Friday, May 31, 2013

Access Engineering profits up 37pct

*  Rs. 2.8bn invested on capacity building in two years
Access Engineering PLC reported a net profit of Rs. 2.38 billion for the year ended March 31, 2013, up 37.12 percent from Rs. 1.72 billion a year earlier, financial results filed with Colombo Stock Exchange showed.

Turnover grew 90 percent at group level to Rs. 13.9 billion. At company level, turnover amounted to Rs. 11.45 billion, up 64 percent from a year ago.

"This is the second consecutive year that the company was able to almost double its turnover in view of the growth taking place in infrastructure development and the construction industry in the country," the company said in a statement.

The year ending March 31, 2013 was the first full year of operation after Access Engineering PLC made its debut on the Colombo Stock Exchange after a successful IPO in March 2012.

At the company level turnover is drawn from multidisciplinary value engineering activities such as roads and highways, bridges and flyovers, water and wastewater, ports and aviation, piling, building construction and production income.

At group level, the company’s subsidiary Sathosa Motors PLC has contributed Rs. 2.3 billion to the top line. The company’s fully owned subsidiary, Access Realties (Pvt) Ltd also contributed to the top line with a turnover of Rs.170 million.

Stemming from the top line growth, the company’s pre-tax profit of Rs.2.67 billion and Rs.2.3 billion witnessed a growth of 32 percent and 33 percent at group and company level in the year under review.

During the year the company invested approximately Rs.1.2 billion in property, plant and equipment. Taken together with the financial year 2011/2012, the company has made an investment over Rs.2.8 billion in capacity building within a period of 24 months.

At present, Access Engineering owns one of the most technically advanced and up-to-date fleet of heavy construction equipment and machinery in the country. These investments also includes the acquisition and setting up of quarries, crusher plants, concrete batching plants, asphalt plants and state-of-the-art piling equipment, through which the company has successfully consolidated its multidisciplinary activities and supply chain. These backward integration measures have enabled the company to deliver its projects to clients well ahead of the scheduled completion dates and will be a catalyst in meeting the anticipated growth rates of the forthcoming years, the company said.

The company’s liquidity profile is excellent at both company and group level. Operating activities of the company have generated a net cash inflow of Rs. 1.6 billion with the net cash outflow from investing activities amounting to Rs.1.62 billion mainly due to the capacity building initiatives undertaken by the company.

The total asset base of the group stood at Rs.16.64 billion. Equity attributable to equity holders of the parent was Rs. 12.47 billion which translates into a net asset per share of Rs.12.47. The earnings per share of the group is Rs. 2.38. The company declared an interim dividend of Rs.0.25 per share for the year 2012/2013 which was paid on 28th February 2013.

Access Engineering increased its ownership in its subsidiary Sathosa Motors PLC up to 84.4 percent during the period under review. Sathosa Motors PLC is the authorized dealer for the world-renowned Isuzu brand of motor vehicles in Sri Lanka. Since its acquisition in February 2012, Sathosa Motors PLC has contributed to both the top and bottom line of the company. With effect from 01-04-2013, Sathosa Motors has also entered into a Joint Venture and set up SML Frontier Automotive (Pvt.) Ltd. and acquired the dealership for Land Rover UK.

The Board of Directors of AEL comprises of Sumal Perera (Chairman), Christopher Joshua (Managing Director), Rohana Fernando (COO), Shevantha Mendis, Dharshana Munasinghe, Gration Fernando, Ranjan Gomez, Prof. Malik Ranasinghe, Niroshan Gunarathna & Alexis Lovell.
source - www.island.lk

Access Engineering’s bottom line up 37% to Rs. 2.36 b in FY13

Access Engineering Plc has recorded an impressive profit attributable to equity holders of Rs. 2,367 million for the financial year ending 31 March 2013, when compared to a profit of Rs. 1,725 million to equity holders last year. 

As per the financial results released to the Colombo Stock Exchange, turnover for the year ended 31 March 2013 recorded at Rs. 13,900 million and Rs. 11,447 million at group and company level is a growth of 90% and 64% respectively over the corresponding period.  This is the second consecutive year that the company was able to almost double its turnover in view of the growth taking place in infrastructure development and the construction industry in the country.

 The year ending 31 March 2013 is the first full year of operation of Access Engineering Plc since it made its debut on the Colombo Stock Exchange after a successful IPO on 27 March 2012. Delivering under the theme “new hope,” the above results stand testimony to the same. At the company level turnover is drawn from multidisciplinary value engineering activities such as roads and highways, bridges and flyovers, water and wastewater, ports and aviation, piling, building construction and production income.

 At group level, the company’s subsidiary Sathosa Motors Plc has contributed Rs. 2,311 million to the top line. The company’s fully owned subsidiary, Access Realties Ltd. also contributed to the top line with a turnover of Rs. 170 million. Stemming from the top line growth, the company’s pre-tax profit of Rs. 2,674 million and Rs. 2,301 million witnessed a growth of 32% and 33% at group and company level in the year under review.

‘Capacity building’ initiatives which have been earmarked, were further strengthened during the year ended 31 March 2013, with the company making investments to the tune of approximately Rs. 1,198 million in property, plant and equipment. Taken together with the financial year 2011/2012, the company has made an investment over Rs. 2.8 billion in ‘capacity building’ within a period of 24 months.

 At present, Access Engineering owns one of the most technically advanced and up-to-date fleet of heavy construction equipment and machinery in the country. These investments also includes the acquisition and setting up of quarries, crusher plants, concrete batching plants, asphalt plants and state-of-the-art piling equipment, through which the company has successfully consolidated its multidisciplinary activities and supply chain.

 These backward integration measures have enabled the company to deliver its projects to clients well ahead of the scheduled completion dates and will be a catalyst in meeting the anticipated growth rates of the forthcoming years.

 The company in the short to medium term is fully focused on its core business of multi-disciplinary engineering and owing to the growth in the infrastructure and construction industry, the Board of Directors are of the opinion that sustainable growth on the short to medium term could be achievable through the core business.

 The company’s liquidity profile is excellent at both company and group level. Operating activities of the company have generated a net cash inflow of Rs. 1,623 million with the net cash outflow from investing activities amounting to Rs. 1,626 million mainly due to the capacity building initiatives undertaken by the company.

 The total asset base of the group stood at Rs. 16,643 million. Equity attributable to equity holders of the parent was Rs. 12,472 million which translates into a net asset per share of Rs. 12.47. The earnings per share of the group are Rs. 2.38. The company declared an interim dividend of Rs. 0.25 per share for the year 2012/2013 which was paid on 28 February 2013.

 Access Engineering increased its ownership in its subsidiary Sathosa Motors up to 84.4% during the period under review. Sathosa Motors is the authorised dealer for the world-renowned Isuzu brand of motor vehicles in Sri Lanka.

 Since its acquisition in February 2012, Sathosa Motors has contributed to both the top and bottom line of the company. With effect from 1 April 2013, Sathosa Motors has also entered into a joint-venture and set up SML Frontier Automotive Ltd. and acquired the dealership for Land Rover UK.
 The Board of Directors of AEL comprises Chairman Sumal Perera, Managing Director Christopher Joshua, COO Rohana Fernando, Shevantha Mendis, Dharshana Munasinghe, Gration Fernando, Ranjan Gomez, Prof. Malik Ranasinghe, Niroshan Gunarathna and Alexis Lovell.

source - www.ft.lk

Spence ends FY13 with mixed fortunes

◾ Post-tax profit dips by 4% to Rs. 4.25 b

◾Profit operations up 14% to Rs. 5.5 b

◾Group revenue up 20% to Rs. 37 b
 
Blue chip conglomerate Aitken Spence Plc yesterday reported a profit from operations of Rs. 5.5 billion, an increase of 14.4% in FY13 over the previous year excluding the reported capital gains (of around Rs. 630 million) on the sale of the shares of Colombo International Container Terminals Ltd. (CICT).

The profit before tax is at Rs. 5 b for the year with a growth of 8.9% as compared with Rs. 4.59 b in the previous year, excluding capital gains on the sale of the shares of CICT.

 Post-tax profit was down marginally by 4% to Rs. 4.25 billion whilst net profit attributable to equity holders of parent was down to Rs. 3.26 billion, from Rs. 3.48 billion in FY12.

 The diversified Group’s annual revenue rose by 20% to Rs. 37.1 b whilst earnings per share declined by 6.3% to Rs. 8.05 for the financial year.

 The revenue for the fourth quarter of 2012/2013 was recorded at Rs. 9.38 b, a negative growth of 3.3% compared to the fourth quarter of 2011/2012.

 The profit before tax for the fourth quarter posted a negative growth of 4.13 % at Rs. 1.85 b when compared with 2011/2012 figures which excludes capital gains on the sale of the shares of CICT.
 The revenue of the tourism sector for the financial year grew 24.9% to Rs. 14 b and profit before tax surged 31.4% to Rs. 3.4 b. Annual revenue for the Cargo Logistics increased 1.4% to Rs. 5.7 b whilst profits after tax for the sector declined by 33.7% to Rs. 556 m.

 The Services sector reported growth in revenue of 11.4% and profit after tax of 1.5% to Rs. 537 m and Rs 162 m respectively for the financial year. The Strategic Investments sector (inclusive of revenue of equity accounted investees) reported an increase in revenue of 22.8% to Rs. 17.9 b, while profit after tax dropped by 46.4% to Rs. 837 m for the financial year.

“The company has had a year of mixed fortunes with challenges and pressures that have tested our strength and our ability to adapt, combined with fresh opportunities and prospects that excite us about the road ahead,” Aitken Spence Chairman D.H.S. Jayawardena said.

  “We are proud to say that we have not approached our shareholders for funds in 15 years. This is particularly noteworthy considering that our dividend record has improved significantly during this period and will continue to grow in line with our earnings record,” he said.

“The Sri Lankan tourism sector has performed reasonably well but was affected somewhat with the country attracting a higher number of lower-end or budget tourists who do not regularly patronise star class establishments,” he added.

 Deputy Chairman and Managing Director J.M.S. Brito said: “The Group was once again able to achieve a commendable performance for the year 2012/13 despite the macro-economic and global challenges we encountered. Our diversity and innate capabilities provided us with the ability to respond strategically and with agility to changing conditions whilst staying on course with the greater vision of Aitken Spence.”

 “In terms of expansion, we will continue to explore new avenues of business as well as new markets both in Sri Lanka and overseas, where we may utilise our proven capabilities in management to build sustainable new businesses,” he added.

 Aitken Spence is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East and Africa. It is an industry leader in hotels, travel, maritime services, logistics, power generation and printing, with a significant presence in plantations, financial services, insurance, information technology and apparel. Aitken Spence was recognised as Sri Lanka’s Best Corporate Citizen for 2012 by the Ceylon Chamber of Commerce.

source - www.ft.lk

Hemas takes control of J. L. Morison for Rs. 1.7 b

◾Pays 17% premium for voting shares

Hemas Holdings Plc yesterday purchased a 71.5% voting stake and a 50% non-voting stake in J.L. Morison Son & Jones (Ceylon) PLC (JLM) valued at Rs. 1.7 billion.

