Colombo share market was down by 1.08% due to the price decline of Environmental Resources Investment share .

                                          DAILY MARKET REVIEW

31/03/2010 – Colombo share market was down today as a result of the steep price decline of the GREG share after the expiry of its rights issue date being 30/03/2010. Environmental Resources Investment share [GREG] has a strong relationship with the market index.

ASI was down by 40.48 points to close at 3724.59 & the Millanka Price index was down by 93.60 points to close at 4270.73.

Turnover for the day was Rs 904 m.n.

Foreign participation was at low level. Foreigners purchased shares to the value of Rs 181m.n. & sold shares to the value of Rs 237 m.n.,reported net foreign out flow for the day was Rs 56 m.n.

Diversified sector was in the highest performing sector which reported marginal improvement today by reporting a growth of 0.83%. The worst performing sector was the Investment trust sector with a negative growth of 23.69% purely due to the price decline in GREG share.

There are 60 positive gainers as against 69 losers.

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

 LARGE VOLUMES TRADED                                                                LARGE TRADES FOR THE DAY

 CROSSINGS FOR THE DAY

 CLOSER LOOK

•  Environmental Resource Investment company  share price came down today due to the expiry of rights issue dates.

• Due to this shares of most of other companies also came down.Further retailers continue to book profits in the market ahead of General Elections & New year as well.We also witnessed there were some degree of forced selling by several broker firms in order to maintain the required margins of their clients.All of these factors led market to perform negatively today.

•  This is a very good opportunity for the new investors to enter to the market,since prices most of valued shares were @ attractive levels.Existing investors have a great opportunity to average or minimize their cost of the portfolio by purchasing shares of fundamentally strong companies @ reduce prices.

• Commercial bank of Ceylon  has announced  a  subdivision it's ordinary shares on the basis of 1 share for every 02 shares held today.

• As per the Colombo Stock Exchange, the recently concluded two IPO'S were fully oversubscribed.These companies together with other companies which have announced the rights issues had tied up the cash flows of the investors.This is one of another reasons for the negative performance of the market today.  

• see more - Rubber price breaks 58-year record

Sri Lanka’s March Inflation Slows for First Time in Six Months

By Anusha Ondaatjie

March 31 (Bloomberg) -- Sri Lanka’s inflation unexpectedly slowed in March for the first time in six months, giving the central bank room to keep interest rates low and support economic growth.

Sri Lanka and Pakistan, pummeled by war and terrorist attacks, are aiming to keep borrowing costs low to support economic growth and improve people’s livelihood. Sri Lankan central bank Governor Nivard Cabraal this month left interest rates unchanged at a five-year low, betting prices will ease.

“Growth has not yet taken off and the central bank will be keen to keep rates constant,” Saminda Weerasinghe, research manager at Acuity Stockbrokers Pvt. in Colombo, said before the report.

Cabraal has room to keep borrowing costs low because the current inflation rate is half the average between 2004 and 2009. He maintained the reverse repurchase rate at 9.75 percent and the repurchase rate at 7.5 percent on March 18. The next policy announcement is due on April 22.

Parliament Elections

Ensuring faster growth and low inflation is also critical for Sri Lankan President Mahinda Rajapaksa as his government faces parliamentary polls on April 8. Rajapaksa was reelected for a six-year term in January after defeating the Tamil Tiger rebels in May.

The president wants to accelerate growth to 7 percent in 2010 from a 3.5 percent expansion in 2009. Gross domestic product rose 6.2 percent in the three months ended Dec. 31 from a year earlier, the fastest pace in five quarters, the statistics department said yesterday.

In Pakistan, where terrorist attacks claimed 3,000 lives in 2009, the central bank on March 28 refrained from lowering interest rates as inflation stayed above 13 percent. The government says Pakistan needs to grow 6 percent annually to cut poverty. The economy may expand 3.4 percent in the year ending June 30, according to government estimates.

The approach of the central banks in Sri Lanka and Pakistan contrasts with that of India, South Asia’s biggest economy, which earlier this month raised interest rates for the first time in almost two years on concern faster growth may stoke inflation.

