Despite the bearish performance of the Colombo stock market in recent years, it remains attractive with higher returns over time rather than from investing in Treasury Bills, which is often perceived as better.
At last week’s historic joint capital market stakeholder briefing to the media, the performance of and return from the equity market was highlighted.
In an analysis of the performance of the stock market during the last 28 years, SEC’s Acting Director General Prof. Hareendra Dissabandara said it was evident that stock trading had given remarkable returns to its investors.
He said the average market return per year since 1985 was 26.5% where as Treasury Bills have given an annual average return of 14.4%. From the year 2000, the stock market has given an annual average return of 32.8% as against a 12.0% return on Treasury Bills. The average return of the stock market since 2009 is 53.1%, whereas Treasury Bills have given a return of 12.5%.
“These statistics prove that investing in the stock market is a profitable long-term investment though there can be fluctuations in the short-term,” he added.Year-to-date the All Share Index is down by near 9% though in September it gained by 15% on improved sentiments.
Last year the market dipped by 8.5% after two years of rollercoaster gains of 95% in 2010 and 125% in 2009.
While the current lull in the market may appear somewhat discouraging to those who may historically be used to far more upbeat momentum, DNH Financial in its weekly commentary advised investors to take advantage of any price weakness and build a robust portfolio of quality stocks that would outperform.
“Stocks are well likely to reverse their sluggish streak as investors realise that the majority of factors that influence market trajectory are indeed positive and that the current lackadaisical movement of the market is unjustified,” DNH said.
“We advise investors to avoid the herd and start their selective stock picking by adopting a flight to quality investment strategy. Despite the prevailing high interest rates, our belief is that the Bourse will deliver measurable and positive results, provided that the right investment strategy is employed over a reasonable investment horizon. While the equity market has a notorious tendency to rush from one side to another in response to the ebb and flow of optimism or pessimism, we recommend investors to make a directional call, build a quality portfolio and take advantage of what is increasingly becoming a stock-pickers’ market,” DNH Financial added.
source - www.ft.lk
Monday, November 19, 2012
Sunday, November 18, 2012
Sri Lanka tourist arrival up 15.5-pct in October
Nov 17, 2012 (LBO) - Sri Lanka's tourist arrivals rose 15.5 percent to 80,379 in October 2012 from a year earlier, data from the statistics office showed, with total visitors up 16.0 percent to 774,151 during the first ten months.
Arrivals from Western Europe were hardly changed growing 1.9 percent to 24,303 in October with steep falls in some markets though Britain grew 18.3 percent to 8,767 and Germany grew 6.9 percent to 5,385.
Arrivals from France fell 17.7 percent to 3,475, Netherlands fell 36 percent to 1,201 and Belgium fell 54.3 percent to 505.
Up to October arrivals from Western Europe was up 51.6 percent.
Visitors from Eastern Europe rose 49.6 percent to 7,048 with Russian arrivals up 18.9 percent to 2,559 and Ukrainian arrivals up 79.9 percent to 2,600.
Visitors from the Middle East were up 30.7 percent to 5,234 during the month, from a year earlier. Up to October arrivals were down 1.3 percent.
East Asian arrivals were up 35.2 percent to 11,168 with visitors up to October up 31.1. percent to 110,678.
Chinese arrivals were up 100.2 percent to 2,200 and year to date numbers were up 35.5 percent to 18,823. Visitors from Malaysia were up 88.9 percent to 2,462 and from Japan up 14.5 percent to 1,738. Taiwanese tourists increased 110 percent to 1,902.
Visitors from Singapore fell 23.7 percent to 1,032.
South Asia, the region in which Sri Lanka is located grew only 3.7 percent to 23,538. During the 10 months, visitors grew 3.2 percent to 193,465.
Arrivals from India fell 1.5 percent to 17,654 from a year earlier. Year to date arrivals were up just 1.0 percent to 139,774. Sri Lanka tightened immigration requirement with India ending visa on arrival from 2012.
