CSE: After COM Bank, Raj begins shedding HNB in Sri Lanka

9th November 2009, www.dailymirror.lk

Lankan born US hedge fund manager Raj Rajaratnam’s Galleon has begun exiting from HNB after it shed holding in Commercial Bank.

HNB saw 1.85 million of its shares (around 1% stake) traded yesterday between a high of Rs. 170 and a low of Rs. 168, before closing at the latter level, down by Rs. 1.50. Analysts said that among sellers of HNB was Galleon as well as Brown & Company. The latter, which has a stake of slightly over 7%, was booking profits.

Galleon’s focus on HNB is following the exit strategy on Commercial Bank, which the market witnessed in recent days.

On Tuesday, a block of 3.5 million shares of COMBank changed hands at Rs. 177 whilst the counter traded between a Rs. 180 and a low of Rs. 176.

Yesterday, a further block of 1.5 million shares of COMBank traded, also at the same price of Rs. 177. While COMBank gained only by 25 cents on Tuesday, it closed up by one rupee yesterday.

Buyers of Galleon shares as well as Browns quantity had been foreign and select local institutional investors.

Despite the second day of over Rs. 900 million turnover, investor sentiments remained relatively bearish on economic and political woes. Market capitalisation dipped by Rs. 1 billion yesterday over Tuesday.