Saturday, February 27, 2010

RETURN FROM SHARES LISTED IN COLOMBOO STOCK EXCHANGE

We selected  following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (22/02/2010 to 26/02/2010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange, which was rated as Asia's best performing stock  market & World's second best performing stock market in year 2009.

SEE THE RETURN FROM  BELOW MENTIONED  SHARES. THIS IS WITHING A PERIOD OF ONE WEEK. THINK TWICE INVEST NOW IN COLOMBO STOCK EXCHANGE -   SRI LANKA.  STILL YOU ARE NOT LATE.

SRI LANKA - WHO IS THE BEST PROFIT MAKER - HATTON NATIONAL BANK vs COMMERCIAL BANK

Com Bank posts Rs 4.1 b profit in 2009

Commercial Bank Group has demonstrated resilience to maintain profitability in the year ending December 31, 2009 despite testing conditions on the local and global fronts and lower demand for credit.


In results released to the Colombo Stock Exchange, Commercial Bank of Ceylon PLC, its subsidiaries and associates reported a post-tax profit of Rs 4.193 billion and pre-tax profit of Rs 7.129 billion for the year, with the Bank posting a particularly strong performance in the final quarter. The Bank, a private sector benchmark, reported profit after tax of Rs 1,370.8 million for the three months ending December 31, 2009, a growth of 26 per cent over the corresponding quarter of last year.

The Bank’s operations in Bangladesh, described as ‘the jewel in the crown’ of Commercial Bank, and now comprising 15 delivery channels and 13 ATMs, achieved a net profit of Rs 624.6 million, contributing 14.51 per cent to Commercial Bank’s bottom line. Commercial Bank Bangladesh was ranked No 1 for the sixth year under the CAMEL rating system by the Central Bank of Bangladesh in 2009.

The Group also benefitted by its strategic investments in government bonds, the income and capital gains of which are exempt from tax.

Total income for the year reached Rs 43.614 billion. Operating income increased by 2.44 per cent to Rs 20.121 billion, helped by a growth of 57.9 per cent in Other income, and exchange profit which grew 12.49 per cent to Rs 2.9 billion. - source - www.dailynews.lk



Sri Lanka HNB 2009 net up by 58% to Rs 4.5 b.n.

Sri Lanka's Hatton National Bank (HNB) said group net profits for the 2009 financial year rose 58 percent to 4.5 billion rupees with gains from investments in government securities while the loan book shrank.
The bank said in a stock exchange filing that group December quarter profits shot up 156 percent to 1.8 billion rupees from a year ago.

Basic earnings per share for the year were 19.03 rupees compared with 12.02 rupees the previous year.

Interest income rose six percent to 34.8 billion rupees, with interest income on loans stagnant while there was a 38 percent rise in income from other interest earning assets

Interest expenses were stagnant at 20.3 billion rupees allowing net interest income to rise 16 percent to 14.6 billion rupees during the year.

Non-interest income rose three percent to 5.7 billion rupees with forex income down sharply but fee income growing

HNB showed a reversal of 22 million rupees on general loan provisioning in 2009 compared with a provision of 484 million in 2008 while specific provisions rose eight percent to 730 million rupees.

Performing loans fell four percent to 162 billion rupees as at December 31, 2009 from the beginning of the year and bad loans fell eight percent to 12.5 billion rupees over the year.

Total group assets rose nine percent to 288 billion rupees. - source - www.lbo.lk

Friday, February 26, 2010

SRI LANKA - TEA MARKET NEWS FROM COLOMBO AUCTIONS

Feb 26, 2010 (LBO) - Sri Lankan tea prices at the Colombo auctions fell for the second week running this week on bigger volumes and lower quality, although production was recovering, brokers said.
Teas from estates, mostly run by regional plantations companies, fell 20-40 rupees a kilo, they said.

"Overall quality of offerings was lower to previous with the fair weight of the offerings comprising of fair average quality teas," Forbes and Walker Tea Brokers said in a market report.

"Therefore, this week's decline in prices could be attributed to a combination of the large volume and the relatively uninteresting quality of teas on offer."

Brokers Asia Siyaka Commodities said that in low grown teas, made by small farmers and which make up the bulk of output, prices also fell.

"There was a large weight of primary low grown teas on offer at this week’s auction. In the 'Large Leaf' catalogues there was better demand although at lower levels of price."

Tea producers have been enjoying high prices in recent weeks because of rising demand and a continuing global shortage.

Tea production fell last year because of drought and production disruptions in major exporting countries.

Asia Siyaka Commodities said Sri Lanka's January output indicated a recovery in the island's production, especially among small farmers cultivating the low grown teas mainly in the south.

"Good cropping conditions combined with fertilizer application and high green leaf prices ensured that small holders as well as estates optimized green leaf intake in the month."

source - www.lbo.lk

SRI LANKA - COLOMBO STOCK MARKET CONTINUES ITS UPWARD TREND

26/02/2010 - Colombo Shares were up today by 0.68% to close at 3807.86 & the more liquid Milanka price Index was up by 7.46 points to close at 4354.73 on a shortened day trading. All share price index finally breaks the barrier of 3800 today.

Turnover for the day was Rs 787 m.n.

There was a net foreign out flow of Rs160 m.n today. Foreigners purchased shares worth of Rs 102 m.n. & sold shares worth of Rs 262 m.n.

   TOP FIVE GAINERS FOR THE DAY                           TOP FIVE LOSERS FOR THE DAY


  CROSSINGS FOR THE DAY



NOTE

  • HNB one of  Sri lanka's largest private sector commercial bank has released its annual report for the year 2009 today with a growth of 58%.
  • We believe that HNB is in a very good position with a wide branch net work, good representation in North & East areas to grab the future available opportunities created after the end 0f 30 year old civil war.
  • Pending dividend of Rs 5.00 .
See reoprt HNB - 

Feb 26, 2010 (LBO) - Sri Lanka's Hatton National Bank (HNB) said group net profits for the 2009 financial year rose 58 percent to 4.5 billion rupees with gains from investments in government securities while the loan book shrank.
The bank said in a stock exchange filing that group December quarter profits shot up 156 percent to 1.8 billion rupees from a year ago.

Basic earnings per share for the year were 19.03 rupees compared with 12.02 rupees the previous year.

Interest income rose six percent to 34.8 billion rupees, with interest income on loans stagnant while there was a 38 percent rise in income from other interest earning assets

Interest expenses were stagnant at 20.3 billion rupees allowing net interest income to rise 16 percent to 14.6 billion rupees during the year.

Non-interest income rose three percent to 5.7 billion rupees with forex income down sharply but fee income growing

HNB showed a reversal of 22 million rupees on general loan provisioning in 2009 compared with a provision of 484 million in 2008 while specific provisions rose eight percent to 730 million rupees.

Performing loans fell four percent to 162 billion rupees as at December 31, 2009 from the beginning of the year and bad loans fell eight percent to 12.5 billion rupees over the year.