India became Sri Lanka's largest generating market after visa free facilities were given about a decade ago. Visitors from Maldives rose 20.9 percent to 3,509 and from Pakistan by 47.3 percent to 1,482.
source - www.lbo.lk
Arrivals from Western Europe were hardly changed growing 1.9 percent to 24,303 in October with steep falls in some markets though Britain grew 18.3 percent to 8,767 and Germany grew 6.9 percent to 5,385.
Arrivals from France fell 17.7 percent to 3,475, Netherlands fell 36 percent to 1,201 and Belgium fell 54.3 percent to 505.
Up to October arrivals from Western Europe was up 51.6 percent.
Visitors from Eastern Europe rose 49.6 percent to 7,048 with Russian arrivals up 18.9 percent to 2,559 and Ukrainian arrivals up 79.9 percent to 2,600.
Visitors from the Middle East were up 30.7 percent to 5,234 during the month, from a year earlier. Up to October arrivals were down 1.3 percent.
East Asian arrivals were up 35.2 percent to 11,168 with visitors up to October up 31.1. percent to 110,678.
Chinese arrivals were up 100.2 percent to 2,200 and year to date numbers were up 35.5 percent to 18,823. Visitors from Malaysia were up 88.9 percent to 2,462 and from Japan up 14.5 percent to 1,738. Taiwanese tourists increased 110 percent to 1,902.
Visitors from Singapore fell 23.7 percent to 1,032.
South Asia, the region in which Sri Lanka is located grew only 3.7 percent to 23,538. During the 10 months, visitors grew 3.2 percent to 193,465.
Arrivals from India fell 1.5 percent to 17,654 from a year earlier. Year to date arrivals were up just 1.0 percent to 139,774. Sri Lanka tightened immigration requirement with India ending visa on arrival from 2012.
India became Sri Lanka's largest generating market after visa free facilities were given about a decade ago. Visitors from Maldives rose 20.9 percent to 3,509 and from Pakistan by 47.3 percent to 1,482.
source - www.lbo.lk
Saturday, November 17, 2012
Bourse holds its ground, foreign buying in JKH persists
Although the All Share Price Index on the Colombo bourse was marginally down by 1.93 points (0.03%), both the Milanka and S&P were up – the first by 16.68 points (0.33%) and the other by a marginal 1.97 points (0.06%) on a turnover of Rs.431.5 million, down from the previous day’s Rs.562.4 million, with 109 losers ahead of 76 gainers while 126 counters closed flat.
JKH, in which foreign buying interest continues, saw two crossings totaling 650,000 shares in two parcels, one of 500,000 and the other of 150,000 shares, done at Rs.217 in transactions worth Rs.141.1 million.
Apart from the crossings, JKH generated a further Rs.63.5 million on the trading floor with nearly 0.3 million shares done between Rs.216.50 and Rs.217 closing a rupee up at Rs.216.80 generating the highest turnover on the floor.
Other stocks generating business volume included Dockyard (Rs.19.7 million), Asiri Hospital Holdings (Rs.19 million) and Softlogic Holdings (Rs.12.7 million).
Dockyard closed Rs.5.50 down at Rs. 219 on 90,045 shares done between Rs.219 and Rs.222 while Asiri closed flat at Rs.11.40 on nearly 1.7 million shares done between Rs.11.30 and Rs.11.40 and Softlogic closed 30 cents up at Rs.10.80 on nearly 1.2 million shares done between Rs.10.50 and Rs.11.10.
Other most traded counters included Commercial Bank (voting) closing flat at Rs.105 on slightly over 0.1 million shares, Seylan Bank (non-voting) closing flat at Rs.35 on 0.3 million shares and Colombo Fort Land and Buildings closing 20 cents down at Rs.35 on over 0.2 million shares.
Piramal Glass closed 10 cents up at Rs.6.30 on nearly 1.2 million shares while Aitken Spence closed a rupee down at Rs.125 on 50,559 shares.
Brokers said that retail activity was slow but a couple of big deals, including one on Browns Investments and ERI already announced, are expected next week.
Asian Hotel Properties, owners of the Cinnamon Grand, announced an interim dividend of Re.1 per share for 2012/13 XD from November 28 and with payment on December 7.
