Blind leading the blind?

Once high flying Touchwood Investments Plc (TWOD) is apparently facing rough weather with incomplete disclosure given the part sell out by key Directors whilst they themselves have taken up additional responsibilities in troubled CIFL throwing open a barrage of questions over good governance and effectiveness of the regulatory role from shareholders and investment analysts alike.

In what some analysts termed as bizarre developments, troubled finance company, Central Investments and Finance Plc, on Friday in a filing to the Colombo Stock Exchange (CSE), said three new members Roscoe Meloney, Swarna J. Meloney (Chairman and Vice Chairperson of Touchwood) and Dulan Hettiarachchi have been appointed to the Board effective 2 May 2013. Meloney has been appointed as the new Chairman of CIFL replacing K. A. L. Rupasinghe who had resigned whilst CEO Gamini Karunathilake too has resigned with Swarna J. Meloney appointed as Acting CEO until a permanent appointment is made.

 This was after CIFL in early April in response to a Sunday newspaper article which referred to change of ownership responded saying the company has been notified by a new investor by the name of Roscoe Meloney that they have concluded the acquisition of the holding company Aspic Corporation along with nine subsidiary companies.

 Accordingly they have claimed to be major shareholders of CIFL and they have copied some of their communications with the Central Bank on the same subject which indicate that they intend infusing approximately US$ 12 million to CIFL and bring in a high level of corporate governance and financial integrity.

“We are currently communicating with this party and the Central Bank in getting the necessary approvals etc for this purpose. We will arrange to keep you informed about the future development in this respect,” said the 2 April 2013 filing to CSE by CIFL Chairman Lakshman Rupasinghe.

 With no further updates, CIFL last Friday merely stated the change in the Board of Directors leaving many shareholder and investment analyst’s questions unanswered.

 Yesterday Touchwood Plc announced that eChannelling Plc Chairman and CEO Ruwan Silva has been appointed with immediate effect to be the Principal Consultant and Advisor to the Board of Directors.

 Silva would be assisting Touchwood with regard to mergers and acquisitions, investor relations and the restructuring of the Company in addition to other responsibilities. He would assist the Company in identifying and introducing strategic investors to Touchwood.

 The connection between Silva and Touchwood owners wasn’t explained or on what basis he was handpicked except that he was described as been instrumental in the turnaround of eChannelling and has been involved in many other company restructuring projects.

 Touchwood’s filing to the CSE signed by Deputy Chairperson Swarna J. Maloney also said “The Chairman and Deputy Chairman of Touchwood Investments Plc are committed to strengthen and improving Touchwood Investment Plc and are embarking on a substantial restructuring of the company which would enhance profitability, which would benefit all stakeholders including the shareholders”.

The revelation of strengthening and improving Touchwood and “substantial restructuring” comes out of the blues as there had been no other prior disclosure from the company in recent months.

 Company analysts were perturbed on what basis did Touchwood controlling shareholders agree to infuse money into the troubled finance company (CIFL) when their own venture was under distress.

They also questioned on what basis did the Central Bank approve this deal and whether proper due diligence was done?

 Ironically, Touchwood Plc’s Chairman and Deputy Chairperson are yet to make good corporate governance practice-linked timely disclosure of their own acts with regard to divesting of some of their shareholdings in the Company.

 The Daily FT learns Mr. and Mrs. Maloney sold a substantial part of their shareholding in Touchwood in the market to retailers in recent weeks but to date there has been no disclosure as part of Director’s dealings in company shares. Mr. Maloney had at least sold around over Rs. 80 million worth of Touchwood shares and Ms. Maloney around Rs. 40 million in recent weeks as per one analyst.

 As per 31 December 2012 shareholdings, Mr. Maloney held 17.5 million shares or 16.36% stake in Touchwood whilst Mrs. Maloney held 9.6 million or 9% stake.

 The selling by Mrs. Maloney comes after she was appointed Vice Chairperson in April.

 As per Daily FT analysis, Touchwood saw heavy trading in recent weeks. For example in the week ended 3 May 2013, around 30% stake of the company traded followed by 18% last week. A large number of retailers were active whilst several were seen recycling trades. Some may have been engaging in speculative trading whilst others could have been told an untrue “upturn” story.