Total group assets rose nine percent to 288 billion rupees. - source www.lbo.lk

SRI LANKA TOURISM - ANOTHER FEED BACK - THIS TIME FROM OUR RELATIVE (BIG BROTHER) INDIA

Anjali Prayag

Visiting Sri Lanka recently, one found that a country that had lived in the shadow of terrorism for over 30 years surprisingly showed very little bitterness. Except for a few check-posts, there were few reminders of the recent violent past of this island-nation. “There was never a day when we didn't either read or hear of an attack. But we have put it behind us and look forward to a phase of economic growth,” says an employee at Taj Samudra in Colombo. This property of the Taj Group of Hotels is bustling with tourists, seeking both business and leisure.

We were a group of journalists visiting Sri Lanka on the invitation of the Taj Group of Hotels and Sri Lankan Airlines.

Clearly, this naturally endowed country is all out to woo international tourists. Voted the top holiday destination by The New York Times (The Place to be in 2010), the country is eager to figure on the itinerary of the globetrotter.

“Yes, we are gung-ho about tourism, especially Indian tourists,” says Senaka Fernando, Regional Manager, Asia Pacific, Sri Lankan Airlines. The airline is optimistic about increasing its tourist traffic from inland India — places such as Bangalore, Hyderabad and Delhi — through its ‘sea and beach offering', although “Indians like to shop here more than beach-surf”, says an official from the Taj Group of Hotels in Sri Lanka. In fact, the airline has increased its capacity out of Tiruchi, Thiruvananthapuram, Bangalore and Chennai.

Tourist arrivals in Sri Lanka have increased by over 30 per cent over the past year, with over 80 per cent coming from India. In the last six months, 49,000 Indians have visited the island and they included leisure, pilgrim and corporate travellers.

Blessed with natural beauty, the country hopes to make tourism its top revenue earner after textiles and tea exports.

It is trying to create the right mix of infrastructure and conveniences for tourists. Visitors will be struck, for instance, by the ease with which one can obtain a local SIM card for a mobile phone. Various service operators have set up booths right outside the airport and offer SIM cards on the spot. The smooth road traffic is a welcome change from the chaos back home.

Hotel tariffs are comparatively low. With tourism picking up, business has been good in the last six months, says V.K. Prasad, General Manager of Taj Exotica, another sea-facing property of the Taj Group at Bentota. He expects the improving situation to favour the hospitality sector. “Tariffs which were at $70-80 a day are expected to shoot up to $120 soon,” agrees a tourist operator.

From sunrise over a clear blue sea and shopping for global brands to the glitzy casinos and clubs under a night sky, Colombo packs enough to keep visitors engaged the whole day through. Adventure enthusiasts can look forward to water sports at Bentota, while those seeking a religious sojourn can visit Kandy's Temple of the Tooth Relic, which is believed to house Lord Buddha's tooth brought secretly from India.

Highlights

Shopaholics can find global apparel brands at unbelievable prices at stores like Odel and Fashion House. Incidentally, the island country has over 900 textile export units supplying to leading global garment brands.

Boasting nearly 30-35 tea variants, tea shopping becomes an art in Sri Lanka. Tea accounts for about 15 per cent of the country's GDP and is a major export product.

Those looking for indigenous products can stop at Paradise Road, Barefoot and Dankotuwa Porcelain. Though the prices seem steep at first, the conversion rate (Rs 100 fetches almost 220 Sri Lankan rupees) takes the sting off the pricing.

source - http://www.thehindubusinessline.com

SRI LANKA - COLOMBO SHARE MARKET REPORTED GAINS ON BACK OF NET FOREIGN BUYING

25/02/2010 - Colombo Share Market was up today by 6.74 points to close at 3782.25. Milanka price index was up by 15.29 points to close at 4347.27.

Turnover for the day was Rs 856 m.n. down from Rs 1.3 b.n. reported yesterday.

Foreigners were net buyers today after a couple of trading days. Foreign purchases were at Rs 134 m.n & sales were at Rs 77 m.n.,reflecting a net foreign inflow of Rs 57 m.n.

There were 67 positive gainers as against 65 losers.

Today the market was dominated by NDB, GREG (both share & warrants),Nawaloka hospitals & Maskeliya plantations, etc.

Today the activity levels in the market had fallen, due to month end debt clearing operations by the most of the brokering companies & tomorrow being a half day for Colombo Stock Exchange.

However we expect market to perform well during next couple of weeks on back of above average results released by the listed companies & pending dividend payments by the companies.

Colombo Stock Exchange is still up 11.7 percent so far this year, following a 125 percent rally in 2009, the best in Asia.

NOTE

  • C.W.Mackie took a dip for the last couple of days from Rs 41.75 to Rs 38.00 levels. It touched Rs 43.00 mark during mid trading session as well 0n 19 th feb 2010.
  • It seems to have built a strong support level @ Rs 38.00 level & around it.
  • This kind of drop is a tremendous opportunity for any investors who did not have a chance to look at C.W.Mackie
  • Once the selling at these levels have dried up CWM will starts its upward journey.
  • Now it has only 10 % shares in the market. (90% purchased by high net worth individual & Lankem group companies.)  
  • Profit growth for the Financial year 2009 was 224.37%.

Thursday, February 25, 2010

SRI LANKA - GOOD NEWS FOR TOURISM - SRI LANKA TOPS THE LIST OF GREAT WEDDING HOLIDAYS


Sri Lanka, Turkey and holidays have all been highlighted as great ways to celebrate a wedding, according to a list published by foreign currency exchange company Caxton FX.

Working with wedding consultant Lisa Burton, Caxton revealed the Top Ten wedding and honeymoon destinations, with Sri Lanka at the top of the list.

The island was hailed for its “miles of sugary white sand flanked by bamboo groves” and the choice of traditional Buddhist Poruwa weddings or “a civil ceremony accompanied by dancers, drummers and traditional singers.”

Cyprus was the next on the list, due to its “stunning beach front resorts,” followed by the Caribbean. New York holidays made the list at number four, due to the sheer style of the city and its remarkable range of wedding and honeymoon venues.

Ms Burton told Caxton FX that “leafy central park offers stunning settings, from rustic Ladies Pavilion to the beautiful Conservatory Gardens, which you can hire exclusively for your ceremony.” There are also many cheap flights to New York available via internet booking.

Even though it is facing severe economic problems, Greece still came in at number five, as a perennially popular place for a wedding, followed by Thailand,which happily lives up to its soubriquet of the Land of Smiles.

Mauritius and Italy took seventh and eighth place, with the increasingly popular destination of Turkey coming in at number nine. Caxton FX agrees with most observers that “this sun kissed venue is great for couples on any budget.”

At number 10 was the Bahamas, with their perfect beaches and tropical weather. Anyone planning a wedding break at any of these places should ensure the best bargain deals by searching online.

source - http://news.beatthebrochure.com

SRI LANKA - ANOTHER GOOD NEWS FOR SRI LANKA TOURISM

By MD RASOOLDEEN | ARAB NEWS - Lanka travel ban on Saudis lifted

RIYADH: Saudi Arabia has lifted its travel ban on citizens visiting Sri Lanka after the country managed to resolve years of bloody conflict.

The Kingdom issued the ban in February 2008 after fighting between government forces and insurgents escalated in Sri Lanka, particularly in the north and east of the country.

In May last year, President Mahinda Rajapaksa said his troops had managed to defeat the Liberation Tigers of Tamil Eelam.

