Sunday, December 2, 2012

Foreign interest continues at the CSE

The week ending 30th November saw a net foreign inflow of Rs 915 million, taking the year to date total to above Rs 36 bn in what has been an otherwise lacklustre market. Entering when locals are reluctant and exiting foreign investment continued to pour into blue chip counters such as John Keells Holdings, Aitken Spence, Distilleries Company, Chevron Lubricants, Ceylon Tobacco and Nestle Lanka.

The week’s total inflow was Rs 1,225 against sales of Rs 310 million. Total turnover for the four day week was Rs 2,078 million, a daily average of Rs 519 million, which was lower than the previous week’s average of Rs 1.4 billion. The broader All Share Index lost 55.86 points, or 1.03%, to close at 5,351.25, while the more sensitive S&P SL 20 Index lost 25.29 points or 0.9% to close at 2,942.02.

Galadari Hotels announced that it will go ahead and convert debt amounting to Rs. 7, 164 million to equity via a private placement at the rate of Rs. 22.50 a share. The company will issue 318.4 million shares to Galadari Brothers Company, who are the promoters of the Sri Lankan venture. The National Insurance Trust Fund, which also has lent money to GHLL have not taken up the shares in lieu of the debt. The company has carried forward losses of Rs 9.3 billion which has been partially offset by a revaluation of the property by Rs 7.9 billion. Seylan Bank announced the issue of 100 million debentures at Rs 100.00 per script to Rs 1 billion to fund its loan portfolio. The rates are to be determined at a later date, but will be based on 3 types of debentures that will pay interests separately.

 Sunshine Holdings disclosed that it was in discussion to form a JV with Wilmar International of Singapore to market the products of Watawala Plantations and Watawala Marketing.

Sri Lanka’s annual average inflation to November was at 9.5%, up from the 8.9% in October, with food prices gaining by 2.4% in the period.

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