Monday, May 31, 2010

John Keels Holdings profit up by 10%: Colombo stocks down

                     DAILY MARKET REVIEW

31/05/2010 (S.L.S.Picks) - Colombo Stock Exchange was down today despite the improved quarterly results published by listed companies in Colombo Stock Exchange for the 1st quarter 2010, due to the continuous retail profit taking on a start of a fresh week of trading here in Sri Lanka.

All Share Price index was down 13.83 points to close at 4237.16 & Millanka Price index down by 3.95 points to close at 4757.40

Investor interest was focused to low valued shares such as Nawaloka, Dialog, Dankotuwa, Renuka Agri Foods, Glass, Mull, Reef, etc in during today’s trading session. A stake  of 3.5m.n. Galadari hotel took place today @ Rs 34.00/share. Seller believes to be the Nawaloka Hospital.

Buying interest was visible in Dankotuwa porcelain & the share price appreciated by Rs 1.50 to close at Rs 18.50.

Hayleys which reported history best profits of Rs 2.6b.n for the financial year 2009 continuous to attract investor attention. The share was up by Rs 10.75 to close at Rs 305.00 on improved volumes.

Stores & Supplies sector was the highest gainer among all sectors today by registering a growth of 4.33% due to share price increase in Colombo Pharmacy Company, followed by the Construction & Engineering sector. IT sector was down by 5.74% was the leading negative growth sector.

Turnover reported for the day was a massive Rs1.2b.n

Foreign participation was at a low level. Foreigners purchased shares worth of Rs 202m.n & sold shares worth of Rs 231m.n reflecting a net foreign out flow of Rs 29m.n.

There were 64 gainers as against 83 losers for the day.








CLOSER LOOK
  • Market was down due to the fact that the most of brokering firms were involved in debts clearing operations by the month end of May 31 2010.
  • Sri Lanka is ready to host the IIFA awards ceremony in Colombo during the early parts of the month of June 2010, which will give the much needed boost & the confident to the investors.
  • The crossings counter was filled with respected shares listed in Colombo Stock Exchange.
  • All most all the Hotel sector companies reported improved results for the financial year 2009 ended 31/03/2010 & for the 1st Quarter 2010.  
  • John Keels Holdings - Sri Lanka's No 01 Diversified company reported 10% [YOY] profit increase for the financial year 2009.JKH share price was up by Rs 4.00 to close at Rs 184.00. Buying for JKH at improved price levels is always a positive sign for the overall market since JKH share price is more sensitive to ASI & MPI.
  • We can see the buying building up for the future growth stocks & the arrival of bargain hunters to the market for the stocks such as Hemas Holdings, Lanka Ceramics etc.These two companies reported improved results for the year 2009 & for the 1st quarter 2010.

STOCKS TO WATCH
  • Lanka Ceramics - Reported improved profits for the 2009  financial year ended 31/03/2010. Annual income for the year was Rs 936m.n an improvement of 117% YOY. EPS stands at Rs 14.18 for the year as at 31/03/2010.
  • Seylan Bank X
data - www.cse.lk.

Sri Lanka to double the tourism income by 2015


By - Editor: Tang Danlu
COLOMBO, May 30 (Xinhua) -- Sri Lanka expects to double its tourism income by 2015 as most of the countries have relaxed their travel advisories to Sri Lanka following the conclusion of a bloody civil war, a government minister said Sunday.

Laskman Yap.a Abeywardena, the newly appointed Deputy Minister of Economic Development told reporters that Sri Lanka's present income earned from tourism is 400 million U.S dollars annually.

"We will target an income of 1,000 million dollars from the tourism industry by 2015," said Abeywardena.

Abeywardena said since the successful completion of the war against the rebel Liberation Tigers of Tamil Ealam (LTTE), who had been fighting for a separate Tamil homeland in the north and east since the 1980s, most European countries as well as the United States have relaxed their travel advisories to Sri Lanka.

Sri Lanka has introduced several local and overseas programs to promote the country's tourism industry after ending the war in May 2009, Abeywardena said, adding that another program will be launched shortly to promote "Travel Sri Lanka" around the world.

He said that at present only 500,000 tourists are visiting the island annually and the government expects to increase it up to 2. 5 million with the help of all promotional programs.

Dileep Mudadeniya, managing director of the Sri Lankan Tourism Promotion Bureau, said tourist arrivals increased by 50 percent in the first quarter of 2010 as a result of the peaceful situation and the government's promotion.

Mudadeniya said several global events including World Surfing Qualifying Competition 2010 which would be held at Arugam Bay in the eastern coast and the Indian International Film Academy Festival are also coming to Sri Lanka with the end of the war.

source - http://news.xinhuanet.com

Colombo hotels gear up for IIFA

Colombo City Tourist Hotels Association (CCTHA) president M. Shanthikumar says the city is well prepared for the Indian Film Awards (IIFA) to be held this week.

Hotels in Colombo would make available 650 room-nights per day, on a bed and breakfast basis and 148 suites on a full-board basis, which would amount to a total of 2,600 room-nights, for the period of the glitzy IIFA.

Due to the magnitude of this event, the hotels have also taken the additional step of releasing some of their staff members to assist the organizers in the varied arrangements, Shanthikumar said.

"There is no doubt this mega event will be a big boost to the Tourism Industry and the contribution of the 2,600 room-nights will not only benefit the City Hotels, but the tourism industry in general, creating an awareness and boosting the image of the country, by giving tremendous exposure," he said.

