A staggering 78 securities had played the Securities and Exchange Commission (SEC) imposed price band during its first year of operation as of last week.
The 78 securities were inclusive of several of those companies which came repeatedly under the price band, which has been in imposition since 23 September 2010. The price band of 10% was originally imposed for 15 market days and was subsequently reduced to five days.
The most gullible was Alufab, which saw itself in the price band six times in different periods, whilst Colombo Land and East West got captured thrice along with Blue Diamonds, though the latter’s securities included non-voting share as well.
Securities of at least over a dozen companies played the band twice, whilst within the 78 were those that came under the band only once.
Penny, speculative and undervalued stocks were frequent players of the band, whilst a few fundamentally solid companies also played. In terms of companies the first year saw 52 firms coming under the band.
Preceding its imposition, Environmental Resources Investments (ERI) and Dankotuwa Porcelain (DPL) along with Blue Diamonds were among target stocks to instil discipline via the price band, while only Blue Diamond remained erratic and susceptible. None of ERI securities and DPL came under the band.
Whilst Vallibel Finance was the first to be slapped with the price band on 23 September last year, Asian Alliance Insurance was the latest, which will finish its five-day languish on Tuesday. On the positive side, no securities were added to the price band as it marked its first anniversary on Friday.
The price band, though revised, has remained contentious. Despite recommendations for its withdrawal and replacement with the more acceptable circuit breaker method, the SEC one year on is yet to feel comfortable and confident.
The first anniversary is replete with multiple cases when securities rose irrespective of being under the price band, though within permissible levels. Of late there have been instances where some scheming investors used the price band as a benchmark to drive the stock up as there was a perception that a security playing the band had greater upside, especially among penny and speculative stocks. The latter scenario proved original critics wrong that the band was a deterrent to check volatility and many investors were happy to cash in on securities which were susceptible.
However, some analysts have remained emphatic with regard to the benefits of price band, hence suggest it should be continued. “The price band is effective to stem any extraordinarily manipulative bull runs as well as extreme volatility,” they opined.
But critics say the price band remains an overhang and is yet another thorn in an already overregulated market. Its continuity also reaffirms the lack of confidence on the part of the regulator.
“Is SEC saying one year on the market hadn’t disciplined itself and if so, the price band and other measures, both old and new, have failed to shore up SEC’s confidence, exposing the regulator’s vulnerability than the very market?” they claimed.
The price band and other regulatory factors are being showcased as key reasons for the persistent bearish sentiments throughout this year. One analyst even quipped that if not for the very stocks that SEC had perceived to be notorious as well as speculative play, the market’s status would have been far worse.
The world’s most consistent best performer for two years until 2010, the Colombo Bourse’s return year to date as of last week was only 1.5% in terms of the All Share Index whilst the Milanka Index was down 15%.
However, independent analyst cited overall lack of interest from foreign and local institutional investors as well as volatile global conditions as contributing factors for the Colombo bourse’s slip, in addition to over-regulation.
Amidst claims and counter arguments, there is consensus that equities in the current scheme of things are most attractive, hence plenty of buying opportunities. Cash however is hard to come by and new investors are relatively small in value though their numbers are increasing.
source - www.ft.lk
Tuesday, September 27, 2011
AAI in Forbes Asia’s ‘Best under a US$ Billion’
Forbes Asia announced Asian Alliance Insurance PLC as one of the four Sri Lankan companies selected for “Best under US$ Billion” for 2011, an annual review of small and mid sized companies in Asia with a turnover less than US$ One Billion.
The criterion for the selection to the exclusive list included profitability, growth, modest indebtedness and future prospects. Another vital aspect was the process of management to guide the company through the global credit crunch of 2008 with little or no impact to operations.
The initial list consisted of 15,000 entities which were pruned down to 200 companies to which Asian Alliance Insurance PLC was selected.
Posting a profit before tax of Rs 371 million in 2010, the highest ever at Asian Alliance to date, Life insurance business contributed Rs 254 million and Non Life recorded a profit of Rs 117 million towards this outstanding performance. The company recorded a Gross Written Premium (GWP) of Rs 1,673 million, from both Life and Non Life businesses; a growth of 11% over the previous year. Life recorded a GWP of Rs 1,242 million with its Annualized New Business Premium growth of 35% reaching a value of Rs 600 million, maintaining the highest levels in the industry.