“We withdrew the travel advisory as the security situation in Sri Lanka has improved a great deal,” deputy chief of mission at the Saudi Embassy in Colombo, Riyad Al-Kheneini, told Arab News. He added that peace prevails in all parts of the island and people as well as tourists could travel without any fear. “This is the fruit of a successful campaign against terror,” Kheneini said.

During his meeting with Foreign Minister Prince Saud Al-Faisal recently, Sri Lankan Ambassador Ahmed A. Jawad highlighted the need to lift the ban.  Jawad told Arab News that his mission is working with the Tourism Development Authority in Colombo to launch a campaign to promote Sri Lanka as a tourist destination among residents in Saudi Arabia.

“Destination Sri Lanka”, a program initiated in Dubai by the Sri Lanka Tourism Development Authority, reported large numbers of Arab travelers to Sri Lanka.

Overall, they had increased by 50 percent in the 12 months leading up to January, compared to the same period the previous year.

During the second half of 2009 Sri Lanka received around 5,400 Saudi tourists.

“Judging by these early results, “Destination Sri Lanka” is on track to surpass figures attained last year where tourist arrivals saw a double-digit growth,” said Heba Al-Ghais Al-Mansoori, Middle East director of the Sri Lanka Tourism Board in Dubai.

Al-Mansoori confirmed that the strongest growth in visitors was from the UAE, followed by Qatar, Kuwait and Saudi Arabia.

“Peace will finally bring prosperity and development to the country and open up more areas for tourism development which otherwise was not accessible during the war,” Al-Mansoori added.

Cultural attractions, entertainment, shopping, and dining are some of the attractions that draw Arab travelers to Sri Lanka, which is less than four hours flying time away from the Gulf. The local government’s support for the tourism sector and an expansion of low-cost carrier services are also contributing to the growth of the country’s tourism.

source - http://arabnews.com

Wednesday, February 24, 2010

SRI LANKA - BALANGODA PLANTATIONS & MADULSIMA PLANTATIONS REPORTED BELOW EXPECTED RESULTS FOR FINANCIAL YEAR 2009

24/02/2010 - Balangoda Plantations 43% owned by  distilleries company of Sri Lanka has reported a negative growth for the year ended 31/12/2009 which was well below the expected results by the investment community in  Sri Lanka.
However we reported that BALA is not in a position to release good results for the last quarter (Dec 09)  like all other Plantation companies (Results released up to 24/02/2010) due to the non provisioning for wage hike in Sep 2009 quarter on 20/02/2010. [See report]

BALANGODA PLANTATIONS


Net assets per share stands at Rs 52.15 as at 31/12/2009. Issued share capital of the company is 23.6 m.n. shares.

TOP FIVE SHARE HOLDERS OF THE COMPANY AS AT 31/12/2009

Distilleries Company of Sri Lanka Ltd                            10,200,000          43.15
Milford Exports (Ceylon) Limited                                     3,636,363          15.3
Pershing LLC S/A Averbach Grauson & Co.            1,000,000           4.23
Bank of Ceylon - No. 2 A/C.                                              849,300          3.59
Eagle Insurance Company Ltd. A/c. No.3                            432,000          1.82

Company share reported  Rs 39.75  as the highest price traded for the year 2010 & the last traded price was Rs 37.75.

MADULSIMA PLANTATIONS

MADU is 35.17% & 31.03% owned by Stassen exports & Distilleries company respectively. Madu is the worst performer in the plantation rally so far for financial year 2009.


Net assets per share reflect a negative Rs 1.48 for the year ended 31/12/2009.

TOP FIVE SHARE HOLDERS OF THE COMPANY AS AT 31/12/2009

Stassen Exports Limited                                                  10,200,000                   35.17
Distilleries Company of Sri Lanka                                      9,000,000                   31.03
Secretary to the Treasury                                                   3,805,652                   13.12
HSBC International Nominees Ltd-SSBT-DEU                    149,000                     0.51
Mr. Salem Ali Othman Ali Abo Qamaz                                 134,500                     0.46

Last traded price of MADU share was Rs 17.75. & the highest traded price for year 2010 is Rs 19.

We expect BALA & MADU will release improved results for the first quarter 2010.

SRI LANKA - COLOMBO SHARE MARKET WAS UP BY 0.14 % ON BACK OF RETAIL BUYING

24/02/2010 - Colombo Share Market is up today by 0.14% on back of retail buying. As we mentioned  yesterday bargain hunters are always vigilant to grab any opportunities available in the market. This was visible in selected counters such as Plantations,Banking, etc.

Turnover for the day was Rs 1.3 m.n.

Foreigners were net sellers for the day, & net foreign out flow was Rs 128 m.n.  They bought shares to the value of Rs 46 m.n. & sold shares worth of Rs 174 m.n.

There were 68 gainers as against 67 losers.

   TOP FIVE GAINERS FOR THE DAY                             TOP FIVE LOSERS FOR THE DAY


    CROSSINGS FOR THE DAY


   LARGE TRADES FOR THE DAY


NOTE

  • C.W.Mackie Report


C.W.Mackie has released its annual report for year ended 31/12/2009 today. It reflects a significant growth of 224.37% at group level for the financial year 2009 reflecting Rs 2.93 as E.P.S. for the same period.This growth trend can be seen in company level as well.

However due to increased Tax which included a deferred tax provision of 23.6 million rupees in December the quarte at company & group level we can see a negative growth for the last 03  months ended 31/12/2010.

  • Today we saw several large trades & several crossings on selected Blue chip counters led by NHL, SEYB (X), HNB

SRI LANKA - TOURIST ARRIVALS UP BY 31.9% IN JANUARY 2010


By Mario Andree

Tourist arrivals are recovering well with arrivals in January growing by 31.9 percent to 50,757 from 38,468 arrivals a year ago, data from the Sri Lanka Tourism Development Authority (SLTDA) shows.

Considering the industry’s potential to grow in post war Sri Lanka, the tourism authority estimates that income from this sector could reach around US$ 600 million this year, from an estimated number of 575,000 total arrivals.

Earnings from tourism grew 20 percent year-on-year in 2009 to US$ 450 million, SLTDA Director General S. Kalaiselvam said.

These are positive signs that the tourism industry is growing, he said.

In January this year, there was a 77.8 percent increase of arrivals from Western Europe year-on-year but the numbers are still low at only 361 arrivals.

Arrivals from the Middle East increased from 1,147 to 1,722, a growth rate of 50.1 percent. The number of tourists from Eastern Europe grew by 37.5 percent while arrivals from South Asia increased by 25.4 percent.

"Opening the Northern and Eastern provinces to tourists has created some impact and this has brought positive hope to the industry," Kalaiselvam said.

He said the majority of the tourists visiting the Northern and Eastern provinces are local people with over 500 citizens visiting Jaffna daily from various parts of the island.

The government is also initiating various projects to lay the infrastructure for tourism development.

More than 5,000 acres of land in 13 islands will be developed under the planned Kalpitiya tourist zone. The second project will be in Pasikudah where a 13-hotel project, with a 1,000 room capacity, is being designed as beach resort.

The third project will be in Kuchchaveli on 500 acres, creating an additional room capacity of 3,000.

