Friday, 22 January 2021 06:55

Dhammika drives stock market to dizzy heights with mega share sub-division move

Business leader Dhammika Perera picked perhaps an auspicious 21.1.21 to unleash a sensational move of share splits of his flagship export-rich diversified blue-chip Hayleys PLC and several subsidiaries sending the stock market to dizzy heights with investors scrambling to grab stocks.

Hayleys announced a share split of one share into 10 and 13 other companies in which Hayleys and Dhammika has control announced straight forward sub-division. The move sent investors to a frenzy, propelling the Bourse and Hayleys and related stocks to record highs.

Market capitalisation rose by over Rs. 100 billion.

The All Share Price Index soared by 247 points or over 3% and S&P SL20 Index gained by over 100 points or 3.2%. This saw year-to-date gains of both indices rocket to over 20% in less than equal number of market days. Turnover was a new one year high of Rs. 14.2 billion. Number of trades also reached a new all-time high at 67,831 surpassing previous records witnessed last week. Over 377 million shares changed hands and there were less sellers yesterday.

“I wanted to make Hayleys and other related companies affordable to all so that they can reap the benefits of impressive performance of the companies,” Dhammika told the Daily FT. Hayleys and Group companies have so far announced stellar results in the first half and second quarter. Analysts tip them to report phenomenal results in 3Q shortly. If it is true then yesterday’s record prices along with sub-division will make Hayleys and 13 other related stocks more attractive even at current levels.

Eight of the top 10 gainers percentage wise yesterday were Hayleys and related companies.

The share price of Hayleys gained Rs 202.50 (35.06%) to close at Rs. 780.00. The share price of Vallibel One moved up by Rs. 11.00 (24.72%) to close at Rs. 55.50. Dipped Products increased by Rs. 135.00 (30.61%) to close at Rs. 576.00. Share of all other companies which announced share split gained as well.

Dipped Products toped turnover with 3.5 million of its shares traded for Rs. 2 billion, Hayleys came second with 1.8 million shares traded for Rs.1.3 billion and Vallibel One third with 16.7 million shares done for Rs. 875.7 million.

First Capital said retail optimism due to the announcement of higher number of subdivision of shares in a day drove the market in the positive direction for the second consecutive session.

“Index experienced a slight dip during the early hour of trading, thereafter witnessed a strong uptrend till the end of the session and closed at 8,131 with an advance of 247 points,” it said.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Hayleys and Vallibel One.

It said high net worth and institutional investor participation was noted in Sampath Bank, Hatton National Bank non-voting and Dipped Products. Mixed interest was observed in John Keells Holdings, LOLC Holdings and Browns Investments, whilst retail interest was noted in Hayleys, Vallibel One and Hayleys Fabric.

Capital Goods sector was the top contributor to the market turnover (due to Hayleys, Vallibel One and John Keells Holdings), whilst the sector index gained 7.86%. The share price of John Keells Holdings appreciated by Rs. 5.00 (3.18%) to close at Rs. 162.00.

Materials sector was the second highest contributor to the market turnover (due to Dipped Products), whilst the sector index increased by 13.67%.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a gain of Rs. 49.25 (21.25%) to close at Rs. 281.00.

Separately LB Finance announced an interim dividend of Rs. 12.00 per share.

Net selling amounted to Rs. 466 million sending the YTD figure to over Rs. 3.3 billion. Asia Securities said estimated net foreign buying topped in VONE at Rs. 24.5 million and net foreign selling topped in HNBX at Rs. 186.9 million.

(FT)

 

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