India’s economy may grow 8.2 percent in the year starting April 1, the finance ministry said in February. Inflation currently stands at a 16-month high of 9.89 percent, according to government data.

Cabraal said on March 18 that Sri Lanka’s inflation rate may fall in the coming months as food supply improves and the government cuts taxes to ease price pressures.

Since November, the government has reduced the import tax on sugar, milk powder, lentils, potatoes and onions. The end of the civil war has spurred vegetable and paddy cultivation, as well as fishing in the island’s north and east, the former stronghold of the separatist Liberation Tigers of Tamil Eelam.

source - http://www.businessweek.com

SriLankan Holidays plans special tours of the island

JEDDAH: SriLankan Holidays, the leisure arm of SriLankan Airlines, has planned four special tours of the island state to enable travelers experience the country’s rich and colorful diversity.

The tours have been specially crafted to bring you the best of Colombo, the bustling capital, Kandy the ancient hill capital, the gorgeous beaches on the southern coast and the cool climes of the verdant hill country and cultural hot spots.

Operative out of nine cities in the Middle East — Riyadh, Jeddah, Dammam, Abu Dhabi, Bahrain, Doha, Dubai, Kuwait and Muscat — the packages offer four to thirteen nights, with flexibility for extending the stay by more nights. These special tours include economy return airfare to Sri Lanka, hotel accommodation on bed and breakfast twin-sharing basis, and, airport and internal transfers.

The island state offers a visa on arrival, a free SIM card from Sri Lanka’s leading mobile operator Dialog Telekom and the SriLankan Holidays shop-over voucher booklet. The booklet contains discount vouchers from over a dozen popular establishments in Colombo, a cosmopolitan city with a unique historical charm.

Kandy is a World Heritage Site and the country’s ancient hill capital. Nuwara Eliya, higher up in altitude, boasts of an invigorating and balmy mountain climate and salubrious scenery, and is Sri Lanka’s most popular hill resort.

 
Among Dambulla’s attractions is the largest and best preserved cave temple complex of Sri Lanka. The 5th century Sigiriya rock fortress is yet another World Heritage Site and was built by the parricide King Kashyapa (477-495 AD). The island is rich in beaches, especially on its southern coast.

source - http://arabnews.com

Good times ahead for Rubber Plantation companies in Sri Lanka

Consumption off oil, gas,metals, grain and rubber rise in India and China. The surge in oil, gas, metals, gold, grain, sugar, rubber prices amidst supply concerns, now the global concerns have shifted to rubber with supply-demand mismatch leading to surge in futures prices.

Consumption in India, China, Brazil, Japan, US, EU and emerging markets are zooming in recent times due to heavy industrial demand. The farmers in Ivory Coast are abandoning cocoa and turning to rubber production as low yields, caused by diseases and ageing trees, trump benefits from 10-year highs in up-country farmgate prices. Despite these highs, few farmers say they have improved their lot and some agronomists estimate that thousands in the top grower may join the exodus from cocoa to rubber.

Chinese manufacturers produced 654.64 million tyres between January to December in 2009, up 18 per cent compared with 2008. According to data released by the China National Bureau of Statistics (CNBS), 57.19 million tyres were produced in China in December 2009, up 52 per cent compared with the year before.
Chinese Customs statistics show that China imported 170,000 tons of natural rubber up 190.3 % in January 2010. Imports of synthetic rubber rose 182.3 per cent to 1,271,290 tons. Indian government’s chief economic adviser, Kaushik Basu said economic growth was expected to rise to 8.5 per cent.

To achieve 7.2 per cent growth for 2009-10, as estimated by the Central Statistical Organisation, the economy must grow over 8 per cent during the fourth quarter.
Government data showed the food price index rose an annual 16.22 per cent in the week-ended March 13, lower than the previous week's annual reading of 16.30 per cent.The fuel price index rose 12.68 per cent in the year to March 13, flat on the week. The Government had raised motor fuel prices in late February.

India's crude oil imports jumped up 13.2 per cent in February even though domestic fuel demand dropped marginally, according to data released by the Oil Ministry. Domestic fuel sales at 11.39 million tonnes in February were 0.2 per cent lower than 11.41 million tonnes of petroleum products consumption in the same month a year ago.

