COLOMBO SHARE MARKET UP WITH A TURN OVER OF RS 1.4 B.N.

Heavy trading in JKH and Aitken Spence Hotels pushed up turnover on the Colombo Bourse yesterday (15/12/2009) to over Rs 1.4 billion, up from Rs 330.9 million the previous day with healthy gains posted by both indices – the All Share up 37.18 points (1.22 percent) and the Milanka up 54.63 points (1.59percent).

The JKH and Aitken Spence Hotels trades drove the market with most of the big JKH trades done at a price of Rs.154 while the big parcels of Aitken Spence Hotels trades were done at Rs.250,’’ Prashan Fernando of Acuity Stockbrokers said.

JKH saw over 5 million shares done between Rs.154 and Rs.160 gaining Rs.5.25 to close at Rs.159.75 while Aitken Spence Hotels, with over a million shares traded between Rs.239.75 and Rs.245, was up Rs.4.25 to close at Rs.244.(v.w.a)
JKH generated the day’s biggest turnover of Rs.804.1 million while Spence Hotels contributed Rs.256.3 million, with these two stocks accounting for over a billion rupees of the day’s business volume.



source - www.island.lk

AITKEN SPENCE HOTEL HOLDINGS (AHUN)

To day a large quantity of AHUN traded at Rs 250, in blocks of two 400,000/- parcels & one 200,000 parcel.Share price was up by Rs 8.25 & closed at 248.This is a good sign to follow because after large parcels most of times we can see upward movement of the particular share price.

Last Q profit up by 225%, However YOY up to 30/09/09 profit down by 163%. NAV Stands at 114.70.

AHUN has Sri lanka's leading hotels under their umbrella, Kandalama,Ahungalla,Browns,Hiltop,Tea factory etc & hotels in Maldives,India & Oman.

These hotels are operated under three brands, namely Aitken spence hotels & resorts ,Heritance hotels & resorts ,Adaaran luxury ,boutiuque,wellness resorts.

Better to have AHUN in your investment basket in the event of a future price drop.

JKH PORT TERMINAL VOLUMES UP

 Container volumes at a Colombo port terminal controlled by Sri Lanka's John Keells Holdings have almost reached last year's levels but those at the state-run facility are still lagging behind, latest figures show.

The November 2009 volumes at South Asia Gateway Terminals (SAGT) were up 10.4 percent to 153,793 TEUs (twenty-foot equivalent units or containers) from the same month in 2008, after dipping in October, according to SAGT figures.

Analysts said it was the private terminal's strongest monthly percentage increase growth in volumes from a year ago in the past 12 months.

SAGT's container volumes had dipped 3.6 percent in October from a year ago, its first fall after growing for five straight months.

The terminal's container volumes have been growing this year despite an overall slump in cargo volumes at Colombo port this year because of the global economic downturn.

JKH's transportation business, mainly the SAGT container terminal and its Lanka Marina Services ship fuel business, have been the main contributors to the group's bottom line in recent quarters.

But much of SAGT's growth in the container business has come from transshipment cargo which yield relatively low margins compared with export-import boxes.

Colombo is south Asia's hub port, where cargo is shipped on feeder vessels to and from smaller ports in the Indian sub-continent on to mainline vessels plying the main East-West trade route.

source - http://www.lbo.lk/

SRI LANKA - TOURIST ARRIVALS UP

Sri Lanka is regaining its pride as the best tourism location, new trade figures have revealed.

The goal of attracting 2.5 million tourists by 2016 is not an impossible task in view of growing activities in the sector, say industry leaders.
They say the three-decade-old war had hampered the country’s development, crippling almost every industry.
But the tourism industry is now seeing a healthy growth with the end of the war this year, according to latest statistics.
Tourist arrivals to Sri Lanka saw a 20.1 percent year-on-year growth last month. The number of arrivals grew to 44,311 from 36,901 in November, 2008.
Total arrivals grew by 0.4 percent from January to November year-on-year, from 389,550 to 391,028 arrivals.
In 2008, the month of December recorded the highest number of arrivals and the figures are expected to show a higher growth this year because of seasonal offers and post-war stability.
Sri Lanka is also developing a Port City with the aim of attracting more cruisers to Sri Lanka and the tourism industry will grow further with high numbers of arrivals through passenger ships, say industry sources.
The goal of attracting 2.5 million tourists by 2016 is not an impossible task, with such development work in progress, says a top businessman.
Marine-life lovers are also flocking to Sri Lanka, say tourism experts.
They say that whale-watching and dolphin-watching programmes are also attracting tourists.
The marine life-lovers are mostly from France and the numbers of arrivals from that country has grown by 50 percent, Minister Felix Perera told a recent conference.

source - www.island.lk

GOOD TIME AHEAD FOR HOTEL SECTOR COMPANIES

SRI LANKA - ASIRI HOSPITALS

After the subdivision of Each existing ordinary share of the company to ten (10) ordinary shares, Asir shares will start trading to day (14/12/2009) in the market as per the stock market daily report.
Today may be a good day for the traders since there will be price fluctuations in this particular share.
So keep a closer eye on this share.