Voting stake of 4.153 million shares was acquired via crossing at Rs. 366.50 per share, a premium of Rs. 53.80 or 17% from Thursday’s closing.

 A block of 648,580 non-voting shares was done at Rs. 219.70 each and further block of 223,787 non-voting shares at Rs. 213.66 each were also bought. JML’s voting share closed at Rs. 346.20, up by Rs. 33.50 and non-voting at Rs. 219, up by Rs. 33.90. Their intra-day peak was Rs. 358.80 and Rs. 221 respectively. JLM’s consolidated net asst per share as at 31 December 2012 was Rs. 259.10 at Group level and Rs. 150 at Company level.

 The buying broker to the deal was NDBS whilst advisor to the seller Acuity handled 41% of the voting shares sold and 24% of non-voting.

For the nine months of FY13, JLM’s Group revenue was static at Rs. 2.16 billion whilst after tax profit was Rs. 108 million down by 16% whilst profit attributable to equity holders was Rs. 73 million, down by 12% over first nine months of FY12. Group assets amounted to Rs. 2.7 billion and at Company level the figure was Rs. 1.6 billion

 In a statement Hemas said the JLM Group has a portfolio of well-established consumer brands including Lacto Calamine, Valmelix, Morrison’s Gripe Mixture and Morrison’s Baby products. In addition, the company distributes leading consumer brands Good Knight, Kiwi, Wipro, Nivea, Garnier and L’Oreal as well as manufacturing and distributing pharmaceutical products island wide.

 Incumbent  Chairman R. Abeyawira, who has been part of the JLM Group for 61 years and due to retire from the business, said: “When the time came for us to look for a new parent for the business, our priority was to find the right partner, a party capable of taking the business forward. Having discussed with several prospective partners, we selected Hemas since it has the best fit with our business portfolio and is capable of taking this business to greater heights, building on our people-oriented culture and values.”

Hemas Holdings Plc CEO Husein Esufally said: “We look forward to working closely with the team at JLM bringing our deep insights into consumer and pharmaceutical business, helping to develop JLM as a leading consumer and wellness company.”

JLM’s outgoing CEO Nihal Samaranayake expressed his confidence in the new owners and their management capability to capitalise on the fast growing consumer and pharmaceutical markets. 

 Incoming CEO Trihan Perera highlighted the history and legacy of the JLM Group and said he hoped to build on the strengths and achievements of the company while bringing a new level of dynamism to the group.

source - www.ft.lk

Thursday, May 30, 2013

Hemas ups pre-tax profit by 58% to Rs. 2.4 b

Hemas Holdings Plc yesterday said in the 31 March 2013 ended financial year, the diversified blue chip witnessed strong growth with most businesses delivering strong results.

 Group revenue registered Rs. 26,098 million, representing an increase of 21.2% over the previous period. In terms of consolidated profits, it was an exceptional year, with the Group registering a Profit after Tax of Rs. 1,934 million, representing a growth of 53.3%.

 The Group posted a remarkable growth of 42.3% in Group earnings to close at Rs. 1,658 million.  The Groups’ operating profits recorded a growth of 36.4% to post Rs. 2,434 million from Rs. 1,784 million, while operating cash flows increased to Rs. 2,143 million from Rs. 1,508 million. The increased profit margins help drive the return on equity to improve to 14.5% from 12.0%.

 Hemas said the FMCG business enjoyed a successful year with its revenues growing by 14.5% and profits growing by 28.8%, to close at Rs. 7.7 billion and Rs. 745 million respectively.

Despite challenges, the business was able to improve its market standing in overall terms. In Personal care, growth was driven by strong performances in Baby, Oral, Hair and Feminine hygiene categories.

 The Healthcare sector performed exceptionally well during the year with a revenue growth of 20% and profit growth of 53.8%to close at Rs. 9 billion and Rs. 493 million respectively.

 Pharmaceuticals business was the largest contributor to Group revenue during the year. Hemas Pharmaceuticals continued to strengthen its market leadership position in pharmaceuticals distribution with a share of 17.9% (source: IMS). Our recent addition to the hospital portfolio, a 55-bed state-of-the-art facility at Thalawathugoda was completed in May 2013.

 Hemas Leisure sector enjoyed one of its best years, as it posted a revenue growth of 38.6% and a profit growth of 275.4% for the year under review. The sector closed the year with revenues of Rs. 1.6 billion and a profit of Rs. 464 million. Average occupancy across our hotel portfolio was above 75%, and Club Hotel Dolphin and Avani Bentota in particular performed exceptionally well.

 Driven by strong growth in the Aviation and Maritime business segments, the Transportation sector completed an excellent year. Sector revenues grew by 52.5% to reach Rs. 1.1 billion, whilst profits increased to Rs. 328 million reflecting a 33.6% growth.

 The lack of rainfall in the catchment areas and depreciation of the rupee has negatively impacted the performance of the Power sector. Despite this, sector revenues have increased 23.2% to Rs. 5.5 billion, whilst sector profits have grown 12.8% to Rs. 286 million.
source - www.ft.lk

Bourse recovers on banks, retail buying

REUTERS: Sri Lankan shares recovered from the previous session’s near one-week low on Wednesday helped by banking shares and retail investor buying, while the rupee ended steady in dull trade.

The main stock index rose 0.33%, or 21.11 points, to close at 6,455.81, edging up from its lowest since 17 May, touched on Tuesday.

The index had hit a 19-month high last Thursday.

“At the bottom end, we saw some retail buying came in and the market is consolidating at these levels with blue-chips holding on,” said a stockbroker who declined to be identified.

 The banking sector index rose 0.41% led by biggest listed lender Commercial Bank of Ceylon PLC which rose 1.81% to Rs. 123.60 a share.

 Foreign investors were net buyers of shares worth of Rs. 102.5 million (US$ 810,900), extending net foreign inflows this year to Rs. 13.38 billion.

 Turnover was Rs. 906.1 million, less than this year’s daily average of Rs. 1.04 billion.

 The market’s 14-day Relative Strength Index (RSI) was still in over-bought territory, at 78.44 on Wednesday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

 The rupee ended flat at Rs. 126.48/55, per dollar in light trade as importer dollar demand offset exporter sales of the greenback, dealers said.

source - www.ft.lk

Hemas profits up 53% to Rs. 1.93bn

Hemas Holdings PLC saw net profits increase by 53.3 percent to Rs. 1.93 billion for the year ended March 31, 2013.

Group Revenue registered Rs 26,098 million, representing an increase of 21.2 percent over the previous period.

The group posted a growth of 42.3 percent in earnings to close at Rs. 1.6 billion. The groups’ operating profits recorded a growth of 36.4 percent to post Rs. 2.4 billion from Rs. 1.7 billion, while operating cash flows increased to Rs. 2.1 billion from Rs. 1.5 billion. The increased profit margins help drive the return on equity to improve to 14.5 percent from 12 percent.

"FMCG business enjoyed a successful year with its revenues growing by 14.5% and profits growing by 28.8%,to close at Rs 7.7 billion and Rs 745 million respectively. Despite challenges, the business was able to improve its market standing in overall terms. In Personal care, growth was driven by strong performances in Baby, Oral, Hair and Feminine hygiene categories," the company said in a statement.

"The healthcare sector performed exceptionally well during the year with a revenue growth of 20.0% and profit growth of 53.8% to close at Rs 9 billion and Rs 493 million respectively. Our Pharmaceuticals business was the largest contributor to Group revenue during the year. Hemas Pharmaceuticals continued to strengthen its market leadership position in pharmaceuticals distribution with a share of 17.9% (source: IMS). Our recent addition to the hospital portfolio, a 55-bed state-of-the-art facility at Thalawathugoda was completed in May 2013.

"The leisure sector enjoyed one of its best years, as it posted a revenue growth of 38.6% and a profit growth of 275.4% for the year under review. The sector closed the year with revenues of Rs 1.6 billion and a profit of Rs 464 million. Average occupancy across our hotel portfolio was above 75%, and Club Hotel Dolphin and AvaniBentota in particular performed exceptionally well.

"Driven by strong growth in the Aviation and Maritime business segments, our Transportation sector completed an excellent year. Sector revenues grew by 52.5% to reach Rs 1.1 billion, whilst profits increased to Rs 328 million reflecting a 33.6% growth

"The lack of rainfall in the catchment areas and depreciation of the Rupee has negatively impacted the performance of our Power sector. Despite this, sector revenues have increased 23.2% to Rs 5.5 billion, whilst sector profits have grown 12.8% to Rs 286 million."

source - www.island.lk

Wednesday, May 29, 2013

JKH proves its prowess

◾ Despite challenging conditions, ends FY13 with highest-ever profit by a listed corporate

◾Group pre-tax profit up 23% to Rs. 15.78 b; post-tax figure up 24% to Rs. 13.6 b

◾Results from operating activities down 7% to Rs. 6.7 b but bottom line buttressed by higher net finance income and others

◾Net profit attributable to equity holders up 26% to Rs. 12.2 b

◾Recurring net profit up 21% to Rs. 8.54 b; PBT up 19% to Rs. 13.5 b

◾Group revenue expands by 10% to  Rs. 85.5 b



John Keells Holdings (JKH) has proved its prowess in a challenging year and reinforced the premier blue chip status by posting the highest-ever profit by a listed corporate, surprising expectations of even the most optimistic analysts.

The conglomerate, which is also the most valuable in the country by market capitalisation, yesterday disclosed a Group Profit Before Tax (PBT) of Rs. 15.78 billion for the financial year ended on 31 March 2013, reflecting a 23% growth over the previous year.

 Post-tax profit showing a similar double digit growth was Rs. 13.59 billion, whilst profit attributable to the equity holders of the parent was Rs. 12.20 billion, a 26% increase over FY12.

 For FY13, revenue was Rs.85.56 billion, up 10% from the previous year, whilst gross profit improved by 13% to Rs. 20.45 billion. The result from operating activities however was down by 7% to Rs. 6.7 billion due to higher increase in expenses and 20% dip in other operating income.

 Nevertheless the bottom line was buttressed by net finance income growth of 153% to Rs. 3.68 billion and a 42% rise in change in fair value of investment property to Rs. 2 billion along with share of results of equity accounted investees growing by 22% to Rs. 3.36 billion.

 JKH explained that the finance income of Rs.4.77 billion for the year included Union Assurance PLC’s Life and General insurance funds’ interest income of Rs. 2.66 billion, which net of related costs has been reflected under the Financial Services operating segment results.

 It also said the recurring PBT for the financial year 2012/13, excluding fair value adjustments on investment property and capital gains on share disposals, was Rs. 13.54 billion, an increase of 19% over the recurring PBT of Rs. 11.41 billion in the previous year.

On a similar basis, the recurring profit attributable to equity holders of the parent was Rs. 10.31 billion, representing an increase of 21% over the Rs. 8.54 billion recorded in the previous year.

 Interim results for FY13 were announced after the market was closed. Despite the Colombo Bourse declining yesterday, JKH managed to close marginally on the up at Rs. 289, commanding a market capitalisation of Rs. 247.8 billion or 9.92% share of the total. Last week it crossed the 10% milestone and the share price remains at highest levels.

