Bourse down after moving up four days running

Sierra fearing Rs. 172 mn. fraud requests trading halt

The Colombo bourse was down yesterday after four consecutive days of gains on a turnover of Rs.757.9 million, down from the previous day’s Rs.866.4 million, with the All Share Price Index losing 18.20 points (0.29%) and S&P SL20 down 1.92 points (0.06%) with 89 gainers and 93 losers almost on even keel while 141 counters closed flat.

An announcement from Sierra Cables of ``significant mis-statements’’ in the company’s financial statements going back four years with an audit report from KPMG revealing a discrepancy of about Rs. 172 million between ledger figures and physical verification proved a market damper, brokers said.

Sierra requested the SEC and CSE to suspend trading of its shares until the matter is cleared, expressing fear that there may be other significant grey areas especially with regard to the recording of stocks.

The company promised to vigorously pursue miscreants if any and full disclosure to shareholders and the public of the results of the investigations.

There were block trades in Ceylinco Insurance and Commercial and Bank with Ceylinco seeing 79,740 shares done in two parcels at a price of Rs.1,250 per share generating a turnover of Rs.99.7 million while Commercial Bank (voting) saw a single parcel of 250,000 crossed at Rs.127 contributing Rs.32.25 million to turnover.

The usually illiquid Shalimar was the top business generator on the floor with 92,535 shares done at Rs.1,600 contributing Rs.148.1 million to turnover. The sale price was Rs.98 below the previous close.

Analysts said that the Carson’s controlled plantation companies with estates in Malaysia are likely to de-list as the major shareholders do not want to sell down and it will not be possible to conform to the SEC’s new liquidity requirements in that context.

Other major business generators yesterday included Sampath closing Rs.1.10 up at Rs.191 on nearly 0.3 million shares done between Rs.189 and Rs.194.90 contributing Rs.52.6 million to turnover.

"Many of the counters including HNB, NDB and Commercial Bank (voting) that contributed significant business volume were done in large parcels," a broker said. "The exception was LIOC which saw more retail play."

HNB (voting) closed flat at Rs.158 on nearly 0.3 million shares, NDB closed flat at Rs.194 on nearly 0.2 million shares and LIOC closed 50 cents down at Rs.44 on nearly 0.6 million.

Floor trades in Commercial Bank (voting) saw nearly Rs.22 million generated closing 50 cents down at Rs.129 with the non-voting counter gaining Rs.1.20 to close at Rs.98.40 on nearly 0.2 million shares.

Aitken Spence Hotels closed Rs.1.10 up at Rs.79.50 on over 0.2 million shares, Janashakthi closed 10 cents down at Rs.14.60 on over 0.9 million shares and Sierra Cables closed 10 cents up at Rs.2.20 on nearly 5.7 million shares.

Expo closed flat at Rs.10.40 on nearly 1.2 million shares done between Rs.10.30 and Rs.10.40. Brokers said that with a mandatory offer at Rs.10.70 pending, sellers clearly were looking for instant cash instead of waiting eight weeks to get a slightly better price.

Haycarb announced a dividend of Rs.3 per share for 2013/14 following shareholder approval at an AGM on June 25. The share will trade XD from June 26 and with payment on July 5.
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