Kalaiselvam said through the increased developments in these medium to long-term investments of hotels, resorts, inns, islands and restaurants, the economy would be able to expand, thereby increasing foreign exchange earnings and generating job opportunities in rural areas.

"As a result, the per capita income of the people will also increase substantially," he said.

A recent report published by the SLTDA showed the added benefits these projects would have.

The projects will not only develop the tourism sector, but will also stimulate economic activities, developing livelihood of the citizens and boosting prospects for Micro, Small and Medium Enterprises (MSMEs) that can provide support services to the tourism cluster.

The projects would also create the necessary environment for youth to receive skills training so that they can be employed in the tourism sector.

source - www.island.lk

SRI LANKA - RAIGAM WAYAMBA SALTERN [LTD] WILL BE GOING FOR IPO

Harshini Perera

Raigam Wayamba Saltern (Ltd), a fully owned subsidiary of the Kingdom of Raigam will be going for Initial Public Offering (IPO) by the first quarter of this year. It is after Colombo Stock Exchange (CSE) approval expected in the following weeks, Wayamba Saltern Chairman/CEO Dr. Ravi Liyanage said in Palavi, Puttalam recently.

The IPO expects to generate Rs 200 million and sell a share at a Rs 2.50 worth Rs 800 million. It is expected to strengthen the local industry of salt while producing hygienically packed salt made to international standards.

The Wayamba Saltern has been a marshy land in the past but it was developed to a productive saltern within a span of four years.

“It is the first refinery plant and produces 50 percent of the table salt market,” he said.

“Our turnover for 2008/09 was Rs 382 million and the profit was Rs 172 million compared with the turnover of Rs 157 million and profit of Rs 12 million the previous year,” he said.

Wayamba Raigam Saltern in Puttalam produces table salt for the Sri Lankan market which was once imported from India.

“The salt industry is an industry which can be easily expanded as there is enough natural resources such as sunlight and lagoon water. Therefore, the salt industry became popular and we have been able to specialize with iodized table salt a few of years ago,” he said.

Wayamba Saltern with more than 300 acres, is the largest and the productive among salterns in Sri Lanka. It has the capacity to produce 60,000 kgs of table salt per a day.

There are around 200 workers in the factory and could take a daily harvest of 1500 metric tons a day.

“Many improvements in the company have been arranged. New machinery worth Rs 50 million was invested on the saltern.

A new technology called pure vaccum dried technology will be introduced to manufacture pure salt that can be used for the manufacturing industry in Sri Lanka such as biscuits and other products which at present are imported from other countries,” he said.

Crystal salt has been popular in Sri Lanka and has a good potential market. Thus, we expect to establish a plant in Trincomalee adding to the saltern bases in Puttlam and Hambantota.

It is expected to set two new salterns in Puttalam and one in Wanathavilluwa and one in Hambantota.

“These salterns stretch upto 110 acres, 350 acres and 210 acres respectively. The expansion will take place with the IPO and the management expects to create a second generation of management after the IPO,” Raigam Joint Managing Director Ganaka Amarasinghe said.

source - www.dailynews.lk

Tuesday, February 23, 2010

SRI LANKA - COLOMBO SHARES SLIPS BY 0.08% DUE TO PROFIT TAKING

23/02/2010 - Colombo shares slips down today due to profit taking. Turnover recorded was Rs 800 m.n. led by local investors.

ASI was down marginally by 3.15 points to close at 3770.40 & the Milanka price index was down by 16.31 points to close at 4315.20.

Foreign participation was at very low levels. Foreigners purchased shares worth of Rs 31 m.n. & foreign sales were at Rs 57 m.n. Net foreign out flow reported for the day was Rs 26 m.n.

We expect profit taking to continue on selected counters in coming days.However bargain hunters will arrive to the market to grab shares when ever they see any opportunities created due to reduction of prices  in those counters.
If we analyze  immediate past it is very clear that the investors who hold to their stakes, without selling were benefited mostly.

There were 65 positive counters as against 72 negative counters.

Colombo Share Market is still up 11.4 percent so far this year, following a 125 percent rally in 2009, one of the best in Asia.
    TOP FIVE GAINERS FOR THE DAY                       TOP FIVE LOSERS FOR THE DAY 
    

   LARGE TRADES FOR THE DAY


 CROSSINGS FOR THE DAY


 Note - 
  • Today a block of 3.7.m.n shares of  HNB ASSURANCE  change hands @ Rs 50 /share.
  • We expect that price of HASU may increase in near future as result of this transaction & for the following as well.
  • HASU reported a profit of Rs 202 m.n. for the year ended 31/12/2009 as against Rs 165 m.n. reported for the same period in 2008, a growth of 23% YOY.
  • E.P.S. for the period ended 31/12/2010 was Rs 5.40. & N.A.V. per share stands @ Rs 22.20.
  • HASU has a P.E. Ratio of 9.0
  • Strong HNB brand name & 59.99 % is owned by HNB.

  • Pending dividend of Rs 1.50.
  • We have identified HASU is a good stock to buy on considering the future growth of the company.

SRI LANKA - NOW WHO WILL BE THE LEADER? IS IT " TEA" OR " RUBBER" OR BOTH ?

RUBBER NEWS -
  • Natural rubber prices hit record high -
George Joseph / Kochi February 23, 2010, 0:48 IST

 Natural rubber (NR) prices again touched an all-time high today. The benchmark grade RSS-4 was today quoted at Rs 142 a kg in Kochi and Kottayam markets. The prices had last touched this level on August 29, 2008.

During the last one year, RSS-4 prices have increased 100 per cent. The strongly bullish market is now poised for further rise in prices and the RSS-4 may breach the Rs 150-a-kg mark soon.

The local market is moving in tandem with global markets especially that of Singapore (SICOM) and Bangkok counters. SICOM today quoted RSS-4 at Rs 148.86 a kg, which is also a record level.

Majority of growers are awaiting prices to reach Rs 150 a kg and are therefore not releasing stock in the market at present. Leading Kochi and Kottayam-based traders said that it was very hard to get high volume of rubber even at the current price.

A leading Kottayam-based trader said that growers are having a stock of atleast 100,000 tonnes anticipating a much stronger bull phase in the market. The sharp rise since the beginning of the new year caused a 6 per cent increase in the production in January.

Around 97,500 tonnes were produced in January against 91,900 tonnes in the same month last year.

A sharp northward movement in the consumption of NR also made the commodity dearer in the recent weeks. A 24 per cent hike was recorded in domestic consumption in January at 79,500 tonnes against 64,000 tonnes in January 2009, compared to 6 per cent increase in production.

source - www.business-standard.com/india/news
  • Tight supply to keep rubber prices firm
 KUALA LUMPUR: The tight supply of rubber caused by a progressive decline in global production is expected to keep prices of the commodity in Malaysia firm this week, dealers said. The market would also see active participation by major tyre makers with the return of Chinese buyers after the Lunar New Year holiday, one of them said.
Over the past week, the local market drew foreign enquiries including from Japan and South Korea.
The Malaysian Rubber Board (MRB) official physical noon price for tyre-grade SMR 20 rose 21 sen to 1,036.5 sen per kg from 1,015.5 a week earlier while latex in bulk added 17 sen to 724.0 sen per kg from 707.0 sen per kg.
The unofficial closing price for SMR 20 went up 18 sen to 1,038 sen per kg from 1,020.0 sen per kg while latex in bulk gained 16.5 sen to 726 sen per kg from 709.5. —Bernama
Association of Natural Rubber Producing Countries Secretary-General Djoko Said Damardjati was reported to have said recently that global natural rubber supplies were tight and the outlook was bullish on favourable fundamentals.
A further drop in supply was anticipated in the coming months due to wintering while demand would continue to surge especially from China and Malaysia. — Bernama

source - www.theborneopost.com

TEA NEWS 
  • Dubai second largest export destination for Indian tea
Dubai remains the second largest export destination for both the Indian and Sri Lankan tea.