 Analysts said JKH results reaffirm its resilience amidst challenging macroeconomic environment with lower GDP growth in calendar year 2012 and rising costs, etc.

 The FY13 bottom line of JKH is the highest-ever by a listed corporate, beating the previous best achieved by Dialog in 2006 with Rs. 10.12 billion net profit (EBIT of Rs. 10.85 billion) on a turnover of Rs. 27 billion.

 In tandem with the release of results, JKH announced a final dividend of Rs. 1.50 per share on top of Rs. 2 per share paid previously via interim dividends bringing the total to Rs. 3.50 per share, up from Rs. 3 per share paid in FY12.

 All key sectors of JKH have fared better than the previous year, though some continued to struggle in terms of profitability.

 The Leisure sector reinforced its supremacy within JKH Group, delivering Rs. 5.2 billion pre-tax profit, up from Rs. 4.17 billion, whilst its turnover rose from Rs. 17.5 billion to Rs. 20.6 billion.

 The Transportation sector improved its pre-tax profit to Rs. 3.6 billion from Rs. 3.3 billion whilst turnover grew from Rs. 18.8 billion to Rs. 19.7 billion. The Property sector of JKH crossed the Rs. 1 billion mark in pretax profit posting Rs. 1.2 billion up from Rs. 977 million in FY12. Its turnover was down from Rs. 4 billion to Rs. 3.4 billion. Financial sector pre-tax profit was Rs. 1.77 billion up from Rs. 1.5 billion whilst turnover rose from Rs. 8 billion to Rs. 8.7 billion.

 Consumer foods and retail saw pre-tax profit dip to Rs. 2.4 billion from Rs. 2.7 billion though top-line saw growth to Rs. 24.3 billion from Rs. 22 billion. IT sector had improved profits as well as others sector with the latter generating Rs. 1.1 billion pre-tax profit as against a loss in the previous year.

 JKH net asset per share was Rs. 104.78 at Group level, up from Rs. 83.22 in FY12. Group assets surpassed the Rs. 150 billion mark to stand at Rs. 159 billion, up from Rs. 134.4 billion in FY12. This included Rs. 26.5 billion in short term investments up from Rs. 24.8 billion whilst fixed assets were Rs. 109 billion, up from Rs. 86.7 billion.

 Revenue reserves were a staggering Rs. 42.7 billion as at 31 March 2013, up from Rs. 33 billion a year earlier. Long term liabilities of JKH Group grew to Rs. 32.4 billion from Rs. 29.8 billion whilst current liabilities were Rs. 25.5 billion, as against Rs. 24.4 billion in FY12.

 The JKH Board of Directors comprises Susantha Ratnayake (Chairman), Ajit Gunewardene (Deputy Chairman), Ronnie Peiris, Franklyn Amerasinghe, S.S. Tiruchelvam, Tarun Das, Indrajit Coomaraswamy, A.R. Gunasekara and Ashroff Omar.

source - www.ft.lk

Monday, May 27, 2013

Sri Lanka stocks close down 0.6 pct

May 27, 2013 (LBO) - Sri Lanka's stock closed down 0.65 percent on Monday with profit taking by retail investors, brokers said.

The benchmark Colombo All Share Index closed 42. 31 points lower at 6,446.54 and the S&P SL 20 Index closed down 24.13 points at 3,641.91 down 0.06 percent.

Turnover was 696 million rupees, up from 556 million on last week Thursday the market closed early for a Bhuddhist religious festival Vesak.

Foreigners brought 159 million rupees worth shares while selling 46 million rupees of shares, in a day that 67 stocks advanced and 140 stocks declined.

Chevron Lubricants Lanka contributed most to the index gain closing at 314.70 rupees up 14.40 rupees. Ceylon Tobacco Company extended gains to close at 960.00 rupees up 8.50 rupees and C T Holdings closed at 153.00 rupees up 02.60 rupees.

In Banking sector, Hatton National Bank closed at 168.00 rupees down 2.00 rupees, DFCC Bank closed at 146.00 rupees down 2.00 rupees and National Development Bank closed at 174.10 rupees down 01.00 rupees

Commercial Bank of Ceylon closed at 122.50 rupees down 1.40 rupees, Pan Asia closed flat at 21.00 rupees. Union Bank of Colombo closed at 19.50 rupees down 30 cents and Sampath Bank lost 1.40 rupees to close at 223.40 rupees.

The Lion Brewery, lost 01.00 rupee to close at 425.00 and Distilleries Company of Sri Lanka gained 10 cents to close at 200.00 rupees.

Index John Keells Holdings lost 4.90 rupees to close at 288.90 rupees and Nestle Lanka lost 21.10 rupees to close at 2016.40 rupees.

source - www.lbo.lk

Bourse eyes ASI surpassing 6500 points level as net inflows reach Rs. 13 b

The Colombo stock market is expecting to see the benchmark All Share Index (ASI) surpassing the 6,500 points level this week having reached the Rs. 13 billion mark in terms of net foreign inflows last week.

 With healthy gains last week, the ASI’s year to date gain is almost 15% whilst blue chip S&P SL20 Index’ return is at 19%.

The Bourse is also eyeing for market capitalisation to cross the Rs. 2.5 trillion levels this week after having gained by Rs. 41 billion to close at Rs. 2,491 billion.

 Commenting on the market’s trajectory, DNH Financial said: “With the ASPI’s break through the 6500 resistance level, we expect market momentum to accelerate next week on the back of renewed optimism for equities. This combined with the release of strong 4Q2013 corporate results for bluechip companies should enable the bourse to comfortably re-rate to higher levels even though intermittent bouts of profit taking could temporarily slow growth.”

 With the global risk appetite for equities having risen significantly over the past few months, DNH Financial expects foreign buying in Sri Lankan equities to rise, however limited to quality companies with sustainable attributes.

“Accordingly, we advise domestic investors to be appropriately positioned in sectors such as diversified, banking, hotels and food and beverage in order to benefit fully from the market’s anticipated re-rating. Stock selectivity will remain key and we continue to recommend a stock picking strategy mainly restricted to bluechip counters within the aforementioned sectors,” DNH added.

“The bourse gradually marched towards the next landmark point 6,500 with strong volume during the week and on Thursday it several times touched 6,500, closing the day retracing several points below,” Softlogic Stockbrokers said.

“We notify investor to take cautious approach at the moment as the market is reaching another important stage and hold on to already purchased growth counters. We are more biased towards banking sector counters eg; Sampath Bank, Nations Trust bank and Commercial Bank which currently trade at single digit PEs,” it added.

 Acuity Stockbrokers said net foreign inflows to the bourse last week was Rs. 1.9 billion, a 19.96% increase from the previous week.

 It said driven by active retail participation along with a large number block trades, the indices gained 108.15 points W-o-W. “Similar buoyant sentiment is likely to continue in the week ahead,” Acuity added.

 Asia Wealth Management said the Colombo Bourse continued to rise in value with majority of the counters reaching their 52 week peak. “Majority of the large cap counters including banking and diversified counters encountered crossings during the week supported by institutional and foreign interest, whilst the counters witnessed substantial price gains. Further, retail play too was heavily observed on selected counters,” it said.

 However Asia also noted that Standard Charted Bank expressed its concerns over the policy rate cut indicating that the 50bps cut in key policy rates exceeded their expectation of 25bps and was too aggressive considering the economic challenges and issues faced by the country. It further stated that it has revised the country’s projected GDP growth for 2013E to 6.5% from 6.7% due to the weak export performance in 1Q2013. The bank also raised concerns over the country’s ability to maintain a desirable level of inflation and it expects the inflation to rise during 4Q2013 due to the expected increase in demand from the private sector investment resulting from low interest rates.

“On this backdrop, we urge the investors to align their portfolios towards a medium to long term time horizon focusing on fundamentally sturdy counters which we believe will be less volatile even if the market is to face a correction due to short term profit taking,” Asia Wealth Management added.

source - www.ft.lk

Stock Market Review for the Week Ended 23rd May 2013:

ASPI poised to cross 6,500 mark
The Colombo bouse gained 3.2 percent week-on-week to close at 6,488.85 while the S&P SL20 closed the short week 3.8 percent higher at 3,666.04. Net foreign inflow amounted to Rs. 1,904.5 million during the week, up 52.1 percent from the previous week.

The bullish sentiment continued to prevail this week and the market continued to display a particular buoyant atmosphere. On Monday we witnessed the main index ASI hovering around the 6,500 point mark where it eventually closed at 6,467 points for the day. The more liquid S & P SL 20 index close at 3,649 points since the market slowed down slightly towards the end of the day. Interest was showcased in index-heavy counters while foreigners showed interest in Commercial Bank where its foreign stake increased by 1,136,859 shares as the share price closed at LKR 122.10 gaining 2.61%.

JKH continued to rally also as the share price closed at LKR 297.10 gaining 4.20%. Market turnover for the day was recorded at LKR 1.28 Bn whereas the Bank, Finance and Insurance sector contributed mostly to the market turnover witnessing an increase in sector index by 0.13%. Overall market capitalization rose by LKR 33 Bn as foreign investors continued their streak as net buyers for the day recording a net foreign inflow of LKR 288.4 Mn extending the total foreign inflows for this year to LKR 11.47 Bn.

Colombo Bourse closed on opposing reactions on Tuesday as most of the blue chips held ground amidst profit taking in several speculative and mid cap stocks. Reversing Monday’s gains ASI lost a 4 day winning streak and closed 25.03 points (-0.4%) lower at 6,441.64. S&P SL 20 index closed at 3,660.94 with a gain of 11.59 points (0.3%). Turnover jumped to LKR 2.2 Bn for the day with trading in Commercial Bank, JKH and Distilleries as they contributed 45 % of the total turnover.

Commercial Bank closed at Rs.125.00, while JKH close at Rs.297.00 as these counters reached fresh 52 week highs. Foreigner investors were net buyers for the ninth consecutive day with net foreign inflow Rs.1.1bn. Net inflows were prominent in counters such as Commercial Bank LKR.677 Mn, Distilleries LKR.139 Mn and JKH at LKR100 Mn as the total net foreign inflow for the year now reached LKR12.0 Bn.

Markets bounced back on Wednesday as retail interest was shown on mid-cap counters, prompted by a fall in interest rates while foreigners focused their attention on banking sector counters. The main All Share Index closed at 6,461.62, up 19.98 points (0.31%) and S&P SL 20 Index closed at 3,663.98, up 3.04 points (0.08%) for day as heavy retail participation was seen in property sector counters such as Ceylinco Seylan Development increased by 7%, , Colombo Land & Development increased by 3% as Overseas Reality increased by 1%. Market turnover for the day was recorded at LKR 767.7 Mn with Commercial Bank LKR Cargills Ceylon and Sampath Bank topped the turnover list today. Prominent price hikes were recorded in counters such as CTC increasing by LKR 10, Chevron Lubricants hiking up by LKR 12.80 and Nestle’s price increasing by a staggering LKR 40.

 Foreign participants ended as net buyers with a net inflow of LKR 308 Mn for the day.

Due to the impending Vesak Holiday season, a half day trading was declared for Thursday.