"India has become one of the largest tourist markets in recent times and this prestigious event, would definitely enhance future arrivals and with its vast potential, Sri Lanka would benefit immensely, even by a small increase.

"Furthermore, with the India Business Council having one to one meetings with various Sri Lankan companies, an increase in the corporate market too, could be expected.

source - www.island.lk
photo credit -www.iifa.com

Sunday, May 30, 2010

Hemas Holdings: A Truly Sri Lankan Company


Hemas Holdings is one of Sri Lanka's top diversified conglomerates,
commenced operations in 1948 has business interests in to five key sectors in Sri Lanka.

                    * FMCG
                    * Health Care
                    * Transportation
                    * Leisure
                    * Power
  


Fast Moving Consumer Goods Sector.


Manufactures & Markets consumer goods in the ares of Personal Care,Home Care & Food Categories.

They have several well known products in the market under the above mentioned areas. "Baby cheramy " one of flagship products coming under Personal Care sector & reported to be the market leader in the country under this category.Clogard tooth paste, Kumarika hair oil, Velvet soap, Pro sport cologne,Capri,Gold, & Dandex etc are the other famous products coming under Personal care category.

"Diva " washing powder coming under Home Care category is one of most popular products among Sri Lankans.






Health Care 


Operates two hospitals under the name style of " Hemas Hospitals " in Wattala & Galle in addition to the pharmaceutical distribution business.


Hemas Hospital - Wattala a 100 bed hospital which is equipped with Sri Lanka's first patient friendly state of art open magnetic MRI scanner.

The 50 bed Hospital in Galle is equipped with two operating theaters & an incentive care unit.





Transportation


This includes a portfolio of services in Aviation,Maritime, Freight Management,Travel & Courier service.

Airline representation business of the group is strengthen by the  Emirates, Malaysian Air Lines ,Maldivian Air Lines, & Rossiya Air Lines.


The hub status of the Colombo Port,the continuous business growth together with the improved volumes of the Colombo Harbor will be an added advantage to the future growth of the Hemas Maritime business.


Far shipping ltd act as the feeder agency for Hemas.

17.1% of the issued share capital of the Mercantile Shipping company PLC is owned by Hemas. They are the second biggest share holder of Mercantile Shipping Company.


Hellman World Wide Logistics has the controlling stake in Hemas freight & it provides a complete transportation and logistics service, which includes sea freight, air freight, multi-modal transportation, multi-country consolidation, custom house brokering, and warehousing & storage.


  
Leisure


The leisure sector of the Group includes Diethelm Travel Sri Lanka  (DTSL) formerly the business of Hemtours & the Serendib Hotel Group which includes three listed hotels in Colombo Stock Exchange - Club Hotel Dolphin, Hotel Sigiriya, Serendib Hotel.

The leisure sector currently has the capacity of over 300 beds among their hotels.




 Power


This sector consists of  75% ownership of the Hemas Power which owns Heladanavi ltd. It consists of a 100 MW thermal Power Plant, 2 MW mini hydro project at Kandy & 2.6 M.W power plant in Nuwara Eliya.










 Why Hemas?
  • Hemas share has under performed to the ASI & the MPI since November 2009. End of November Hemas was trading at Rs 122.00 share & at that time ASI & MPI was at 2875 & 3273 respectively.
  •  Profits for the last financial year ended 31/03/2010 reflects an improvement of 30% YOY & the last quarter (JAN - MARCH 2010) profits shows us a growth of 112% over the same period in year 2009.
  • Net Asset Value of the share was Rs 75.44 as at 31/03/2010 & it was Rs 68.93 as at 31/02/2009.
  •  Hemas is yet to receive the full benefit of the end of 30 year old civil war in the country,since it has more exposure to the Sri Lankan market, we believe that this will be an added advantage to the Company in future.
  •  Strong Recovery was visible in the Health Care, Transportation & Leisure sectors in financial year 2009 ended 31/03/2010 & Power sector reflects a marginal drop in profits over the last year.
  • Recent announcement of the pending subdivision of its shares (One (01) existing ordinary share to be sub divided in to Five (05) ordinary shares) will increase the much needed liquidity of the company shares.
  •  We expect all the five sectors of the group to perform well in the future.

 source - www.cse.lk,www.hemas.com,annual report - hemas, photo credit - annual report hemas

Sunday Business News Articles

SUNDAY ISLAND
THE SUNDAY TIMES
THE NATION
THE SUNDAY LEADER
LAKBIMA NEWS  
SUNDAY OBSERVER

Rubber will become the new gold

Prices for rubber will increase rapidly

In brief: Prices of rubber will be exposed to a substantial correction of growth, the reason for this is the rapid increase in demand from consumers.

The cost of natural rubber could soar by 25% and reached a peak in 30 years thanks to growing demand in China, the largest consumer of this type of stuff, and despite fears of reduction in consumption in Europe, analysts say the Japanese broker Yutaka Shoji Kazuo Tetsu.

Futures may exceed the peak value of 2008 at 356.9 yen per kilogram ($ 3922 per ton) at the tender Tokyo commodity exchange and achieve maximum performance from March 1980. Prices of natural rubber has increased by 3,6% since the beginning of this year - after doubling in 2009. The number of car owners in China will continue to grow this year, which, according to K. Tetsu to lead to increased demand for raw materials used in the automotive industry. The most actively traded contract for the supply of rubber in November rose in price on Friday at 1,8% - to 286.2 yen per kg. At the auction on May 17 the price fell to 5-month low - 250.9 yen per kg. The maximum value for this contract in 2010 - 338.5 yen per kg - was recorded in April.