RAM Rating upgraded the claims-paying ability rating of Asian Alliance Insurance PLC from BB+ to BBB-. This followed the completion of a fully-subscribed Rights Issue for a value of Rs 812.5 million.
source - www.dailynews.lk
The criterion for the selection to the exclusive list included profitability, growth, modest indebtedness and future prospects. Another vital aspect was the process of management to guide the company through the global credit crunch of 2008 with little or no impact to operations.
The initial list consisted of 15,000 entities which were pruned down to 200 companies to which Asian Alliance Insurance PLC was selected.
Posting a profit before tax of Rs 371 million in 2010, the highest ever at Asian Alliance to date, Life insurance business contributed Rs 254 million and Non Life recorded a profit of Rs 117 million towards this outstanding performance. The company recorded a Gross Written Premium (GWP) of Rs 1,673 million, from both Life and Non Life businesses; a growth of 11% over the previous year. Life recorded a GWP of Rs 1,242 million with its Annualized New Business Premium growth of 35% reaching a value of Rs 600 million, maintaining the highest levels in the industry.
RAM Rating upgraded the claims-paying ability rating of Asian Alliance Insurance PLC from BB+ to BBB-. This followed the completion of a fully-subscribed Rights Issue for a value of Rs 812.5 million.
source - www.dailynews.lk
Mix bag of opinions over OGL mandatory offer
By Channa Fernandopulle
The independent advisors’ report on the mandatory offer by S. H. M. Rishan, together with PCH Holdings Pvt Limited, for Orient Garments PLC has stated that the price offered is unattractive according to the current market price as well as three of the four methodologies used in its valuation.
The three methods—which concluded the offer price as unattractive— employed by the independent advisor in its valuation were based on the company’s Price to Book Value, Market PER (Price Earnings Ration) and Sector PER.
Based on the market price to book value basis, the offer is at a discount of 22.37% according to the report.
The report has further stated that the offer is at a discount of 17.2% according to the sector price to book value and at a 46.59% discount according to the market price earnings ratio with a share price of Rs.52.43 as at March 31, 2011.
However, the report carried out by B. R. De Silva & Co Chartered Accountants said that according to the Net Assets of the company, the offer of Rs.28.00 per share presents a premium of 148.38% per share.
PCH Holdings and Rishan, its Chairman, acquired a 51% stake in OGL at a total price of nearly Rs.600 million in early August.
OGL was previously owned by the Finco Group. Managing Director of OGL, Priyanjith Weerasooria, at the time of acquisition had stated that OGL was seeking to expand operations into Bangladesh and China and was looking for a partner in this venture.
Weerasooria had been quoted at the time as saying: “Finco group will continue with its remaining 19% stake of the company and I will be on board during this smooth transition period until the company expands in to region.”
In June, OGL started trading at a reference price of Rs.23 when high net-worth investor Dr. T. Senthilverl at the time bought 9 million shares or 16.39% stake at Rs.28 per share in a deal worth Rs.252 million. The company’s issued share capital stands at 54.9 million shares
.
PCH acquires internet research company
PC House PLC yesterday said that it acquired 90 per cent of Infoserve Private Limited, a Board of Investment approved Sri Lanka based company that provides internet research for Rs.45 million.
Inforserve operates under the brand name "athandz" and specializes in gather, filtering, and summarizing data on behalf of clients to suit their needs.
"This data is gathered by doing extensive research on the internet using both free and paid information sources including search engines, market intelligence portals and specialized and general press website,” PC House said in its disclosure which announced the acquisition.
It also said that the acquisition is in line with the PCH group's stated policy of increasing its reach in the Business Process Outsourcing and Knowledge Process space of the IT industry.
source - www.dailymirror.lk
The independent advisors’ report on the mandatory offer by S. H. M. Rishan, together with PCH Holdings Pvt Limited, for Orient Garments PLC has stated that the price offered is unattractive according to the current market price as well as three of the four methodologies used in its valuation.