Nevertheless, the Bourse managed to hold on to its optimism hovering just underneath the ASI 6,500 milestone. The All Share Price Index close at 6,488,85 up by 27 points from Wednesday while the more liquid S & P SL 20 index closed at 3,669.31 up marginally by 2.06 points. Given the short time span for the day, the turnover was recorded at fairly decent LKR 556 Mn for the day as the motor sector was declared as the highest contributor for the turnover with LKR 177 Mn, followed by Land and Property and Manufacturing sectors. Top gainers for the day were Lake House Printers and Publications with a rise in price by 12.45%, J L Morrison Sons and Jones by 11.5% and Softlogic Finance PLC by 10.96%. Meanwhile, foreigners continued their buying sentiment pushing up the net foreign inflows at the end of yet another by LKR 218 Mn.

(Courtesy: Innovest Investments (Pvt) Ltd, an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)
source  - www.island.lk

April plucks highest ever tea crop

Sri Lanka's tea production for the month of April of 33.5 million kilos was the highest ever surpassing the previous best of 32.2 million kilos recorded in the same month of 2005, according to Forbes and Walker Tea Brokers.

It said the April 2013 production showed a growth of 3.5 million kilos vis-à-vis 30.05 million kilos achieved a year earlier.

 All elevations have shown a growth YOY with High growns in particular showing a growth of 18% vis-à-vis 2012.

 Cumulative crops between January and April of 115.04 million kilos too showed a 10 million kilo growth in comparison to the corresponding period of last year.

 High and Medium-grown elevations showed a growth vis-à-vis the corresponding period of 2012, whilst, Low-growns showed a marginal decline.

source - www.ft.lk

Thursday, May 23, 2013

Sri Lankan shares hit 19-month high, lifted by large caps

COLOMBO, May 23 (Reuters) - Sri Lankan shares climbed to a 19-month high on Thursday, bucking the regional trend, as investors encouraged by an interest rate cut this month piled
into large caps.

The main stock index rose 0.42 percent, or 27.23 points, to close at 6,488.85, its highest since 14 Oct, 2011. The market shut early to mark a Buddhist religious holiday. Both stocks and currency markets will remain closed on Friday.

Foreign investors were net buyers of shares worth of 218.8 million rupees, extending net foreign inflows this year to 13.1 billion rupees.

Shares in Ceylon Tobacco Company PLC rose 4.57 percent. Distillers Sri Lanka was up 1.94 percent.
The market's 14-day Relative Strength Index (RSI) was in over-bought territory of 86.801 on Thursday and has been above the upper neutral level of 70 since April 16, Thomson Reuters
data showed.

The stock index has gained 4.01 percent since the central bank cut key policy rates by 50 basis points on May 10, following some of its regional peers, to boost economic growth amid subdued demand.
The turnover was 556 million rupees ($4.40 million) on Thursday, less than this year's daily average of 1.05 billion rupees.

The rupee ended barely changed at 126.30/35 per dollar from Wednesday's close. ($1 = 126.4000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by
Sanjeev Miglani)

source - www.xe.com

Wednesday, May 22, 2013

Bourse consolidates as net foreign inflow tops Rs. 12 b

The Colombo stock market yesterday consolidated itself with ASI marginally down and blue chip S&P SL20 Index up whilst foreign buying remained robust with net inflow topping the Rs. 12 billion mark.

“Reversing Monday’s gains, the ASPI lost 0.4% as investors took profit from the market’s ascent over the last week. Turnover jumped to Rs. 2.2 billion with trading in Commercial Bank, John Keells Holdings and Distilleries accounting for 60% of the week’s total,” DNH Financial said.

“The Bourse moved on a consolidation path today as the benchmark index took a steep downturn after a 19 point gain at its peak during mid-day to an intra-day low of 6,423.04 points (-43 points). However it closed with a lesser dip of 25 points,” Softlogic Stockbrokers said.

 The latter was due to losses in Nestle Lanka, NDB Capital Holdings and Sri Lanka Telecom outweighing gains in Ceylon Tobacco Company, Commercial Bank and Dialog Axiata.

Retail favourite Environmental Resources was down by 6.3%.

 In contrast the S&P SL20 index which saw a number of shares trading at their 52-week high levels secured a gain of 11 points extending its YTD gain to 18.7%.

“Market turnover crossed the Rs. 2 billion mark on the back of a number of block trades on counters such as Commercial Bank, John Keells Holdings and Distilleries. High net worth and foreigners remained active during the day while the latter contributed to nearly 45% of the turnover,” NDB Stockbrokers said.

 According to Softlogic the market saw 15 crossings encompassing S&P SL20 calibre counters, which took up 48% of turnover.

 Commercial Bank continued its rally gaining 2.6% as it registered eight crossings carrying 4.2 million shares at Rs. 125 while on-board activity in the counter remained strong amidst its price renewing its 52-week high at Rs. 126. Overall Commercial Bank saw 5.65 million of its shares traded for Rs. 705.7 million.

 Foreign interest remained uninterrupted with the day recording a net foreign inflow of Rs. 1.1 billion carrying the YTD net foreign inflow to the Rs. 12.4 billion mark, Softlogic said.

 Investor hunt on John Keells Holdings continued with the counter renewing its all-time high at Rs. 299.8. Selling pressure that emerged led the counter to close with a marginal dip at Rs. 297.

 NDBS also said the share price of Distilleries Company increased Rs. 0.50 (0.26%) to close at Rs. 190 while the share price of Cargills Ceylon edged up Rs. 2.50 (1.45%) to close at Rs. 175. The share price of Royal Ceramics fell by Rs. 1.20 (1.10%) to close at Rs. 107.50. Foreign holding of Distilleries Company and Cargills Ceylon increased by 730,000 and 552,456 shares respectively.

 BFI sector play persisted with greater focus on Commercial Bank Voting & Non-Voting and Nations Trust Bank which traded at 52-week high levels of Rs. 126, Rs. 102 and Rs. 68.9 respectively, according to Softlogic.

 Retail activity picked up with the recent bullish sentiment prevailing in the Bourse. Majority of focus surrounded Amana Takaful, Overseas Realty, Central Investment and Finance and Colombo Fort Land and Building, it added.

 DNH Financial said it viewed yesterday’s profit taking as healthy given that the market had risen by 203 points over the past week.

“We also view the price weakness as an opportunity for fundamentally focused investors to select a basket of stocks that will outperform over the medium to longer term. We advise investors to maintain a healthy investment horizon focusing on high quality cash rich companies with strong balance sheets that have underperformed during periods of market over-exuberance and which have the upside potential to re-rate to their intrinsic values. In terms of market trajectory, we expect the Bourse to test the 6,500 key resistance level over the next few days although intermittent bouts of profit taking could result in temporary dislocations,” DNH Financial added.

source - www.ft.lk

Tuesday, May 21, 2013

Sri Lanka bourse slip from 19 month high

COLOMBO: Sri Lanka shares retreated on Tuesday from the previous session's 19-month high as investors booked profits in banking and telecommunication shares after the recent rally pushed the bourse into overbought territory.

The main stock index fell 0.39 percent, or 25.03 points, to close at 6,441.64, slipping for the first time in the last five sessions. The bourse hit its highest close since Oct. 14, 2011 on Monday.

Trading was dominated by foreign investors with foreign buying accounting for 69 percent of the day's turnover.

Foreign investors were net buyers of 1.09 billion rupees ($8.63 million) of shares, extending net foreign inflows this year to 12.56 billion rupees.

The market 14-day Relative Strength Index (RSI) was in over-bought territory of 83.627 on Tuesday and has been above the upper neutral level of 70 since April 16, Thomson Reuters data showed.
"Profit-taking brought the market down," a stockbroker said on condition of anonymity.

Market turnover was 2.19 billion rupees ($17.34 million) on Tuesday, its highest since May 6, and well above this year's daily average of 1.05 billion rupees.

Shares in John Keells Holdings slipped 0.03 percent to 297 rupees from its all-time closing high of 297.10 rupees hit on Monday, while leading fixed-line telephone operator Sri Lanka Telecom PLC fell 2.26 percent to 43.30 rupees.

Keells had jumped 19.1 percent in 12 sessions through Monday mainly due to foreign buying.
The bourse gained 3.65 percent since the central bank cut key policy rates by 50 bps on May 10, following some of its regional peers, to boost economic growth amid subdued demand.

A fall in interest rates of fixed income assets has helped boost sentiment in the share market as retail investors, who dominate the island nation's bourse in terms of volume, shift to equities from government securities.

The rupee edged up to 126.25/30 from Monday's close of 126.30/35 on exporter dollar conversions, currency dealers said.

source - www.brecorder.com

Sri Lanka stocks close down 0.3-pct

May 21, 2013 (LBO) – Sri Lanka’s stocks closed down 0.39 percent on Tuesday, following three consecutive days of gains due to a negative impact from the index heavy stocks, brokers said.

The benchmark Colombo All Share Index closed 25.03 points lower at 6,441.64 and the S&P SL 20 Index closed 03.35 points higher at 3,652.70 up 0.09 percent.

Turnover was 2.1 billion rupees up from 1.2 billion rupees day earlier. 72 stocks made positive contributions while 130 stocks were negative.

Large crossings were recorded in Commercial Bank, JKH, Distilleries, Cargills and Chevron Lubrication Lanka.

Foreigners brought 1.5 billion rupees worth shares while selling 433 million rupees of shares.

Top contributors Ceylon Tobacco Company gained 14.30 rupees to close at 899.20 rupees, Commercial Bank of Ceylon closed at 125.30 rupees up 3.20 rupees and Dialog Axiata gained 10 cents to close at 9.90 rupees.

Commercial Bank of Ceylon recorded the highest crossing of 4.2 million shares sold at 125 rupees per share.

Index John Keells Holding lost 10 cents to close at 297.00 rupees while Nestle Lanka closed at 2010.00 rupees down 85.20 rupees.

Hatton National Bank closed at 173.00 rupees up 70 cents, DFCC Bank closed at 148.10 rupees down 1.70 rupees and National Development Bank closed at 178.30 rupees down 1.10 cents.

Pan Asia closed at 20.80 rupees down 20 cents. Union Bank of Colombo closed at 19.70 rupees down 40 cents and Sampath Bank lost 2.10 rupees to close at 223.90 rupees.

LB Finance closed at 127.00 rupees down 50 cents, Peoples Leasing and Finance lost 30 cents to close at 15.10 rupees and Commercial Leasing and Finance closed flat at 4.70 rupees.

Distilleries Company of Sri Lanka gained 60 cents to close 190.10 rupees while The Lion Brewery gained 6.50 rupees to close at 386.50 rupees.

Aitken Spence closed at 135.50 up 50 cents. Browns Investments closed at 3.50 rupees down 10 cents.

Softlogic Holding lost 40cents to close at 12.00 rupees

Hayleys closed at 315.10 rupees up 60 cents and Vallibel One closed at 20.20 rupees down 50 cents.

source - www.lbo.lk

JKH soars to a $ 2 b company; market cap tops 10% mark

Premier blue chip John Keells Holdings Plc’s (JKH) recent meteoric rise reached a climax yesterday when its market value crossed the $ 2 billion mark, thereby surpassing the 10% share of the CSE’s total.