The worst drought in a century has been ravaging China's southwest provinces of Yunnan and Guizhou and the region of Guangxi, leaving 20.5 million residents and 12.6 million heads of livestock with insufficient drinking water.

The drought centres on China's major sugar and rubber areas and could have a big impact on output, forcing the country -- already a major rubber importer -- to source more from overseas. A reduction of sugar output will expand domestic shortages and require more imports later in the year
Another factor which is weighing on the metal prices is the concern of Chinese government raising interest rates.

It is expected that China may very soon increase interest rates to control inflation which may slow down growth in the world’s fastest growing economy. There is a belief that the ministers in the Euro-zone are agreeing to help Greece partly through IMF. This may help the base metal prices as investor sentiment may get a boost. Investors will continue using oil, gold, metals as a hedge to protect against risk, sovereign debt issues and inflation. in the long term oil, gas, gold, metal prices will rise due to trillions of dollars of stimulus money injected into the world economy.

The weaker dollar has been a key factor behind the recovery in oil, gold and metal prices. Metal inventories have meanwhile continued to come under pressure. Declining inventory, in a month which traditionally sees stocks build, has been one of the factors helping to underpin the oil, gold and metal’s recent price strength.
Strong growth in China, India, and some other countries will rise demand and prices. Albanian Minerals in New York and her sister company Bytyci ShPK in Tropoje Albania forecast that global growth will move from a decline in 2009 to a astonishing gain in the future. Demand for oil, gold, food, raw materials to pick up in 2010.

source - http://online.wsj.com/

Sri Lanka - Economic surge to spur tourism - Hotel rooms to surpass 22,000

Harshini PERERA

The total number of hotel rooms in the country is expected to grow from about 15,000 at present to 22,000 this year.

According to the Sri Lanka Tourist Board, it is also expected to earn US$ 2 billion annually in tourist revenue by 2016. It was US$ 350 million last year.

Tourist Arrivals 2009 - 2010 to Sri Lanka

"The construction of new hotels in various areas will sustain Government expectations to have 2.5 million visitors by 2016, up from 447, 890 in 2009, Central Bank Governor Ajith Nivard Cabraal said. He laid the foundation for the Hotel Nallur in Jaffna last Monday.

"The construction of Hotel Nallur in Jaffna by Merchant Bank of Sri Lanka (MBSL) will be a real private sector initiative to bring development to the stressed areas in the country," he said.

The economic surge in the area is expected to result in various other spurs in development projects. MBSL has set the necessary impetus to the business world and an example in the development process. Cabraal said that the fast tracking of development projects will be a necessity in today's economy though it seems difficult to receive finances for them. Sri Lanka could double the per capita in another five years and that ensures the fast delivery of development projects for the benefit of people in the area. Sri Lanka Tourist Board has indicated that 50,000 accommodation facilities are needed in 2016 to cater to the foreign and local tourists.

MBSL Chairman Janaka Ratnayaka said MBSL decided to extend its expertise to manage liable financial institutions initially under the difficult circumstances and since then positive results have begun to emerge. At present MBSL manages around Rs 40 billion liabilities of these financial institutions.

The new venture into the hotel sector will also be a success and a catalyst for growth and economic resurgence in Jaffna.

source - www.dailynews.lk

Jaffna investors targeted for Hotel Nallur IPO

The Merchant Bank of Sri Lanka (MBSL) is planning an IPO to raise funds for a multi-million-rupee hotel project in Nallur on top of its own Rs 400 million investment.

"We are considering initiating this option as the Central Bank Governor has recommended that the IPO should focus on the people of Jaffna," MBSL Chairman Janaka Ratnayake told the Island Financial Review.

The IPO is still in the planning stages, he added.

The 80-room hotel will be launched for business by February next year, he said.

MBSL, currently managing eight failed financial institutions with a liability of Rs. 50 billion, has now changed its scope towards development of the national economy by contributing to the tourism sector, Ratnayake said.

The new hotel is to be built on a land which is owned by The Finance Company, the largest financial institute managed by MBSL.

The land was on auction and after the inspection it was recognized as an ideal location for a hotel and for seeing the profits MBSL has embarked on this project, he said.

