Dialog Axiata yesterday announced that its Board of Directors proposed the establishment of a Malaysian Ringgit denominated Islamic Medium Term Note Program under the Shariah principle of Murabahah of up to MYR 1.2 billion in nominal value (approximately Rs.51 billion in current exchange rate), with a tenure of 15 years in Malaysia.
The proceeds will be utilised in compliance with Shariah principles for the purpose of refinancing existing debt and Sukuk issued under the Sukuk program, payment of fees and expenses in connection with the refinancing of the existing debt and the Sukuk Program, funding of investments, operational expenses, capital expenditure, working capital and other corporate funding purposes.
The proposed establishment of the Sukuk Program is subject to approval of the regulatory authorities in Sri Lanka and Malaysia and the completion of the proposed establishment of the Sukuk Program is subject to market conditions and investor interest.
source - www.ft.lk
Friday, November 2, 2012
Piramal Glass Ceylon closes 1H with Rs. 2.6 b turnover; Rs. 414 m PAT
Piramal Glass Ceylon PLC (PGC) has announced its first half year results for the financial year 2012-13 with an 8% growth in turnover from Rs. 2,385 million in FY12 to Rs. 2,592 in FY13 and a marginal growth of 9% in PAT from Rs. 384 million to Rs. 414 million.
While gross profits grew marginally in volume by 3% during the first six months of the current financial year, the GP ratios saw a decline to 30% as against 31% in the previous year 1st half. This drop was mainly due to high energy prices.
In comparison to last year’s similar period, the energy cost during the period grew by 51% with furnace oil taking the lead with a price increase of almost 80%. The LPG rate was also affected adversely in the 2nd quarter due to increasing trend in Saudi Armco. The bank interest rates too saw a continuous increase month-on-month during the period under review.
The domestic sales value grew by 12% from Rs. 1,755 million to Rs. 1,963 million. There was a dip in the overall growth of the domestic market especially in the liquor and food sector.
The export market remained at par with last year at Rs. 630 million. There were increased realisations in the export market due to the new product mix, which is definitely a healthy sign for the organisation.
The realisations grew by almost 18% against the previous year. The company also broadened its geographical spread by selling 28% of its exports in the Australia/New Zealand market which was only 8% in the previous year. New product development was at its peak during the period. PGC developed a new range liquor bottles in different colours for the Australian and Indian markets.
“We are confident that with our investments in environmentally friendly practices and continuous innovation, we will achieve our vision of being the preferred partner for packaging solutions. The domestic market though at a dip has clear potential, and our growing geographical reach has been noteworthy,” said Sanjay Tiwari CEO/Managing Director of Piramal Glass Ceylon.
The company continued its upward momentum in productivity, by surpassing the production volume during this half year as against that of the corresponding period of the last financial year. The efficiencies too have by passed the previous year efficiencies which resulted in the increase in output.
Thus, amidst the substantial cost escalations, this helped the company to better its profitability as against the similar period of last year.
These production milestones were possible due to the effort the management has put into the manufacturing excellence program it has established in the plant. The glass manufacturing facility at Horana has already reached level 2 with a target of reaching level 3 by the end of the financial year.
The company has spent almost Rs. 20 million for commissioning of the new effluent treatment plant to ensure the preservation of water by recycling, and that the water let out to the environment does not in any way harm the environment and the surrounding community.
source - www.ft.lk
While gross profits grew marginally in volume by 3% during the first six months of the current financial year, the GP ratios saw a decline to 30% as against 31% in the previous year 1st half. This drop was mainly due to high energy prices.
In comparison to last year’s similar period, the energy cost during the period grew by 51% with furnace oil taking the lead with a price increase of almost 80%. The LPG rate was also affected adversely in the 2nd quarter due to increasing trend in Saudi Armco. The bank interest rates too saw a continuous increase month-on-month during the period under review.
The domestic sales value grew by 12% from Rs. 1,755 million to Rs. 1,963 million. There was a dip in the overall growth of the domestic market especially in the liquor and food sector.
The export market remained at par with last year at Rs. 630 million. There were increased realisations in the export market due to the new product mix, which is definitely a healthy sign for the organisation.
The realisations grew by almost 18% against the previous year. The company also broadened its geographical spread by selling 28% of its exports in the Australia/New Zealand market which was only 8% in the previous year. New product development was at its peak during the period. PGC developed a new range liquor bottles in different colours for the Australian and Indian markets.
“We are confident that with our investments in environmentally friendly practices and continuous innovation, we will achieve our vision of being the preferred partner for packaging solutions. The domestic market though at a dip has clear potential, and our growing geographical reach has been noteworthy,” said Sanjay Tiwari CEO/Managing Director of Piramal Glass Ceylon.
The company continued its upward momentum in productivity, by surpassing the production volume during this half year as against that of the corresponding period of the last financial year. The efficiencies too have by passed the previous year efficiencies which resulted in the increase in output.
Thus, amidst the substantial cost escalations, this helped the company to better its profitability as against the similar period of last year.
These production milestones were possible due to the effort the management has put into the manufacturing excellence program it has established in the plant. The glass manufacturing facility at Horana has already reached level 2 with a target of reaching level 3 by the end of the financial year.
The company has spent almost Rs. 20 million for commissioning of the new effluent treatment plant to ensure the preservation of water by recycling, and that the water let out to the environment does not in any way harm the environment and the surrounding community.
source - www.ft.lk
Top line growth for Nestlé amidst tough market conditions; exchange loss hurt pre-tax profit
Nestlé Lanka PLC posted total revenue of Rs. 21.6 billion with a growth of 10.2% for the nine months ended 30 September 2012, amidst a challenging market environment. The performance of the third quarter of 2012 marks a 4.1% (YoY) revenue growth to Rs. 7.02 billion for the local subsidiary of the world’s leading food and beverage company.
Nestle’s bottom line at pre-tax profit level saw a 12% drop to Rs. 2.39 billion in the first nine months owing to Rs. 320 million net exchange loss incurred on foreign currency purchases and revaluation of foreign currency borrowings. After tax profit was almost flat at Rs. 2 billion. Gross profit was up 10% to Rs. 7.18 billion.
In the third quarter results from operating activities was Rs. 813 million, down from Rs. 1 billion a year earlier, pre-tax profit amounted to Rs. 780 million, as opposed to Rs. 997.4 million in 3Q of 2011 whilst after tax profit was Rs. 798 million, marginally up from Rs. 768 million a year earlier.