According to the Dubai Tea Trading Centre (DTTC), Sri Lanka, India and Kenya are Dubai’s top trading partners, contributing over 65 per cent of the total tea traded through Dubai.

DTTC, which is an initiative of Dubai Multi Commodities Centre (DMCC), has also announced a record 7.5 million kilos of tea traded through the Centre in 2009, despite the adverse weather conditions reducing global tea production.

The average 2009 auction tea prices in Sri Lankan was at $3.32 per kilo, Kolkata at $2.90 per kilo and Mombasa at $2.72 per kilo, with an overall average world tea auction prices increasing by 12.4 per cent compared to the same period in 2008, DTTC said.

This was due to the direct consequence of global decline in tea production, generally affected due to drought and delayed rainfall in major tea-producing countries.

Drought resulted in global black tea crop deficit of approximately 56.6 million kilos, equating to a decline of 3.2 per cent compared to 2008.

"In the initial few months of 2009, the global tea industry has witnessed an unavoidable production decline due to major drought in many tea-producing countries," Executive Chairman, DMCC Ahmed bin Sulayem said.

Sanjay Sethi, Director, DTTC, said the centre is growing consistently, with increased transactions and global tea producers, merchant exporters and buyers establishing their base here.

DTTC will also host the 3rd Global Tea Forum in Dubai, from March 9-10, 2010.

DTTC, at present, stocks teas from 13 producing countries, including Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran.

source - www.business-standard.com/india/news 
  • Africa tea prices soar at Mombassa auction
MOMBASSA (Commodity Online) : Africa’s top grade tea prices surged 7.3 percent to near record levels at the Mombassa tea auction, world’s largest tea auction, as unfavourable weather damaged crops.

According to Africa Tea Brokers Ltd, tea sold for as much as $3.09 a kilo at auctions on February 8 and 9, compared with $2.88 last week.

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Average tea prices rose to a record $3.12 a kilo last year after inclement weather cut tea production in Kenya, the world's biggest black-tea exporter, to 314 million kilos last year, the lowest since 2006, exacerbating a global shortage, it said in a market report.

According African Tea Brokers auction report, offerings during the action had totalled 143,876 packages (9,083,561.70 kilos) against 112,221 packages (7,070,326.00 kilos) offered for the same period last year.

Kenya dominated the auction by supplying the market with 6,643,764 kilos of tea and managed to sell 6,487,454 kilos followed by Uganda which provided offerings amounting to 1,316,046.50 kilos and managed to sell 1,195,710 kilos.

Rwanda secured the third place with offerings amounting to 557,003.20 kilos and managed to sell 550,957.20 kilos while Tanzania offered 400,210.50 kilos and managed to sell 373,290 kilos of its tea.

The gap may widen this year as a rebound in output from Africa, Sri Lanka and India fails to compensate for even quicker demand growth.

The crop continues to decline in Kenya, ATB said, adding that drier, warmer and windy weather was experienced in some tea-growing areas. The average price for top grades has traded a third higher so far this year than in the same period a year a ago.

Of the 9.08 million kilos offered at the sale this week, 97 per cent was sold. At the next auction, 7.96 million kilos will be sold and 7.14 million kilos the week after, according to ATB's report.

During the auction, Brighter BP1s were readily absorbed at USC32 to 38 dearer while mediums saw prices appreciating by USC18 to 50; lower mediums were USC12 to 28 dearer. Plainer sorts gained USC7 to 30.

Brighter PF1s met good competition advancing by USC18 to 40 while mediums were a strong feature at USC20 to 40 dearer; lower mediums gained USC10 to 35. Plainer PF1s saw better enquiry at USC18 to 30 above last levels.

source - www.commodityonline.com/news


NOTE 

  • GOOD TIME FOR BOTH RUBBER & TEA PLANTATION COMPANIES IN SRI LANKA
  • OIL PRICES NOW ALMOST $80 / BARREL- GOOD FOR NATURAL RUBBER & OIL PALM

Monday, February 22, 2010

SRI LANKA - COLOMBO SHARES UP BY 0.13 % ON MONDAY

22/02/2010 - Colombo Share Market was up marginally today as ASI was up by 4.74 points to close at 3773.55 & the more liquid Milanka index was down by 11.53 points to close at 4331.51.

Turnover was healthy & reported exactly Rs 1.0 b.n. led by retail buying on mid cap counters ,special attention was given to the Plantation sector shares as the counter expect to perform very well in the future on back of improved prices fetched in the world market for Tea Rubber & Oil Palm. This was covered by our Plantation report 0n 30/01/2010.

We are proud of our selves as we are the first to report value of investing in Plantation companies rather than going for heated overvalued counters.

Foreign participation was at a very low level. Foreigners bought Rs 72 m.n. worth of shares & sold Rs 104 m.n. worth of shares. Net foreign out flow for the day was Rs 32 m.n.

There were 86 gainers as against 61 losers.

    TOP FIVE GAINERS FOR THE DAY                      TOP FIVE LOSERS FOR THE DAY


    LARGE TRADES FOR THE DAY


  CROSSINGS FOR THE DAY


Today's top five gainers list was represented by three stocks mentioned by SRI LANKA STOCK PICKS
through our exclusive "CSE RUMOR" report.

Note -  
* Today we saw large quantities of MASK [1.7 m.n.]& RICH [2.0 m.n.] shares changing hands. 

*Apart for the top five large trades, a large quantity of C.W.Mackie shares changing hands today. Share price of this company may reached record levels withing a very short period due to following reasons.
  • Now the company shares are  highly illiquid.[Lankem ceylon ,kotagala plantations,Dr. senthiverl owns more than 90% of the company]
  • Largest exportero of natural rubber,desiccated coconut in Sri Lanka.  
  • Improved performance to continue in future as well. 
  • Valuble land base.
  • Producers of Scan water bottles & Sun quick brand.

SRI LANKA - TEA OUT PUT MAY EXCEED 300 MILLION KILOGRAMS IN YEAR 2010

By Anusha Ondaatjie -   Sri Lanka Tea Output to rise as Rain Eases Dry Weather , board says

Feb. 22 (Bloomberg) -- Tea production in Sri Lanka, the world’s fourth-biggest grower, may rise this year as rain in the main growing areas eases dry weather that damaged the crop last season, according to the nation’s tea board.

Output may exceed 300 million kilograms, compared with 290 million kilograms in 2009, said Lalith Hettiarachchi, chairman of the Sri Lanka Tea Board. Warm weather and wage dispute cut last year’s crop.