According to the International Rubber Study Group, Europe’s share in the global market for natural rubber in 2008, estimated at 10.2 million tonnes, was only 15%. In this case, according to the same organizations, the consumption of natural rubber in China this year will grow by 10% from 3.35 million tons in 2009. According to estimates of experts ANPRC, world-class production of natural rubber in the current year will increase from year 2009 to 6,2% - to 9.37 million tons.

source - http://globalist.org.ua

Friday, May 28, 2010

Sri Lanka Tourism Another update - CNN GO reports about Sri Lanka

























20 idyllic beach getaways - Hikkaduwa, Sri Lanka

With its political woes apparently easing, Sri Lanka’s efforts to become known as a tourism hotspot rather than a terrorism hotbed are no doubt aided by its world-class surf spots.

Surf Mecca Hikkaduwa, one of Sri Lanka’s most popular beach destinations, has close to a dozen reef breaks that stop short of being life-threatening, and plenty of sea corals to keep snorkelers happy.

To complete the Asian getaway experience, Hikkaduwa has sumptuously spicy local fare and Buddhist cultural spectacles for vacationers to write home about.
  1. 20 idyllic beach getaways - Hikkaduwa, Sri Lanka
  2. 10 of the best golfing getaways - For old-school golfing: Royal Colombo Golf Club
  3. 10 of Asia's can't-miss colonial hotels - Galle Face, Sri Lanka
  4. Unseen Asia: 25 of Asia's most overlooked destinations - Haputale, Sri Lanka
  5. 52 Weekends: Go somewhere different every week - June 25 - 27: Sri Lanka's inland empire
  6. Sorry Santa, December isn't all about you - December 1: Unduvap full moon poya (Sri Lanka)
  7. Love & Other catastrophes - 'Do you take this woman ... and her incredibly filthy Tevas?'
 source - http://www.cnngo.com/

Return From the Shares Listed in Colombo Stock Exchange Sri Lanka

(S.L.S.Picks) -We have selected following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (24/05/2010 to 26/05/2010) 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. Colombo Stock Exchange is the best performing stock exchange in Asia so far for year 2010.

SEE THE RETURN FROM BELOW MENTIONED SHARES. THIS IS WITHING A PERIOD OF ONE WEEK.

 THINK & INVEST NOW IN COLOMBO STOCK EXCHANGE-SRI LANKA STILL YOU ARE NOT LATE.



Stock
   Opening Price   (Rs)
    Closing Price (Rs)
Week On Week Change
                   %                                    
PALM
220.00
318.00
44.55
COLO
75.00
91.75
22.33
CRL
21.50
25.50
18.60
SIGV
58.25
68.50
17.60
BHR
110.25
125.75
14.06
AUTO
470.00
534.75
13.78
GREG [W0006]
31.75
36.00
13.39
LDEV
15.00
17.00
13.33
RENU
225.00
253.75
12.78
GREG[W0003]
33.50
37.50
11.94

POSITIVE ECONOMIC FACTORS

  • Central Bank of Sri Lanka has forecast a 6.5 % economic growth for the country in year 2010.
  • Stable government to adopt consistent economic policies in the country.
  • Expected boom in the Tourism sector in future. Tourist arrivals to the country has increased after the end of 30 year old civil war & already recorded a 50.3% growth so far for the year 2010. ( JAN - APRIL).
  • The Economic growth in future is expected to be well supported by the development activities in the Construction & the Agricultural sectors as well.
  • Sri Lanka Share Market (Colombo Stock Exchange)was ranked No 01 in Asia & second best in the world in 2009 in terms of growth. We are the best performing stock exchange in Asia so far for the year 2010.
  • Announcement  of the holding an Indian film festival in Sri Lanka will give a much needed boost for the country & the hotels sector.
  • Positive contribution from the North & East provinces to the country's overall economy
  • Expected improved earnings  by the listed companies in future.
  •  Cricket Asia cup 2010 to be held in Dambulla Sri Lanka.
  • New hopes of approving the IMF third tranche loan facility withing  couple of weeks.
  • Sri Lanka heads powerful G15 summit,consists of 18 developing countries,which includes India, Brazil, Malaysia,Iran, Mexico,Argentina, Chile etc.
  • Sri Lanka will host the next G15 summit t in year 2012. 
  • New hopes of getting back the GSP+ facility to the country.
  • Power Sri Lanka International 2010 exhibition to be held in Colombo - Sri Lanka during the coming week with the participation of several countries.
  •  U.S. State Dept lifts travel warning on Sri Lanka, will be a great boost for the Country as a whole & for the tourism industry.

Now its Rubber Time in the World: Good for Rubber Plantation companies

Rubber Market to Stay Strong on Supply, Group Says (Update2) - By Supunnabul Suwannakij

May 25 (Bloomberg) -- Rubber demand from India and China and tight supply after the low-production season will help keep the market strong, the Association of Natural Rubber Producing Countries said.

Demand in China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said in its May newsletter.

Natural-rubber imports by China rose 17 percent to 602,000 tons from January to April, and demand, including that of compound rubber, increased 26 percent to 1.05 million tons, according to the association, which represents 94 percent of global output of the commodity. Consumption of natural rubber in India during the first four months jumped 12 percent to 316,000 tons, it said.