 Touchwood has a retained loss of Rs. 367.56 million at group level as at 31 December 2012, up from Rs. 321 million a year earlier. Its assets amounted to Rs. 7.7 billion including Rs. 6 billion as biological assets, valuation of which in the past had raised concerns among investment analysts.

Group noncurrent liabilities amounted to Rs. 4.4 billion and Rs. 146 million in current liabilities.

 Revenue in the first nine months of FY13 was down to Rs. 899 million from Rs. 943 million a year earlier whilst net profit was Rs. 130 million up from Rs. 110 million.

 The new Principal Consultant and Advisor has an arduous task as per analysts. He is also the Chairman of British American Technologies which is the major shareholder of eChanneling.

Previously he was the CEO of Blue Diamonds Jewellery Worldwide Plc and served as CFO at Sri Lanka Telecom and Ericsson Algeria and Sri Lanka.

 On the other hand CIFL’s first nine months revenue for FY13 was up 14% to Rs. 513 million, whilst net income was down by 46% to Rs. 116 million owing to an 83% dip in other operating income and 81% rise in interest income.

 Operating losses were Rs. 261.7 million, up by 30% over the first nine months of FY12. Profit loss before loan losses and provisions was Rs. 145.4 million as against a profit of Rs. 13 million a year earlier.

 Net losses for nine months of FY13 were Rs. 147 million as against a profit of Rs. 7 million.
 CIFL was saddled with negative revenue reserves of Rs. 92 million as at 31 December 2013 as again a positive Rs. 55 million a year earlier and 31 March 2012.

 Assets amounted to Rs. 3.8 billion, up from Rs. 3.3 billion a year earlier and Rs. 3.6 billion as at end FY12.

 Liabilities amounted to Rs. 3.2 billion, up from Rs. 2.6 billion as at 31 December 2012 and Rs. 2.9 billion as FY12.
source - www.ft.lk

Bourse, rupee, T-bond yields down

The Colombo bourse dipped yesterday (13) on profit taking, reversing a seven day upswing, while the rupee weakened against the US dollar. Treasury bond yields eased on improved liquidity levels.

The rupee closed at Rs. 126.30/35 against the US dollar, weakening from an opening position of Rs. 126.17/20 against the greenback on importer demand, currency dealers said.

Meanwhile yields plunged across the board in the secondary market for Treasury bonds as activity levels picked up on improving liquidity levels, except the 8 year bond where the yield tightened to 11.45/60 percent from the previous day’s 11.40/60 percent.

The more liquid five year bond yield fell to 10.93/96 percent from 10.98/11.02 percent while the four year yield slumped to 10.70/77 percent from 10.85/11.00 percent.

The three year bond yield fell to 10.78/82 percent from 10.80/90 while the two year yield fell to 10.60/80 percent from 10.80/11.00. The one year bond yield fell sharply to 10.50/70 percent from an opening position of 10.75/90 percent.

The Central Bank’s Treasury bill holdings fell to Rs. 94.54 billion yesterday from Rs. 103.94 billion on Friday.

Currency dealers said market interest rates could come down after the Central Bank cut monetary policy interest rates by 50bps last week.

Profit taking saw the All Share Price Index fall 10.97 points to close 0.18 percent lower at 6,239.03 while the S&P SL20 closed 0.34 percent lower, down 12.05 points to 3,518.85.

Turnover amounted to Rs. 535.05 million.

Foreign purchases amounted to Rs. 176.94 million, leading to a net inflow of Rs. 152.99 million.

"The indices dipped reversing a 7-day upward trend, mainly due to profit taking on a selected set of large cap and second tier counters. Activity levels slowed down during the day and were dominated by trades on banking and diversified counters, inclusive of a crossing on JKH," John Keells Stockbrokers said.

"Trades in John Keells Holdings and Softlogic Holdings accounted for 28% of the day’s turnover.