Ratnayake also said the project would set an example to other potential investors, who would drive their investments to the North.

The hotel would also create both direct and indirect jobs for the citizens in Jaffna.

Central Bank Governor Ajith Nivard Cabraal, gracing the occasion, said that the project would open avenues of business opportunities in the North, while increasing job capacity.

He stressed that the public and private sector should support the government’s efforts to double the per-capita income within the next five years.

Tourism is a rapidly growing industry and it is time to grasp all potential opportunities, he said.

Jaffna is a key area attracting investments at present and the Sri Lanka Tourism Development Authority hopes to expand capacity.

Sri Lanka currently has 15,000 hotel rooms to support the arriving numbers and it is hoped the figure would reach 50,000 by the next five years.

Jaffna only has 150 rooms and these are highly priced and are in unsatisfying conditions.

The MBSL’s new project Hotel Nullur would be a good start in developing the room capacity in the region, Cabraal added.

source - www.dailynews.lk

Colombo Stock Market was down by 0.23 % due to retail profit taking

                                     DAILY MARKET REVIEW

30/03/2010 – Colombo Stock Market was down today mainly as a result of the continuous retail profit taking & due to the price decline of the Environmental Resources Investments share.

ASI was down by 8.69% to close at 3765.07 & the more Liquid Milanka price index was down by 26.89 to close at 4364.33

Turnover for the day was Rs 800 m.n.

Foreign buying was visible today, where foreigners were net buyers for the day as well. Foreigners purchased shares to the value of Rs 301 m.n. & sold shares worth of Rs 125 m.n. Reported Net foreign inflow was Rs 176 m.n.

Health care sector was leading the sector’s table with a growth of 2.26%, followed by the Tile sector. Investment sector was the worst performing sector today with a decline of 4.92 % mainly as a result of the decline in price in the Environmental Resources Investment share.

There were 50 gainers as against 85 losers.

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

  LARGE VOLUMES TRADED

 ANNUAL REPORTS RECEIVED AS AT 31/12/2009

  CROSSINGS FOR THE DAY

 CLOSER LOOK

•  Colombo Stock Market is consolidating it's position these days ahead of the Parliamentary Election & the up coming New year.
• After the month of April we can expect another bull run in the Colombo Stock Exchange.

• Most of Blue chip companies have buyers @ current market prices,[see the crossings table today] which we believe is a positive thing.

• Most of companies listed in the Colombo Stock Exchange may report their "history best" or "history highest" prices withing next couple of months / quarters.

• Agricultural, Oil & Metal markets jumped yesterday in most parts of the world. Improvement of the prices of Agricultural products &  Oil are positive signs for our Plantation companies.

Sri Lankan Economy on the right Path

Sri Lankan Economy Accelerates at Fastest Pace in Five Quarters  - By Anusha Ondaatjie

March 30 (Bloomberg) -- Sri Lanka’s economy expanded at the fastest pace in five quarters as the government stepped up spending on new roads and ports after the end of a quarter- century of civil war in the country.

Gross domestic product rose 6.2 percent in the three months ended Dec. 31 from a year earlier after gaining 4.2 percent in the previous quarter, the statistics department said in a statement in Colombo today.

President Mahinda Rajapaksa, who was reelected for a six- year term in January after defeating the Tamil Tiger rebels in May, has pledged to spend $1 billion on ports, roads and power plants in 2010. Reconstruction in the $41 billion South Asian economy is boosting profit in companies including Tokyo Cement Co. Lanka Plc and Central Industries Plc.

“The infrastructure investments will have a spillover effect in the economy,” Saminda Weerasinghe, research manager at Acuity Stockbrokers Pvt. in Colombo, said before the report. “It will help even faster growth in the second half of 2010.”

Central Bank of Sri Lanka Governor Nivard Cabraal on March 18 maintained benchmark interest rates at a five-year low to boost consumer demand and drive growth to as much as 7 percent in 2010. Sri Lanka’s reverse repurchase rate is 9.75 percent and the repurchase rate is 7.5 percent.