The Colombo Stock Exchange announced amendments to its listing rules under which all listed companies must release interim financials within time lines specified under rules 7.4(a)(i) of the CSE listing rules with effect from November 15. Rule 7.4(a)(ii) has been deleted in its entirety, the CSE announcement said.
source - www.island.lk
JKH, in which foreign buying interest continues, saw two crossings totaling 650,000 shares in two parcels, one of 500,000 and the other of 150,000 shares, done at Rs.217 in transactions worth Rs.141.1 million.
Apart from the crossings, JKH generated a further Rs.63.5 million on the trading floor with nearly 0.3 million shares done between Rs.216.50 and Rs.217 closing a rupee up at Rs.216.80 generating the highest turnover on the floor.
Other stocks generating business volume included Dockyard (Rs.19.7 million), Asiri Hospital Holdings (Rs.19 million) and Softlogic Holdings (Rs.12.7 million).
Dockyard closed Rs.5.50 down at Rs. 219 on 90,045 shares done between Rs.219 and Rs.222 while Asiri closed flat at Rs.11.40 on nearly 1.7 million shares done between Rs.11.30 and Rs.11.40 and Softlogic closed 30 cents up at Rs.10.80 on nearly 1.2 million shares done between Rs.10.50 and Rs.11.10.
Other most traded counters included Commercial Bank (voting) closing flat at Rs.105 on slightly over 0.1 million shares, Seylan Bank (non-voting) closing flat at Rs.35 on 0.3 million shares and Colombo Fort Land and Buildings closing 20 cents down at Rs.35 on over 0.2 million shares.
Piramal Glass closed 10 cents up at Rs.6.30 on nearly 1.2 million shares while Aitken Spence closed a rupee down at Rs.125 on 50,559 shares.
Brokers said that retail activity was slow but a couple of big deals, including one on Browns Investments and ERI already announced, are expected next week.
Asian Hotel Properties, owners of the Cinnamon Grand, announced an interim dividend of Re.1 per share for 2012/13 XD from November 28 and with payment on December 7.
The Colombo Stock Exchange announced amendments to its listing rules under which all listed companies must release interim financials within time lines specified under rules 7.4(a)(i) of the CSE listing rules with effect from November 15. Rule 7.4(a)(ii) has been deleted in its entirety, the CSE announcement said.
source - www.island.lk
CDB surpasses Rs. 20bn mark in total assets
Citizens Development Business Finance PLC (CDB) surpassed the Rs. 20 billion mark in total assets as per the interim results released to the Colombo Stock Exchange (CSE).
"With this milestone CDB stands amongst the seven largest institutions coming under the Finance Business Act. Bottom line results for the six months ending 30th September 2012 and in the 2nd quarter, excluding mark to market value adjustments, reflected a growth of 11.56% and 15.79% respectively in comparison to the corresponding period in the previous financial year," the company said in a statement.
"Profit after Tax for the 06 months recorded a figure of Rs. 245.5 million. CDB’s Balance Sheet grew by 21.79% during the six months period ending 30th September 2012 since the last audited Balance Sheet date of 31st March 2012, recording a figure of Rs. 20.15 billion. Revenue during the six months grew by 48% to Rs. 1.92 billion whilst net interest income recorded a growth of 37%. Gross Non-performing Loans (NPL) stood at 2.54% (Net NPL was 1.17%).
"The capital position was at a sound Rs. 2.48 billion with Capital Adequacy Ratios both at Tier 1 and 2 maintained at 15.21% and 15.40% respectively. CDB also proactively engaged in the timely re-pricing of assets and liabilities and managing the pressure on interest rate risks and liquidity whilst actively supporting growth of the loan book. The Statutory Liquidity Ratio at 15.85% is well above the regulatory requirement of 10% and is augmented with 89% of Balance Sheet assets in regular interest and cash flow generating assets, including the asset backed loan portfolio. CDB’s Managing Director/CEO, Mahesh Nanayakkara stated that CDB has adapted to the changed market profile and is moving towards achieving the set targets for the current financial year.