The current volatile market conditions, with the currency depreciation and a significant increase in fuel, energy and input costs posed massive challenges for Nestlé Lanka this year. The company has been able to offset most of these impacts through a series of price increases, cost saving initiatives and tax relief relating to the investments made by the company in the last two years. Net profit for the period shows a marginal improvement.
The company made a significant mark in history in September this year, by announcing its highest ever procurement of local dairy milk of over five million litres and confirming a contribution of Rs. 2.6 billion to the rural economy for the full year.
Commenting on the results, Nestlé Lanka Managing Director Alois Hofbauer said: “2012 continues on as a challenging year for our organisation. However, we will keep our targets in sight and strive to maintain the momentum for the remainder of the year. Despite the difficult conditions we currently operate in, Nestlé Lanka continues to uphold its commitment towards the development of the country’s rural economy. We’re extremely proud to have achieved our highest ever intake of fresh milk in September this year, enabling us to further elevate the livelihoods of over 18,000 dairy farmers in the island. We will remain true to our commitment of creating shared value for all our stakeholders.”
Continuing its onward journey in innovation, Nestlé Lanka launched its latest addition to its beverage portfolio, Nescafé Ice Coffee ready-to-drink, a chilled variant to the much loved hot beverage, Nescafé.
source - www.ft.lk
Nestle’s bottom line at pre-tax profit level saw a 12% drop to Rs. 2.39 billion in the first nine months owing to Rs. 320 million net exchange loss incurred on foreign currency purchases and revaluation of foreign currency borrowings. After tax profit was almost flat at Rs. 2 billion. Gross profit was up 10% to Rs. 7.18 billion.
In the third quarter results from operating activities was Rs. 813 million, down from Rs. 1 billion a year earlier, pre-tax profit amounted to Rs. 780 million, as opposed to Rs. 997.4 million in 3Q of 2011 whilst after tax profit was Rs. 798 million, marginally up from Rs. 768 million a year earlier.
The current volatile market conditions, with the currency depreciation and a significant increase in fuel, energy and input costs posed massive challenges for Nestlé Lanka this year. The company has been able to offset most of these impacts through a series of price increases, cost saving initiatives and tax relief relating to the investments made by the company in the last two years. Net profit for the period shows a marginal improvement.
The company made a significant mark in history in September this year, by announcing its highest ever procurement of local dairy milk of over five million litres and confirming a contribution of Rs. 2.6 billion to the rural economy for the full year.
Commenting on the results, Nestlé Lanka Managing Director Alois Hofbauer said: “2012 continues on as a challenging year for our organisation. However, we will keep our targets in sight and strive to maintain the momentum for the remainder of the year. Despite the difficult conditions we currently operate in, Nestlé Lanka continues to uphold its commitment towards the development of the country’s rural economy. We’re extremely proud to have achieved our highest ever intake of fresh milk in September this year, enabling us to further elevate the livelihoods of over 18,000 dairy farmers in the island. We will remain true to our commitment of creating shared value for all our stakeholders.”
Continuing its onward journey in innovation, Nestlé Lanka launched its latest addition to its beverage portfolio, Nescafé Ice Coffee ready-to-drink, a chilled variant to the much loved hot beverage, Nescafé.
source - www.ft.lk
Thursday, November 1, 2012
Net foreign inflow tops Rs. 34 b
howing persistent confidence in select Lankan equities and future returns from them, net foreign inflow yesterday crossed the Rs. 34 billion mark.
Foreigners yesterday bought Rs. 171 million worth of shares and sold only Rs. 7 million resulting in a net inflow of Rs. 164 million. The inflow brought the year to date net foreign inflow to Rs. 34.1 billion by yesterday.
As continuously emphasised by the Daily FT, foreign investors see what most weak-hearted locals don’t. Negative mindset has swelled benchmark ASI’s year to date dip to 9% after the market earlier on had reduced it to below 2% by end September from a high 20% in mid-July. However since mid July, net foreign inflow has been over Rs. 11 billion.
The record inflow remains the most emphatic and credible achievement of the Colombo Bourse this year. The inflow is significant in the context of Rs. 19 billion outflow last year on top of Rs. 27 billion flight in 2010.
This week foreign investors have narrowed their pick on Chevron Lubricants and JKH.
Yesterday stocks fell to their lowest level in nearly eight weeks as investors settled month-end positions, while others held off bets until next week’s Budget and corporate earnings.
The rupee edged down on importers’ demand for dollars, dealers said.
The Colombo Stock Exchange’s main index fell 0.13% or 6.98 points, to end at 5,513.64, its lowest since 7 September.
“The market was down as it is the month end and many local investors are looking for direction, with the budget on the corner,” said a stockbroker who declined to be identified.
The Government will present the 2013 Budget on 8 November while several companies will release quarterly results next week.
Turnover on the Sri Lanka exchange was Rs. 477.2 million ($ 3.68 million), half of this year’s daily average of Rs. 925 million.
The rupee ended weaker at 130.20/25 to the dollar from Tuesday’s close of 130.15/25.
source - www.ft.lk
Foreigners yesterday bought Rs. 171 million worth of shares and sold only Rs. 7 million resulting in a net inflow of Rs. 164 million. The inflow brought the year to date net foreign inflow to Rs. 34.1 billion by yesterday.
As continuously emphasised by the Daily FT, foreign investors see what most weak-hearted locals don’t. Negative mindset has swelled benchmark ASI’s year to date dip to 9% after the market earlier on had reduced it to below 2% by end September from a high 20% in mid-July. However since mid July, net foreign inflow has been over Rs. 11 billion.
The record inflow remains the most emphatic and credible achievement of the Colombo Bourse this year. The inflow is significant in the context of Rs. 19 billion outflow last year on top of Rs. 27 billion flight in 2010.
This week foreign investors have narrowed their pick on Chevron Lubricants and JKH.
Yesterday stocks fell to their lowest level in nearly eight weeks as investors settled month-end positions, while others held off bets until next week’s Budget and corporate earnings.
The rupee edged down on importers’ demand for dollars, dealers said.
The Colombo Stock Exchange’s main index fell 0.13% or 6.98 points, to end at 5,513.64, its lowest since 7 September.
“The market was down as it is the month end and many local investors are looking for direction, with the budget on the corner,” said a stockbroker who declined to be identified.
The Government will present the 2013 Budget on 8 November while several companies will release quarterly results next week.
Turnover on the Sri Lanka exchange was Rs. 477.2 million ($ 3.68 million), half of this year’s daily average of Rs. 925 million.
