Sri Lanka stocks down, heavy trading in HVA

Aug 29, 2011 (LBO) – Sri Lanka’s stock market fell Monday after two days of gains with heavy trading seen in newly listed tea exporter HVA Foods which went over 46 rupees after recently trading below its issue price, brokers said. The main All Share Price Index closed at 6,837.35, down 0.23 percent (15.61 points) while the more liquid Milanka index rose 0.01 percent (0.86 points) to close at 6,222.94, according to stock exchange figures.

Turnover was 2.6 billion rupees.

HVA Foods was the day’s most actively traded stock and highest gainer, closing at 44.80 rupees, up 6.30, with over 25.2 million shares changing hands. The firm has 66.4 million shares in issue.

Trading in HVA Foods, which hit a high of 46.40 rupees during the day, generated 1.1 billion rupees in turnover.

There was a crossing or off-market negotiated deal of 6,642,866 shares (a 10 percent stake) of HVA Foods at 45 rupees a share. It opened trading at 39.10 rupees.

HVA Foods said in a stock exchange filing the 6.6 million shares held by its parent, HVA Lanka Exports, had been bought by Divasa Equity (Private) Ltd., in which Varuni Amunugama Fernando, a director of HVA Lanka Exports, was also a director.

HVA Foods traded at 15.60 rupees, below its IPO price of 16 rupees, as recently as August 17, 2011.

Singer Finance (Lanka) was also actively traded, with over 3.7 million shares done, closing at 38.40 rupees, up 1.10.

Colonial Motors was another actively traded stock, closing at 406.50 rupees, down 7.10, with 400,000 shares done. There was a crossing of 50,000 Colonial Motors at 407 rupees each.

Brokers said there was also a crossing of 1,243,800 shares of DFCC at 135 rupees each.