Losers modestly outpaced gainers with SMB Leasing(X), Samson International and Nation Lanka Finance(X) falling by 20%, 8.9% and 6.7% and offsetting gains in J.L.Morison(X), J.L.Morison and Radiant Gems which rose by 39.9%, 21.3% and 13.1% respectively," DNH Financial said.

source - www.island.lk

No “May day!, May day!” at CSE!

◾Colombo Bourse YTD gain crosses 10% mark as opposed to 20% down a year earlier

◾Net foreign inflows nears Rs. 10 b milestone

◾Most brokers expect market sentiment to remain buoyant on the back of policy rate cut, inflows and resilient corporate earnings though  recent gains have put Bourse in over-bought territory
There doesn’t appear to be any serious distress call at the Colombo Bourse this year as it continues to gather strength much to the delight of investors and other capital market stakeholders.


In comparison to a 16% year-to-date negative growth as of 11 May last year, the Colombo Stock Exchange (CSE) is up 10.76% passing the double digit milestone on Thursday. By end May last year, the market was languishing with a 20% negative return, within the steepest fall in 2012 before ending down by 8.5%.

 Reaffirming slow but steady return of fortunes, the Bourse last week gathered further strength trading at an 18-month high. The cut in policy rates on Friday by the Central Bank along with net foreign inflow nearing the Rs. 10 billion milestone as well as corporate earnings showing resilience, are likely to further cement investor confidence. Many brokers predict investor sentiments to remain buoyant though given recent gains the market fell in the overbought region by last week.

 The redeeming feature was all classes of investors being active of late, though in tandem with a rebound, whereas foreigners have been smarter in picking and buying heavily when stocks were at better bargains.

John Keells Stock Brokers (JKSB) said the indices rose sharply during the week on the back of buying interest across the board, led by large caps whilst Softlogic Stockbrokers said the benchmark surged with a 237 point gain during the week with “all types of investors” back in the market.

“Broad-based positivism pushed markets over 200 points, with both retail and institutional investors showing renewed vigor,” noted Acuity Stockbrokers.

 Asia Wealth Management said the market gradually continued to build up on the 6,000 levels, after falling below the 5,000 levels in August last year. The All Share Index managed to accumulate a whopping 236.8 points during the week on the back of healthy retail and institutional participation, it added.

 The week started with a rally that raised the ASI index by 108 points within a day amidst a major deal (RCL acquiring 76% of Lanka Ceramics). Momentum continued for the rest of the week as well, while ASI reached its 6200 levels supported by the price appreciations of index-heavy counters such as JKH, SPEN and DIST. Momentum slowed down towards the end marginally while the week closed ASI at 6250 level, stated LOLC Securities.

 Turnover value reached a 32-week high of Rs. 4.1 billion on Monday (due to Royal Ceramics and connected parties buying near 90% control of Lanka Ceramics) amid active retail participation across the board. Cumulative turnover for the week consequently increased to Rs. 10.6 billion, averaging Rs. 2.1 billion, a 107% increase from the year-to-date daily average of Rs. 1 billion, said Acuity adding “Upbeat sentiment is likely to continue in the week ahead.”

The policy rates cut by the Central Bank on Friday by 50 basis points as expected by the financial services industry though the IMF has cautioned against the move, is likely to bolster investor sentiments. With that move Sri Lanka joined the wave of rate cuts globally such as India, Australia, Vietnam, South Korea and the ECB.

 The cut in Sri Lanka was largely driven by the slower than expected pick up in economic activity within the first few months of 2013due to moderate inflation and subdued demand pressure.

 Acuity said markets which have been gradually pricing in a further rate cut over the past few sessions hence made a sharp jump this week ahead of the Central Bank’s official announcement of a 50 bps policy rate cut.

 Asia Wealth said the cut was in furtherance of CB’s monetary policy easing stance, since a downward revision affected it in December 2012. Further, the country’s Treasury bill rates also witnessed a continuous decline over the past few weeks which could also be attributed to the expectations regarding the reduction in policy rates. During the week the three-month T-bill rates dipped by 02 bps to stand at 9.18% while six-month T bill rates also dropped by 02 bps to close at 10.20%.