The three methods—which concluded the offer price as unattractive— employed by the independent advisor in its valuation were based on the company’s Price to Book Value, Market PER (Price Earnings Ration) and Sector PER.
Based on the market price to book value basis, the offer is at a discount of 22.37% according to the report.
The report has further stated that the offer is at a discount of 17.2% according to the sector price to book value and at a 46.59% discount according to the market price earnings ratio with a share price of Rs.52.43 as at March 31, 2011.
However, the report carried out by B. R. De Silva & Co Chartered Accountants said that according to the Net Assets of the company, the offer of Rs.28.00 per share presents a premium of 148.38% per share.
PCH Holdings and Rishan, its Chairman, acquired a 51% stake in OGL at a total price of nearly Rs.600 million in early August.
OGL was previously owned by the Finco Group. Managing Director of OGL, Priyanjith Weerasooria, at the time of acquisition had stated that OGL was seeking to expand operations into Bangladesh and China and was looking for a partner in this venture.
Weerasooria had been quoted at the time as saying: “Finco group will continue with its remaining 19% stake of the company and I will be on board during this smooth transition period until the company expands in to region.”
In June, OGL started trading at a reference price of Rs.23 when high net-worth investor Dr. T. Senthilverl at the time bought 9 million shares or 16.39% stake at Rs.28 per share in a deal worth Rs.252 million. The company’s issued share capital stands at 54.9 million shares
.
PCH acquires internet research company
PC House PLC yesterday said that it acquired 90 per cent of Infoserve Private Limited, a Board of Investment approved Sri Lanka based company that provides internet research for Rs.45 million.
Inforserve operates under the brand name "athandz" and specializes in gather, filtering, and summarizing data on behalf of clients to suit their needs.
"This data is gathered by doing extensive research on the internet using both free and paid information sources including search engines, market intelligence portals and specialized and general press website,” PC House said in its disclosure which announced the acquisition.
It also said that the acquisition is in line with the PCH group's stated policy of increasing its reach in the Business Process Outsourcing and Knowledge Process space of the IT industry.
source - www.dailymirror.lk
AAIC shares hit record high amidst retail frenzy
By Indika Sakalasooriya
Shares of Asian Alliance Insurance PLC (AAIC) yesterday hit a record high of Rs.221.60 with 132, 700 shares trading while concluding with no sellers on the board. However, the largest single trade for the day was just 5, 000 shares.
The AAIC share opened trading at Rs.194.1 and hit the intraday high of Rs.221.60, which is a record high for AAIC, and closed at the same price. The lowest price it traded during the day was Rs.194. Since Softlogic Holdings (SHL) and/or Soflogic Capital (SCAP) was believed to have sold 1.5 million shares or 4 per cent of AAIC to investor Dilith Jayaweera at Rs.121 per share, nearly 900, 000 AAIC shares have traded in the Colombo bourse to date. On September 21, 214, 500 AAIC shares traded between Rs.180-Rs.202 while on September 22, 183, 600 shares traded between Rs.190-Rs.202. On September 23, 363, 500 shares traded between Rs.174-Rs.209.
On September 20 alone, 1.8 million AAIC shares traded with two crossings of 750, 000 shares, each at Rs.121, which were believed to have bought by Jayaweera.
According to brokers, the seller of shares should be SHL and/or SCAP as with the closing of the AAIC mandatory offer, following Richard Pieris group divesting its 25 per cent stake, SHL and SCAP together held 98.59 per cent of AAIC.
However, despite both SHL and SCAP being public companies, no disclosure has been filed to the Colombo Stock Exchange relating to a sale of shares so far.
source - www.dailymirror.lk
Shares of Asian Alliance Insurance PLC (AAIC) yesterday hit a record high of Rs.221.60 with 132, 700 shares trading while concluding with no sellers on the board. However, the largest single trade for the day was just 5, 000 shares.