“The weather has been conducive and we should reach at least 300 million kilograms provided there is no labor unrest over any unscheduled wage hike this year,” Hettiarachchi said in a phone interview today.

A global tea shortage may widen this year and extend into 2011 as a rebound in production in Africa, Sri Lanka and India trails demand growth, McLeod Russel India Ltd., the biggest tea grower, said last month, predicting the deficit may be as much as 130 million kilograms by April.

“The rise in production is not significant to bridge the global deficit,” said Hettiarachchi. “The biggest suppliers like China and India are increasing local consumption so the exportable surplus is getting reduced.”

Shipments from India, the largest grower, dropped to 191.49 million kilograms last year from 203.1 million kilograms in 2008, after the driest monsoon in almost four decades damaged crops of tea, sugar cane and rice, according the country’s tea board.

Average prices at the Colombo tea auctions reached a record 405.77 rupees ($4) a kilogram in the third quarter of last year. In January, 26.4 million kilograms sold for as much as 440.41 rupees a kilogram, the board said on its Web site.

‘Buoyant Demand’

“Prices should hold through this year or go beyond,” said Hettiarachchi, helped by “buoyant” demand from Russia and the Middle East, Sri Lanka’s traditional markets.

Still, Sri Lanka, the third-biggest supplier of black tea, may earn $1.2 billion from exports this year, little changed from 2009, according to the board. Tea is the country’s second- highest export earner after apparels.

“Although prices compensate, Sri Lanka’s export growth is limited by our production levels,” Hettiarachchi said.

Production last month was 26.9 million kilograms, compared with 17.9 million kilograms a year earlier, the board said.

The board is in talks with plantation companies to increase re-planting programs and grow more high-yielding variety.

“With the production costs high, companies aren’t willing to inject more capital into the business,” Hettiarachchi said.

Labor makes up about 60 percent of total costs, more than double than in other tea-growing countries such as Vietnam, he said. Productivity, gauged by the kilograms plucked per person in an eight-hour period, is less than half of India’s “in a similar terrain,” he said.

source - www.businessweek.com

CSE RUMORS/CSE RUMORS/CSE RUMORS/CSE RUMORS/CSE RUMORS

                                 COLOMBO STOCK EXCHANGE 
                                                               RUMORS     

                                                                                                               See report on Plantations

 
SRI LANKA STOCK PICKS exclusive: Through this we have decided to convey the CSE Rumors for all of our visitors,which have many times found to be unknown to small investors or when they become  aware, prices of particular shares may have had increased substantially. Hence our simple effort is just to give you  / convey these rumors where most of top investors are well aware of. However please note that there is a high risk involved in share trading. We do not take responsibility for any lose or damage arising out of stated information in this post. You have to take your own decisions. (Do your own research, Do not follow others , Stick to fundamentals, Buy shares when other are selling & sell when others are buying.) 


SRI LANKA - ITS TEA TIME NOW IN SRI LANKA. MORE GOOD FOR TEA COMPANIES

By Steve A. Morrell

At long last tea seems to have shed subjugated image relegated to low level performance and now en - route to better crop harvests this year. January returns indicated by the Sri Lanka Tea Board dated 19th February said crop returns end January recorded nearly 10 million kilos more than last year. Best performers were low growns with crop increases of about 7 million kilos.

Higher elevation results were not that good at some 800,000 kilo increase. Medium elevation crop increases too were not impressive, but all told tea seems to have recovered.About 400,000 small holders purportedly are propping the industry, and support extended by the Ministry of Plantation Industries to this sector through the fertilizer subsidy has had positive impact .

The worst is yet to come though. February is usually a dry weather month, and this year too irrespective of the global warming ‘whipping boy’, prevailing dry weather will affect production, but perhaps to lesser degree than last year.

This too is normal.Sri Lanka’s prime tea land is at higher elevation and performance levels at upper reaches of Central Hills will need some attention. The growing trend for green tea production augurs well for selected market choices. So too Cut Twist and Curl, or the familiar metaphor CTC tea.

Correlating to such production increases, Brokers have also reported increases in value added exports. These, and other plus phenomena are good indicators that tea crop and production are on recovery indicators.

Reports from Central hills are that February crop intakes may be low, but with expected conventional rain mid March, April showers would further augment crop increases. Expectations are that ‘things are looking up’.

Ceylon Tea Brokers through their weekly tea Market report said although export volumes dropped last year better prices sustained good market conditions and regressive conditions did not quite register alarming trends that drastically affected the industry.

Export details were that CIS countries were our biggest importers, followed by UAE and Syria, Iran, Turkey, Jordan, and Kuwait who were also in the upper level importer bracket for Ceylon Tea.Malawi still remains the plus producer world wide,

Sri Lanka and Kenya were worst affected last year. Last week about 7.1 million kilos were auctioned. This week too the 7 million mark would not be surpassed. 7.6 million kilos would be on offer this week.

Western quality, late in arrival could have some salutary repercussions on the market, but there was not that degree of excitement this year, because quality weather prevailed only in pockets in some Western holdings.Market indicators effective January this year were good. January ended on an average price realization of Rs.381. per kilo.

Last year the same period was Rs 280. the difference this year being about Rs.100 on the plus side.The industry has not seen these price increases ever.

The question is would there be profits to be made. Tea factory owners have indicated enthusiastic ‘yes’ responses. We also spoke to two Regional Plantation Company sources who said their profits too would ‘not be too bad’.All told tea is now in advancing mode.

source - www.island.lk

Continue.......

Marked increase in tea production

The significant increase in tea production during last month shows 50 percent increase compared to tea production in January 2009. SLTB latest statistics shows that Sri Lanka has produced 26,898,255 Kg of tea during January 2010 as against 17, 884,610 Kg produced during the corresponding month in 2009, recording an increase of 9,013,645 Kg.
In 2010 January High Grown tea production recorded as 5,853,768 Kg and it was 5,191,777 Kg in January 2009. Medium Grown tea recorded as 3,629,387 Kg in last month and in last year January it was 2,922,979 kg. Low Grown tea production has shown significant growth in last month which amounted to 17,415,100 as against 9,769,854 kg in January 2009.
In category wise production of Orthodox tea recorded as 25,300,941 kg in last month. CTC and Green tea recorded as 1,429,485 Kg and 167,829 Kg in the month of January this year, SLTB sources said.

source - www.dailynews.lk

SRI LANKA - RICHARD PIERIS COMAPNY BACK IN PROFITS.

The Richard Pieris Group recorded a turnover of Rs 6.3bn and an operating profit of Rs 808mn for the quarter ending December 31, 2009. The turnover for the nine months ending December 31, 2009 was Rs 16bn resulting in a Group operating profit of Rs 1.3bn and a profit after tax amounting to Rs 268m.

This is a significant turnaround when compared to the previous year where the Group reported a marginal profit after tax of Rs 15m excluding a capital gain of Rs 213m.

The reported results have fully absorbed a Rs 659m hit on account of gratuity provisioning (Rs 444m) and back-wages (Rs 215m) consequent on a wage increase in the Plantation Sector in September 2009. If not for this impact which had to be absorbed in September 2009, the Group would have recorded an Operating Profit amounting to Rs 1.9bn and a Profit after tax of Rs 927m for the nine months ended on December 31, 2009.

