Watapota miracle continues but lands in the band

Friday, 25 March 2011 03:49 -     - {{hitsCtrl.values.hits}}

Guardian Capital Partners (formerly Watapota) yesterday landed under the SEC’s price band after its price made merry.

Guardian Capital made further gains yesterday pushing the ASPI up. “The company consists of only a cash base of under Rs. 550 mn. However, at the current share price (Rs. 318) the company is valued at over Rs. 8 bn at an unbelievable premium of over 15 times,” opined NDB Stockbrokers.

Trading after its mega Rights Issue, Guardian Capital will now be subject to the band from 25 March to 7 April.

Due to strategic deals and retail interest, the Bourse gained marginally yesterday on Rs. 2.8 billion turnover.

Manufacturing sector was the main contributor to the market turnover (due to Pelwatte Sugar) with sector index decreasing 0.02%.

Profit taking was witnessed on the finance sector counters, Central Finance and LB Finance, which pushed up the indices over the last couple of days. Gains recorded in blue chip counters JKH and Dialog pushed the MPI up.