The AAIC share opened trading at Rs.194.1 and hit the intraday high of Rs.221.60, which is a record high for AAIC, and closed at the same price. The lowest price it traded during the day was Rs.194. Since Softlogic Holdings (SHL) and/or Soflogic Capital (SCAP) was believed to have sold 1.5 million shares or 4 per cent of AAIC to investor Dilith Jayaweera at Rs.121 per share, nearly 900, 000 AAIC shares have traded in the Colombo bourse to date. On September 21, 214, 500 AAIC shares traded between Rs.180-Rs.202 while on September 22, 183, 600 shares traded between Rs.190-Rs.202. On September 23, 363, 500 shares traded between Rs.174-Rs.209.
On September 20 alone, 1.8 million AAIC shares traded with two crossings of 750, 000 shares, each at Rs.121, which were believed to have bought by Jayaweera.
According to brokers, the seller of shares should be SHL and/or SCAP as with the closing of the AAIC mandatory offer, following Richard Pieris group divesting its 25 per cent stake, SHL and SCAP together held 98.59 per cent of AAIC.
However, despite both SHL and SCAP being public companies, no disclosure has been filed to the Colombo Stock Exchange relating to a sale of shares so far.
source - www.dailymirror.lk
Multi Finance net up 334% to 25.58mn
One of the hot picks in the recent past and cynosure amongst the retailers in the Colombo Stock Market Multi Finance PLC (MFL) has recorded a Profit After Tax (PAT) increase of 334%, as the company recorded a PAT of Rs.25.58 million for financial year ending 2010/11.
As indicated in the company’s audited financials, MFL’s lending portfolio grew significantly by 72% to Rs.569.98 million and the deposits from customers rose to Rs.144.73 million as at March 31, 2011, which is an increase of 18%.
The company’s Total Gross Income moved up from Rs.80.6 million to Rs.159.5 million in 2011, recording a 98% growth. MFL laid more emphasis on portfolio quality as opposed to being focused on volume growth. It weathered a year full of challenges and its Non Performing Loans (NPL) ratio remained below 2%, the lowest when compared with the competitors in the industry.
This has been the first time that the company published its annual report, after going public by way of an Introduction on the Diri Savi Board of CSE, in May 2011. MFL which has been in business for the past 37 years is now poised to become a progressive player in the Registered Finance Company (RFC) sector and it’s certainly cognisant to “take notice” as well.
As the newly appointed Chairman, Kuvera de Zoysa stated, “Our objective is to change the financial market and Multi Finance is now on a mission to make people sit up and take notice of a wide range of products and services that would be offered in the near future, which would defy convention but remain within the regulations of RFCs.”
A. H. M. Riyaz, Group Executive Director/CEO explained, “Multi Finance, despite being a small player in the RFC sector, continued to carry out its business activities in a prudent manner during the tenure of the financial crisis that prevailed a few years ago.”
With the newly appointed Board of Directors of the company, Multi Finance is planning on a strong expansion of its branch network in strategically viable geographical regions island-wide and also hopes to reach out to the rural communities with enhanced Micro Finance products and services. At present, the company has branches in strategic locations namely, Colombo, Gampaha, Kurunegala and Matara whilst the Head Office is located in Kandy.
“We have been able to build long-term financial relationships proactively with our clients, going beyond the conventional customer service concept and this has stood in good stead during the times when weakened sentiments prevailed amongst the investor community in Sri Lanka,” Riyaz added.
source - www.dailymirror.lk
As indicated in the company’s audited financials, MFL’s lending portfolio grew significantly by 72% to Rs.569.98 million and the deposits from customers rose to Rs.144.73 million as at March 31, 2011, which is an increase of 18%.
The company’s Total Gross Income moved up from Rs.80.6 million to Rs.159.5 million in 2011, recording a 98% growth. MFL laid more emphasis on portfolio quality as opposed to being focused on volume growth. It weathered a year full of challenges and its Non Performing Loans (NPL) ratio remained below 2%, the lowest when compared with the competitors in the industry.
This has been the first time that the company published its annual report, after going public by way of an Introduction on the Diri Savi Board of CSE, in May 2011. MFL which has been in business for the past 37 years is now poised to become a progressive player in the Registered Finance Company (RFC) sector and it’s certainly cognisant to “take notice” as well.
As the newly appointed Chairman, Kuvera de Zoysa stated, “Our objective is to change the financial market and Multi Finance is now on a mission to make people sit up and take notice of a wide range of products and services that would be offered in the near future, which would defy convention but remain within the regulations of RFCs.”