During the last nine months Group Debt levels reduced by Rs 1.7bn from Rs 6.9bn in April 2009 to Rs 5.2bn by end December 2009 with finance costs reducing to Rs 767m compared against Rs 1.09bn incurred in the corresponding period of the previous year.

The rubber sector recorded an operating profit of Rs 125m during the nine months ended December 31, 2009 compared to Rs 60m which was reported during the nine months ended 30th September, 2008.

This is a growth of 108 percent over last year.

During the quarter there was much focus on cost reduction and marketing which resulted in a turnaround in the latex-foam business.

source - www.dailynews.lk

Sunday, February 21, 2010

SRI LANKA - TEA PRODUCTION UP IN JANUARY 2010

Feb 20 - 2010, Colombo: The Sri Lanka Tea Board recently announced that the total tea production in January this year rose by 50.4 percent over the production in the corresponding period last year.

The Tea Board said the production in January 2010 amounted to 26,898,255 kilo grams as against 17,884,610 kilo grams produced during the corresponding month in 2009. The production in 2009 December amounted to 25,195,732 kilo grams.

Sri Lanka tea prices remained high in the global market fetching an average price of $ 3.38 per kilo in January this year.

The Sri Lankan tea is broadly grouped according to their elevations, with high grown tea ranging from 1200 metres upwards, medium grown covering between 600 to 1200 metres and the low grown from sea level up to 600 metres.

source - www.colombopage.com

SRI LANKA - GOOD NEWS FOR RUBBER PLANTATION COMPANIES

21/02/2010 - The tight supply of rubber caused by a progressive decline in global production is expected to keep prices of the commodity in Malaysia firm next week, dealers said.

The market would also see active participation by major tyre makers with the return of Chinese buyers after the Lunar New Year holiday, one of them said.

Over the past week, the local market drew foreign enquiries including from Japan and South Korea.

The Malaysian Rubber Board (MRB) official physical noon price for tyre-grade SMR 20 rose 21 sen to 1,036.5 sen per kg from 1,015.5 a week earlier while latex in bulk added 17 sen to 724.0 sen per kg from 707.0 sen per kg.

The unofficial closing price for SMR 20 went up 18 sen to 1,038 sen per kg from 1,020.0 sen per kg while latex in bulk gained 16.5 sen to 726 sen per kg from 709.5.

Association of Natural Rubber Producing Countries Secretary-General Djoko Said Damardjati was reported to have said recently that global natural rubber supplies were tight and the outlook was bullish on favourable fundamentals.

A further drop in supply was anticipated in the coming months due to wintering while demand would continue to surge especially from China and Malaysia. -- Bernama

source - www.btimes.com.my

----------------- SUNDAY BUSINESS NEWS ARTICLES --------------------

SUNDAY TIMES
 THE ISLAND
SUNDAY OBSERVER
THE NATION 

Saturday, February 20, 2010

RETURN FROM SHARES LISTED IN COLOMBOO STOCK EXCHANGE

We selected  following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (15/02/2010 to 19/02/2010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange, which was rated as Asia's best performing stock  market & World's second best performing stock market in year 2009.

SEE THE RETURN FROM  BELOW MENTIONED  SHARES. THIS IS WITHING A PERIOD OF ONE WEEK. THINK TWICE INVEST NOW IN COLOMBO STOCK EXCHANGE -   SRI LANKA.  STILL YOU ARE NOT LATE.



KAPI share which is in this week's Top ten gainers list was reported by us through  our "exclusive CSE RUMOR "'report well in advance. See following Report for more details.

  • CSE RUMOR on KAPI reported by us on 20/01/2010
  Our success ratio over this week's top ten counter is 10%



  • This counter had given many nice trading opportunities for our followers to make money. 
  •  SRI LANKA STOCK PICKS Congrats to all who were able to profit from our reports on this counter.

SRI LANKA - ANOTHER GOOD NEWS FOR SRI LANKA TEA COMPANIES

By Ron Derby

Feb. 19 (Bloomberg) -- African tea prices fell 7.1 percent at a Kenyan auction of the leaf because of a strike.

The five-day strike last week caused a delay in shipments, “which may have impacted on auction prices,” Africa Tea Brokers Ltd. said in an e-mailed statement today.

The average price of tea sold on Feb. 15 and 16 fell to $2.87 a kilogram (2.2 pounds) from $3.09 at the last sale held on Feb. 8 and 9, the brokerage said.

Workers at tea warehouses in and around the Kenyan port city of Mombasa staged a strike between Feb. 8 and Feb. 12 in a dispute over wages. Laborers have since returned to work.

www.businessweek.com - African Tea Prices Fall, Strike Disrupts Shipments (Update1)

Links - SRI LANKA - TEA PRICES REMAIN HIGH

Friday, February 19, 2010

SRI LANKA - COLOMBO STOCK MARKET CONTINUES IT'S UPWARD MOMENTUM TODAY UP BY 0.97%

19/02/2010 - Colombo Stock Market continues it's upward trend today as well & Was up by 0.97% . ASI was up by 36.04 to close at 3768.81 & Milanka index was up by 83.80 points to close at 4343.04.

Turnover for the day was Rs 1.6 b.n..

Foreigners were net sellers today.Foreign purchases were at Rs 55 m.n. & foreign sales were at massive Rs 590 m.n. resulting a net outflow of Rs 535 m.n.

A large block of C.W.Mackie [29% stake] was purchased by a high net worth individual Dr.T. Senthilverl @ Rs 35/share. As a result of this trade share price of C.W.Mackie advanced by 20.90% to close at Rs 40.50.

There were 94 gainers as against 54 losers as at end of trading today.

   TOP FIVE GAINERS FOR THE DAY                              TOP FIVE LOSERS FOR THE DAY


     LARGE TRADES FOR TODAY


     CROSSINGS FOR THE DAY


Today's top gainers list were represented by two stocks previously mentioned by SRI LANKA STOCK PICKS through our Exclusive "CSE RUMOR" report.
NOTE
  • We expect the market to continue like this in coming weeks as well on back of beyond expected company results release by the listed companies.
  • Further during February to June most of companies are declaring dividends for it's share holders.
  • Today we saw over 2.0 m.n. shares of LITE changing hands. This is a positive signal for this share due to following reasons. [ * A capital reduction to be effected during the month of March 2010 in order to wipe off carry forward losses. * Share price has not moved up for the past 8 months. * New product range. * Opportunities available for company products from North & East areas. * NAV is around Rs 6.00 per share. * Present holding of shares will not get reduce due to capital reduction. * More clean balance sheet after  capital reduction. * Closing price today Rs 5.50.]
                                                   

SRI LANKA - TEA PRICES REMAIN HIGH

Feb 19, 2010 (LBO) – Sri Lankan tea prices eased at the Colombo auctions this week but are still at record highs being much higher than last year both in rupee and dollar terms, brokers said.
But the Western quality season, which is during this time of year, has yet to set in because of unseasonal rains, they said.

“The year 2010 has commenced on a strong footing with Sri Lankan national averages for January registering 389.74 rupees a kilo (3.38 dollars) which is an all-time record,” tea brokers John Keells said.

