JKH gains on Waterfront start

Wednesday, 30 April 2014 00:09 -     - {{hitsCtrl.values.hits}}

The share price of premier blue chip John Keells Holdings (JKH) gained higher yesterday on the news that it has already started construction work on its mega integrated resort, Waterfront, at Colombo 2 entailing an investment of $ 650 million. JKH closed at Rs. 280, up by Rs. 3 or 1.3%, though on thin volume. On Monday it closed at Rs. 235 with a 10 cents gain despite hitting an intra-day high of Rs. 236.50. At Rs. 238 closing yesterday, JKH is trading 20 cents below its highest month-closing for the year so far of Rs. 240 in January. The diversified blue chip regained its once-lost most valuable stock status in February, though closing lower at Rs. 220.70. Since then it has been on a slow yet steady gain. JKH, SLT (up 1.5%) and Expolanka Holdings (up 5.3%) were the major contributors to yesterday’s gain at the Colombo Bourse. The market has gained 3.65% so far this month and a year-to-date gain of 4.63%. NDB Stockbrokers said the Bourse continued to see gains with JKH, Commercial Leasing & Finance and SLT leading the gains. The Banking sector saw foreign interest in counters Union Bank, Hatton National Bank and Sampath Bank. Retail activity was evident in Overseas Realty and People’s Merchant & Finance. The Banks, Finance and Insurance sector was the top contributor to the market turnover (due to Union Bank, Hatton National Bank and Sampath Bank) and the sector index went up by 0.22%. The share price of Union Bank increased Rs. 1.10 (5.39%) to close at Rs. 21.50 with foreign holding of the counter increasing by 121,830 shares. The share price of Hatton National Bank gained Rs. 0.30 (0.19%) to close at Rs. 157.20 and the foreign holding of the counter increased by 177,000 shares. The share price of Sampath Bank gained Rs. 0.40 (0.21%) to close at Rs. 194.90 with the foreign holding of the counter increasing by 110,500 shares. The Diversified sector became the second highest contributor to market turnover (due to Expolanka Holdings and Aitken Spence) and the sector index gained 0.68%. The share price of Expolanka Holdings closed at Rs. 10.10 gaining Rs. 0.60 (6.32%) and the foreign holding of the counter increased by 425,438 shares. The Aitken Spence closed at Rs. 97.90, gaining Rs. 0.90 (0.93%) while the foreign holding of the counter decreased by 169,174 shares. Parliament last week approved three mega integrated resorts. Apart from JKH, the other two were Queensbury and Lake Leisure. These projects entail an investment of over $ 1.5 billion. In a filing to the CSE following Parliamentary approval, JKH said: “The project site has been handed over to the contractor and construction has commenced.”