The rupee ended weaker at 130.20/25 to the dollar from Tuesday’s close of 130.15/25.
source - www.ft.lk
CSBA cheers SEC
The umbrella body for Sri Lanka’s brokering community, the Colombo Stock Brokers’ Association (CSBA), yesterday in a statement welcomed the change made by the SEC in the formula of computing credit and pledged to promote the country’s capital markets to local and international investors, in a bid to give much-needed boost for the Colombo Stock Exchange (CSE) through a collective effort to regain investor confidence.
“We wish to place on record that the new SEC Chairman and commission members reviewed our requests within a very reasonable time and were quick to understand and implement some of the urgent needs of the moment, e.g. computation of net capital. We specially appreciate the timely action taken by the Chairman and the commission members since on many occasions we brought this anomaly to the attention of the authorities to which there was no tangible response,” CSBA said.
According to CSBA, the net capital calculation formula resulted in continuous selling which kept the market depressed and inhibited the attraction of retail players to the market.
“In our view retail players are vital to create a sustainable market and our suggestion was well received the Chairman and commission members. We equally appreciate some of the changes made that were not part of our requests. As an association we fully endorse the view that recent changes will go a long way to rekindle the market in the short run and create liquidity in the long run and thereby sustain a vibrant market in the future.”
However, one should not expect miracles overnight since the positive market sentiment was destroyed for more than a year which drove the retailers away from our stock market, he added.
“Whilst on one hand the SEC had made the appropriate changes, it has introduced strict reporting guidelines to be implemented by the stock broking companies. As an association the CSBA we welcome these checks and balances that are necessary for the operation of a fair and transparent stock market.”
“It must be noted that buying shares on credit was brought to the market over a decade ago. Prior to 14 September 2010, brokers were allowed by the regulator to lend up to 10 times of a broker’s net capital. But post war when markets reacted positively, the benchmark All Share Index (ASI) reached 7,000 levels, at which point the brokering community by themselves requested the regulator to limit credit to three times the net capital, in order to restrain systematic risk,” CSBA said.
This was a move rightly done at the right time to limit counterparty risk to a lesser level from where it was, they claimed.
“However as it would have not eliminated the risk totally, as a further step the regulator introduced a haircut rule on debtors of brokers instead of the then used mark to market (fair value) rule for the calculation of the net capital or liquidity ratio of broking firms.”
With the market (ASPI) drastically dropping below 5,000 levels, brokers were confident that the haircut rule would be replaced with the mark to market rule.
“Nevertheless we did not request for the number of times of credit that a broker could extend to clients be reinstated to former levels as members felt that it was necessary to keep the counterparty risk under control until such time a proper risk management system was in place.”
“The majority view of the CSBA was that it may have been much more beneficial and desirable to investors if the measure was taken when the ASI was around 5,000 levels as the investors would have had the chance to utilise credit facilities at much lower market price levels.”
Furthermore, CSBA also called for the amendment of the Staff Trading Rule. “As per the previous rule, staff of broker firms were entitled to trade under their names and those of their family members subject to all orders being placed under a designated adviser and the same being approved by the compliance officer and/or CEO of the firm. This practice undoubtedly was fully transparent.
Furthermore, all staff trades were reported to the SEC and CSE so as to monitor/control any irregularity that may arise.”
However several months ago this sound and accepted practice was suspended due to certain transactions taking place.
“The majority view of the industry was to allow staff to deal under their names and that of their family members which is more transparent. If anyone was found violating action could have been taken against them as per the rules of the stock exchange.”
“So in this regard we, the CSBA, are much appreciative of the initiative taken by the Chairman of the Securities and Exchange Commission (SEC) of Sri Lanka, other commission members and to the management of the SEC to reinstate the former formula of calculating of debtors of stock brokers and allow staff trading to take place in a transparent manner.”
The above was a result of deliberations with members of the CSBA and the present Chairman of the SEC, who swiftly responded to remove an anomaly which prevailed in the market.
“We also wish to state in addition to the individual efforts taken by stock brokering companies to develop the industry, the CSBA is in the process of working jointly with the SEC and the CSE on developing the capital market and broker infrastructure. We are also committed to educating investors and promoting the Colombo Stock Exchange among both local as well as international investors.”
The CSBA has been in existence since 1995 and its members have played an active role in the overall best interest of developing the CSE.
source - www.ft.lk
“We wish to place on record that the new SEC Chairman and commission members reviewed our requests within a very reasonable time and were quick to understand and implement some of the urgent needs of the moment, e.g. computation of net capital. We specially appreciate the timely action taken by the Chairman and the commission members since on many occasions we brought this anomaly to the attention of the authorities to which there was no tangible response,” CSBA said.
According to CSBA, the net capital calculation formula resulted in continuous selling which kept the market depressed and inhibited the attraction of retail players to the market.
“In our view retail players are vital to create a sustainable market and our suggestion was well received the Chairman and commission members. We equally appreciate some of the changes made that were not part of our requests. As an association we fully endorse the view that recent changes will go a long way to rekindle the market in the short run and create liquidity in the long run and thereby sustain a vibrant market in the future.”
However, one should not expect miracles overnight since the positive market sentiment was destroyed for more than a year which drove the retailers away from our stock market, he added.
“Whilst on one hand the SEC had made the appropriate changes, it has introduced strict reporting guidelines to be implemented by the stock broking companies. As an association the CSBA we welcome these checks and balances that are necessary for the operation of a fair and transparent stock market.”
“It must be noted that buying shares on credit was brought to the market over a decade ago. Prior to 14 September 2010, brokers were allowed by the regulator to lend up to 10 times of a broker’s net capital. But post war when markets reacted positively, the benchmark All Share Index (ASI) reached 7,000 levels, at which point the brokering community by themselves requested the regulator to limit credit to three times the net capital, in order to restrain systematic risk,” CSBA said.
This was a move rightly done at the right time to limit counterparty risk to a lesser level from where it was, they claimed.
“However as it would have not eliminated the risk totally, as a further step the regulator introduced a haircut rule on debtors of brokers instead of the then used mark to market (fair value) rule for the calculation of the net capital or liquidity ratio of broking firms.”
With the market (ASPI) drastically dropping below 5,000 levels, brokers were confident that the haircut rule would be replaced with the mark to market rule.
“Nevertheless we did not request for the number of times of credit that a broker could extend to clients be reinstated to former levels as members felt that it was necessary to keep the counterparty risk under control until such time a proper risk management system was in place.”
“The majority view of the CSBA was that it may have been much more beneficial and desirable to investors if the measure was taken when the ASI was around 5,000 levels as the investors would have had the chance to utilise credit facilities at much lower market price levels.”