Low Inflation

Cabraal can afford to keep borrowing costs low because of tame inflation in the country. Consumer prices in the capital, Colombo, rose 6.9 percent in February from a year earlier, almost half the average inflation rate between 2004 and 2009.

Commercial bank loans rose to 1.196 trillion rupees ($10.5 billion) in January from 1.195 trillion in December, the fourth gain in five months, according to the central bank, an indicator of growing consumer spending.

Low interest rates are also critical to support domestic demand as Sri Lanka’s exports may slow in the coming months after the European Union on Feb. 15 said it will suspend preferential trade benefits to the island nation because of human rights “shortcomings” during the war.

Sri Lankan exports rose 6.4 percent in December to $723.4 million after a yearlong decline.

Peace has prompted foreign companies, including HSBC Holdings Plc and Emirates Telecommunications Corp., to start operations in the island’s northern and eastern areas that were earlier under the control of the separatist Liberation Tigers of Tamil Eelam.

HSBC Holdings, Europe’s biggest bank, in February opened the first branch by any foreign bank in Sri Lanka’s northern Jaffna peninsula.

Start Operations

Etisalat, the United Arab Emirates’ biggest phone company, started services in Jaffna on Feb. 26 after acquiring Tigo Pvt., the Sri Lankan unit of Millicom International Cellular SA, for $155 million in October.

Demand for building roads and ports after the end of the war helped lift sales at Tokyo Cement by 79 percent in the three months ended Dec. 31.

Sri Lanka plans to invite overseas and local companies this month to set up business in a new $550 million tax-free port zone in the island’s south. The country is also seeking foreign investments to help build a new terminal in Colombo port, Sri Lanka Ports Authority Chairman Priyath Wickrarma said March 5.

source - http://www.businessweek.com/news

Good time ahead for Cement Companies in Sri Lanka

CHENNAI: Stung by massive capacity expansion and poor utilisation of their plants, cement companies are looking at the war-ravaged Sri Lanka, which is rebuilding its infrastructure. Industry sources said that Madras Cements is shipping cement to Sri Lanka, while India Cements and Dalmia Cement have got the approvals from the island nation's quality certification body - which is a precursor for shipping cement.

"Cement manufacturers import coal through us and use our port to export cement to Sri Lanka. Already, we handle vessels for Madras Cements for their exports. We are now constrained by the inadequate number of vessels plying between Lanka and Karaikal (on the eastern cost, south of Chennai)," M L N Acharyulu, executive director, Karaikal Port, told TOI.

Cement plants in the Ariyalur cluster - Madras Cements' Alathiyur plant, India Cements' Dalavoi plant and Dalmia Cement's Dalmiapuram plant - would be the extensive users of Karaikal Port for exports. Madras Cements has been shipping cement through this port. Between October and December there was no dispatch by this company, while in January and February the company exported 2,825 tonnes of cement, port traffic data shows.

"For now, they (Madras Cements) are exporting bagged cement (each bag 50 kg). We have been in talks with other cement companies as well who are keen to export bulk cement (which will get bagged at the port of arrival) as well as clinker (an intermediate product which is ground to cement)," Acharyulu said.

Continue ...

Merchant Bank of Sri Lanka to invest Rs 400 m.n. for Hotel Nallur - Jaffna

Harshini Perera

Janaka Ratnayaka

The Merchant Bank of Sri Lanka PLC (MBSL) has decided to invest in the leisure sector in Jaffna, with the tourism boom there. MBSL is a premier investor in Sri Lanka. They have decided to improve infrastructure facilities in Jaffna with an investment of Rs 400 million on Hotel Nallur in Jaffna.

The venture into the hotel sector by MBSL will set standards in the tourism industry and provide adequate facilities, MBSL Chairman Janaka Ratnayaka told Daily News Business.

The hotel will be constructed on a considerable plot of land expected to be completed as early as possible to address the needs of influx of tourists to the Jaffna peninsula. “The intended investors on tourism infrastructure will take sometime to establish on their investments. MBSL expects to finish the construction of Hotel Nallur by February 2011,” Ratnayake said.

