Sri Lanka Telecom makes weak debut

["Irfan Khan" <khania2@super.net.pk>]

BBC News, 14 January 2003

Sri Lanka Telecom makes weak debut


Sri Lanka Telecom [http://www.slt.lk/ ], the biggest floatation in 
the country's history, has made a muted debut on the country's stock 
exchange.

The 12% stake in the fixed-line monopoly was sold by the government 
in November for $34m as part of its extensive privatisation 
programme.

Local investors took up most of the initial public offering, with 
strong buying by state pension funds, but foreign investors bought 
just 16% of the shares on offer.

"Volumes on Sri Lanka Telecom is low," said Sanjeewa Maddumage of HNB 
Stockbrokers, adding foreign trading in the shares was weak.

"It looks like most investors are holding on to the shares," he said.


Bourse boost

Sri Lanka Telecom shares finished up one rupee from their issue price 
of 15 rupees, helping lift the Colombo all-share index up 0.31% to 
844.2 points.

The listing of Sri Lanka Telecom raised the capitalisation of the 
Colombo bourse by about 16% to $2bn.

The Colombo stock exchange [http://www.cse.lk/cse.html ] was one of 
the best performing in the world in 2002, ending up 31% as the peace 
process between the government and Tamil Tiger separatists brings an 
end to 19 years of civil war.

Japan's Nippon Telegraph and Telephone (NTT) owns 35.2% of Sri Lanka 
Telecom. 


source: http://news.bbc.co.uk/2/hi/business/2656397.stm