Furthermore, CSBA also called for the amendment of the Staff Trading Rule. “As per the previous rule, staff of broker firms were entitled to trade under their names and those of their family members subject to all orders being placed under a designated adviser and the same being approved by the compliance officer and/or CEO of the firm. This practice undoubtedly was fully transparent.
Furthermore, all staff trades were reported to the SEC and CSE so as to monitor/control any irregularity that may arise.”
However several months ago this sound and accepted practice was suspended due to certain transactions taking place.
“The majority view of the industry was to allow staff to deal under their names and that of their family members which is more transparent. If anyone was found violating action could have been taken against them as per the rules of the stock exchange.”
“So in this regard we, the CSBA, are much appreciative of the initiative taken by the Chairman of the Securities and Exchange Commission (SEC) of Sri Lanka, other commission members and to the management of the SEC to reinstate the former formula of calculating of debtors of stock brokers and allow staff trading to take place in a transparent manner.”
The above was a result of deliberations with members of the CSBA and the present Chairman of the SEC, who swiftly responded to remove an anomaly which prevailed in the market.
“We also wish to state in addition to the individual efforts taken by stock brokering companies to develop the industry, the CSBA is in the process of working jointly with the SEC and the CSE on developing the capital market and broker infrastructure. We are also committed to educating investors and promoting the Colombo Stock Exchange among both local as well as international investors.”
The CSBA has been in existence since 1995 and its members have played an active role in the overall best interest of developing the CSE.
source - www.ft.lk
Brokers’ association lauds SEC
The Colombo Stock Brokers’ Association (CSBA), perceived to be extremely critical of the Securities and Exchange Commission (SEC) under the leadership of Ms. Indrani Sugathadasa and Thilak Karunaratne, who both resigned under tremendous pressure for trying to clean up the country’s capital market, has commended the latest moves by the regulator, which is now headed by Dr. Nalaka Godahewa.
"The CSBA welcomed the change made by the SEC in the formula of computing credit and pledged to promote the country’s capital markets to local and international Investors, in a bid to give much-needed boost for the Colombo Stock Exchange (CSE) through a collective effort to regain investor confidence," the association said in a statement, a late response to recent regulatory changes which raised serious concerns amongst those pushing for a cleaner, fairer market.
Earlier this year, four broker firms had broken away from the association and defended the former SEC leadership’s regulatory stance, which has since been reversed.
"We wish to place on record that the new SEC Chairman and commission members reviewed our requests within a very reasonable time and were quick to understand and implement some of the urgent needs of the moment e.g. computation of net capital. We specially appreciate the timely action taken by the Chairman and the commission members since on many occasions we brought this anomaly to the attention of the authorities to which there was no tangible response," the CSBA said.
"According to CSBA, the net capital calculation formula resulted in continuous selling which kept the market depressed and inhibited the attraction of retail players to the market.
"In our view retail players are vital to create a sustainable market and our suggestion was well received the Chairman and commission members. We equally appreciate some of the changes made that were not part of our requests. As an association we fully endorse the view that recent changes will go a long way to rekindle the market in the short run and create liquidity in the long run and thereby sustain a vibrant market in the future
"However one should not expect miracles overnight since the positive market sentiment was destroyed for more than a year which drove the retailers away from our stock market, he added.
"Whilst on one hand the SEC had made the appropriate changes, it has introduced strict reporting guidelines to be implemented by the Stock Broking companies. As an association the CSBA we welcome these checks and balances that are necessary for the operation of a fair and transparent stock market."
"It must be noted that buying shares on credit was brought to the market over a decade ago. Prior to 14 September 2010, brokers were allowed by the regulator to lend up to 10 times of a broker’s net capital. But post war when markets reacted positively the benchmark - All Share Index (ASI) reached 7,000 levels at which point the brokering community by themselves requested the regulator to limit credit to three times the net capital, in order to restrain systematic risk. This was a move rightly done at the right time to limit counterparty risk to a lesser level from where it was, they claimed.
"However as it would have not eliminated the risk totally, as a further step the regulator introduced a haircut rule on debtors of brokers instead of the then used Mark to Market (Fair Value) Rule for the calculation of the net capital or liquidity ratio of broking firms.
"With the market (ASPI) drastically dropping below 5,000 levels brokers were confident that the haircut rule would be replaced with the mark to market rule.
"Nevertheless we did not request for the number of times of credit that a broker could extend to clients be reinstated to former levels as members felt that it was necessary to keep the counterparty risk under control until such time a proper Risk Management System was in place.
"The majority view of the CSBA was that it may have been much more beneficial and desirable to investors if the measure was taken when the ASI was around 5,000 levels as the investors would have had the chance to utilize credit facilities at much lower market price levels.
"Furthermore, CSBA also called for the amendment of the Staff Trading Rule.
"As per the previous rule, staff of broker firms were entitled to trade under their names and those of their family members subject to all orders being placed under a designated adviser and the same being approved by the Compliance Officer and / or CEO of the firm. This practice undoubtedly was fully transparent. Furthermore, all staff trades were reported to the SEC and CSE so as to monitor/control any irregularity that may arise."
"However several months ago this sound and accepted practice was suspended due to certain transactions taking place.
"The majority view of the industry was to allow staff to deal under their names and that of their family members which is more transparent. If anyone was found violating action could have been taken against them as per the rules of the stock exchange.
"So in this regard we the CSBA is much appreciative of the initiative taken by The Chairman of the Securities and Exchange Commission (SEC) of Sri Lanka, other Commission Members and to the Management of the SEC to reinstate the former formula of calculating of debtors of stock brokers and allow staff trading to take place in a transparent manner.
"The above was a result of deliberations with members of the CSBA & the present Chairman of the SEC who swiftly responded to remove an anomaly which prevailed in the market.
"We also wish to state in addition to the individual efforts taken by stock brokering companies to develop the industry, the CSBA is in the process of working jointly with the SEC and the CSE on developing the capital market and broker infrastructure. We are also committed to educating investors and promoting the Colombo Stock Exchange among both local as well as international investors.
"The CSBA has been in existence since 1995 and its members have played an active role in the overall best interest of developing the Colombo Stock Exchange (CSE)."
source - www.island.lk
Dialog consolidates performance with strong 3rd quarter
Dialog Axiata said yesterday it has consolidated its performance in FY12 with a strong third quarter.