The Hotel Nallur will be a BOI approved three star city hotel with 80 luxury, deluxe rooms and suites.
It is expected to go for an Initial Public Offering in the near future. The intention of the IPO will be to invite public for the investment that MBSL has made. Hotel Nallur will create 150 job opportunities from the construction till the completion and it will be equipped with a swimming pool and vegetarian and non-vegetarian restaurants.

source - www.dailynews.lk

Sri Lanka - Rubber prices Gained an all time high in last week's Auctions

A kilogram of rubber fetched Rs 363.25 at the auction.

Sri Lanka is the main exporter of rubber to many countries including China and India. They are the biggest manufacturers of tyres in the region.

There has been less rubber production as many of the countries faced a dry weather.

Even the largest rubber producer in the region, Thailand is also affected due to the prevailing dry weather, Colombo Rubber Traders Association Chairman M.S. Rahim said.

'Due to the dry weather, production dropped drastically.

There will be a drop in demand in the future if this weather continues. Most of the rubber manufacturing countries have faced the same situation, Rahim said.

He said last year out of the total rubber production in the country, over 60 percent was used for the local industry. The industry expands to a land extent of 122,000 hectares in the country.

The total exports of natural rubber in the country amounted to 55,990 metric tons last year.

Sri Lanka exports only white crepe rubber which has a good demand in the world market.

source - www.dailynews.lk

Return From the Shares Listed in Colombo Stock Exchange Sri Lanka

We selected  following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (22/03/2010 to 26/03/2010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange, which was rated as Asia's best performing stock  market & World's second best performing stock market in year 2009.

SEE THE RETURN FROM  BELOW MENTIONED  SHARES. THIS IS WITHING A PERIOD OF ONE WEEK. THINK & INVEST  IN COLOMBO STOCK EXCHANGE - SRI LANKA TO GET ABOVE AVERAGE RETURNS.

Stock	Opening Price (Rs)	Closing Price (Rs)	Week on  Week Change    %
SING	110.00	150.00	36.36
CLND (W)	3.70	4.20	13.51
COMD	45.00	51.00	13.33
JKL	175.00	194.50	11.14
ACME	18.25	20.25	10.71
PARQ	18.00	19.75	9.72
SMOT	131.00	143.00	9.16
JKH	172.00	186.00	8.14
ONAL	39.00	42.00	7.69

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

THE SUNDAY ISLAND

• Well managed, profitable companies targeted - State institutions look for ‘good names’ on blue chip boards
• How boards should run companies: Third module by Sri Lanka Institute of Directors
• Rs. 112 m.profit but no dividend - Singer in the black after most turbulent year in its history

SUNDAY OBSERVER

• More listings merrier for CSE
• Macro economic fundamentals, is Sri Lanka on a sound footing?
• Russell de Mel - new CEO at NDB Bank
• Applying for an IPO?
• Innovative field practices to increase tea production

THE SUNDAY TIMES

• CSE will remain small market
• SLIC gets Central Bank sanction to buy over 10% of NDB
• CB/EPF stakes in banks: Conflict of interests?
• Top banks, Indian firm aim for broking licenses
• Finance firms may not be attractive in the long –term
• Comment - New strategy to attract investments
• Feature - Additional income from rubber plantations and new carbon negative concept
• Derivatives anideal product in post-war economy
• Seylan Bank AGM held on Friday
• 5,000 kgs of tea withdrawn from domestic market last week
• DHL Keells positive on Sri Lankan growth
• Solid response to NTB’s 2010 warrants (shares)
• SLT ranked number one in Top 10 competition
• Sri Lankan economy set to grow –Asian investors told
• Fiscal deficit causes IMF to delay loan
• Bank of Ceylon to open 31 more branches in the North and East
• Eight Kurunegala poultry farmers receive assistance
• Former Malaysian PM Mahathir here in June for business event
• Only 0.14% of SL GDP towards R&D, others 1.5%
• Fitch affirms rating on Singer
• Lanka Ceramic sales pick up after showroom upgrade
• Global Finance picks Commercial Bank as Sri Lanka’s best for 12th year in a row

THE SUNDAY LEADER

• C.B.S.L. Convinces Treasury
• Top Bank For 3rd Time
• Towards Basel II Compliance
• Shares Oversubscribed
• N.P.L.s Affect Lending
• World Class Tourism And Hospitality Diploma Now In Sri Lanka 