A. H. M. Riyaz, Group Executive Director/CEO explained, “Multi Finance, despite being a small player in the RFC sector, continued to carry out its business activities in a prudent manner during the tenure of the financial crisis that prevailed a few years ago.”
With the newly appointed Board of Directors of the company, Multi Finance is planning on a strong expansion of its branch network in strategically viable geographical regions island-wide and also hopes to reach out to the rural communities with enhanced Micro Finance products and services. At present, the company has branches in strategic locations namely, Colombo, Gampaha, Kurunegala and Matara whilst the Head Office is located in Kandy.
“We have been able to build long-term financial relationships proactively with our clients, going beyond the conventional customer service concept and this has stood in good stead during the times when weakened sentiments prevailed amongst the investor community in Sri Lanka,” Riyaz added.
source - www.dailymirror.lk
Colombo bourse makes slight gain
Indices started off the week on a positive note only to fall gradually during the latter half of trading while global markets continued to decline. However, indices closed marginally in green amidst renewed retail investor interest witnessed in certain counters, NDB Stockbrokers said.
The All Share Price Index closed 0.02 percent higher on Monday at 6,736.02 while the Milanka Price Index of more liquid shares closed 0.03 higher at 6,025.81. Turnover reached Rs. 1.42 billion on a trading volume of 88.8 million shares.
"The trading sector was the main contributor to the market turnover (due to Tess Agro) and the sector index increased by 0.32%. Tess Agro was the main contributor to the market turnover. The share price increased by Rs.0.80 (13.79%) and closed at Rs.6.60,"NDB Stockbrokers said.
"Bank Finance and Insurance sector also contributed significantly to the market turnover and the sector index decreased by 0.73%.
"HVA Foods also contributed significantly to the market turnover. The share price increased Rs.8.60 (17.20%) to close at Rs.58.
"A continued interest was witnessed in Regnis (Lanka) and Radiant Gems. The share price of Regnis (Lanka) increased by Rs 14.10 (4.63%) and closed at Rs 315 while the share price of Radiant Gems increased by Rs 19.80 (10.29%) and closed at Rs 218. Healthcare sector was on the up amidst a renewed interest witnessed in Asiri Hospitals and Lanka Hospitals."
source - www.island.lk
The All Share Price Index closed 0.02 percent higher on Monday at 6,736.02 while the Milanka Price Index of more liquid shares closed 0.03 higher at 6,025.81. Turnover reached Rs. 1.42 billion on a trading volume of 88.8 million shares.
"The trading sector was the main contributor to the market turnover (due to Tess Agro) and the sector index increased by 0.32%. Tess Agro was the main contributor to the market turnover. The share price increased by Rs.0.80 (13.79%) and closed at Rs.6.60,"NDB Stockbrokers said.
"Bank Finance and Insurance sector also contributed significantly to the market turnover and the sector index decreased by 0.73%.
"HVA Foods also contributed significantly to the market turnover. The share price increased Rs.8.60 (17.20%) to close at Rs.58.
"A continued interest was witnessed in Regnis (Lanka) and Radiant Gems. The share price of Regnis (Lanka) increased by Rs 14.10 (4.63%) and closed at Rs 315 while the share price of Radiant Gems increased by Rs 19.80 (10.29%) and closed at Rs 218. Healthcare sector was on the up amidst a renewed interest witnessed in Asiri Hospitals and Lanka Hospitals."
source - www.island.lk
PCH in Rs. 45mn acquisition of internet research company
PC House PLC (PCH) yesterday announced its acquisition of Infoserve (Pvt) Ltd, a BOI company offering internet research services. The deal was worth Rs. 45 million for a 90 percent stake in Infoserve.
Infoserve specialises in gathering, filtering and summarising data on behalf of clients to suit their exact needs. The data is gathered by doing extensive research on the internet using both free and paid information sources including search engines, market intelligence portals and specialised and general press websites, a stock exchange filing said.