It said the Group recorded strong revenue growth across Mobile, International, Digital Pay Television, Tele-infrastructure and Fixed line businesses to record a consolidated revenue of Rs. 41.5 b for the nine months ending 30 September 2012, demonstrating a significant growth of 24% YoY.
Group revenue for Q3 2012 was recorded at Rs. 14.5 b, reflecting growth of 3% QoQ. Group EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) for the first nine months of 2012 was recorded at Rs. 14.2 b, a significant increase of 21% relative to the corresponding period in 2011.
Group EBITDA margin for the nine months ended 30 September 2012 declined marginally by one percentage point on a YoY basis to 34%. Group EBITDA for Q3 2012 was recorded at Rs. 4.9 b up 5% QoQ. The Group EBITDA margin improved by one percentage point QoQ to reach 34%.
Non-operational performance below EBITDA for the first nine months is characterised by noncash translational foreign exchange losses amounting to Rs. 2.5 b, and a one-off write back of the company’s deferred tax provision of positive Rs. 2.3 b.
While non-cash foreign exchange losses accrued due to the devaluation of the SLR by 13.9% YTD, the deferred tax write back was effected subsequent to the company opting for a 2% post-tax holiday revenue tax with effect from 2013, in line with the terms of its Flagship Investor Agreement with the Board of Investment of Sri Lanka.
Group NPAT (Net Profit After Tax) for the nine months ended 30 September 2012 was accordingly recorded at Rs. 5.1 b, a significant improvement of 43% YoY.
Group NPAT improved significantly on a QoQ basis with Q3 2012 NPAT posted at Rs. 4.7 b compared to NPAT of Rs. 879 m in Q2 2012. NPAT growth QoQ is underpinned by the one-off deferred tax write back of Rs. 2.3 b and a non-cash foreign exchange gain of Rs. 447 m in the third quarter, in contrast with a total of Rs. 2.9 b in non cash foreign exchange losses recorded in the previous two quarters.
Group NPAT post normalisation for exceptional gains/charges (consisting of the non-cash foreign exchange loss of Rs. 2.5 b, deferred taxation reversal of Rs. 2.3 b and costs related to the Suntel acquisition amounting to Rs. 343 m), is recorded at Rs. 2 b for Q3 2012 and Rs. 5.6 b for the nine months ended September 2012 demonstrating a significant growth in normalised NPAT performance of 16% QoQ and 76% YoY.
Dialog Axiata PLC, featuring the Mobile, International and Tele-Infrastructure segments of the Group portfolio, continued to contribute a major share of Group Revenue (87%) and of Group EBITDA (88%). Company revenues grew by 19% compared to the 1st nine months of 2011 and 3% relative to Q2 2012. The company’s revenue trajectory was driven by the growth in usage and the continued increase in its mobile subscriber base which was recorded at 7.6 million as at the end of Q3 2012.
On the backdrop of robust performance in revenue, company EBITDA grew by 15% YoY to be recorded at Rs. 12.5 b for the first nine months of the year. Company EBITDA for Q3 2012 was recorded at Rs. 4.3 b an increase of 6% relative to Q2 2012.
On the backdrop of strong EBITDA performance, company NPAT grew by 21% YoY to be recorded at Rs. 5.2 b inclusive of the impact of the deferred tax reversal of positive Rs. 2.3 b and non-cash forex translational loss of negative Rs. 2.5 b. Company NPAT normalised for the exceptional items was recorded at Rs. 5.7 b for the nine months ended 30 September 2012 an increase of 45% relative to the first nine months of 2011.
Dialog Television (DTV) continued its positive growth momentum recording revenue growth of 29% YoY to reach Rs. 2.2 b for the first nine months of 2012. In the backdrop of aggressive revenue growth, YTD EBITDA was posted at Rs. 498 m, a 32% increase YoY. DTV NPAT however decreased significantly QoQ due to cost expansion arising from the launch of High Definition Services leading to a negative NPAT of Rs. 13 m for Q3 2012.
On a YoY basis NPAT demonstrated a healthy growth to reach Rs. 96 m for the first nine months of 2012 relative to a net loss of Rs. 23 m posted in the corresponding period in 2011. The DTV Pay Television subscriber base increased by over 50,000 subscribers on a YoY basis to surpass 250,000 subscribers as at end Q3 2012.
Dialog Broadband Networks, featuring Dialog’s fixed telecommunications business, continued to consolidate performance trends of the previous quarters, to record its 10th successive quarter of positive EBITDA in Q3 2012.
Aided by the significant expansion in scale and consolidated operating performance following the merger and amalgamation of Suntel Limited, DBN revenue for the nine months ending 30 September 2012 was recorded at Rs. 3.7 b, a significant expansion of 112% YoY. On the back of synergies achieved through the Suntel amalgamation, YTD EBITDA improved by 159% to reach Rs. 1.2 b for the nine months ended 30 September 2012.
Accordingly DBN NPAT for the first nine months of 2012 was recorded at negative Rs. 126 m, a strong 81% improvement compared to the negative NPAT of Rs 658Mn posted in the corresponding period in 2011.
The Group continued to make aggressive investments in consolidating its leadership in terms of nationwide ICT infrastructure footprint, and the application of cutting edge technology across its mobile, fixed and broadband businesses.
Group capital expenditure for the nine months ended 30 September 2012 was recorded at Rs. 10.4 b. Capital expenditure was directed in the main towards strategic investments in high speed mobile broadband and Optical Fibre Network (OFN) expansion projects, further strengthening the Group’s coverage and quality leadership position through the upgrade of its high speed broadband infrastructure.
Notwithstanding the significant 56% YoY growth in Capex, on the back of strong EBITDA performance the Group recorded positive Free Cash Flows (FCF) of Rs. 3.8 b for the first nine months of 2012.
In line with the generation of healthy free cash flows, the Dialog Group continued to maintain a structurally robust balance sheet with the Group’s net debt to EBITDA ratio improving from 0.86x as at end September 2011 to 0.77x as at end of September 2012.
source - www.ft.lk
It said the Group recorded strong revenue growth across Mobile, International, Digital Pay Television, Tele-infrastructure and Fixed line businesses to record a consolidated revenue of Rs. 41.5 b for the nine months ending 30 September 2012, demonstrating a significant growth of 24% YoY.
Group revenue for Q3 2012 was recorded at Rs. 14.5 b, reflecting growth of 3% QoQ. Group EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) for the first nine months of 2012 was recorded at Rs. 14.2 b, a significant increase of 21% relative to the corresponding period in 2011.