Futures in Tokyo plunged 20 percent since reaching a 21- month high of 338.5 yen a kilogram ($3,777 a metric ton) on April 16. The most-active contract gained 1.7 percent last week after dropping to a five-month low of 250.9 yen on May 17. Rubber for October delivery, the most-active contract, fell 2.2 percent to settle at 271 yen on the Tokyo Commodity Exchange.

The International Rubber Consortium Ltd. forecast yesterday that natural rubber prices are likely to stay around current levels, because of increasing demand and a lack of shipments from Thailand.

Tight supplies from the main producing countries after the post-wintering season will support prices, the Association of Natural Rubber Producing Countries said. Trees shed their leaves during the wintering season that runs from February to April, lowering latex output.

The association today maintained the output forecast for its member countries at 9.37 million tons this year, a rise of 6.2 percent from 2009, it said.

The association represents Cambodia, China, India, Malaysia, Indonesia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.

--Editor: Ravil Shirodkar, Tim Coulter

To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

To contact the editor responsible for this story: James Poole in Singapore at jpoole4@bloomberg.net

Related News

Rubber Advances to Three-Week High as Oil Gains, Yen Declines - By Aya Takada and Supunnabul Suwannakij

May 27 (Bloomberg) -- Rubber advanced for a second day to the highest level in three weeks as a rally in crude oil and limited supplies from Thailand, the largest producer, boosted demand for the commodity used to make tires.

Futures in Tokyo were also bolstered by a fall in Japan’s currency against the dollar, which raised the appeal of yen- denominated contracts. The yen weakened as signs that Asia- Pacific economies are recovering sapped demand for Japan’s currency as a refuge.

“Overall sentiment is bullish” given the gains in oil and other commodities, Kazunori Kokubo, general manager of the international business department at commodity broker Yutaka Shoji Co., said by phone from Tokyo.

Rubber for November delivery, the most-active contract on the Tokyo Commodity Exchange, rose as much as 3 percent to 281.90 yen per kilogram ($3,122 a metric ton) before settling at 281.3 yen. Earlier, it fell to 272 yen on concerns that Europe’s debt crisis may stall economic recovery in the region.

Oil futures in New York climbed as much as 1.5 percent, boosting the cost of making synthetic rubber from naphtha. The yen declined to 110.54 per euro as of 6:40 a.m. in London from 109.47 in New York yesterday.

The most-active rubber contract gained 5.5 percent this week, a second weekly gain, amid worries that there’s continued tight supply from major producing countries. The “supply situation hasn’t improved,” Kokubo said.

Tight Supply

The low supply from key producers together with robust demand in Asia will keep the market strong, the Association of Natural Rubber Producing Countries said in its May newsletter on May 25. Demand from China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said.

Cash prices in Thailand, the largest exporter, extended gains as rains in some southern provinces disrupted tapping, lowering supply, the Rubber Research Institute of Thailand said on its website today. Processers continued purchases on worries there’s a supply shortage, it said. Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram.

September-delivery rubber on the Shanghai Futures Exchange added 0.8 percent to settle at 22,585 yuan ($3,306) a ton.

--Editor: Jake Lloyd-Smith

To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

source - http://www.businessweek.com

More Related News - 
  1. Natural rubber prices likely to remain high
  2. Tight supply to push global rubber prices

Thursday, May 27, 2010

Another boost for Sri Lankan Tourism:U.S. State Dept lifts travel warning on Sri Lanka

updated 9:39 a.m. ET May 27, 2010

WASHINGTON - The State Department announced Wednesday it had canceled a travel warning for Sri Lanka, in a boost for the Indian Ocean island state that ended a long war last year and hopes to draw more tourists.

The end of the travel warning comes just over a year after Sri Lanka declared victory over the separatist Liberation Tigers of Tamil Eelam (LTTE) following 27 years of civil war.

The LTTE had not staged any attacks in the capital Colombo or elsewhere in Sri Lanka since then, the State Department said in a statement.

Sri Lankan Foreign Minister G.L. Peiris is scheduled to hold talks with Secretary of State Hillary Clinton in Washington Friday. (Reporting by Paul Eckert; Editing by Eric Walsh)

source - http://www.msnbc.msn.com

 Related News Articles

01. US withdraws Lanka travel warning by http://www.hindustantimes.com/

The US have lifted travel restrictions to Sri Lanka clearing the way for a further boost to the tourism industry and foreign investment in the island nation.

In its statement, the US state department noted that, "The Government of Sri Lanka declared victory over the Liberation Tigers of Tamil Eelam (LTTE) on May 18, 2009. Since the war's declared end, the LTTE has not mounted any attacks in Colombo or elsewhere in Sri Lanka."

"The travel warning issued for Sri Lanka on November 19, 2009 has been cancelled, effective May 26, 2010," the statement said. "Department of State has cancelled the travel warning for Sri Lanka due to improvements in safety and security conditions throughout the country."

 "This is something we have been looking forward to," tourism bureau chief Dileep Mudadeniya told AFP. "It will have a knock-on effect on (travel) insurance rates and also encourage more business travel from the West."

After the end of the war, many western countries have either scale down or totally done away with restrictions on travel to Sri Lanka. Some countries continue to warn their citizens against visiting former battle zones in the north, which could still be heavily mined.

The New York Times in January listed Sri Lanka as the number one destination to visit in 2010, citing the war's conclusion and Sri Lanka's historical sites, lush forest and broad beaches. National Geographic and the luxury living website Dailycandy.com also both gave Sri Lanka high rankings as a travel destination in 2010.