  “The CBSL expects the policy rate reduction to increase private sector credit growth, and improve the economic growth whilst facilitating the government to finance the public investment program at lower costs. On the back of this development, we expect the equity market to be more attractive relative to other investments modes. Thus, we advice investors to take positions on fundamentally sturdy counters with high growth potential to reap benefits,” Asia Wealth opined.

Softlogic said the rate cut is likely to bring down market interest rates in the short term.

“The rate cut is likely to shift investors away from fixed income towards other sources of investment. The move is likely to boost demand for equity investments in the medium term. We advise investors to accumulate the following companies. It is a positive signal for high debt companies with lower finance cost and banking sector counters which would benefit from margin expansion,” the broking firm added.

 Lanka Securities said compared to its peers, the CSE still trades at attractive multiples indicating more room for price appreciations. However as a result of the sharp price increases during the past few days, the Bourse is trading in “overbought” territory (the 14-day Relative Strength Index is at 90). “Although valuations remain favourable traders are advised to book profits when able to. A period of consolidation is on the cards as market RSI has reached a high level,” LSE added.

 DNH Financial said it expects market sentiment to remain buoyant during next week with positive investor sentiment underpinning momentum.

“However, given that 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 ‘stockpickers’ market. Investors are consequently advised to seek cash rich companies with strong balance sheets that have underperformed during periods of market over-exuberance and which have the upside potential to re-rate to their intrinsic values,” DNH said.

“With confidence returning to the market, we view the current market level as an opportunity for investors to reposition themselves with a flight to quality. We advise investors to break away from the herd, maintain a healthy investment horizon and focus on companies that will deliver quality earnings. On a sector basis, we believe that conventionally defensive sectors such as Telecoms could experience a slowdown in top line growth exacerbated by downward pressure on margins due to price competition. Conversely, we believe that several of the traditionally more cyclical sectors such as Banking, Services, Construction and Tourism could generate highly attractive defensive attributes, such as strong volume growth and pricing power which should enable them to maintain margins while generating sustained cash-flow. However investors may need to be highly selective focusing on stocks that are not overly leveraged or have high energy requirements,” DNH added.

 Foreign net inflow as of last week year to date was Rs. 9.6 billion. Acuity said foreign investor activity recorded a net buying position of Rs. 660 million, relative to Rs. 350 million in the previous week with daily average net inflows increasing 52.59% week-on-week. Average foreign purchases increased 111.96% week-on-week. In terms of volume, Distilleries and HNB led foreign purchases, while Commercial Bank and Renuka Agri led foreign sales. In terms of transaction value too, Distilleries and HNB led foreign purchases, while Commercial Bank and Royal Ceramics led foreign sales.

 Asia Wealth said foreign investors continued with their block trades in selected counters resulting in the net foreign inflow. “It could be observed that continuous foreign investor participation had been an inspirational factor for local institutional investors to be active again,” Asia added.

Dubai next stop for CSE global road show

As part of wooing further foreign investor interest, the Colombo Stock Exchange (CSE) has shifted focus on the Middle East via the region’s hub Dubai.

 The next edition of “Invest Sri Lanka” Investor Forum organised by the CSE in partnership with Bloomberg will be held at the Ritz Carlton, Dubai International Financial Centre, on 3 June.

 This will be the second investor road show whilst the first one was successfully held in Mumbai in February. A similar event is planned in Hong Kong in September.

 Over 100 fund managers based in Mumbai attended the conference whilst nine listed firms and over 15 broking firms formed part of the Sri Lankan contingent.

 For the Dubai event, the Sri Lankan delegation will be led by Senior Minister for International Monetary Cooperation and Deputy Minister for Finance and Planning Dr. Sarath Amunugama and will include Deputy Minister for Investment Promotion Faiszer Musthapha, SEC Chairman Dr. Nalaka Godahewa and CSE Chairman Krishan Balendra. Other speakers include CSE Director Vajira Kulatilaka and BOI Executive Director Investment Promotions Duminda Ariyasinghe.