Group EBITDA margin for the nine months ended 30 September 2012 declined marginally by one percentage point on a YoY basis to 34%. Group EBITDA for Q3 2012 was recorded at Rs. 4.9 b up 5% QoQ. The Group EBITDA margin improved by one percentage point QoQ to reach 34%.
Non-operational performance below EBITDA for the first nine months is characterised by noncash translational foreign exchange losses amounting to Rs. 2.5 b, and a one-off write back of the company’s deferred tax provision of positive Rs. 2.3 b.
While non-cash foreign exchange losses accrued due to the devaluation of the SLR by 13.9% YTD, the deferred tax write back was effected subsequent to the company opting for a 2% post-tax holiday revenue tax with effect from 2013, in line with the terms of its Flagship Investor Agreement with the Board of Investment of Sri Lanka.
Group NPAT (Net Profit After Tax) for the nine months ended 30 September 2012 was accordingly recorded at Rs. 5.1 b, a significant improvement of 43% YoY.
Group NPAT improved significantly on a QoQ basis with Q3 2012 NPAT posted at Rs. 4.7 b compared to NPAT of Rs. 879 m in Q2 2012. NPAT growth QoQ is underpinned by the one-off deferred tax write back of Rs. 2.3 b and a non-cash foreign exchange gain of Rs. 447 m in the third quarter, in contrast with a total of Rs. 2.9 b in non cash foreign exchange losses recorded in the previous two quarters.
Group NPAT post normalisation for exceptional gains/charges (consisting of the non-cash foreign exchange loss of Rs. 2.5 b, deferred taxation reversal of Rs. 2.3 b and costs related to the Suntel acquisition amounting to Rs. 343 m), is recorded at Rs. 2 b for Q3 2012 and Rs. 5.6 b for the nine months ended September 2012 demonstrating a significant growth in normalised NPAT performance of 16% QoQ and 76% YoY.
Dialog Axiata PLC, featuring the Mobile, International and Tele-Infrastructure segments of the Group portfolio, continued to contribute a major share of Group Revenue (87%) and of Group EBITDA (88%). Company revenues grew by 19% compared to the 1st nine months of 2011 and 3% relative to Q2 2012. The company’s revenue trajectory was driven by the growth in usage and the continued increase in its mobile subscriber base which was recorded at 7.6 million as at the end of Q3 2012.
On the backdrop of robust performance in revenue, company EBITDA grew by 15% YoY to be recorded at Rs. 12.5 b for the first nine months of the year. Company EBITDA for Q3 2012 was recorded at Rs. 4.3 b an increase of 6% relative to Q2 2012.
On the backdrop of strong EBITDA performance, company NPAT grew by 21% YoY to be recorded at Rs. 5.2 b inclusive of the impact of the deferred tax reversal of positive Rs. 2.3 b and non-cash forex translational loss of negative Rs. 2.5 b. Company NPAT normalised for the exceptional items was recorded at Rs. 5.7 b for the nine months ended 30 September 2012 an increase of 45% relative to the first nine months of 2011.
Dialog Television (DTV) continued its positive growth momentum recording revenue growth of 29% YoY to reach Rs. 2.2 b for the first nine months of 2012. In the backdrop of aggressive revenue growth, YTD EBITDA was posted at Rs. 498 m, a 32% increase YoY. DTV NPAT however decreased significantly QoQ due to cost expansion arising from the launch of High Definition Services leading to a negative NPAT of Rs. 13 m for Q3 2012.
On a YoY basis NPAT demonstrated a healthy growth to reach Rs. 96 m for the first nine months of 2012 relative to a net loss of Rs. 23 m posted in the corresponding period in 2011. The DTV Pay Television subscriber base increased by over 50,000 subscribers on a YoY basis to surpass 250,000 subscribers as at end Q3 2012.
Dialog Broadband Networks, featuring Dialog’s fixed telecommunications business, continued to consolidate performance trends of the previous quarters, to record its 10th successive quarter of positive EBITDA in Q3 2012.
Aided by the significant expansion in scale and consolidated operating performance following the merger and amalgamation of Suntel Limited, DBN revenue for the nine months ending 30 September 2012 was recorded at Rs. 3.7 b, a significant expansion of 112% YoY. On the back of synergies achieved through the Suntel amalgamation, YTD EBITDA improved by 159% to reach Rs. 1.2 b for the nine months ended 30 September 2012.
Accordingly DBN NPAT for the first nine months of 2012 was recorded at negative Rs. 126 m, a strong 81% improvement compared to the negative NPAT of Rs 658Mn posted in the corresponding period in 2011.
The Group continued to make aggressive investments in consolidating its leadership in terms of nationwide ICT infrastructure footprint, and the application of cutting edge technology across its mobile, fixed and broadband businesses.
Group capital expenditure for the nine months ended 30 September 2012 was recorded at Rs. 10.4 b. Capital expenditure was directed in the main towards strategic investments in high speed mobile broadband and Optical Fibre Network (OFN) expansion projects, further strengthening the Group’s coverage and quality leadership position through the upgrade of its high speed broadband infrastructure.
Notwithstanding the significant 56% YoY growth in Capex, on the back of strong EBITDA performance the Group recorded positive Free Cash Flows (FCF) of Rs. 3.8 b for the first nine months of 2012.
In line with the generation of healthy free cash flows, the Dialog Group continued to maintain a structurally robust balance sheet with the Group’s net debt to EBITDA ratio improving from 0.86x as at end September 2011 to 0.77x as at end of September 2012.
source - www.ft.lk
Dipped Products Group records improved first half sales
Sustained revenues in Hand Protection together with the contribution from Plantations have enabled Dipped Products PLC (DPL), a Hayleys Group subsidiary company, to post strong operational results for the first half of 2012-13.
According to the Group’s income statement released to the Colombo Stock Exchange, turnover for the six months ending 30th September 2012 increased to Rs 11.5 billion from Rs 9.6 billion for the corresponding period of the previous year.
Turnover from Hand Protection improved by 4 per cent to Rs 7,305 million, with ICOGUANTI S.p.A, DPL’s Italian marketing company increasing sales by 4 per cent to Rs 2,129 million; and Dipped Products Thailand (DPTL) recording a turnover increase of 3 per cent to Rs 1,145 million.
DPL’s Plantation sector interests, represented by Kelani Valley Plantations PLC (KVPL) and Talawakelle Tea Estates PLC (TTEL) contributed Rs 4,649 million to turnover in the period reviewed, with the consolidation of turnover from Hayleys Plantation Services, the owners of TTEL.
