Sri Lanka market turnover rises to three-week high

COLOMBO: Sri Lankan shares ended flat in an overbought market but turnover rose to its highest in more than three weeks as conglomerate Hemas Holdings bought a majority stake in pharmaceutical firm J.L. Morison Sons and Jones (Ceylon) PLC.
The main stock index ended barely changed, closing 0.01 percent, or 0.69 points, weaker at 6,455.12.
Five dealers said Hemas Holdings bought 4.15 million shares, or around 70 percent stake, in J. L Morison Sons and Jones (Ceylon) at 366.50 rupees a share.
Shares in Morison rose 10.71 percent to 346.20 rupees a share, while shares in Hemas rose 6 percent to 37.10 rupees.
The deal boosted the day’s turnover to 2.56 billion rupees, its highest since May 6 and well above this year’s daily average of 1.05 billion rupees. “The market is not moving as there is no market-moving news and turnover was pushed by block deals in Morison,” said a stockbroker who declined to be identified.
J. L Morison Sons and Jones (Ceylon) PLC in a disclosure statement to the bourse said Hemas Manufacturing (Private) Limited, a fully owned subsidiary of Hemas Holdings, acquired 4,153,690 ordinary voting shares representing 71.51 of the equity capital of the company.
It also said Hemas purchased a 50.06 percent stake in non voting equity capital of the company.
The telecom sector index fell 0.99 percent with top fixed-line telephone operator Sri Lanka Telecom falling 1.38 percent and leading mobile phone operator Dialog Axiata PLC sliding 1.06 percent.
Foreign investors were net buyers of 165 million rupees ($ 1.30 million) worth of shares, extending net foreign inflows this year to 13.55 billion rupees.
The market’s 14-day Relative Strength Index (RSI) was still in over-bought territory, at 78.252 and has been above the upper neutral level of 70 since April 16, Thomson Reuters data showed.
The rupee edged up at 126.45/50 per dollar, little changed from Wednesday’s close of 126.48/55 on thin volume of exporter dollar sales, dealers said.