.7-pct

June 06, 2011 (LBO) - Sri Lankan shares ended lower Monday with trade dominated by the acquisition of a stake in Panasian Power, a mini hydro firm, by Emagewize, brokers said. The main All Share Price Index closed at 7,355.43, down 0.68 percent (50.59 points) while the more liquid Milanka index came down 0.26 percent (17.92 points) to close at 6,839.48, according to stock exchange figures.

Turnover was 4.9 billion rupees.

“Investors are pulling out their money for the Softlogic and Vallibel One initial public offers (IPO) and private placements. This is a bad indicator for the secondary market," said Sarath Rajapaksa, director of Capital Trust Securities.

He said that in the 1990s IPOs drew fresh money into the market but that today it is secondary market investors who invest heavily in IPOs.

"So the secondary market is short of cash,” said Rajapaksa.

Panasian Power was the highest gainer and highest contributor to the day's turnover with 367.6 million shares done, generating 2.8 billion rupees.

Panasian Power share closed at an all-time high of 8.30 rupees, up 3.70 rupees or 80.43 percent.

The market regulator brought the stock under a 10 percent price band, the maximum daily movement allowed under the rule, from June 7 till June 13.

Emagewize, a firm controlled by Dilith Jayawwera, bought 77 million shares in Panasian Power for 6.00 rupees a share, brokers said.

Meanwhile, the Access Group has opened a four billion rupee worth private placement at 25 rupees a share, brokers said.

Colombo Land & Development Company, which was owns Colombo's Liberty Plaza shopping mall and Pettah central bus stand, closed at 48.20 rupees, down 2.80 or 5.49 percent with 06 million shares changing hands, the second biggest contributor to the day's turnover.

Alufab announced a rights issue of two new ordinary shares for every one held at a price of 38.00 rupees a share and a private placement subject to Colombo Stock Exchange and shareholder approval. The share closed at 124 rupees, up 25.90 rupees or 26.40 percent.

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