The state department announcement came two days before Sri Lankan External Affairs Minister G.L. Peiris - on a four-day visit to the US -- was scheduled to hold talks with Secretary of State Hillary Clinton in Washington on Friday.

Peiris had urged the US not to be one sided by focusing only on human rights issues when there are business and other opportunities in post-war Sri Lanka. "We are not in anyway resentful of the focus on human rights. That is understandable. We are not complaining about it," Peiris told a gathering in the US. "But we are making the point that the relationship should not be one-dimensional. There are many other things that Sri Lanka and the United States can do together," he said.

02. Sri Lanka welcomes U.S. move to cancel travel warning - http://news.xinhuanet.com

COLOMBO, May 27 (Xinhua) -- A decision by the United States government to lift an adverse travel advisory to Sri Lanka would encourage tourism growth in Sri Lanka, a top official claimed on Thursday.

"It is a very welcome development," Dileep Mudadeniya, chief of government tourism promotion agency told reporters.

"The travel advisory meant that U.S. business travellers and tourists needed approval to visit Sri Lanka. This requirement will no longer apply helping to increase arrivals of U.S. travellers," Mudadeniya noted.

The U.S. State Department said that "the Travel Warning issued for Sri Lanka has been cancelled, effective May 26, 2010" due to improvements in safety and security conditions throughout the country.

The military defeated Tamil Tiger rebels in May 2009, ending a 30-year-old civil war in the country.


03. Sri Lanka welcomes US decision to cancel travel advisory  - http://www.colombopage.com

 May 27, Colombo: The Sri Lankan government today welcomed the United States' decision to cancel the travel warning it issued last year on Sri Lanka.

A top Sri Lankan government official said the move by the US, coming a year after three decades of conflict ended last May, would boost tourism and investment in the country.

Effective yesterday, the United States Department of State cancelled the travel warning issued for Sri Lanka on November 19, 2009.

"This is something we have been looking forward to. It will have a knock-on effect on (travel) insurance rates and also encourage more business travel from the West," Tourism Bureau chief Dileep Mudadeniya told AFP.

The US Department of State said yesterday it has cancelled the Travel Warning for Sri Lanka due to improvements in safety and security conditions throughout the country.

"Since the war's declared end, the LTTE has not mounted any attacks in Colombo or elsewhere in Sri Lanka," the State Department said in a statement.

Sri Lanka's is seeing a revival in the tourism industry after the end of the war a year ago. The tourist arrivals have been steadily increasing since the end of the war and recent data from the Tourist Board has shown that Sri Lanka's tourist arrivals jumped by 50.3 percent in the first quarter of 2010 compared to a year earlier.

The Tourism Board says it is hoping to attract 2.5 million visitors by 2016 and to earn 2 billion-dollar annual income from tourism by 2012

03. Sri Lanka welcomes end to US travel warning by - http://www.lankabusinessonline.com

May 27, 2010 (AFP) - Sri Lanka on Thursday welcomed the lifting of a US warning against travel to the Indian Ocean island, anticipating a boost to tourism and investment a year after a bloody civil war ended.
"This is something we have been looking forward to," tourism bureau chief Dileep Mudadeniya said. "It will have a knock-on effect on (travel) insurance rates and also encourage more business travel from the West."

The US announcement came soon after the first anniversary of the defeat of Tamil Tiger rebels in a brutal military offensive that finally ended the guerrillas' separatist campaign after 37 years of war.

The conflict claimed up to 100,000 lives, according to United Nations estimates.

The US State Department said in a statement that it had "cancelled the Travel Warning for Sri Lanka due to improvements in safety and security conditions throughout the country".

Tourists were not directly targeted even during the worst of fighting between troops and Tamil Tigers, but the violence seriously affected the island's image.

The tourism industry is now staging a dramatic revival.

Good for Rubber Plantation companies:Rubber Advances as Crude Oil Rally, Low Supply Boost Appeal

By Jae Hur and Supunnabul Suwannakij

May 26 (Bloomberg) -- Rubber advanced as crude oil rebounded, improving the appeal of the commodity used to make tires, amid concerns of dwindling supplies in producing countries after the low-production season.

Futures in Tokyo rose as much as 2.8 percent as crude oil rose to more than $70 a barrel after a report showed a drop in gasoline stockpiles in the U.S. A gain in oil boosts the cost of synthetic rubber made from petroleum.

Rubber also climbed as “supplies from major producers have remained tight,” Takaki Shigemoto, analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Depleted supply from key producers after the low-production season will keep the market strong, the Association of Natural Rubber Producing Countries said in its May newsletter. Trees shed their leaves during the wintering season that runs from February to April, lowering latex output.

The October delivery contract climbed as much as 7.6 yen to 278.6 yen a kilogram ($3,092 a metric ton) on the Tokyo Commodity Exchange before settling at 275.9 yen. The new contract for November delivery settled at 273.7 yen after opening at 275 yen.

September-delivery rubber on the Shanghai Futures Exchange rose 1.8 percent to settle at 22,410 yuan ($3,280) a ton.

“The tight supply news helped boost rubber,” Chaiwat Muenmee, an analyst at broker DS Futures Co., said by phone from Bangkok. The shortage won’t last long “as more supplies are expected to come into the market next month,” he said.

Robust Demand

Ribbed smoked sheet RSS-3 grade rubber output may average 200 metric tons a day next month, compared with more than 100 tons a day in May, said Chaiwat.

Demand in China, India and Malaysia, which account for more than 45 percent of rubber consumption, should stay robust, said the association, which represents 94 percent of output.