DPL’s profit before tax for the six months was Rs 924 million, an increase of 36 per cent over the Rs 681 million (excluding capital gains of Rs 1,141 million) reported in the corresponding half of last year. Profit after tax for the period reviewed was Rs 631 million as against Rs 439 million for the same period last year.
Commenting on the figures for the first half of the year, Dipped Products Managing Director Dr. Mahesha Ranasoma said: "We are experiencing demand volatility attributable to the European economic slowdown, but our focused marketing efforts have enabled us to sustain sales. In this context, our top line growth and profit performance are noteworthy."
He said the company regularly monitors opportunities in the global market and pursues new customers despite the challenging environment in export markets.
Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market. The company’s products now reach 70 countries.
The Board of Directors of Dipped Products PLC comprises Messrs A. M. Pandithage (Chairman), Dr. M. Ranasoma (Managing Director) J. A. G. Anandarajah, G. K. Seneviratne, N. Y. Fernando, R. Seevaratnam, F. Mohideen , K. A. L. S. Fernando, L. G. S. Gunawardena, S. C. Ganegoda , K. D. D. Perera and M. Bottino.
source - www.island.lk
LOLC Group companies rated ‘A-’
The LOLC Group said yesterday that the holding company and its subsidiaries were independently rated by ICRA Lanka Ltd since July this year. ICRA Lanka Ltd is a whollyowned subsidiary of ICRA Ltd, which is an associate of Moody’s Investors Service.
LOLC PLC, Lanka ORIX Finance PLC and Commercial Leasing & Finance Ltd were assigned an Issuer Rating of ‘[SL] A-‘with stable outlook by ICRA Lanka Ltd from July to September this year.
Issuing a statement, LOLC’s Group Managing Director/CEO, Kapila Jayawardena said, "Since July this year, we have been rated independently by ICRA Lanka Ltd, and therefore have not consulted any other rating agency for issuer ratings".
Excerpts from ICRA’s ratings reviews follows:
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ with stable outlook to Lanka Orix Leasing Company PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors the LOLC Group’s long track record of profitable operations, its position as the market leader in the Sri Lankan leasing business market, professional and experienced management team, adequate risk management systems with strong retail franchise. The rating also takes into account the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s) which has a 30% stake in the entity. ICRA has taken note of the ongoing restructuring exercise wherein it will transition into a holding company and the finance businesses will be carried out in its subsidiaries, leading to moderation of the standalone earnings profile of the holding company (HoldCo) as the existing lending portfolio runs down.
However, given the significant operational and financial linkages with the subsidiaries (especially pertaining to financial services), ICRA Lanka has taken a consolidated rating view of the HoldCo and the key asset financing subsidiaries. The view is corroborated by the service level agreements between LOLC and its subsidiaries to upstream cash flows. LOLC’s standalone earnings would mainly comprise of shared services fees and dividends from subsidiaries and investment gains. ICRA has also taken note of the management’s commitment to de-leverage the HoldCo from the current gearing of 2x as on March 2012 to 1.2x by March 2013 by reducing intra-group exposures and the run-down of its lending book. Maintaining stable cash flows and a deleveraging of the HoldCo would remain key sensitivities.
Lanka ORIX Finance PLC
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Lanka OrixFinance PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors LOFC’s close operational and financial linkages with the LOLC Group in its position as the flagship subsidiary of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries. The rating also factors LOFC’s robust franchise, healthy competitive position given its superior market share and a professional and experienced management team.
ICRA has taken note of the significant gaps in LOFC’s asset-liability maturity profile, particularly in the short term buckets, arising from the short term nature of funding, both retail deposits and institutional funds. While LOFC’s refinancing ability remains good through retail and institutional franchise, ICRA Lanka expects the company to raise longer-tenure funds to progressively address this gap. LOFC’s financial leverage has increased as a result of rapid portfolio growth despite capital infusion from the Parent. However, lower incremental portfolio growth, stable internal accruals are expected to support capitalization levels. The core profitability has been improving in the past few years backed by higher interest spreads, while operating costs have reduced because of economies of scale. Incrementally, interest spreads could shrink marginally in light of the prevailing interest rate environment; nonetheless ICRA Lanka expects profitability to remain steady provided the level of credit costs are kept under control.
Commercial Leasing & Finance Ltd
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Commercial Leasing and Finance Limited (CLC or the Company). The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors the operational and financial linkages with the LOLC Group in its position as a strategic finance company of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries considering the HoldCo or the Group could rely on the key financial services subsidiaries for support. The rating takes into account the demonstrated track record of operating profitably in the retail finance segment, well established franchise combined with a professional and experienced management team and comfortable capitalization levels. The rating draws comfort from the good overall asset quality maintained despite the recent increase in slippages in its factoring book and the current adequate liquidity position supported by limited asset liability mismatch.
source - www.island.lk
LOLC PLC, Lanka ORIX Finance PLC and Commercial Leasing & Finance Ltd were assigned an Issuer Rating of ‘[SL] A-‘with stable outlook by ICRA Lanka Ltd from July to September this year.
Issuing a statement, LOLC’s Group Managing Director/CEO, Kapila Jayawardena said, "Since July this year, we have been rated independently by ICRA Lanka Ltd, and therefore have not consulted any other rating agency for issuer ratings".
Excerpts from ICRA’s ratings reviews follows:
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ with stable outlook to Lanka Orix Leasing Company PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors the LOLC Group’s long track record of profitable operations, its position as the market leader in the Sri Lankan leasing business market, professional and experienced management team, adequate risk management systems with strong retail franchise. The rating also takes into account the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s) which has a 30% stake in the entity. ICRA has taken note of the ongoing restructuring exercise wherein it will transition into a holding company and the finance businesses will be carried out in its subsidiaries, leading to moderation of the standalone earnings profile of the holding company (HoldCo) as the existing lending portfolio runs down.
However, given the significant operational and financial linkages with the subsidiaries (especially pertaining to financial services), ICRA Lanka has taken a consolidated rating view of the HoldCo and the key asset financing subsidiaries. The view is corroborated by the service level agreements between LOLC and its subsidiaries to upstream cash flows. LOLC’s standalone earnings would mainly comprise of shared services fees and dividends from subsidiaries and investment gains. ICRA has also taken note of the management’s commitment to de-leverage the HoldCo from the current gearing of 2x as on March 2012 to 1.2x by March 2013 by reducing intra-group exposures and the run-down of its lending book. Maintaining stable cash flows and a deleveraging of the HoldCo would remain key sensitivities.