The previous best for January was 332.95 (3.07 dollars) a kilo 2008.

“Significantly all three elevations have achieved record averages for January. With three sales in February completed we could expect record averages in February as well,” John Keells said in a market report.

But they said the Western quality season, when teas grown on the Western slopes of the central hills yield their best quality, has been delayed.

“We are yet to see any seasonal quality from the Western sector due mainly to the unsettled weather.”

Sporadic rainfall in many areas in the central hills at the start of last week gave way to brighter weather over the weekend.

“However the latest reports, from the Western High Grown sector indicate that rainfall has been experienced in many areas last evening, which would inevitably lead to a delayed Dimbula season,” the brokers said.

But they said the rainfall in February is not likely to have a significant impact on the crop intakes unless they continue for a few more days.

Crop intakes from the high grown sector are falling which is normal for the time of the year.

source - www.lbo.lk

SRI LANKA - HNB ASSURANCE POSTS IMPROVED RESULTS

HNB Assurance PLC has released its interim financial statements for the year ending December 31, 2009 depicting a strong growth in both turnover and profits.

Its turnover measured by Gross Written Premium (GWP) crossed the 2 Billion rupee mark by recording a growth of 15 percent over the last year

Having crossed the 1 Billion rupee mark only in 2006, it has doubled its turnover within the space of just three years.

The combined turnover of Rs 2,116 million comprised the GWP of Rs 1,131 million from General Insurance and the GWP of Rs 985 million from Life Insurance. The General GWP grew by 22 percent while the growth in Life GWP was 8 percent.

The company also managed to cross the 200 Million rupee mark in respect of both Profit Before Tax (PBT) and Profit After Tax (PAT) with PBT reaching Rs 231 million and PAT recording Rs 202 million.

The growth achieved in PBT and PAT was also commendable and stood at 36 percent and 23 percent respectively.

The company was also able to deliver a Return on Equity (ROE) of 24 percent in line with previous years.

Managing Director HNB Assurance PLC Manjula de Silva said “the Company has built up an impressive track record of performance during the past eight years.

This gives us the confidence to move forward, overcoming whatever challenges that we have to face from time to time. With the dawn of a new era devoid of the conflict which was holding back growth to a great extent, HNB Assurance looks forward to a period of accelerated growth, taking advantage of new and emerging opportunities.

The formulation of sound strategies through a rigorous participatory process and their timely and effective execution supported by a strong monitoring and performance management process have been a critical force behind our success in the past. We strongly believe that it holds the key to our future success as well”, de Silva said.

source - www.dailynews.lk

SRI LANKA - NAMAL ACUITY VALUE FUND - INVESTOR INFORMATIONS

NAMAL Acuity Value Fund (NAVF), the first close ended fund listed at the Colombo Stock Exchange released its first quarterly report for the period ended December 31, 2009, the press release from NAMAL stated.

A ten year Fund, NAVF was launched by NAMAL together with Acuity Partners in September 2009 to enable investors to profit from Sri Lanka's post war economic resurgence by investing in listed equities and also in listed and unlisted debt securities. It was envisaged that this scheme will provide the convenience and transparency of a managed fund and enable the investors to get the benefit of diversifying their investments across a range of companies and industry sectors through full time investment management provided by NAMAL.

During the period ended December 31, 2009, the fund investment had been increased gradually to 82.5 percent in twelve listed equities while keeping the balance funds in short term fixed income securities.

Overall the unit value increased by 11 percent in this period in comparison to 17 percent increase in the All Share Price Index (ASPI).

In this period, the fund had generated a nett gain of Rs 58.47 million comprising interest income (Rs 3.39 million), realised gains from sale of shares (Rs 4.80 million) and unrealized gain from shares (Rs 50.28 million). At the end of this period the Nett Asset Value of the Fund stood at Rs 582.59 million.

The fund raised Rs 537.5 million (Rs 524.12 million nett of front end fee of 2.5 percent) from investors in the Initial Public Offer.

source - www.dailynews.lk

Thursday, February 18, 2010

SRI LANKA - COCO LANKA HAS PLANS FOR FURTHER EXPANSIONS

Feb 18, 2010 (LBO) – Sri Lankan coconut products exporter Coco Lanka has said it plans to expand and is holding talks with companies it had identified for possible takeover.
The firm, part of the Renuka group, said in a stock exchange filing that group net profit for the December quarter rose 13 percent to 39.8 million rupees from a year ago although sales fell by 25 percent to 291 million.

Earnings per share for the quarter were 3.16 rupees compared with 2.81 rupees the year before.

“The company, being an investment vehicle for agriculture, food and beverage ventures, is currently evaluating certain acquisitions and green field projects,” Coco Lanka managing director S R Rajiyah said in a statement accompanying the interim accounts.

“With regard to acquisitions, we have identified potential companies and negotiations are underway.”

These investments are to be funded by proceeds from the rights issue which closed on February 16, 2010, he said.

For the nine months ending December 31, 2009, Coco Lanka’s net profit rose 55 percent to 124.7 million rupees while sales fell 14 percent to 917.9 million rupees.

Earnings per share for the nine months were 9.89 rupees compared with 6.36 rupees the previous year.

Finance costs reduced sharply in both the quarter and the nine-month period, the accounts showed.

According to a segmental analysis of the business for the nine month period, revenue from tea shot up 59 percent to 107.5 million rupees.

Revenue from coconut, which accounts for the bulk of revenue, fell 19.6 percent to 689.7 million in the period while that from organic products also fell.

During the period Coco Lanka acquired 60 percent of Ceylon Forestry and 50 percent of Renuka Teas (Cey).

source - www.lbo.lk

SRI LANKA - COLOMBO SHARE MARKETWAS UP BY 0.31% ON BACK OF FOREIGN BUYING

18/02/2010 - Colombo Share Market was up by 11.65 points to close at 3732.77. However Milanka price index was down by 10.01 points to close at 4259.24.

Turnover for the day was Rs 1.6 b.n.

Local investors were active in the market today as usual. However foreigners were active to some extent today in the market & witnessed a net foreign inflow of Rs 163 m.n. This was a very positive signal to the overall market where all the local investors were waiting foreigners / foreign funds to arrive at Colombo Stock Market soon after the presidential elections.
Many investors believe  foreigners would have  bought the JKH share to day on expectation of improved profit growth from the company in Dec 2009 quarter.

Foreign purchases were at Rs 241 m.n. & foreign sales were at Rs 78 m.n.

There were 96 price gainers as against 58 losers.

    TOP FIVE GAINERS FOR THE DAY                        TOP FIVE LOSERS FOR THE DAY


    CROSSINGS FOR THE DAY


    ACCOUNTS FOR THE NINE MONTHS ENDED 31/12/2009


Note - 
  • There were several crossings in CIND an illiquid share. Sierra cables today sold 20.26 % holding in CIND . Still they owned 16.6% holding in CIND.
  • CIND crossings took place @ Rs 230 - share.
  • There are possibilities of increase the CIND share price further.
  • JKH bought by foreigners - Unconfirmed news. Positive news for the market.
  • Several JKH crossings took place @ Rs 170 - share.
  • There are possibilities that share price of SIRA may go up further as a result of the sale of 20.26 % CIND stake @ Rs 230/share.