Imports by China rose 17 percent to 602,000 tons in the January-April period and demand, including that for compound rubber, rose 26 percent to 1.05 million tons, according to the association. Consumption of natural rubber in India during the first four months rose 12 percent to 316,000 tons, it said.

Cash prices extended gains as a shortage of supplies prompted rubber processors to accelerate purchases, the Rubber Research Institute of Thailand said on its website today. Thai RSS-3 grade rubber for June delivery gained 0.2 percent today to 123.40 baht ($3.79) a kilogram, the institute said.

--Editors: Jarrett Banks, Jake Lloyd-Smith

To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

source - http://www.businessweek.com

Sri Lanka - John Keells Tea Market report: Strong demand for High and Medium CTC Teas

Black tea production for April 2010 showed a slight drop of 3 percent compared to the corresponding period of 2009.

High Growns have recorded the highest deficit with 28 percent, followed by Medium Grown at 8 percent. Low Growns, on the other hand has shown a surplus of 14 percent.

The to-date production for the year stands at an impressive 30 percent over 2009, with major contributions coming from Low growns at 44 percent and Medium growns at 25.36 percent.

As predicted in our recent market reports the large quantity of 1.37 mkgs of ex estate teas that came up for sale today met with poor demand, with prices depreciating by Rs 50 to Rs 60 and more for both BOP and BOPF.

Although the price declines were expected the extent to which it dropped was somewhat concerning particularly in view of the fact that the volumes on offer at the forthcoming sales showed, little change.

The better BOP/BOPF where the leaf appearance was above average and liquors which had some merit sold well although the prices were Rs 10 to Rs 20 easier compared to the previous week.

The below best and the plainer invoices were the most affected with the bottom of the market selling around Rs 240. Although the price gap in the Western High Grown category for BOP and BOPF were irregular most Uva BOPs sold above its counterpart.

A redeeming feature of today’s sale was the stronger demand that prevailed for CTC teas for the High and Medium category whilst Low Growns were barely steady.

The 2.9 mkgs of Low Growns that were on offer met with limited inquiry.

Inclement weather that Colombo experienced during the past week hampered many buyers collecting their purchases, as a result many a shipment were not effected.

We also presume that cash flow problems faced by some of the small time operators at the Colombo auctions, refrained from making any purchases this week.
Hence the lower demand.

We have seen a considerable improvement in the weather from Sunday onwards and we expect operations to normalize during this week. Therefore more demand could be expected in the ensuing weeks. In the leafy category, most teas on offer declined Rs 10 to Rs 20, whilst in the Small leaf category with the exception of the tippy varieties, all others took a similar drop.

The volume of unsold teas at this week’s auctions due to the lack of suitable bids were rather high.

There was good support from Russia, Iraq and Iran, whilst Saudi Arabia, Jordan, Syria, Libya and other Middle Eastern markets too lent useful support.

Western Teas

Select Best BOPs declined Rs 10 to Rs 15 and at times more, other good invoices shed Rs 20 to Rs 30 on average, Below Best sorts declined Rs 30 to Rs 40 and more, plainer varieties shed Rs 40 on average.

Select Best western BOPFs shed Rs 15 to Rs 20, other good invoices declined Rs 30 to Rs 40 and more, Below Best sorts were Rs 40 to Rs 50 easier, plainer varieties shed Rs 30 to Rs 40 on average.

Medium BOPs were firm to marginally easier. BOPFs shed Rs 20 to Rs 30 and more.
 
Nuwara Eliya Teas

BOPs declined Rs 20 to Rs 30 and at times more. BOPFs eased Rs 15 to Rs 20 on average.
 
Uva Teas

Coloury BOPs were firm, others declined Rs 15 to Rs 20 and at tines more. BOPFs shed Rs 30 to Rs 40 and more for the poor leaf sorts. Udapussellawa BOP/BOPFs declined Rs 40 to Rs 50 on average.
 
CTC Teas

Low Grown PF1s eased Rs 50, BP1s were Rs 40 to Rs 50 lower. High and Medium PF1s declined Rs 15 to Rs 20 and more. BP1s were Rs 5 to Rs 10 lower.

Low Growns

Lower demand. Select Best OP1s declined substantially, the balance too were lower by Rs 5 to Rs 10 and more following quality. Select Best BOP1s shed Rs 5 to Rs 10, Best types along with the Below Best types shed Rs 10 to Rs 15 and more at times, poor types too were lower by a similar margin. Select Best along with the Best OPAs eased by Rs 5 to Rs 10, Below Best and poor sorts declined Rs 10 to Rs 15.

Select Best Pekoes were firm to Rs 5 to Rs 10 dearer at times however the other bolder varieties declined sharply by Rs 15 to Rs 20 and more at times. Select Best Pekoe1s eased Rs 10 to Rs 20 and more following quality, the balance too declined Rs 10 to Rs 15.

Select Best BOPs maintained last levels, however the Best and Below Best types eased Rs 10 to Rs 15, poorer types declined Rs 10 to Rs 20. Select Best BOP.SPs eased Rs 5, Best and Below Best types eased by Rs 5 to Rs 10, whilst the poor types were lower by Rs 10.

Select Best and Best FBOPs/FBOPF1s shed Rs 20 and at times were difficult of sale due to want of interest, Below Best and poor types too met with similar demand. Select Best tippy varieties met with good demand and advanced a few rupees on last, however the Best and Below Best types shed on last levels, poorer types too were lower by Rs 10 to Rs 20 and at times remained difficult of sale due to lack of demand.

source - www.dailynews.lk

Happy Wesak!!!