LAKBIMA NEWS 

• Survey uncovers key factors influencing investment
• EPF, highest interest on member balances
• CSE records 2nd highest turnover
• CB successfully completes SLDB issue
• Colombo Port Expansion Project in full swing
• SL poised for growth: Are Banks Ready?
• Malaysia seeks investment opportunities in Sri Lanka
• Pooja Bhatt to shoot in Sri Lanka
• Large-scale development projects to create 3mn new jobs

 THE NATION

• State institutions cash in; foreign sellings net Rs.13bn.
• Weekly Market Focus
• Business Today Top 10 Awards 2008-2009
• Industrial growth needs to double up
• HNB signs MOU with South Indian Bank

Sri Lanka - Banking Sector Future Growth Stocks / Picks for the Future - Update 02

SRI LANKA STOCK PICKS Exclusive: Listed companies in Sri Lanka have been releasing their earnings for the Last quarter, Nine months, & for the financial year ended 31/12/2009. We have decided to identify BEST PICKS among each & every sector in Colombo Stock Exchange purely based on the latest profit figures released by these companies.

However please note that there is a risk involved in share trading. We do not take responsibility for any lose or damage arising out of stated information in this post. You have to take your own decisions. (Do your own research, do not follow others, Stick to fundamentals, Buy shares when other are selling & sell when others are buying)

Stock	Profit(Rs) 31/12/09	Profit(Rs) 31/12/08	Growth     %	E.P.S.(Rs) Trailing	P.E.R.       Trailing(*)	NAVPS(Rs)  31/12/09	Issued Share Capital (M.n.)	Price(Rs)   26/03/2010
HNB	4,553 b.n	2,831 b.n	61	19	9	112.00	189.50	181.25
HNB(X)	4,553 b.n	2,831 b.n	61	19	7	112.00	46.20	136.00
JINS	657 m.n	449 m.n	46	2	7	7.00	363.00	14.25
SAMP	2,073 b.n	1,495 b.n	39	30	8	183.00	68.90	227.00
CDIC	570 m.n	548 m.n	4	13	11	95.00	43.90	136.00

Note - 

• Sampath bank details were obtained before the recent  rights issue.

• Market Price Earnings Ratio was 18.53

VISIT Banking Sector Future Growth Stocks / Picks for the Future - Update 01

Colombo Dockyard repairs Tanker Delos - More Business for Colombo Dockyard

Cardiff Marine Inc. Greece owned Motor Tanker Delos called in with collision damages to her shipside as the tanker suffered damage while at Chittagong anchorage. The owners had decided to place the vessel in Colombo for permanent repairs.

Afloat repair on MT. Delos at SLPA berth

Colombo's strategic location and the reputation as a reliable service provider attracted the Cardiff Marine Inc., to utilize Colombo Dockyard facilities for this damage repairs. Cardiff Marine Inc., is a well reputed ship owner/Manager managing a fleet of vessels in excess of six million deadweight. The peaceful conditions prevailing in the country has resulted in major European fleet owners looking at Colombo for their repair requirements, generating much needed foreign revenue for the country.


The tanker Delos initially planned to arrive in Colombo in February finally arrived in Colombo on February 17. Due to her shifted arrival, the initially allocated yard slot was not available as the next planned tanker had already arrived at the repair berth. The only available option was to secure another suitable berth to accommodate the vessel and immediate action was taken to request assistance from the local agents GAC Shipping Ltd. The local agents secured a suitable berth for this massive tanker (LOA 183.00 Meters/Beam 32.00 Meters).

The Shipyard mobilized the repair team under the project leadership of Ship Manager Dhammika Dissanayake, with coordinated support from steel department Steel engineer Avantha Gunathilake and his team to complete the job efficiently. As the job was carried out at the port berth, all required services had to be arranged with meticulous planning and coordination.

source - www.dailynews.lk

Commercial Bank of Ceylon selected as the Sri Lank's best bank - Global Finance

The Commercial Bank of Ceylon has been declared Sri Lanka’s best bank in 2010 for a record 12th year running by Global Finance magazine.