"CDB achieved some key industry milestones during the period under review. CDB became the first Non Bank Financial Institution (NBFI) in Sri Lanka to sign up with VISA International, first NBFI to obtain membership of Sri Lanka Inter bank Payment System (SLIPS). CDB also became the first and only NBFI to rollover a Core Bank Integrated Software Solution backed by Polaris of India and Millennium Information Technology (MIT) a member of London Stock Exchange. CDB’s distribution network has been further expanded and strengthened with the addition of 07 new outlets during this period bringing the total network to 43 outlets across the country."
source - www.island.lk
"With this milestone CDB stands amongst the seven largest institutions coming under the Finance Business Act. Bottom line results for the six months ending 30th September 2012 and in the 2nd quarter, excluding mark to market value adjustments, reflected a growth of 11.56% and 15.79% respectively in comparison to the corresponding period in the previous financial year," the company said in a statement.
"Profit after Tax for the 06 months recorded a figure of Rs. 245.5 million. CDB’s Balance Sheet grew by 21.79% during the six months period ending 30th September 2012 since the last audited Balance Sheet date of 31st March 2012, recording a figure of Rs. 20.15 billion. Revenue during the six months grew by 48% to Rs. 1.92 billion whilst net interest income recorded a growth of 37%. Gross Non-performing Loans (NPL) stood at 2.54% (Net NPL was 1.17%).
"The capital position was at a sound Rs. 2.48 billion with Capital Adequacy Ratios both at Tier 1 and 2 maintained at 15.21% and 15.40% respectively. CDB also proactively engaged in the timely re-pricing of assets and liabilities and managing the pressure on interest rate risks and liquidity whilst actively supporting growth of the loan book. The Statutory Liquidity Ratio at 15.85% is well above the regulatory requirement of 10% and is augmented with 89% of Balance Sheet assets in regular interest and cash flow generating assets, including the asset backed loan portfolio. CDB’s Managing Director/CEO, Mahesh Nanayakkara stated that CDB has adapted to the changed market profile and is moving towards achieving the set targets for the current financial year.
"CDB achieved some key industry milestones during the period under review. CDB became the first Non Bank Financial Institution (NBFI) in Sri Lanka to sign up with VISA International, first NBFI to obtain membership of Sri Lanka Inter bank Payment System (SLIPS). CDB also became the first and only NBFI to rollover a Core Bank Integrated Software Solution backed by Polaris of India and Millennium Information Technology (MIT) a member of London Stock Exchange. CDB’s distribution network has been further expanded and strengthened with the addition of 07 new outlets during this period bringing the total network to 43 outlets across the country."
source - www.island.lk
First Capital Holdings net profits Rs. 113mn
First Capital Holdings PLC (FCH) has reported net profit after tax of Rs 113.2 million for the six months ended 30 September 2012, following an improved second quarter, the company announced.
In figures released to the Colombo Stock Exchange, the Group said revenue was up by 6.7% to Rs 700.6 million. This increase, mainly attributed to investments in government securities, came in the second quarter of 2012/13. Net profit after tax for the second quarter (July – September 2012) was Rs 77 million as against Rs 59 million in the corresponding three months of the preceding year.
Profit attributable to equity holders of the parent company at Rs 107.1 million reflected a slight decline of 6.3% when compared with the corresponding figures of the previous year. Earnings per share declined marginally to Rs 1.06 for the period from Rs 1.13. Group net assets per share stood at Rs 12.34 as at 30 September 2012.
Commenting on the Group’s performance, Mangala Jayashantha, Chief Financial Officer of First Capital said: "First Capital has had a relatively good period primarily due to a favourable position in the bond market, which resulted in substantial income for the Group’s primary dealer arm. In the year ahead, the Group proposes to extend the range of its corporate finance activities and products with special focus on debt capital markets. With prospects of higher economic growth and greater liquidity, strong opportunities exist for market development as well as for wider participation in structured products."
"Opportunities have also been identified in the provision of professional investment management and corporate finance advisory services, and the Group will exercise its strong resource base to serve customers in these areas," he added.