 Share price of JKH yesterday hit an intra-day high of Rs. 298.50 before closing at Rs. 297.10, up by Rs. 12.20. At yesterday’s closing the market capitalisation of JKH was a staggering Rs. 254.73 billion (slightly over $ 2 billion at an exchange rate of Rs. 126 or Rs. 127 to the dollar). JKH’s market cap was 10.14% of CSE’s total of Rs. 2.48 trillion.

 The Daily FT on Friday exclusively reported JKH’s impending march towards the 10% milestone. At last week’s closing of Rs. 284.90, JKH’s market cap share was 9.84%.

 JKH’s Rs. 12.20 rise yesterday was on top Rs. 16.60 gain last week and by Rs. 15.50 in the previous week. 

 In comparison to 2012 closing of Rs. 220, the current value of JKH shares reflects a Rs. 77 or 35% increase, reinforcing the fact that discerning investors keen on fundamentally strong blue chips can enjoy above average returns.

 Softlogic Stockbrokers said JKH further neared its next psychological level Rs. 300 with heavy volume, topping the on-board turnover list.  The counter witnessed a single large on-board transaction of 44,000 shares at Rs. 295 and ended the day with a gain of 4.2% at Rs. 297.10. Only a relatively low volume of half a million JKH shares traded yesterday.

 Spearheaded by JKH’s gain as well as improved investor sentiments, the Colombo Bourse yesterday gathered further strength.

 The ASI gained by 86 points (intra-day high was over 100 points) and S&P SL20 Index was up 60 points on a day which produced a healthy turnover of Rs. 1.28 billion. Overall market capitalisation rose by Rs. 33 billion whilst year to date gain of ASI is now close to 15% whilst S&P SL20’s return is over 18%.

 Foreign investors were net buyers of Rs. 288.4 million extending net foreign inflows this year to Rs. 11.47 billion.

 Commenting on the market, Softlogic said the bourse sustained its rally with notable buying pressure across the board.   “During the early morning session, ASPI rushed on the rally to reach 103 points. However it lost momentum during the mid-day to denote a market correction and eventually picked up in the latter session ending at 6,466.67 points (+86 points),” it said.

 Major contributors to the daily gains were John Keells Holdings (+4.3%), Nestle Lanka (10.2%) and Chevron Lubricants (11.3%). S&P SL20 too journeyed a similar path and ended with a gain of 60 points at 3,649.35 points.

Commercial Bank spearheaded the daily-turnover with notable off-board interest where the counter denoted four crossings totalling 1.3 million shares which were transacted at Rs. 122 each. Much interest was also seen on-board on Commercial bank with several large blocks, largest being 112,000 shares which was traded at Rs. 122 each. COMB witnessed a healthy price rally where it ended at a 52-week high of Rs. 122.1 with a 2.6% gain. The tile manufacturer Royal Ceramic Lanka too reported two crossings accumulating to 500,000 shares at Rs. 109.

 Softlogic said counters on the BFI sector Sampath Bank, Nations Trust Bank and National Development Bank too attracted notable investor interest during the day. Retail interest surrounded Seylan Development, Overseas Reality and Colombo Fort Land & Building, it added.

source - www.ft.lk

Hayleys records highest-ever pre-tax profit of Rs. 5 b

Group turnover up 13% 74.3 b

◾Three keysectors Hand Protection, Purification Products and Transportation and Logistics individuallysurpass PBT of Rs. 1 b

◾ Group after tax profit up 119% to Rs. 3.6 b; net profit attributable to equity holders up 78% to Rs. 1.8 b

Hayleys Plc., one of Sri Lanka’s leading conglomerates, yesterday announced an exceptional financial performance in 12/13, despite challenging conditions in its key global markets and tight macroeconomic policies in the domestic arena.

 In a filing to the Colombo Stock Exchange, the blue chip conglomerate reported a turnover of Rs. 74.3 billion, a 13% growth from the previous financial year. The PBT grew to Rs. 5 billion from Rs. 2.6 billion in 11/12, which was restated in line with SLFRS/LKAS requirements. Earnings per share of the group rose to Rs. 24.73 from Rs.13.90 in 11/12.

 Group after tax profit grew by 119% to Rs. 3.6 billion whilst net profit attributable to equity holders was up 78% to Rs. 1.8 billion in FY13.

“The Group’s performance this financial year is very significant as most sectors posted commendable returns, making 12/13 a historic year for Hayleys,” noted Hayleys Chairman and Chief Executive Mohan Pandithage.

“Three of our key sectors; Hand Protection, Purification Products and Transportation and Logistics all individually surpassed a PBT of Rs. 1 b, which is truly remarkable,” he added.

 The other sectors of the Group showed continued improvement. The Construction Materials Sector demonstrated a strong growth and the Fibre Sector, following the implementation of a number of strategies to streamline operational processes, consolidated its turnaround. Losses in the Textiles Sector were curtailed as the company implemented a number of strategic and leadership changes.
The Group benefited from the exceptional performance of the Plantations Sector whilst the Agriculture Sector posted commendable results despite adverse climatic conditions. In Leisure and Aviation, the Amaya Group made a significant contribution to the bottom line whilst The Kingsbury Hotel commenced operations in December 2012, after a major expansion program.

 Power and Energy made a strong impact to the Group, with contributions from Wind Power and Industrial Input segments. However, the Consumer Sector was affected by higher interest rates, lower consumer spending and a weaker currency.

 Speaking on the conglomerate’s future outlook, Pandithage noted, “This year’s performance is reflective of our movement towards consolidation of growth. We have ably demonstrated our capability to withstand challenges, and will continue to grow the businesses through market enlargement, product and brand development, R&D, value addition and constant innovation.”

The Board of Directors of Hayleys PLC comprises Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Mangala Goonatileke, Ranil Pathirana, Lalin Samarawickrama and Ruwan Waidyaratne.

source - www.ft.lk

Hayleys profits surge, a historic year says Chairman Pandithage

Despite global, domestic challenges...

The Hayleys Group, one of Sri Lanka’s leading conglomerates, recorded an exceptional financial performance for 2012/13 with net profits surging 119 percent, "despite challenging conditions in the group’s key global markets and tight macroeconomic policies in the domestic arena", the company said in a statement.

In a filing to the Colombo Stock Exchange, the blue chip conglomerate reported a turnover of Rs. 74.3 billion, a 13 percent growth from the previous financial year. The PBT grew to Rs. 5 billion, up 96 percent from Rs. 2.6 billion in 2011/12, which was restated in line with SLFRS/LKAS requirements. Earnings per share of the group rose to Rs. 24.73 from Rs.13.90 in 11/12.

"The Group’s performance this financial year is very significant as most sectors posted commendable returns, making 2012/13 a historic year for Hayleys", noted Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC. "Three of our key sectors; Hand Protection, Purification Products and Transportation & Logistics all individually surpassed a PBT of Rs. 1 billion., which is truly remarkable" he added.

The other sectors of the Group showed continued improvement.

The Construction Materials Sector demonstrated a strong growth and the Fibre Sector, following the implementation of a number of strategies to streamline operational processes, consolidated its turnaround. Losses in the Textiles Sector were curtailed as the company implemented a number of strategic and leadership changes.

The Group benefited from the exceptional performance of the Plantations Sector whilst the Agriculture Sector posted commendable results despite adverse climatic conditions. In Leisure and Aviation, the Amaya Group made a significant contribution to the bottom line whilst The Kingsbury Hotel commenced operations in December 2012, after a major expansion program.

Power and Energy made a strong impact to the Group, with contributions from Wind Power and Industrial Input segments. However, the Consumer Sector was affected by higher interest rates, lower consumer spending and a weaker currency.

Speaking on the conglomerate’s future outlook, Pandithage noted, "This year’s performance is reflective of our movement towards consolidation of growth. We have ably demonstrated our capability to withstand challenges, and will continue to grow the businesses through market enlargement, product and brand development, R&D, value addition and constant innovation".

The Board of Directors of Hayleys PLC comprises Messrs Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Mangala Goonatileke, Ranil Pathirana, Lalin Samarawickrama and Ruwan Waidyaratne.

source  - www.island.lk

Monday, May 20, 2013

Sri Lanka stocks close up 1.3-pct

May 20, 2013 (LBO) – Sri Lanka’s stock closed up 1.35 percent on Monday, driven by an extended rally in index heavy John Keells Holdings, though some selling was seen in the broader market, brokers said.

The benchmark Colombo All Share Index closed 85.97 points higher at 6,466.67 and the S&P SL 20 Index closed 60.09 points higher at 3,649.35 up 1.67 percent.

Turnover was 1.2 billion rupees down from 1.4 billion rupees on Friday.

John Keells Holding which gained 13.10 rupees closed at 298.00 rupees and Nestle Lanka closed at 2090.00 rupees up 188.10 rupees, contributed most to the index gain, stock exchange data showed.
So far for this month JKH has gained 48 rupees.

JKH is now worth 254.7 billion rupees or about 2.0 billion US dollars and accounts for 10.14 percent of the market capitalization of the Colombo Stock Exchange.

But 113 stocks lost ground Monday while 101 advanced in a day that foreigners brought 350 million rupees worth shares while selling 62 million rupees of shares.

Chevron Lubrication Lanka gained 28.90 rupees to close at 286.00 rupees.

Hatton National Bank closed at 172.00 rupees up 90 cents, DFCC Bank closed at 150.00 rupees down 1.90 rupees, Commercial Bank of Ceylon closed 121.90 rupees up 2.10 rupees and National Development Bank closed at 178.00 rupees down 90 cents.

Pan Asia closed at 21.00 rupees down 30 cents. Union Bank of Colombo closed at 20.10 rupees down 10 cents and Sampath Bank lost 2.10 rupees to close at 226.00 rupees.

LB Finance closed at 128.80 rupees down 3.90 rupees, Peoples Leasing and Finance gained 30 cents to close at 15.30 rupees and Commercial Leasing and Finance closed at 4.70 rupees down 10 cents.

Distilleries Company of Sri Lanka gained 3.80 rupees to close 189.50 rupees and Ceylon Tobacco Company gained 15.20 rupees to close at 885.00 rupees.

Aitken Spence closed at 135.00 down 10 cents. Browns Investments closed flat at 3.50 rupees.
Softlogic Holding gained 30 cents to close at 12.40 rupees. Hayleys closed at 314.15 rupees down 20 cents and Vallibel One closed at 20.90 rupees up 30 cents.

Sri Lanka Telecom closed flat at 44.50 and Dialog Axiata closed at 9.90 rupees up 10 cents.

source - www.lbo.lk

Market sentiments heading towards further optimism

Stock Market Review for the Week Ended 17th May 2013:

The Colombo bourse closed 2.09 percent higher from the previous week with S&P SL20 gaining 1.65 percent. A net foreign inflow of Rs. 1.58 billion was recorded during the week, with year-to-date net inflows amounting to Rs. 11.18 billion.

Current market sentiments are heading towards further optimism mostly due to prevailing low interest rates along with world markets performing significantly well. We may continue to see foreigners bulk-up on blue chips with retailers following suite.

