Fundamental stocks ailing, speculators go for eChannelling

Thursday, 6 October 2011 00:58 -     - {{hitsCtrl.values.hits}}

Owing to many fundamentally sound stocks ailing with no takers, speculative investors were busy yesterday buying eChannelling, the IT company reliant on the healthcare industry.

Around 26% stake of the company or 32 million shares changed hands yesterday via 3,426 trades, generating the biggest turnover of Rs. 309 million.

Heavy demand saw eChannelling’s share price rise to Rs. 10.30 before closing at Rs. 9.80, up by Rs. 1.10 or near 13% topping the percentagewise gainers list. Of late the Company has seen a turnaround.

Preoccupation with eChannelling follows rumours of a possible takeover but market talk couldn’t be officially confirmed.

Heavy trading also comes after eChannelling’s single largest shareholder British American Technologies (BAT) buying 2.4% stake or three million shares last Friday at Rs. 8 each on top of collecting around one million shares previously since August.

Analysts estimate BAT to be owning over 25% stake in eChannelling now as opposed to 22.4% as at 31 March. Sri Lanka Insurance via its General and Life fund owns around a 23% stake in eChannelling.

Apart from deals on eChannelling, the overall market lacked excitement as ASI and MPI dipped by 0.2% each whilst turnover was a lacklustre Rs. 1.3 billion.

After its peak on Tuesday Radiant Gems witnessed some profit taking driving the counter to dip 7.6% as it closed at Rs. 180 for the day. Hydro Power Free Lanka, another penny addition, witnessed some renewed speculative playas it saw 3.9 million shares being traded in total whilst registering a gain of 8.1% closing at Rs. 16.1. Regnis Lanka continued to be actively engaged by the investors but closed with a dip of 4.5% for the day on the back of retail profit taking. Selling was visible in heavy weight John Keells Holdings as the counter dipped by 1.4%. Capital Alliance Finance, which initiated trading on Tuesday continued to be actively looked in by the investors after registering a hefty 166% gain on debut. Following a gain of more than 2.5 times, the counter saw some profit taking as it sank 4.5% to close at Rs. 38.10.