The First Capital Group has been operating as a leading financial services provider for over two decades and presently has a Primary Dealership in government securities regulated by the Central Bank of Sri Lanka, and operations as a Margin Provider, Investment Manager and a Unit Trust Managing Company all under the regulatory purview of the Securities and Exchange Commission of Sri Lanka. In addition, First Capital Markets Limited is a member of the Colombo Stock Exchange (CSE) for listed debt.
First Capital’s Board of Directors comprises Deshamanya J.C.L. De Mel (Chairman), Ms. Manjula Mathews, Jehaan Ismail, Dinesh Schaffter, Nihara Rodrigo, Eardley Perera, Ms. Minette Perera and Nishan Fernando.
source - www.island.lk
In figures released to the Colombo Stock Exchange, the Group said revenue was up by 6.7% to Rs 700.6 million. This increase, mainly attributed to investments in government securities, came in the second quarter of 2012/13. Net profit after tax for the second quarter (July – September 2012) was Rs 77 million as against Rs 59 million in the corresponding three months of the preceding year.
Profit attributable to equity holders of the parent company at Rs 107.1 million reflected a slight decline of 6.3% when compared with the corresponding figures of the previous year. Earnings per share declined marginally to Rs 1.06 for the period from Rs 1.13. Group net assets per share stood at Rs 12.34 as at 30 September 2012.
Commenting on the Group’s performance, Mangala Jayashantha, Chief Financial Officer of First Capital said: "First Capital has had a relatively good period primarily due to a favourable position in the bond market, which resulted in substantial income for the Group’s primary dealer arm. In the year ahead, the Group proposes to extend the range of its corporate finance activities and products with special focus on debt capital markets. With prospects of higher economic growth and greater liquidity, strong opportunities exist for market development as well as for wider participation in structured products."
"Opportunities have also been identified in the provision of professional investment management and corporate finance advisory services, and the Group will exercise its strong resource base to serve customers in these areas," he added.
The First Capital Group has been operating as a leading financial services provider for over two decades and presently has a Primary Dealership in government securities regulated by the Central Bank of Sri Lanka, and operations as a Margin Provider, Investment Manager and a Unit Trust Managing Company all under the regulatory purview of the Securities and Exchange Commission of Sri Lanka. In addition, First Capital Markets Limited is a member of the Colombo Stock Exchange (CSE) for listed debt.
First Capital’s Board of Directors comprises Deshamanya J.C.L. De Mel (Chairman), Ms. Manjula Mathews, Jehaan Ismail, Dinesh Schaffter, Nihara Rodrigo, Eardley Perera, Ms. Minette Perera and Nishan Fernando.
source - www.island.lk
Union Assurance profits up 15% to Rs. 223mn
Union Assurance PLC (UA), a leading player in the Sri Lankan insurance sector, consolidated its position by reporting steady growth in both turnover and profits for the nine months ended 30th September 2012. UA reported a year on year growth rate of 15% in combined gross written premium and profit after tax.
"Combined gross written premium increased from Rs. 6 billion for the first nine months of 2011 to Rs.6.9 billion for the nine months ended 30th September 2012. Life insurance gross written premium recorded a growth of 17% from Rs. 3.2 billion as at September 2011 to Rs. 3.7 billion as at September 2012. General insurance gross written premium recorded a 13% growth from Rs. 2.8 billion in 2011 to Rs.3.1 billion in 2012. Growth was reported from both corporate and retail customer segments, and all classes of general insurance business reported a year on year growth.
Profit after tax of Rs.223 million, was an increase of 15% from Rs. 194 million reported in September 2011. The profit excludes the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year," the insurer said in a statement.
As at end of 30th September 2012, the life fund stands at Rs.16.4 billion including the unit linked fund and is one of the largest life funds in the industry.
Dirk Pereira Chief Executive Officer of UA said, "We are pleased with the progress we are making in achieving our twin objectives of growing both turnover and profits of the business. Given the current dynamics in the insurance market, we retain a positive outlook with regard to the company's prospects in the short to medium term."