After a reaffirming previous week, the Colombo Bourse witnessed a gradual decline on Monday slowing down the market rally. Both indices were in the red zone where the ASPI declining by 1.80% to close at 6,239 points while the more liquid S&P SL20 index lost 0.34% to close at 3,519. A slight recovery was witnessed towards the end of Monday but was insufficient to close the indices green.

 Total turnover for the day was recorded at a disappointing 535 Mn- a decline of 63.7% from Friday.

JKH proved to be the highest contributed to the turnover capturing 23% of total. Price of JKH closed at LKR 269.90 (+0.60%) while the foreign stake of the counter increased by 427,143 shares.

Softlogic Holdings PLC and Vallibal One PLC held the second and third respective spots turnover contribution-wise while the Diversified Holdings sector contributed mostly to the market turnover with a rise in sector index by 0.28%. Incidentally, the Banking, Finance and Insurance sector lost 0.86%. Foreign investors continued their interest displaying a buying sentiment, while the net foreign inflows amounted to LKR 153 Mn for the day.

Colombo Bourse Indices continued with its downward trend for the second consecutive day on Tuesday as retailers took up to go on a selling streak. The main index fell 0.52 % (32.44 points) to close at 6,207 points on its second day of losses while the S & P SL 20 index also declined 0.52% to close at 3,501 points. The market turnover for the day improved from Monday by 19% to record 6,207 Mn where JKH was yet again the highest contributor to the overall market turnover capturing 16% of the total. Consequently National Development Bank and the Nations Trust Bank ranked hotspots in the turnover scale as second and third highest contributors respectively.

 However, Tuesday’s turnover was well below this year’s daily average of Rs 1.02 Bn. Top gainers for the day were Colonial Motors, Dimo and Sigiriya Village while Serendib Englineering Group, Harischandra and SMB Leasing were recoded as top losers for Tuesday. Foreign investors continued to lurk around as primarily as buyers with a net foreign in foreign inflow amounting to Rs 155 Mn extending the net foreign inflow for this year to Rs 9.9 Bn.

Market ended under mixed sentiments on Wednesday as most of the banking sector counters excluding Hatton National Bank and Seylan Bank witnessed drop in prices. Commercial Bank declined by LKR 1.10, Sampath Bank by LKR 2.00, and National Development Bank by LKR 4.10.  In return, Investor interest was diverted towards Motor sector counters such as Colonial Motors rose by LKR 9.90, United Motors up by LKR 5.40 and Diesel & Motor Engineering increased by LKR 4.60 at market closing. The main ASPI advanced by 14.53 points to close at 6,221.12 while S&P SL 20 Index dropped by 2.16 points to close at 3,498.34. The total market turnover bounced back and was recorded at Rs 1.7 Bn, an increase of 166% from Tuesday. Top contributors to the turnover were John Keells Holdings by LKR 443.4mn, National Development Bank by LKR 379.4mn and United Motors by LKR 123.8mn and subsequently, the Bank Finance Insurance, Diversified Holdings and Motors sectors arose as notable contributors to Wednesday’s turnover. Foreign participation at the end of the day amounted to 39% from total market activity while a net foreign inflow of Rs 859.9 Mn.

The Colombo Bourse on Thursday witnessed a surge in confidence as a continuous upward trend was witnessed throughout the day mostly driven by large-cap counters regaining their institutional, high net-worth and foreign interest and low interest rates. The total Bourse value rose by Rs 30 Bn hitting a one and a half year high on Thursday where we saw market capitalisation surpass the Rs 2.4 Tn.

ASI peaked an 18 month high with a 1.1% (65.88 points) increase to 6,287 while the S&P index increased by 0.9% (33.03 points) to close at 3,531.37. Market turnover for Thursday reached Rs.1.9 bn, out of which 62% was accounted by crossings by Piramal Glass, Aitken Spence, Dialog and Commercial Bank. Top contributors to the turnover were Aitken Spence (Rs.1.0bn), Commercial Bank (Rs.153mn) and Piramal Glass (Rs.76mn). Foreigners maintained their position as net buyers with an inflow of Rs.85mn. Notably, foreign participation accounted for 66% of the turnover while net inflow was seen on counters such as Piramal Glass, Dialog and John Keells.

The market opened on Friday displaying a buoyant, positive outlook throughout the day. We witnessed a surge in the main index ASI by almost hundred (93.70) points, a gain of 1.5% to close at 6,380.70 points. The more liquid S & P SL 20 index rose by almost sixty (57.89) points, an increase by 1.63% to close at 3,589.26 points. Market turnover for the day surpassed Rs 1.4 Bn for the second consecutive day with the overall market sentiment heading towards a positive direction. The total turnover was aided through several crossings by Dialog, Commercial Bank and HNB. Consequently, the Banking, Insurance and Finance sector index regaining its momentum from an increase of 1.4% contributing the highest percentage to the overall turnover. Foreigners continued their buying spree for the week with a net foreign inflow of Rs 335 Mn recorded for Friday.

In the backdrop of this prevailing positive market sentiment, we are particularly bullish on TJL, Textured Jersey Lanka, NTB and Access Engineering. With constructive earning growth levels, TJL is the newest addition to the billion dollar profit league with their FY13 net profit levels surpassing the Rs 1 Bn milestone- a 62% increase year-on-year. TJL also maintained a generous dividend policy and paid out an interim dividend of 0.66 per share in March 2013. NTB has maintained solid margins based on their first quarter results released recently with a net interest income loan growth of 21% and a moderate loan growth of 6% quarter-to-quarter.

(Courtesy: Innovest Investments (Pvt) Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)

source - www.island.lk

Weekly foreign holding and block trade update

                                           (click image to enlarge)

source - CAL Research

Saturday, May 18, 2013

Foreign Participation at CSE - 17 05 2013





                                            (click image to enlarge)

source - Acuity Research

Friday, May 17, 2013

JKH nears 10% of CSE market capitalisation mark

Market capitalisation now at Rs. 238.35 b or 9.76% of total

◾Share price hit a new peak of Rs. 278, up 26% from end 2012 level

◾Foreign shareholding at a high 57%

Consistent improvement in the share price of John Keells Holdings (JKH) has propelled premier blue chip to almost 10% of Colombo’s market capitalisation.

JKH’s share price yesterday hit a new 52-week high of Rs. 278.50 before closing at Rs. 278. The latter put its market capitalisation at Rs. 238.35 billion or 9.76% of the total market capitalisation of the CSE.

 Analysts said the current level is JKH's highest market cap share. Last week JKH share rose by Rs. 15.50 on its way to establish a new 52-week high of Rs. 271.

 In comparison to end 2012, the current market capitalisation reflects a hefty increase of 27% or Rs. 51 billion. JKH share price ended calendar year 2012 at Rs. 220 whilst number of shares in issue was 851.5 million. The current number of shares in issue is 857.4 million.

 Reaffirming its status as the darling of foreign investors, the non-national shareholding as of yesterday had risen to over 57% from 53.8% by end December 2012.

 JJKH has also been a key magnet for rising net foreign inflow, which as of yesterday was Rs. 10.7 billion. In the first two weeks of May, net buying into JKH was Rs. 1 billion – a trend that has continued this week as well.

 JKH’s top slot in the Bourse is far ahead of the second ranked CTC, whose market capitalisation was Rs. 158.2 billion or 6.48%.

 The closest conglomerate was Carson but with a 3.58% share or Rs. 87.5 billion.

source - www.ft.lk

Retailers join foreigners as Bourse remain on the up

Market cap surpasses Rs. 2.4 trillion level

The Colombo stock market yesterday saw a continuous uptrend driven by the large cap counters regaining institutional, high net worth and foreign interest.


The Bourse’s value rose by Rs. 30 billion yesterday which saw market capitalisation surpassing the Rs. 2.4 trillion level, up 11% year-to-date, a growth mirrored by the ASI as well.

 Softlogic Stockbrokers said the surge in the index was heavily weighted upon John Keells Holdings, Ceylon Tobacco Company, Lanka Orix Leasing, Commercial Bank and Hatton National Bank. 146 counters contributed positively for the index as against 65 that contributed negatively. The gain S&P SL20 index was just under 1.0% while turnover for the day was Rs. 1.8 billion.

 Aitken Spence, a conglomerate with heavy exposure to the leisure sector, recorded two large crossings accounting for 7.1 million shares dealt at Rs. 132.6 each. The transactions contributed 50% to the day’s turnover.

 During the same time period the counter recorded two on-board blocks of 208,000 and 102,000 shares at a similar price. The counter closed the day on a negative note at Rs. 133.0 (-1.4%). The day saw 10 crossings in total with two crossings in Commercial Bank, three in Piramal Glass and one in Dialog.

 Softlogic said retailers were slow to enter the market as most remained on the sidelines. However, retail interest was noted in Janashakthi Insurance, Sanasa Development Bank and Regnis.

 Lanka Securities said the stock market rose on Thursday, lifted by stronger-than-expected earnings and low interest rates. It noted that the cash map was 55%.

 It said Janashakthi Insurance (Rs.14.10,+12.8%) and Overseas Realty (Rs.17.00,+6%) reached 52 week high on better-than-expected earnings. JINS quarter profits increased by almost seven times compared to the same quarter last year.

 Reuters said the Bourse rose to hit a 1-1/2 year high, with foreigners dominating trading, while retail investors also bought after a fall in interest rates.

“Foreigners keep picking up blue chips on valuations, while low interest rates helps local retail activity,” a stockbroker said on condition of anonymity.

 Yields in Treasury bills fell in the range of 29 basis points to 45 bps on Wednesday after the Central Bank cut key policy rates by 50 bps last Friday, following some of its regional peers, to boost economic growth amid subdued demand.

 Shares in John Keells Holdings rose 1.39% to Rs. 278, their all-time closing high.
 Market turnover was Rs. 1.88 billion on Thursday, well above this year’s daily average of Rs. 1.04 billion.

 The rupee ended firmer at 125.80/85 from Wednesday’s close of 125.90/126.10, helped by bank dollar sales on tighter rupee liquidity and equity inflows, currency dealers said.
source - www.ft.lk

Abans to change shopping concept with huge $ 100 m lifestyle mall in Colombo

The Abans Group in collaboration with Silver Needle Hospitality signed an agreement on 13 May with AEDAS an internationally reputed, award winning architectural firm to lead the design for their proposed US$ 100 million five-star super mall opposite the Beira Lake in Colombo. The construction will commence early next year and is expected to be completed by 2016.

The Abans Lifestyle Mall, which will be named the Colombo City Centre, will be unique as it will be the first and only lifestyle mall in Sri Lanka on par with the huge super malls in Singapore and Dubai.

 It will offer Sri Lankans as well as tourists a place where they can come and spend the whole day with their families and enjoy the many faceted attractions all under one roof.

 The mall will feature a spacious, stylish and modern shopping centre which will be subdivided into various sections for branded fashion garments for men, women and children, accessories, toys, stationery, jewellery, perfumes and cosmetics, groceries etc. There will also be a food court that will serve clean and wholesome food and will offer a variety of Sri Lankan and international cuisine, fast foods, snacks, ice cream and beverages.