Earnings season off to a good start

Earnings season has got off to a better than expected start. Based on the earnings of 19 companies which have released interim financial statements by last week, earnings have increased by over 74% year-on-year in the January-March 2013 quarter, according to Lanka Securities Ltd.

source - www.ft.lk

Access Engineering completes project at Colombo Harbour

Access Engineering PLC recently handed over completed projects at the Unity Container Terminal (UCT), New North Pier of the Colombo Harbour.

Opened in 2004, the Unity Container Terminal (UCT) is located at the northern end of the harbor and consists of 2 berths for feeder vessels with depths alongside 9 and 11 metres. The 340m long quay is served by 3 panamax gantry cranes of 41t SWL. Eight RTGs serve two stacking areas with 1,020 ground slots.

Following the rapid recovery in transshipment volumes and securing exclusive agreements with some of the world’s biggest shipping lines, the Sri Lanka Ports Authority planned to increase container-handling capacity at its terminals to meet these increasing demands by renovating the Unity Container Terminal as well. Once this expansion is operational along with the Colombo Port Expansion Project, the SLPA would have unmatched capacity at its terminals compared to other container ports in the sub-continent.

source - www.island.lk

Haycarb PAT exceeds Rs. 1bn

Haycarb PLC, coconut shell based activated carbon manufacturer and exporter, posted a record performance in the financial year 2012/13.

"Outpacing growing challenges in traditional markets and rising costs of production, the Hayleys Group’s multinational activated carbon business noted significant achievement of several key performance milestones in an interim statement filed with the Colombo Stock Exchange," the company said in a statement.

Haycarb in 2012/13 recorded revenue of Rs. 10.1 billion, up from Rs. 8.5 billion in the previous financial year. Significantly, the company posted profit before tax of Rs. 1.22 billion and profit after tax of Rs. 1.03billion compared to Rs. 657 million and Rs. 523 million in the preceding year.

Earnings per share of equity holders of the company doubled to Rs. 31.50, compared to the previous financial year. Haycarb, the pioneer manufacturer of activated carbon in any coconut producing country, with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the UK, Australia and USA, contributed significantly to the national economy through foreign exchange earnings in excess of Rs. 5 billion whilst increasing emphasis in product innovation, market development and substantial investments in expanding its global manufacturing footprint.

Haycarb PLC and Hayleys PLC Chairman, Mohan Pandithage stated that the company has posted exceptional results to surpass Rs. One billion in profit after tax in spite of the economic slowdown that affected some of the major export markets. "The strong customer relationships we have nurtured based on mutual trust and our good governance principles assisted the company to retain key customers, and the successful market penetration strategies, enabled the company to operate at full capacity, a key driver that contributed to sustain and grow its performance" he said.

Haycarb PLC Managing Director Rajitha Kariyawasan attributed concentrated efforts on marketing, sales and new business development, emphasis on driving high margin and value added products, full capacity operations together with extensive programs on waste reduction and productivity enhancements as key to the year-end performance. "Despite contraction and stagnation of demand from our traditional markets, our sales teams and active distributorships worked aggressively to expand our market share. We also had to overcome other external challenges of rising fuel costs, wage costs and overheads".

During the year, Haycarb manufacturing operations in Sri Lanka, Indonesia and Thailand recorded exceptional performances, with some achieving the best results in their history. "Our marketing subsidiaries in Europe, Australia and in the USA brought in worthwhile contributions to both top and bottom lines", Kariyawasan stated.

"The relative stability of pricing of our key raw material coconut shell charcoal, and the devaluation of the currencies in Sri Lanka and that of our other Asian manufacturing locations helped us favourably, where the net benefits could be passed on to customers through price adjustments to protect and grow our sales base", he added.

During the year, Haycarb PLC through its joint venture in Thailand, Carbokarn Company Ltd, purchased 100% equity of Shizuka Company Ltd. Thailand, expanding the activated carbon manufacturing capacity of the Group. In Sri Lanka, it incorporated Haycarb Value Added Products Private Limited as a fully owned subsidiary to manufacture and export value added activated carbon products. The plant is expected to be commissioned in the financial year 2013/14. In January 2013, PT Haycarb Palu Mitra Company was incorporated as a joint venture to build a green field activated carbon plant in Central Sulawesi, Indonesia and is expected to come into commercial operation in the early part of 2014.