"This acquisition is in line with the PCH Group’s stated policy of increasing its reach in the BPO and KPO space of the IT industry," the filing said.
source - www.island.lk
Infoserve specialises in gathering, filtering and summarising data on behalf of clients to suit their exact needs. The data is gathered by doing extensive research on the internet using both free and paid information sources including search engines, market intelligence portals and specialised and general press websites, a stock exchange filing said.
"This acquisition is in line with the PCH Group’s stated policy of increasing its reach in the BPO and KPO space of the IT industry," the filing said.
source - www.island.lk
People’s Leasing mulls Rs. 7bn IPO
By Hiran H. Senewiratne
People’s Leasing Company (PLC) is planning to raise around Rs. 7 billion later this year in what could be the second highest initial public offering (IPO) in the history of the Colombo Stock Exchange (CSE), brokers said.
Brokers said the company has already made an application regarding the IPO to the CSE and was awaiting its approval. The issue is believed to be taken up in October and would be managed by NDB Investment Bank and Capital Alliance. Brokers said the funds raised through the IPO would be used to broad-base the company’s capital structure and finance expansion. The IPO would also fill a regulatory requirement of the Central Bank.
It is reported that NDB Bank Investment Bank had completed the country’s largest IPO for Dialog Axiata’s Rs 8.5 billion issue in 2005. The second largest IPO was the Softlogic Holdings IPO which raised over Rs 4 billiion.
The PLC Group recorded profits in 2010/2011 amounting to Rs. 2.6 billion while in the 2009/10 financial year, it made a net profit of Rs 1.1 billion. Gross assets amount to Rs. 63.8 billion and equity Rs. 8.4 billion.
PLC is a fully owned subsidiary of state owned People’s Bank.
Senior Research Analysts SMB Securities Pvt Limited Subhashi Jayasumana said at present their was a lull in the equity market and this IPO would give a big boost to the market in the short to medium term perspective.
source - www.island.lk
People’s Leasing Company (PLC) is planning to raise around Rs. 7 billion later this year in what could be the second highest initial public offering (IPO) in the history of the Colombo Stock Exchange (CSE), brokers said.
Brokers said the company has already made an application regarding the IPO to the CSE and was awaiting its approval. The issue is believed to be taken up in October and would be managed by NDB Investment Bank and Capital Alliance. Brokers said the funds raised through the IPO would be used to broad-base the company’s capital structure and finance expansion. The IPO would also fill a regulatory requirement of the Central Bank.
It is reported that NDB Bank Investment Bank had completed the country’s largest IPO for Dialog Axiata’s Rs 8.5 billion issue in 2005. The second largest IPO was the Softlogic Holdings IPO which raised over Rs 4 billiion.
The PLC Group recorded profits in 2010/2011 amounting to Rs. 2.6 billion while in the 2009/10 financial year, it made a net profit of Rs 1.1 billion. Gross assets amount to Rs. 63.8 billion and equity Rs. 8.4 billion.
PLC is a fully owned subsidiary of state owned People’s Bank.
Senior Research Analysts SMB Securities Pvt Limited Subhashi Jayasumana said at present their was a lull in the equity market and this IPO would give a big boost to the market in the short to medium term perspective.
source - www.island.lk
Monday, September 26, 2011
Long-haul destinations 'offer better value for money'
Price falls in far-flung destinations mean that customers travelling long-haul this winter will get better value for money than last year, according to Post Office Travel Money's 2011 Long Haul Holiday Report.
It claimed the sharpest drop in prices was in Sri Lanka, where costs in resorts appear to have plummeted by a third compared with 2010, it said.
The drop, if accurate, would make Sri Lanka 38% cheaper than Thailand, its nearest rival.
However, a spokeswoman for Post Office Travel Money admitted the survey was intended to provide only a "snapshot" of prices in overseas resorts, so it should not be relied upon when advising clients where to book. Far from being an extensive survey, prices were taken from just one resort in each destination, she said.
Nevertheless, Sarah Munro of Post Office Head of Travel Money said things were looking up for British holidaymakers. She added: “After a summer when the weak UK pound bought less holiday cash in Europe, tourists heading further afield for winter sun can look forward to seeing their pounds stretch further in most long haul destinations.
“Resort prices have fallen in two-thirds of the countries we surveyed a year ago and, in addition, sterling has strengthened against 15 of 26 long haul currencies.
