Today 07.01.2011 Panasian power (PAP) came to Colombo Stokes Exchange (CSE) as initial day after the IPO. As per the Expectation from the CSE, I personally expect it will be close first day at least of Rs.4, but the happy news is most of the investors are knew about the market trend and play a professional game.
Today market starts with initial trading of Rs. 3.80 and finally closed at 3.50. Today ranges reaches between Rs.3.50 to Rs. 4.00.
In compare to the bid and ask, ask (345,000 shares @ Rs.3.70) is more than a bid (203,700 shares @ Rs.3.60) at the time close the market, therefore we can expect a downside in Monday morning and may recover in evening as usual.
Weakness of today’s trading
In the first day Director of Panasian power Ltd Dr. Prathap Ramanujam sold his 350,000 shares at Rs.3.70.
After the announcement published that Dr. Prathap Ramanujam sold 350,000 shares at Rs.3.70, the investors had small panic about the Panasian Powers performance in future. Because there is some questions arise,
- Did he sell it because to realized capital Gain of IPO (is this Maximum can reaches ever).
- Did he sell it of his personal decision
But the trading was confused the small level investors, who expects the capital gain in short terms.
Hope PAP will go on
There is good enough hopes that PAP will perform well. And Srilanka is main electricity formation is Step is hydro power, and the announcement of Laugfs Hydro Power generations also will support the Panasian Power stokes to be steady and create confident to investors about Hydro power Industry.
So until there is good enough demand and cost efficiency from the Hydro power, Panasian power will survive.