Lanka ORIX Finance PLC
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Lanka OrixFinance PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors LOFC’s close operational and financial linkages with the LOLC Group in its position as the flagship subsidiary of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries. The rating also factors LOFC’s robust franchise, healthy competitive position given its superior market share and a professional and experienced management team.
ICRA has taken note of the significant gaps in LOFC’s asset-liability maturity profile, particularly in the short term buckets, arising from the short term nature of funding, both retail deposits and institutional funds. While LOFC’s refinancing ability remains good through retail and institutional franchise, ICRA Lanka expects the company to raise longer-tenure funds to progressively address this gap. LOFC’s financial leverage has increased as a result of rapid portfolio growth despite capital infusion from the Parent. However, lower incremental portfolio growth, stable internal accruals are expected to support capitalization levels. The core profitability has been improving in the past few years backed by higher interest spreads, while operating costs have reduced because of economies of scale. Incrementally, interest spreads could shrink marginally in light of the prevailing interest rate environment; nonetheless ICRA Lanka expects profitability to remain steady provided the level of credit costs are kept under control.
Commercial Leasing & Finance Ltd
ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Commercial Leasing and Finance Limited (CLC or the Company). The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors the operational and financial linkages with the LOLC Group in its position as a strategic finance company of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries considering the HoldCo or the Group could rely on the key financial services subsidiaries for support. The rating takes into account the demonstrated track record of operating profitably in the retail finance segment, well established franchise combined with a professional and experienced management team and comfortable capitalization levels. The rating draws comfort from the good overall asset quality maintained despite the recent increase in slippages in its factoring book and the current adequate liquidity position supported by limited asset liability mismatch.
source - www.island.lk
Bourse edges down at close though volumes up slightly
Block trades generate over half the day’s turnover
Although volumes on the Colombo bourse edged up yesterday and the indices were in positive territory most of the day, the market saw both the ASPI and the Milanka losing marginally at close of trading while the S&P Index gained slightly.
Turnover at Rs.477.2 million was up from the previous day’s Rs.307.8 million while the All Share Price Index lost 6.98 points (0.13%), the Milanka was down 4.05 points (0.08%) and S&P up 8.58 points (0.29%) with 96 gainers behind 108 losers while 107 counters closed flat.
"The indices ended marginally lower amid low turnover levels with activity on JKH and LLUB collectively accounting for over 57% of the day's turnover," John Keells Stockbrokers said.
Foreign purchases amounted to Rs. 170.90 million during the day, realising a net inflow of Rs. 163.98 million.
Over half the day’s turnover came off crossings in JKH and Chevron accounting for Rs.273.5 million of the value generated yesterday. JKH saw five crossings of a total of 1.1 million shares at a price of Rs.206 contributing Rs.228.5 million to turnover while Chevron saw a crossing of 225,000 shares at Rs.200 in a deal worth Rs.45 million.
The big business generators on the trading floor were LIOC closing 30 cents up at Rs.17.80 on nearly 2.76 million shares done between Rs.17.40 and Rs.17.90 contributing Rs.46.4 million to turnover, Ceylon Theatres, down Rs.3.30 to close at Rs.130.30 on over 0.1 million shares done between Rs.130.20 and Rs.133.50 generating Rs.17.3 million turnover with JKH closing Rs.1.60 down at Rs.205.20 on 41,751 shares done between Rs.205 and Rs.208 contributing Rs.8.6 million to turnover.
Brokers said that the market was at a seven-week low ahead of the November 8 Budget with most investors on the sidelines.
They said that the LIOC trades included nine large parcels at a price of Rs.17.50 and Ceylon Theatres too saw many large parcels done in quick succession at a price of Rs.130.30.
Lion Brewery continued to gain closing Rs.5 up at Rs.255 on 31,817 shares done at Rs.255. Lanka Lubricants saw 38,064 shares done on the floor between Rs.198 and Rs.201 closing 90 cents down at Rs.200.
Two banking stocks, NDB and Sampath saw modest volumes transacted and were at the bottom of the most traded list with NDB down 40 cents to Rs.133.60 on 26,304 shares and Sampath up Rs.1.90 to Rs.195.90 on 13,600 shares.
source - www.island.lk
Although volumes on the Colombo bourse edged up yesterday and the indices were in positive territory most of the day, the market saw both the ASPI and the Milanka losing marginally at close of trading while the S&P Index gained slightly.
Turnover at Rs.477.2 million was up from the previous day’s Rs.307.8 million while the All Share Price Index lost 6.98 points (0.13%), the Milanka was down 4.05 points (0.08%) and S&P up 8.58 points (0.29%) with 96 gainers behind 108 losers while 107 counters closed flat.
"The indices ended marginally lower amid low turnover levels with activity on JKH and LLUB collectively accounting for over 57% of the day's turnover," John Keells Stockbrokers said.
Foreign purchases amounted to Rs. 170.90 million during the day, realising a net inflow of Rs. 163.98 million.
Over half the day’s turnover came off crossings in JKH and Chevron accounting for Rs.273.5 million of the value generated yesterday. JKH saw five crossings of a total of 1.1 million shares at a price of Rs.206 contributing Rs.228.5 million to turnover while Chevron saw a crossing of 225,000 shares at Rs.200 in a deal worth Rs.45 million.
The big business generators on the trading floor were LIOC closing 30 cents up at Rs.17.80 on nearly 2.76 million shares done between Rs.17.40 and Rs.17.90 contributing Rs.46.4 million to turnover, Ceylon Theatres, down Rs.3.30 to close at Rs.130.30 on over 0.1 million shares done between Rs.130.20 and Rs.133.50 generating Rs.17.3 million turnover with JKH closing Rs.1.60 down at Rs.205.20 on 41,751 shares done between Rs.205 and Rs.208 contributing Rs.8.6 million to turnover.
Brokers said that the market was at a seven-week low ahead of the November 8 Budget with most investors on the sidelines.
They said that the LIOC trades included nine large parcels at a price of Rs.17.50 and Ceylon Theatres too saw many large parcels done in quick succession at a price of Rs.130.30.
Lion Brewery continued to gain closing Rs.5 up at Rs.255 on 31,817 shares done at Rs.255. Lanka Lubricants saw 38,064 shares done on the floor between Rs.198 and Rs.201 closing 90 cents down at Rs.200.
Two banking stocks, NDB and Sampath saw modest volumes transacted and were at the bottom of the most traded list with NDB down 40 cents to Rs.133.60 on 26,304 shares and Sampath up Rs.1.90 to Rs.195.90 on 13,600 shares.
source - www.island.lk
Subscribe to:
Posts (Atom)