RENUKA GROUP INCREASE STAKE IN DFCC BANK

Companies headed by Mr. Ravi Thambiayah (Renuka Hotels, Renuka City Hotels PLC, Cargo Boat Development PLC etc.) have acquired a sizable stake in the DFCC Bank into which entities controlled by Mr. Ajita de Zoysa bought around two million shares.
EC Global, another big fund invested in Sri Lanka has completely exited DFCC by recently selling 2.6 million shares at Rs. 135 and HNB by selling 7.25 million shares at Rs. 162. In May this year, after the military overcame the LTTE, this fund sold 10% of NDB (8.1 million shares), broking sources said.
Brown and Co. PLC, which held a sizable stake in HNB, has been selling out making substantial capital gains, well informed sources said.

source - www.island.lk

SRI LANKA - GALLEON EXITS FROM MANY LISTED COMPANIES IN COLOMBO STOCK MARKET

Billionaire investor Raj Rajaratnam who held shares in 73 listed companies in Sri Lanka through his Galleon Funds has completed disposing these holdings in all but two of these companies with Galleon now holding shares only in Touchwood Investments and the People’s Merchant Bank, sources familiar with the account said yesterday.

Rajaratnam however continues to hold his personal stake in the John Keells Holdings conglomerate where he is the second largest shareholder with 8% of the blue chip amounting to nearly 44 million shares.
The word in the Colombo market is that he will not divest his personal holding of JKH from which Galleon exited before Rajaratnam’s problems with the US authorities surfaced.
Some big disposals of Galleon, handled by Capital Trust Securities (Pvt.) Ltd., a Colombo brokerage in which Rajaratnam is a part owner, included , four million NDB, four million Commercial Bank, 3.7 million Ceylon Leather Products (29.9%), five million CIC and 10.6 million DFCC.
Broking sources said this brokerage, which found approximately 90 percent of the buying for the recent Galleon disposals, has handled some of the biggest transaction recently concluded on the CSE.
Well informed sources said that Rajaratnam who held the dominant stake in Galleon expects to complete liquidating that fund by year end with an estimated USD 800 million of his personal wealth released by Galleon’s divestments. This money is likely to be invested in stock markets in various parts of the world.
These sources said that the billionaire investor is confident of overcoming his problems in the context of a credible defence that is being mounted with resources for this purpose not necessitating disposal of his personal stakes here or elsewhere.

source -www.island.lk

SRI LANKA - RUBBER PRICES UP

Natural rubber at this week auction fetched Rs.311. per kilo. Reason for this noteworthy performance was, comparing prices in January this year this was distinctly 100 % increase in prices.

January prices were low at Rs. 150. per kilo. This price increase was good, the PlantationMinister said.

According to the Rubber development Department sources 45.7 million metric tons was produced January through October this year. Export value was approximately Rupees 4.3 billion.

Main importers of Sri Lanka rubber are Pakistan, India, US, and Germany.
Minister Jayaratne said increase in world rubber prices was a relief to all natural rubber producers. Particularly small scale producers.


GOOD TIME FOR  PLANTATION COMPANIES THAT HAVE MORE EXPOSURE TO RUBBER

source -www.island.lk

SRI LANKA - RENUKA HOLDING (VOTING / NON VOTING)

Rhl  has 96% in Renuka agro exports ltd. RAEL owns 52.23% of Coco lanka & Coco owns 78.6% in Renuka Agri Foods Ltd. 

The ultimate holding company of RAEL,RAFL & Coco is Rhl. Now Rhl has announced a sub division of its shares at a ratio of 5 for 1 .This looks attractive & the market reacts positively for the previous subdivision announcement by LLUB,ASIR,TOKYO N, etc. 

 Rhl profitability shows a significant growth (2466% YOY) as at 30/09/09. NAV stands at 123.50 per share &  EPS is 11.26.

  Price as at 11/12/09       Voting - Rs 124.75.
                                        Nonvoting -Rs 95
                                        ASI  3056.64

CARGILLS TO OPEN 100 MORE OUTLETS

Sri Lanka's premier retail super market chain Cargills Food City announced the launch of 100 new outlets all over the country, with the opening up of its 140th outlet at Rajagiriya yesterday.
Cargills CEO Ranjit Page said: "The launch of our 140th outlet is all the more special because this outlet marks simultaneously the first of 100 more Cargills Food City outlets that will be set up in neighbourhoods across 25 districts in the coming years."
Cargills (Ceylon) is a diversified company with operations in retailing, manufacturing, restaurants and agri-business.
The company said last month that net profits in the September 2009 quarter rose 35 percent to 139 million rupees from a year earlier, and that it was planning a billion rupees in new investments in the current year.


Cargills, which own landmark buildings in Colombo Fort that were Sri Lanka's first department stores, is part of the Ceylon Theatres group which is into property development, financial services, manufacturing and plantations.



The Ceylon Theatres group is controlled by the Page family.





source - www.dailymirror.lk//www.lankabusinessonline.com