 The Abans Colombo City Centre Mall will also have a 3D cinema, a well equipped gym, a cyber café, a spacious children’s play area where parents can leave their toddlers and kids under supervision while they browse around and do their shopping, and other entertainment for children as well as adults. It will provide an excellent opportunity for the younger generation to meet and indulge in useful and healthy recreational activities in a five-star environment, instead of hanging around at shady places that entice them into bad habits that lead them astray.

 The mall will also have a residential component comprising of a 200-roomed ultra five star hotel that will help to meet the demand created by increased tourist arrivals to Sri Lanka.

 Iqbal Jumabhoy, Managing Director and Group CEO of Silver Needle Hospitality said: “As this is our first joint venture development in Asia, it was crucial that we selected a high-calibre architect who understood our desire for creating, inviting and engaging an iconic landmark that meets the professional and leisure accommodation needs of the business traveller and enhances the Colombo lifestyle. AEDAS’ ethos is consistent with this vision.”

Silver Needle Hospitality currently operates properties in the Asia-Pacific region under the Grand Chifley, Chifley, Country Comfort, Australis and Sundowner brands along with a growing portfolio of independent boutique hotels in South East Asia. Silver Needle Hospitality is an innovative and progressive integrated hospitality, investment, management and development company, with a focus on mid to upscale hotels and resorts that are intelligently designed and operated for the professional and leisure needs of the business traveller.

 Silver Needle Hospitality currently operates over 4,000 keys in the Asia Pacific region.

Headquartered in Singapore, Silver Needle Hospitality has regional offices in Bangkok, Sydney and Bangalore. It was founded by Nadathur S Raghavan co-founder of NASDAQ – listed Infosys Technologies and The Nadathur Group an investment firm.

 AEDAS’ Principal, Simon Griffiths explained: “Our creative excellence track records in delivering world class mixed-use developments were key to win this project. AEDAS will, as always, create an attractive destination for Colombo City to improve the cityscape and introduce a contemporary travel and lifestyle experience.”

Chairperson of Abans Group Aban Pestonjee said: “We are delighted and happy to have this opportunity of contributing to Sri Lanka’s development in a very positive way. We will maintain our lifestyle mall in an exemplary five-star manner and introduce the latest global trends, from time to time, to ensure that our super mall will always remain on par with the best super malls in the world.”

source - www.ft.lk

CSE performs strongly, turnover high & indices up sharply

All Share gains 66 points, S&P 33

The Colombo bourse performed strongly yesterday on a turnover of Rs.1.88 billion, up from the previous day’s Rs.1.69 billion, with both indices gaining tidily - the All Share by 65.88 points (1.06%) and S&P SL20 by 33.03 points (0.94%) with 171 gainers leaving 57 losers trailing while 83 counters closed flat.

Turnover was boosted by block trades of Piramal Glass (9.78 million shares), Commercial Bank (voting) (850,000 shares), Aitken Spence (7.15 million shares) and Dialog (5 million shares) contributing over 1.16 billion to turnover.

Crossings in Aitken Spence at Rs.132.60 per share contributed Rs.948.1 million to the business volume while block trades in Commercial Bank contributed Rs.98.2 million on 850,000 shares at Rs.115 each, Piramal Glass 67.5 million on 9.6 million shares at Rs.6.90 and Dialog Rs.47.5 million on 5 million shares at Rs.9.50.

On the trading floor JKH, which many brokers and analysts consider the barometer of the market, was the biggest turnover generator closing Rs.3.80 up at Rs.278 on nearly quarter million shares done between Rs.275 and Rs.278.50 which is a 52-week high for the stock.

"The way JKH performs is an indication on the way the market is going," a broker said. "There has been foreign interest in the stock for some time and what was recently bought is not yet available for trading."

Apart from the block trades, Aitken Spence closed Rs.1.10 up at Rs.136 on the floor on over 0.4 million shares done between Rs.132.60 and Rs.136 contributing Rs.355.3 million to turnover.

Banking stocks also did well showing both price gains and quantity with Sampath Bank closing Rs.2.50 up at Rs.226 on over 0.1 million shares, Sanasa up Rs.2.80 to close at Rs.86.10 on nearly 0.3 million shares, NDB up Rs.3.10 to Rs.178 on 0.1 million shares and Seylan (non-voting) up 70 cents to Rs.39.50 on over 0.4 million shares.

Janashakthi showed volume gaining Rs.1.60 to close at Rs.14.10 on over 3.2 million shares.

Retailers were active in Colombo Land, Overseas Realty, Seylan, Vallibel One, Access, Kelani Tyres and Glass while NTB attracted a mix of retail and high net worth interest.

Printcare announced a final dividend of 50 cents per share for 2012/13 XD from May 28 and payment on June 6. Malwatte announced a dividend (both voting and non-voting) of 0.075 cents first and final dividend for 2012 after shareholder approval at an AGM on June 18. The share will trade XD from June 19 with payment on June 27.

Dipped Products also announced a final dividend of Rs.3 per share following shareholder approval at a June 27 AGM with the share trading XD from June 28 and payment on July 8 while Hunas Falls announced a first and final dividend of Re.1 per share for 2012/13 following shareholder approval at a June 24 AGM with the share trading XD from June 25 and payment on July 2.

source - www.island.lk

Malwatte Valley Plantations makes below NAV buyback share offer

◾ Proposed repurchase of 32 m voting shares and 23 m non-voting shares to cost Rs. 170.5 m
◾14.28% stake of voting shares at
◾Rs. 5 each; net assets per share is Rs. 8.68; Price for non-voting is Rs.3.50, below current levels
◾Board says move is in the interest of the company and from surplus funds not immediately required
◾Higher dividend announced for FY12, accumulated profits at Rs. 1.77 b as bottom line swells over FY11

The Malwatte Valley Plantations Plc Board has proposed a conditional share buyback offer at a price below Net Asset Value as well current market levels.


The company said its Board resolved to offer to purchase proportionately part of the issued shares of the company given the surplus of funds of around Rs. 175 million not required for immediate purpose.

 The plan is to buy back 32 million voting shares or 14.28% of that class out of a total of 224.5 million at Rs. 5 per share and nonvoting shares amounting to 3.285 million or 14.28% of total of 23 million at Rs. 3.50 per share. The proportion was one share out of seven held.

 As per provisional FY2012 accounts, Malwatte Valley Plantations Net Asset Value was Rs. 8.68, up from Rs. 7.45 in 2011. Whilst the buyback move was announced after the market was closed, Malwatte’s voting shares traded yesterday between a high of Rs. 4.70 and a low of Rs. 4.50 before closing unchanged at Rs. 4.60. Nonvoting shares closed unchanged at Rs. 4.70 with a trading of a solitary share.

 The 52-week highest price of voting is Rs. 6 and lowest is Rs. 3.20 whilst for nonvoting it was Rs. 6.90 and Rs. 2.70 respectively. The company ended the 31 December 2012 quarter with voting share at Rs. 4.70 and non-voting at Rs. 4.40.

 The Board said the purchase of shares was “in the interest of the company” and the terms of the offer and consideration to be paid are in the opinion of the company’s Auditors (Ernst & Young) a “fair value”.

As at 31 December 2012, total equity amounted to Rs. 2.15 billion, up from Rs. 1.84 billion. This included accumulated profits of Rs. 1.77 billion by end FY12 up from Rs. 1.47 billion a year earlier.
 The company also announced a first and final dividend of Rs. 0.075 per share up from Rs. 0.05 per shares

 Subject to approval of shareholders at the EGM, the buyback offer would commence on 25 June and close on 16 July.

 Wayamba Plantation Ltd. owns 62% of the voting shares whilst Lanka Mountcastle Ltd. owns 83% of the non-voting shares. Managing Director Willem Bogtstra owns 12 million voting shares or 5% stake in the company.

 Public shareholding of voting shares is 32.44% whilst that of nonvoting is 17%. As at end 2011, there were 19,628 owners of voting shares of Malwatte Valley of which 41% or 8,000 were holding between one and 1,000 shares and a further 57% holding between 1,001 and 10,000 shares. Their collective stake was 12%. A further 427 hold a 6% stake.

 In the nonvoting class there are 462 shareholders of which 87% own between one and 10,000 shares with a collective stake of 4%.

 In mid 2011, the company had a Rights Issue to raise Rs. 606.5 million requiring voting shareholders to pay Rs. 6.75 per share and Rs. 5.50 per share by nonvoting shareholders. The Rights pricing at that time was below market price at that time as well as Net Asset Value.

 In April 2011, the company subdivided its shares on the basis of 10 for one.

 The company ended FY12 with a profit of Rs. 318.3 million, up from Rs. 86.6 million in the previous year. Improved bottom line was despite dip in turnover marginally to Rs. 2.96 billion, from Rs. 3.02 billion in FY11. However, cost of sales was lower leading to a gross profit of Rs. 408 million, as opposed to Rs. 220 million in the previous year. Profit from ordinary activities was Rs. 325 million, up from Rs. 108 million in FY11.

 Tea business brought in Rs. 1.8 billion in turnover up from Rs. 1.7 billion whilst pre-tax profit was Rs. 111.6 million as against a loss of Rs. 227 million in FY11. Rubber turnover was Rs. 528.4 million, down from Rs. 690.6 million, whilst profit was Rs. 250 million, lower in comparison to Rs. 409 million.

 As at 31 December 2012, total equity amounted to Rs. 2.15 billion, up from Rs. 1.84 billion. This included accumulated profits of Rs. 1.77 billion by end FY12 up from Rs. 1.47 billion a year earlier.
 Total assets were Rs. 3.8 billion as at end FY12.

 Liabilities were Rs. 1.6 billion, down from Rs. 1.8 billion.

source - www.ft.lk

Thursday, May 16, 2013

Net foreign inflow to CSE tops Rs. 10 b mark

The year-to-date net foreign inflow to listed equities crossed the Rs. 10 billion mark yesterday, reinforcing the attractiveness of select opportunities at the Colombo Bourse.

The milestone was achieved when owing to foreign buying of Rs. 1.08 billion with sales being Rs. 229 million, resulting in a net inflow of Rs. 860 million.

 According to Softlogic Stockbrokers, year-to-date net foreign inflow as of yesterday was Rs. 10.6 billion. Foreign buying was heavy on JKH, NDB and United Motors.

 The continued robust net inflows on the back of a record Rs. 39 billion netted last year has been outstanding for the Colombo Bourse, apart from boosting overall local investor sentiments in spite of many still remaining inactive.

 The Colombo Bourse returned to positive territory yesterday on the strength of foreign interest as well as locals chipping in following a fresh round of heavy profit taking seen in the previous two days.

 Thanks to gains by 110 counters (while NEST positively contributed by four points), the ASI was up 14 points helping its year-to-date return to be above 10% whilst S&P SL 20 Index dipped by two points though its year-to-date remains at 13.4%.

 NDB Stockbrokers said the broader market continued to move up with interest primarily seen in blue chips and foreign buying dominated market activity with a contribution of 64%.

“Profit taking was seen in banking sector with lower profitability reported for FY12Q1 while motor sector companies such as United Motors and Colonial Motors also drew significant interest,” it added.

