ECONOMYNEXT – Sri Lankan shares ended weaker for a second day Tuesday with the sale among the owning family of a controlling stake in East West Properties which has a subsidiary operating a Marriot resort on the south coast boosting turnover, brokers said.
The All Share Price Index fell 23.89 points (0.36%) to close at 6,572.05 while the more liquid SP SL20 index rose 2.68 points (0.1%) to close at 3,847.98. Turnover was Rs1.89 billion.
First Capital Equities said the ASPI showed a continuous down trend during the day, while a low foreign participation led to a net foreign out flow from the market.
Price depreciation in 78 counters led by Dialog Axiata and Sri Lanka Telecom weighed heavily on the index negating the effect of 47 positive contributors led by Ceylon Cold Stores and Commercial Bank, they said.
A stake of almost 64% or 88.3 million shares of East West Properties (Pvt) Ltd., held by Asia 2000 Investments Inc., owned by Nahil Wijesuriya, was sold at Rs12.40 a share for Rs1.1 billion. The sale was to Wijesuriya’s children, Vijitha, Vinodhini and Vajira, a stock exchange filing said.
East West Properties closed at Rs12.90, up 50 cents or 4%.
The company has a 71.8% stake in Weligama Hotel Properties, whose Marriott Resort & Spa in Weligama Bay with 198 rooms began operations in July 2017.
(COLOMBO, October 17, 2017)
First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.