Captain’s buy 2% more of JKH for Rs. 4.3 b

• Collective stake estimated at 19% now

Largest shareholder Sohli Captain on Friday picked up a further 2% stake in top blue chip John Keells Holdings for Rs. 4.36 billion.
Analysts estimate the collective stake controlled by Captain is around 19% following the fresh buying.
As at end 2013, Captain held 11.7% stake of 116.15 million shares directly and a further 5.3% via Paints and General Industries Ltd., bringing the collective stake to 17%. The Captains have a trading portfolio of JKH as well.
Analysts welcomed the capacity of the Captains to have picked up the block, a move that is likely to boost overall local investor sentiments.
Malaysia’s sovereign fund Khazana is the second largest shareholder at JKH with a stake of 10.5%.
Deals on JKH dominated the Colombo stock market last week. JKH saw 32 million of its shares traded for Rs. 7.47 billion. It closed at Rs. 232.70, up by Rs. 7.70.
On Friday 18.84 million shares traded for Rs. 4.4 billion, of which 18.65 million shares were done at Rs. 234 each.
The week’s main seller was Janus Overseas Fund whilst net foreign holding of JKH was down by 18.2 million shares on Friday whilst for the entire week the net foreign holding was down by 13.3 million shares (worth Rs. 3 billion) to 51.43%
As at 31 December 2013, Janus Overseas Fund held 77 million shares of 7.8% but by last week it had come down to around 30 million shares.
With Friday’s massive sale, year to date net foreign outflow surged to Rs. 9.7 billion. Despite that, several foreign funds were on the buying side as well. Commercial Bank saw Rs. 321 million of net foreign buying. HNB (Rs. 67 million), Sampath Bank (Rs. 22 million) and Dockyard (Rs. 20 million) were among other favourites whilst Shalimar saw Rs. 120 million of net buying.
Acuity Stockbrokers said renewed investor confidence boosted markets this week, with the benchmark ASPI surging past the key 6,000 barrier after a 6-week hiatus.
“Markets in the week ahead are likely to sustain the current momentum created by HNI and institutional investors who are strategically buying into selected counters. The consequent boost to sentiment is likely to attract further retail investor interest and help boost overall volumes,” Acuity added.