 The Banking, Finance & Insurance sector was the top contributor to the market turnover (due to National Development Bank) and the sector index decreased by 0.37%. The share price of National Development Bank dropped Rs. 4.10 (2.29%) to close at Rs 174.90.

 The Diversified sector became the second highest contributor to the turnover (due to John Keells Holdings) and the sector index gained by 0.44%. The share price of John Keells Holdings gained Rs 1.90 (0.70%) to close at Rs. 274.90.

 Cargills Ceylon, United Motors and Piramal Glass were also among the top turnover contributors.

The share price of Cargills Ceylon moved up Rs. 4.50 (2.82%) to close at Rs. 164. The share price of United Motors jumped Rs. 5.40 (5.02%) to close at Rs. 113. The share price of Piramal Glass increased Rs. 0.10 (1.47%) to close at Rs. 6.90.

 Softlogic said the Bourse reverted back to the green on a volatile note with renewed buying interest.

 Gains denoted in heavy weights Nestle Lanka (+1.8%), Carsons Cumberbatch (+1.4%), Hatton National Bank (+1.8%) and John Keells Holdings (+0.4%) supported the uptrend of the index while marginal dips in banking players in the S&P SL20 calibre led the index to close marginally down.
 Softlogic said 15 crossings added 54% to the turnover spearheaded by JKH which saw seven off-board deals which carried 1.25 million shares at Rs. 274.0 and Rs. 275. The counter touched a new 52-week high of Rs. 275 with majority of on-board interest weighing towards the selling side.

“BFI sector interest continued highlighting Sampath Bank (-1.5%), National Development Bank (-2.3%) and Commercial Bank (-1.4%) creating further opportunity to accumulate,” Softlogic said, adding the former counters encountered one and four crossings each at Rs. 225 and Rs. 175.

 Piramal Glass was noted in the top turnover slot with several large blocks being picked at its new 52-week high of Rs. 6.9. The counter offers attractive dividend yields of 5.7% and 6.1% on FY14E and FY15E net earnings whilst trading below the manufacturing sector trailing PER of 11.6, according to Softlogic.

 LOLC Securities said there was interest on PCH while the price closed at Rs. 3.80 with a gain of 11.76%.

 DNH Financial said while pockets of corporate results are trickling into the market, the majority was yet to be released.

“While we concede with the fact that most investors have largely been sitting in the wings over the last several months in anticipation of a market trigger that would propel the market to the next level, with the reporting season having just commenced, we advise investors to refrain from assuming any speculative positions but concentrate on carefully selecting counters that will benefit from the robust domestic consumption story and report sustainable earnings growth and healthy cash flows,” DNH added.

source - www.ft.lk

Wednesday, May 15, 2013

Sri Lanka stocks close up 0.2-pct

May 15, 2013 (LBO) - Sri Lanka’s stock closed up 0.23 percent on Wednesday, ending a two days of losses, with sentiment helped by falling Treasuries yields amid strong foreign buying into motor stocks, brokers said.

The benchmark Colombo All Share Index closed 14.53 points higher at 6,221.12 up 0.23 percent and the S&P SL 20 Index closed 02.16 points lower at 3,498.34 down 0.20 percent.
Turnover was 1.6 billion rupees.

Turnover was 1.6 billion rupees up from 636 million rupees a day earlier. Foreigners brought 860 million rupees worth shares while selling 229 million rupees of shares.

Yields fell up to 45 basis points at Wednesday's Treasuries auction, which brokers said helped boost sentiment in late trading.

Diesel and Motor Engineering, agents for Benz and Tata closed up 9.50 to close at 614.90 and United Motors, which has the agency for Mitsubishi closed up 5.50 rupees at 113.10 rupees, helped by foreign buying, brokers said.

The benchmark index gained helped most by Nestle Lanka which closed at 1887.50 rupees up 33.30 rupees. Carsons Cumberbatch gained 6.00 rupees to close at 446.00 rupees and John Keells Holding closed at 274.20 rupees up 1.20 rupees.

Hatton National Bank closed at 168.00 rupees down 2.90 rupees, DFCC Bank closed flat at 147.10 rupees, Commercial Bank of Ceylon closed 115.00 rupees down 1.60 rupees and National Development Bank closed at 174.90 rupees down 4.10 rupees.

Pan Asia closed at 21.10 rupees down 70 cents. Union Bank of Colombo closed at 19.90 rupees down 40 cents and Sampath Bank loss 3.50 rupees to close at 223.50 rupees.

LB Finance closed at 130.50 rupees down 4.00 rupees, Peoples Leasing and Finance lost 20 cents to close at 14.80 rupees and Commercial Leasing and Finance closed at 4.70 rupees up 10 cents.

Distilleries Company of Sri Lanka gained 1.60 rupees to close 183.60 rupees And Ceylon Tobacco Company gained 1.90 rupees to close at 830.00 rupees.

Aitken Spence closed at 134.90 down 10 cents. Browns Investments closed flat at 3.50 rupees.
Softlogic Holding gained 10cents to close at 12.10 rupees Hayleys closed at 300.00 rupees down 30 cents and Vallibel One closed flat at 20.00 rupees.

Sri Lanka Telecom gained 10 cents to close at 42.70 after reporting strong profits, and Dialog Axiata closed flat at 9.50 rupees.

source - www.lbo.lk

Tuesday, May 14, 2013

Blind leading the blind?

Once high flying Touchwood Investments Plc (TWOD) is apparently facing rough weather with incomplete disclosure given the part sell out by key Directors whilst they themselves have taken up additional responsibilities in troubled CIFL throwing open a barrage of questions over good governance and effectiveness of the regulatory role from shareholders and investment analysts alike.


In what some analysts termed as bizarre developments, troubled finance company, Central Investments and Finance Plc, on Friday in a filing to the Colombo Stock Exchange (CSE), said three new members Roscoe Meloney, Swarna J. Meloney (Chairman and Vice Chairperson of Touchwood) and Dulan Hettiarachchi have been appointed to the Board effective 2 May 2013. Meloney has been appointed as the new Chairman of CIFL replacing K. A. L. Rupasinghe who had resigned whilst CEO Gamini Karunathilake too has resigned with Swarna J. Meloney appointed as Acting CEO until a permanent appointment is made.

 This was after CIFL in early April in response to a Sunday newspaper article which referred to change of ownership responded saying the company has been notified by a new investor by the name of Roscoe Meloney that they have concluded the acquisition of the holding company Aspic Corporation along with nine subsidiary companies.

 Accordingly they have claimed to be major shareholders of CIFL and they have copied some of their communications with the Central Bank on the same subject which indicate that they intend infusing approximately US$ 12 million to CIFL and bring in a high level of corporate governance and financial integrity.

“We are currently communicating with this party and the Central Bank in getting the necessary approvals etc for this purpose. We will arrange to keep you informed about the future development in this respect,” said the 2 April 2013 filing to CSE by CIFL Chairman Lakshman Rupasinghe.

 With no further updates, CIFL last Friday merely stated the change in the Board of Directors leaving many shareholder and investment analyst’s questions unanswered.

 Yesterday Touchwood Plc announced that eChannelling Plc Chairman and CEO Ruwan Silva has been appointed with immediate effect to be the Principal Consultant and Advisor to the Board of Directors.

 Silva would be assisting Touchwood with regard to mergers and acquisitions, investor relations and the restructuring of the Company in addition to other responsibilities. He would assist the Company in identifying and introducing strategic investors to Touchwood.

 The connection between Silva and Touchwood owners wasn’t explained or on what basis he was handpicked except that he was described as been instrumental in the turnaround of eChannelling and has been involved in many other company restructuring projects.

 Touchwood’s filing to the CSE signed by Deputy Chairperson Swarna J. Maloney also said “The Chairman and Deputy Chairman of Touchwood Investments Plc are committed to strengthen and improving Touchwood Investment Plc and are embarking on a substantial restructuring of the company which would enhance profitability, which would benefit all stakeholders including the shareholders”.

The revelation of strengthening and improving Touchwood and “substantial restructuring” comes out of the blues as there had been no other prior disclosure from the company in recent months.

 Company analysts were perturbed on what basis did Touchwood controlling shareholders agree to infuse money into the troubled finance company (CIFL) when their own venture was under distress.

They also questioned on what basis did the Central Bank approve this deal and whether proper due diligence was done?

 Ironically, Touchwood Plc’s Chairman and Deputy Chairperson are yet to make good corporate governance practice-linked timely disclosure of their own acts with regard to divesting of some of their shareholdings in the Company.

 The Daily FT learns Mr. and Mrs. Maloney sold a substantial part of their shareholding in Touchwood in the market to retailers in recent weeks but to date there has been no disclosure as part of Director’s dealings in company shares. Mr. Maloney had at least sold around over Rs. 80 million worth of Touchwood shares and Ms. Maloney around Rs. 40 million in recent weeks as per one analyst.

 As per 31 December 2012 shareholdings, Mr. Maloney held 17.5 million shares or 16.36% stake in Touchwood whilst Mrs. Maloney held 9.6 million or 9% stake.

 The selling by Mrs. Maloney comes after she was appointed Vice Chairperson in April.

 As per Daily FT analysis, Touchwood saw heavy trading in recent weeks. For example in the week ended 3 May 2013, around 30% stake of the company traded followed by 18% last week. A large number of retailers were active whilst several were seen recycling trades. Some may have been engaging in speculative trading whilst others could have been told an untrue “upturn” story.

 Touchwood has a retained loss of Rs. 367.56 million at group level as at 31 December 2012, up from Rs. 321 million a year earlier. Its assets amounted to Rs. 7.7 billion including Rs. 6 billion as biological assets, valuation of which in the past had raised concerns among investment analysts.

Group noncurrent liabilities amounted to Rs. 4.4 billion and Rs. 146 million in current liabilities.

 Revenue in the first nine months of FY13 was down to Rs. 899 million from Rs. 943 million a year earlier whilst net profit was Rs. 130 million up from Rs. 110 million.

 The new Principal Consultant and Advisor has an arduous task as per analysts. He is also the Chairman of British American Technologies which is the major shareholder of eChanneling.

Previously he was the CEO of Blue Diamonds Jewellery Worldwide Plc and served as CFO at Sri Lanka Telecom and Ericsson Algeria and Sri Lanka.

 On the other hand CIFL’s first nine months revenue for FY13 was up 14% to Rs. 513 million, whilst net income was down by 46% to Rs. 116 million owing to an 83% dip in other operating income and 81% rise in interest income.

 Operating losses were Rs. 261.7 million, up by 30% over the first nine months of FY12. Profit loss before loan losses and provisions was Rs. 145.4 million as against a profit of Rs. 13 million a year earlier.

 Net losses for nine months of FY13 were Rs. 147 million as against a profit of Rs. 7 million.
 CIFL was saddled with negative revenue reserves of Rs. 92 million as at 31 December 2013 as again a positive Rs. 55 million a year earlier and 31 March 2012.

 Assets amounted to Rs. 3.8 billion, up from Rs. 3.3 billion a year earlier and Rs. 3.6 billion as at end FY12.

 Liabilities amounted to Rs. 3.2 billion, up from Rs. 2.6 billion as at 31 December 2012 and Rs. 2.9 billion as FY12.
source - www.ft.lk