The US-based financial publication’s latest listing of the Best Emerging Markets in Asia’ is to be published in its May issue.

This is the seventeenth year that the magazine has selected top banking performers in emerging markets. The report covers the best banks in Asia, the Middle East and Africa, Latin America, and Central and Eastern Europe.

Listed alongside Commercial Bank are the HDFC Bank as the best bank in India, AB Bank in Bangladesh, Habib Bank in Pakistan, Public Bank Berhad in Malaysia, Shinhan Bank in South Korea, Chinatrust Bank in Taiwan, and several other leading banks in the regions surveyed.

A noteworthy feature of the 2010 listing is that while the position of the Best Bank in countries such as Sri Lanka, India and Pakistan remained unchanged from 2009, there have been changes in several other countries, including in Bangladesh and Philippines.

“The last financial year was a challenging one for the banking industry worldwide, and it is therefore doubly satisfying to retain our position as Global Finance’s Best Bank in Sri Lanka,” Commercial Bank Managing Director Amitha Gooneratne said.

“Being adjudged the best for 12 consecutive years is an even more extraordinary achievement, and illustrates the fact that we have been remarkably consistent in getting our fundamentals right.” he said.

The criteria for choosing the winners included growth in assets, profitability, strategic relationships, customer service, competitive pricing, and innovative products. Global Finance editors consider inputs from industry analysts, corporate financial executives and banking consultants in selecting the magazine’s final winners.

Global Finance’s Best Bank awards for 2010 are to be presented on October 9 in Washington D.C. at the National Press Club.

Buying Interest in John Keels Holdings helps to report 1.16% Gain in Colombo Stock Exchange

 DAILY MARKET REVIEW

26/03/2010 – Colombo Stock Exchange reported substantial gains today as the shares improved further for the second consecutive day. Before this upward trend starts market was in a 03 month low position as at 24/03/2010. Upward trend which started yesterday was fueled by the large trades in Blue chip companies such as John Keels Holdings, Distilleries Company, Commercial Bank, together with the support of bargain hunters.

All Share Price index was up by 43.33 points to close at 3773.76 & Milanka Price index was up by 54.17points to close at 4391.22.

Foreigners were on the selling side today as well. They purchased shares worth of Rs 46 m.n. & foreign sales were Rs 427 m.n. Net foreign outflow for the day was Rs 381 m.n.

There were 84 positive contributors as against 47 negative contributors.

Services sector was the leading sector with a growth of 8.28 % due to the price improvement of John keels Limited by Rs 22.50 to close at Rs 194.75, followed by the Power & Energy sector. IT sector was the worst performing sector with a negative growth of 2.37%.

Dividend announcements for the day

COMPANY	TRADING     PRICE	DIVIDEND RATE	XD DATE	DIVIDEND YIELD
JINS	Rs 14.25	Rs 1.00	08/04/2010	6.21%
RCL	Rs 112.75	Rs 2.50	08/04/2010	2.00%

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

     LARGE VOLUMES TRADED FOR THE DAY

     CROSSINGS FOR THE DAY

 CLOSER LOOK

• There were several large parcels changed hands today in John Keels Holdings ,Nations Trust Bank, DFCC Bank, Hatton National Bank .
• Colombo Land & Development traded on high volumes as well. The counter appreciated by 0.50 cents to close at Rs 7.75.
• All the Blue chip counters were improved in prices & these counters have buyers at current market price levels.This is a very positive sign in terms of the growth of the Colombo Stock Exchange.
• John Keels Holdings was the star company during the last five days[Last week].It's price appreciated by Rs 14.00 to close at Rs 186.00 WOW.
• Prices of most of Banking sector shares were improved today. We can expect this trend to continue in future as well.
• Colombo Market may continue it's upward trend in next week as well, on back of the renewed buying interest on selected fundamentally strong counters.
• We can expect dividend announcements from the listed companies in coming months as well as the March 2010 quarter results.
• Elpitiya Plantation commenced trading after it's rights issue of ordinary shares @ Rs 30.00 /share yesterday in the market. It peaked Rs 35.00 & closed  at Rs 33.50 today giving a 11.67% gain for the investors who subscribe for the rights.