The financial statements for the period ended 30 September 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS / LKASs) which have converged with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
source - www.island.lk
"Combined gross written premium increased from Rs. 6 billion for the first nine months of 2011 to Rs.6.9 billion for the nine months ended 30th September 2012. Life insurance gross written premium recorded a growth of 17% from Rs. 3.2 billion as at September 2011 to Rs. 3.7 billion as at September 2012. General insurance gross written premium recorded a 13% growth from Rs. 2.8 billion in 2011 to Rs.3.1 billion in 2012. Growth was reported from both corporate and retail customer segments, and all classes of general insurance business reported a year on year growth.
Profit after tax of Rs.223 million, was an increase of 15% from Rs. 194 million reported in September 2011. The profit excludes the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year," the insurer said in a statement.
As at end of 30th September 2012, the life fund stands at Rs.16.4 billion including the unit linked fund and is one of the largest life funds in the industry.
Dirk Pereira Chief Executive Officer of UA said, "We are pleased with the progress we are making in achieving our twin objectives of growing both turnover and profits of the business. Given the current dynamics in the insurance market, we retain a positive outlook with regard to the company's prospects in the short to medium term."
The financial statements for the period ended 30 September 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS / LKASs) which have converged with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
source - www.island.lk
Richard Pieris records turnover growth of 12%
The Richard Pieris Group ended its first half year’s performance with steady group operating profits compared to the corresponding period of the previous year. The six months ended 30 September 2012 evidenced a positive performance in all its major sectors with the reported turnover surpassing Rs. 16 b which is yet another remarkable achievement.
Retail Sector: During the second quarter the sector opened its 15th large format retail outlet in the town of Piliyandala. The performance of the over 16,000 square foot store in Piliyandala during its infancy months has been very encouraging.
The retail sector continued with its vibrant marketing activities during the second quarter of the financial year 2012 2013 by having its very popular ‘Arpico Privilege Family Beach’ campaign and several other activities.
However, the company continued to see the effects on consumer confidence as a result of the depreciation of the currency, the increase in energy and fuel prices, etc., and as a result the company continued focusing heavily on managing overheads and inventory during the relevant quarter
Plastics and Distribution Sector: During the quarter the sector introduced a single layer mattress addressing the needs of the ‘value seekers’ segment of the market and carried out several dealer appreciation and recognition programs. The sector took part in the premier construction exhibition ‘Construct Expo 2012’ and was awarded the best stall.
Plantation Sector: Whilst the tea prices continued to increase, the decline in rubber prices affected the turnover of the Plantation Sector of the Group. Overall production in all major crops decreased in comparison to the similar period last year due to harsh weather conditions in terms of both drought and rain simultaneously affecting plucking and tapping in all plantation regions during this period.
Tyre Sector: During the period under review the Tyre Company introduced two new brands of passenger car tyres to the market, namely ‘Xceed’ and ‘Nexen’. The latter is considered as the most up and coming brand in South Korea and is expected to perform well in Sri Lanka.
Rubber Manufacturing Sector: The Sector continued on the success achieved during the first quarter with both Richard Pieris Exports PLC and Richard Pieris Natural Foams performing exceedingly well. The influx of new management and results of various cost improvement and quality initiatives are now being reflected in the financial performance of the sector
The Group continues to capitalise on its solid business base and the key sectors of Retail, Tyre, Plantations, and Plastics are expected to further improve performance over the second half of the financial year.
The aggressive expansion of the retail sector is expected to continue and the Group’s insurance business which was established in January earlier this year is expanding its branch network and business base. A spokesman for the company stated that the outlook for the rest of the financial year is very positive.
source - www.ft.lk
Retail Sector: During the second quarter the sector opened its 15th large format retail outlet in the town of Piliyandala. The performance of the over 16,000 square foot store in Piliyandala during its infancy months has been very encouraging.
The retail sector continued with its vibrant marketing activities during the second quarter of the financial year 2012 2013 by having its very popular ‘Arpico Privilege Family Beach’ campaign and several other activities.
However, the company continued to see the effects on consumer confidence as a result of the depreciation of the currency, the increase in energy and fuel prices, etc., and as a result the company continued focusing heavily on managing overheads and inventory during the relevant quarter
Plastics and Distribution Sector: During the quarter the sector introduced a single layer mattress addressing the needs of the ‘value seekers’ segment of the market and carried out several dealer appreciation and recognition programs. The sector took part in the premier construction exhibition ‘Construct Expo 2012’ and was awarded the best stall.