"For example, the UK pound will buy over 19% more Kenyan shillings than a year ago and is also stronger against Caribbean and Latin-American currencies. Holidaymakers visiting the USA, Dubai and Egypt will be quids in too.”
In Sri Lanka, the report claims that a 'basket' of 10 items, including a three-course meal for two with wine, would cost £31.81. A year ago, the barometer spotted what it thought were the first signs of rising costs in the Indian Ocean island but it says its latest findings suggest that competition in resorts has " had a calming effect on prices".
For this year’s barometer, the Post Office surveyed 28 destinations, six more than last year. The most expensive of the new entrants was Vietnam, where the basket of 10 items cost £52.72.
They cost £51.48 in Thailand, where a 6% drop in local prices helped to combat the weak pound, said Post Office Travel Money.
Elsewhere in the Far East, China showed the year’s biggest price rise of 27%, pushing the cost of the essential holiday items up to £116.43, and Hong Kong was most expensive overall (£132.06), despite being 11% cheaper than a year ago.
Other destinations where costs appear to have fallen since last year include South Africa, which is down 27% on a year ago when the FA World Cup pushed up prices.
Long Haul Destination Prices At A Glance:
Caribbean Islands: Prices in the Dominican Republic, surveyed for the first time this year, were cheapest. At £63.83, its barometer basket cost 44% less than Barbados (£114.44), the most expensive of six Caribbean islands surveyed.
Latin-America: Mexico and Argentina now feature in the long haul barometer top 10 for value, in fourth and eighth place respective but costs have risen 9% in Mexico this year.
Florida: At £83.99, Orlando resort costs were 29% than Miami, where prices rose 18 per cent to £118.86.
Egypt: The combination of a stronger UK pound – up 4.9% against the Egyptian pound – and a 12% drop in local prices means that holiday hotspots like Sharm el Sheikh will be good value this winter.
By Linsey McNeill
source - www.travelmole.com
It claimed the sharpest drop in prices was in Sri Lanka, where costs in resorts appear to have plummeted by a third compared with 2010, it said.
The drop, if accurate, would make Sri Lanka 38% cheaper than Thailand, its nearest rival.
However, a spokeswoman for Post Office Travel Money admitted the survey was intended to provide only a "snapshot" of prices in overseas resorts, so it should not be relied upon when advising clients where to book. Far from being an extensive survey, prices were taken from just one resort in each destination, she said.
Nevertheless, Sarah Munro of Post Office Head of Travel Money said things were looking up for British holidaymakers. She added: “After a summer when the weak UK pound bought less holiday cash in Europe, tourists heading further afield for winter sun can look forward to seeing their pounds stretch further in most long haul destinations.
“Resort prices have fallen in two-thirds of the countries we surveyed a year ago and, in addition, sterling has strengthened against 15 of 26 long haul currencies.
"For example, the UK pound will buy over 19% more Kenyan shillings than a year ago and is also stronger against Caribbean and Latin-American currencies. Holidaymakers visiting the USA, Dubai and Egypt will be quids in too.”
In Sri Lanka, the report claims that a 'basket' of 10 items, including a three-course meal for two with wine, would cost £31.81. A year ago, the barometer spotted what it thought were the first signs of rising costs in the Indian Ocean island but it says its latest findings suggest that competition in resorts has " had a calming effect on prices".
For this year’s barometer, the Post Office surveyed 28 destinations, six more than last year. The most expensive of the new entrants was Vietnam, where the basket of 10 items cost £52.72.
They cost £51.48 in Thailand, where a 6% drop in local prices helped to combat the weak pound, said Post Office Travel Money.
Elsewhere in the Far East, China showed the year’s biggest price rise of 27%, pushing the cost of the essential holiday items up to £116.43, and Hong Kong was most expensive overall (£132.06), despite being 11% cheaper than a year ago.
Other destinations where costs appear to have fallen since last year include South Africa, which is down 27% on a year ago when the FA World Cup pushed up prices.
Long Haul Destination Prices At A Glance:
Caribbean Islands: Prices in the Dominican Republic, surveyed for the first time this year, were cheapest. At £63.83, its barometer basket cost 44% less than Barbados (£114.44), the most expensive of six Caribbean islands surveyed.