Hemas Holdings announced a sub division: Colombo Stocks Bounced back

                  DAILY MARKET REVIEW

26/05/2010 (S.L.S.Picks) – Sri Lanka stock Market was up after several days of negative trading on Back of bargain hunting for Hotel stocks & growth stocks by the retail investors & high net worth individuals.

All share price index was up by 24.50 points to close at 4250.99 & more liquid Millanka index was up by 39.57 points to close at 4761.35

Turnover for the day was healthy Rs 1.0b.n on back of buying interest by Retail investors, High net worth individuals, & Institutional investors.

Foreigners were net sellers for the day today where they purchased shares to the tune of Rs 73m.n. & sold shares to the tune of Rs 139m.n. reflecting a net foreign out flow of Rs 66m.n.

IT sector rose by 6.09% & was the leading sector among all sectors for the day due to price appreciation of E channeling company, followed by Power & Energy sector. The leading negative performing sector for the day was Plantation sector.

There were 84 gainers as against 53 negative performing counters.

ANNOUNCEMENTS
  • JOHN KEELLS PLC declared First & Final dividend of Rs 10.00 /share
  • TRANS ASIA HOTELS PLC declared First and Final Dividend of Rs 2.00 /share
  • TEA SMALLHOLDER FACTORIES PLC declared First and Final Dividend of Rs 8.00 /share
  • CEYLON HOSPITALS PLC declared Interim Dividend of Rs 1.50 /share
  • LANKA TILES PLC declared Second Interim Dividend of Rs 2.50 /share
  • Hemas Holdings PLC declared a subdivision - (One (01) existing ordinary share to be sub divided in to Five (05) ordinary shares)


CLOSER LOOK
  • Confifi Holdings advanced by massive 46.54% to close at Rs 318.00 up by Rs 101.00 for the day following the purchase of 43.3% stake by LOLC company.
  • Market bounced back strongly at the end of the trading session since most of debt clearing operations by brokering firms were completed before the month end of May 31. 
  • Buying interest was once  again visible in the counters of GREG family.
  • Hemas Holdings a share which has not moved up during recent past has announced a subdivision of 01 share in to 05. This will give the investors much needed boost to collect this share at this price levels which has diversified interest in several fields.
STOCKS TO WATCH
  • Janashakthi Insurance
  • Richard Pieris
  • Hemas Holdings 
  • Namal Acuity Value Fund 
  • Seylan Bank X

data - www.cse.lk

Wednesday, May 26, 2010

First Capital Holdings reports record profit of Rs 660.7 mn

First Capital Holdings PLC (FCH) has reported that profit after tax grew 245 per cent to Rs 660.7 million in the 12 months ending 31st March 2010 in figures released to the Colombo Stock Exchange.

Profit attributable to equity holders of the parent company at Rs 587.7 million reflected a growth of 344 per cent. Turnover of the Group was up 18 per cent to Rs 2,761.6 million.

Much of this growth, attributed to investments in government securities, came in the first three quarters of the year. Profit for the final quarter (January – March 2010) was Rs 103 million before a deduction of Rs 62.9 million on account of withholding tax on inter-company dividends.

Earnings per Share increased to Rs 17.41 for the year from Rs 3.92 for the preceding year. Group Net Assets per Share stood at Rs 15.85 as at 31st March 2010, up from Rs 13.44 a year earlier. The Group declared a dividend of Rs 15 per share at the end of the third quarter, resulting in a dividend payout of Rs 506.25 million.

Earlier this month, the company received approval from its shareholders to proceed with a sub-division of its shares by splitting every existing share into three shares.

The company’s share price has risen from Rs 4.90 on April 1 2009 to Rs 58.00 earlier this month. "The sub-division is aimed at increasing the liquidity and marketability of the share particularly for smaller shareholders," a company spokesman explained.

Commenting on the Group’s performance, he added: "First Capital has had an excellent year primarily due to a favourable bond market which resulted in exceptional profits by the Group’s primary dealer arm. In the year ahead, the Group proposes to extend the range of its corporate finance activities and products with special focus on debt capital markets. With prospects of higher economic growth and greater liquidity, strong opportunities exist for market development as well as for wider participation in structured products."

"Opportunities have also been identified in the provision of professional investment management services, and the Group will exercise its strong resource base to serve customers in this area."

The First Capital Group, whose origins date back 27 years, obtained its Primary Dealership license in 1992. First Capital Treasuries (FCT) is a Central Bank appointed primary dealer with a mandate to create a market for government treasury bills, government treasury bonds and repurchase agreements, with investors seeking risk-free investment opportunities.

First Capital Markets (FCM) specializes in structuring and placing of short term and long term debt issues for corporate entities. The company is also an SEC approved Margin Provider for listed equity and provides loan facilities to investors in the share market enabling them to capitalize on both short term and long term equity market opportunities.

First Capital Asset Management (FCAM) is a SEC approved fund manager specializing in managing wealth for high net worth individuals as well as for trusts, provident funds and companies.

First Capital’s Board of Directors comprises Manjula Mathews, Dinesh Schaffter, Nihara Rodrigo and Jude Fernando.

source - www.island.lk

Lanka Orix Leasing Company purchased hotel stakes: Colombo Stock Market was down again

                        DAILY MARKET REVIEW

25/05/2010 (S.L.S.Picks) – Colombo Stock Market was down for the second consecutive day today for this week. There were renewed buying interest on selected stocks & the improved quarterly reports published by the listed companies for the JAN – MARCH 2010 quarter (Three months) may have lifted the investor attention.

