JKH, Distilleries stocks slump on uncertainty

John Keells Holdings (JKH) stocks together with Distilleriesshares hit the dumps today as expected on the back of yesterday’s Supreme Court judgement of the 2002 privatisation of Lanka Marine Services (LMS) to JKH.

Stock market analysts early in the day said that Sri Lanka Insurance Corporation (SLIC) privatisation also being contested in the Supreme Court, could negatively impact on its subsidiary, Distilleries Corporation shares. “This was the case today with Distilleries dropping by Rs.6.50 to Rs.83.25 and JKH share price dropping by Rs.5.25 to Rs.98,” a stock market analyst said. He said that tomorrow, this will prevail with both these index heavyweights expected to slip and affecting the indices negatively.

The Supreme Court on Monday said the LMS privatisation was illegal and unlawful. The analyst said Janashakthi Insurance Company Ltd (JICL), which started trading yesterday did not perform up to expectations and closed at Rs.9.25, down by Rs.1.75 to yesterday’s closing price of Rs.11. The initial trading price of JICL was Rs.13.50, while the Initial Public Offer price was at Rs.12. The All Share Index lost 41.94 points to close at 2,338.63 while the Milanka dropped 65.95 points to close at 2,777.73. Total turnover stood at Rs.150 million.