Latin-America: Mexico and Argentina now feature in the long haul barometer top 10 for value, in fourth and eighth place respective but costs have risen 9% in Mexico this year.
Florida: At £83.99, Orlando resort costs were 29% than Miami, where prices rose 18 per cent to £118.86.
Egypt: The combination of a stronger UK pound – up 4.9% against the Egyptian pound – and a 12% drop in local prices means that holiday hotspots like Sharm el Sheikh will be good value this winter.
By Linsey McNeill
source - www.travelmole.com
Sri Lanka tops value destinations
British holidaymakers may be struggling with poor euro exchange rates but some long-haul destinations are proving financially attractive, according to a survey.
Sri Lanka has emerged as a clear winner in a holiday cost-of-living index of long-haul spots compiled by Post Office Travel Money.
For a basket of 10 categories including a meal out, drinks and sun cream, Sri Lanka was 38% cheaper than its nearest rival, Thailand.
Vietnam, now welcoming an increasing number of UK visitors, was the third least expensive country in the list, with Hong Kong the most expensive overall and China showing the biggest price rise over the last year.
Prices in South Africa have tumbled 27%, with the country now more tourist-friendly financially following the price hikes during the 2010 World Cup. Barbados was the most expensive Caribbean destination, with the Dominican Republic the cheapest.
Post Office Travel Money head Sarah Munro said: "Things are looking up for hard-pressed holidaymakers.
After a summer when the weak UK pound bought less holiday cash in Europe, tourists heading further afield for winter sun can look forward to seeing their pounds stretch further in most long-haul destinations.
"Resort prices have fallen in two-thirds of the countries we surveyed a year ago and, in addition, sterling has strengthened against 15 of 26 long-haul country currencies. For example, the UK pound will buy over 19% more Kenyan shillings than a year ago and is also stronger against Caribbean and Latin-American currencies. Holidaymakers visiting the USA, Dubai and Egypt will be quids in too."
In a separate survey, tour operator Hayes & Jarvis also revealed year-on-year falls at some long-haul resorts.
Packages in Brazil and Barbados have fallen the most, with particularly good deals to be had in Mexico where direct air links with the UK have strengthened recently.
The company's best-selling long-haul destination is the Maldives, followed by Thailand, but Egypt has yet to bounce back from political upheaval.
Copyright © 2011 The Press Association. All rights reserved.
source - www.google.com
Sri Lanka has emerged as a clear winner in a holiday cost-of-living index of long-haul spots compiled by Post Office Travel Money.
For a basket of 10 categories including a meal out, drinks and sun cream, Sri Lanka was 38% cheaper than its nearest rival, Thailand.
Vietnam, now welcoming an increasing number of UK visitors, was the third least expensive country in the list, with Hong Kong the most expensive overall and China showing the biggest price rise over the last year.
Prices in South Africa have tumbled 27%, with the country now more tourist-friendly financially following the price hikes during the 2010 World Cup. Barbados was the most expensive Caribbean destination, with the Dominican Republic the cheapest.
Post Office Travel Money head Sarah Munro said: "Things are looking up for hard-pressed holidaymakers.
After a summer when the weak UK pound bought less holiday cash in Europe, tourists heading further afield for winter sun can look forward to seeing their pounds stretch further in most long-haul destinations.
"Resort prices have fallen in two-thirds of the countries we surveyed a year ago and, in addition, sterling has strengthened against 15 of 26 long-haul country currencies. For example, the UK pound will buy over 19% more Kenyan shillings than a year ago and is also stronger against Caribbean and Latin-American currencies. Holidaymakers visiting the USA, Dubai and Egypt will be quids in too."
In a separate survey, tour operator Hayes & Jarvis also revealed year-on-year falls at some long-haul resorts.
Packages in Brazil and Barbados have fallen the most, with particularly good deals to be had in Mexico where direct air links with the UK have strengthened recently.
The company's best-selling long-haul destination is the Maldives, followed by Thailand, but Egypt has yet to bounce back from political upheaval.
Copyright © 2011 The Press Association. All rights reserved.
source - www.google.com
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