LOLC today announced that they have purchased 3.1m.n. Shares or 43.3% of in Confifi Hotel Holdings @ Rs 210/ share & purchased 20% of Riverina Hotels @ Rs 110 /share.

Foreign participation was at moderate levels. Foreigners remain as net sellers for the day by Rs 372m.n Foreigners purchased Rs 606m.n. worth of shares & sold shares worth of Rs978m.n.for the day.

Stores & Suppliers sector rose by 4.36% due to share price increase in Colombo Pharmacy, followed by Health Care sector. IT sector was heading sector the negative performers list.

There were 55 positive contributors as against 82 negative contributors for the day.

ANNOUNCEMENTS
  • RICHARD PIERIS Co. PLC First & Final Dividend of Rs 1.00 /share
  • WATAWALA PLANTATIONS PLC Final dividend of Rs 2.75/share
  • AITKEN SPENCE PLC Final dividend of Rs 6.50 /share
  • KOTAGALA PLANTATIONS PLC First & Final dividend of Rs 3.00 /share
  • AITKEN SPENCE HOTEL HOLDINGS PLC First & Final dividend of Rs 1.50 /share
  • NAWALOKA HOSPITALS PLC Interim Dividend of Rs 0.05 /share

CLOSER LOOK
  • There were several large Crossings took place today including the purchased of stakes in Confifi Hotel Holdings & Riverina Hotels by the LOLC.
  • Apart from this there were large crossings in Commercial Bank Of Ceylon @ Rs 246.00 & Janashakthi Insurance @ Rs 14.00 & Fortress Resorts @ Rs 20.00 share.
  • All most all the other crossings took placed were for Blue chip companies listed in Colombo Stock Exchange.
  • Colombo Stock Market will bounce back from negative territory sooner than later after completing the debt clearing operations by the brokering firms. 

STOCKS TO WATCH 
  • Richard Pieris
  • Janashakthi  Insurance
  • LOLC
  • Housing Development & Finance

data - www.cse.lk

Tuesday, May 25, 2010

Sri Lanka Tourism - Four nation Asia Cup cricket tournament kicks off in Sri Lanka

Asia Cup Cricket 2010 begins from 15 June in Sri Lanka. Four Asian teams: India, Sri Lanka, Pakistan and Bangladesh will take part in the event. Although the event is named Asia Cup, contesting teams are on the whole from South Asia. This will be the 10th edition of the tournament since its inauguration in 1984. The Asia Cup is an International ODI cricket tournament. It was introduced in 1983 when the Asian Cricket Council was established to promote goodwill among Asian countries. Initially it was scheduled biennially.

 The inaugural tournament was held in Sharjah in 1984. It has been ruled by The International Cricket Council that all matches played for the Asia Cup have official One Day International (ODI) status. In the qualifying round, all the teams will be up against each other in a round-robin tournament for a berth in the final. Two teams with highest points in the qualifying round would head to the finals, which will occur on 24 June. All the matches of the tournament will be held day and night, scheduled at the Rangiri Dambulla International Stadium, Dambulla, Sri Lanka.

 Sri Lanka has a chance to make a hat trick of the Asia Cup title, as it is the defending champion for the last 2 tournaments. Both India and Sri Lanka are the most successful teams in Asia Cup. Both the teams have lifted the trophy four times. Pakistan earned its Asia Cup title in 1986 when Sri Lanka was hosting the event for the first time. So far Sri Lanka has organized the Asia Cup 3 times maximum in the tournament. This year, Sri Lanka would most likely retain the title by taking advantage of their home grounds. Their recent ODI form is quite satisfactory.

 They have won the tri-nation series held in Bangladesh earlier this year beating India in the final. Sri Lanka also qualified for the semi final of the recently concluded T20 World Cup 2010 in West Indies. So far Sri Lanka has played total 36 matches in Asia Cup with a win-loss ratio of 26-10. Sri Lanka has reached every final of Asia Cup since its beginning.

Current form of India - the losing finalists of the last 2 tournaments; may not be that much great, but the ‘men in blue’ would try to make the title in their name and definitely have the potential. Four times Asian Champions had their last Asia Cup title in 1995. India has played 32 Asia Cup matches with a win-loss ratio of 19-12 while one match ended with no result. India reached in every final of Asia Cup except the 1986, 1993 and 2000 cups.

 Pakistan’s recent ODI form is not up to the mark. The mighty Kangaroos in a 5-match ODI series beat them in January this year. At the same time Pakistan’s cricket team is confronting match fixing allegations and many other internal issues. Furthermore the Green Shirts failed to defend their T20 World Champs title. So far in Asia Cup, Pakistan has played total 28 matches with a win-loss ratio of 17-10 while one match ended with no result.

 Bangladesh would step in the 2010 Asia Cup with an underdog tag. They lost to the Kiwis and English in the ODI series this year. Moreover their performance in the just concluded twenty20 world cup was not satisfactory. At the same time, they can cause upsets. They have played total 26 Asia Cup matches with a win-loss ratio 2-24. The schedule of 2010 Asia cup has been confirmed. The opening match would be played between defending champion Sri Lanka and Pakistan on June 15 in Rangiri Dambulla International Stadium, Sri Lanka. The final match would be played on the same ground on 24th June on the same ground.


source - http://blogs.bettor.com