Plantation Sector: Whilst the tea prices continued to increase, the decline in rubber prices affected the turnover of the Plantation Sector of the Group. Overall production in all major crops decreased in comparison to the similar period last year due to harsh weather conditions in terms of both drought and rain simultaneously affecting plucking and tapping in all plantation regions during this period.
Tyre Sector: During the period under review the Tyre Company introduced two new brands of passenger car tyres to the market, namely ‘Xceed’ and ‘Nexen’. The latter is considered as the most up and coming brand in South Korea and is expected to perform well in Sri Lanka.
Rubber Manufacturing Sector: The Sector continued on the success achieved during the first quarter with both Richard Pieris Exports PLC and Richard Pieris Natural Foams performing exceedingly well. The influx of new management and results of various cost improvement and quality initiatives are now being reflected in the financial performance of the sector
The Group continues to capitalise on its solid business base and the key sectors of Retail, Tyre, Plantations, and Plastics are expected to further improve performance over the second half of the financial year.
The aggressive expansion of the retail sector is expected to continue and the Group’s insurance business which was established in January earlier this year is expanding its branch network and business base. A spokesman for the company stated that the outlook for the rest of the financial year is very positive.
source - www.ft.lk
Friday, November 16, 2012
Sri Lanka Distilleries group profits flat in Sept
Nov 16, 2012 (LBO) - Profits at Distilleries Corporation of Sri Lanka, which has interests in alcohol, insurance, plantations and telecom was flat at 1.6 billion rupees in the September 2012 quarter from a year earlier.
The group reported earnings of 5.39 rupees per share. For the six months to September the group reported earnings of 10.26 rupees per share on total profits of 3.07 billion rupees, up from 2.8 billion a year earlier.
At the core alcohol firm revenues rose 14.7 percent to 4.1 billion rupees, cost of sales rose 14.9 percent to 2.2 billion rupees and gross profits also gained 14.6 percent to 1.9 billion rupees.
Investment income rose steeply to 2.2 billion rupees from 522 million rupee a year earlier.
At group level investment income rose 10 percent to 465 million rupees, indicating that the profits may have come from internal transfers.
A breakdown of profits by sector for the nine months show that beverages brought 3.5 billion rupees in pre-tax profits, unchanged from a year earlier.
Pre-tax profits at plantations were 141 million rupees up from 131 million, telecoms loss 133 million rupees, compared to a profit of 159 million a year earlier. Others classified as diversified made 420 million rupees, down from 654 million a year earlier.
source - www.lbo.lk
Sri Lanka bourse, regulator to work on ten point plan
Nov 16, 2012 (LBO) - Sri Lanka's Securities and Exchange Commission and the Colombo Stock Exchange have boiled down a 10 point plan to implement during the next three years with the help of a proposed Presidential task force, officials said.
CSE chairman Krishan Balendra said the bourse and the regulator had merged their initiatives which were found to be common, and come up with the 10 points.
Acting director general of the SEC Hareendra Disa Bandara said the two entities planned to encourage the listing of large private and public companies, attract new foreign and local funds, develop trading infrastructure and the corporate bond market.
Recent tax holidays for equity listings and lifting of withholding tax on debentures proposed in the budget will help this, he said. SEC will also amend its governing act and change definitions of some to make it easier to cut securities fraud.
Ajith Fernando, head of a newly established association of margin traders said the removal of stamp duty on stocks moved to margin accounts will remove one of the hassles.
The SEC and CSE will also intensify education efforts, develop mutual funds, and develop new products and demutualize the Colombo Stock Exchange into a listed company from the current broker owned process.
Risk management systems will be strengthened by moving establishing a central counterparty, moving towards documents against payments and strengthening broker back office functions.
SEC chairman Nalaka Godahewa said some of the initiatives could be implemented quickly while the timelines for others will be set after a proposed presidential task force on capital markets is established.
In the meantime a task force of industry participants and regulators will be set up to carry forward each of the initiatives.
source - www.lbo.lk
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