Challenging external conditions such as spiraling energy costs, strengthening of currencies in some of the key manufacturing bases, and increases in wage costs and overheads could impact the company’s margin potential, he said. "The price stability and availability of coconut charcoal, which is a primary driver of growth and stability of earnings faces challenging times with significant increases in pricing experienced in recent months in India and Sri Lanka" he cautioned.

source - www.island.lk

Bourse gains sharply

Stock Market Review for the Week Ended 10th May 2013:

The bourse had a good week with the All Share Price Index gaining a sharp 3.94 percent and the S&P SL20 gaining 3.67 percent.

Year-to-date, the bourse closed last week 10.76 higher while the S&P SL20 did better at 14.44 percent.

A net foreign inflow of Rs. 663.97 was reported during the week, taking up the total net inflow to Rs. 9,597.86 million.

Markets opened on Monday displaying a bullish sentiment with the change in ownership of Lanka Ceramics was the highlight of the day. The share gained a 50% as the capital gain of the selling party, CT Holdings amounts to c.Rs. 2.0bn. Royal Ceramic was the buying party to the transaction (76.1% stake of the Lanka Ceramic). On the back of that move, the market closed on a positive territory with a turnover of Rs 4.1 Bn. ASI gained 107.99 points (1.80%) to close at 6,121.17 and the more liquid S&P SL20 index gained 55.13 points (1.62%) to close at 3,461.12. Top contributors to turnover were Lanka Ceramic with Rs. 3.2Bn, Royal Ceramics 65.2Mn and John Keells Holdings with Rs. 42.5Mn.

Most active counters for the day were Vallibel One, nation Lanka Finance and Lanka Ceramics. Further, blue-chip such as Nestle, John Keells, Dialog Axiata, Chevron Lubricants and National Development Bank reached 52week high prices on Monday aiding the positive performance for the day. Foreign participation accounted for 3% of the total market turnover as net buyers; with a total net foreign inflow of LKR 28.2mn.

Shares closed at their highest in almost 18 months on Tuesday primarily led by blue-chip counters as a result of heavy foreign buying as well as due to strong anticipation of a rate cut by the Central Bank’s policy meeting this week. The Bourse closed surpassing 6,200 levels as 20 stocks reached 52 week high prices including high-cap Aitken Spence up by LKR 7.80, Chevron Lubricants up by LKR 2.90, Nestle up by LKR 4.90, John Keells Holdings up by LKR 4.60, DFCC Bank up by LKR 6.50 and National Development Bank up by LKR 5.00. On this backdrop, the ASI gained 80.51 index points (1.32%) to close at 6,201.68 and S&P SL 20 Index advanced by 50.83 index points (1.47%) to close at 3,511.95. Top contributors to the turnover were Vallibel One with LKR 127.0mn, Seylan Bank non-voting with LKR 100.0mn and Commercial Bank with LKR 99.9mn. Daily market turnover was at LKR 1.4bn as foreign participation for the day amounted to 14.3% of the total market activity. A net foreign inflow of LKR 248.8mn was recorded for the day extending the net foreign inflow for this year to Rs 9.21 Bn.

On Wednesday, the market maintained its positive momentum with retail counters rallying around blue-chips to secure positivity. The main index ASI gained 8.42 points (0.14%) to close at 6,210.10 and the S&P SL20 index gained 9.35 points (0.27%) to close at 3,521.30 while a turnover of Rs. 1,465.4Mn was recorded for the day. Crossings took place in Commercial Bank, boosting the turnover while the share price closed at LKR 118.70 gaining 0.17%. Bank Finance and Insurance sector contributed mostly to the market turnover while the sector index was up by 0.37%. Consequently, top contributors to turnover were Commercial Bank with Rs. 371.6Mn, Vallibel One with Rs. 114.0Mn and John Keells Holdings with Rs. 105.1Mn while the most active counters for the day were Vallibel One, Pan Asia Bank and Capital Alliance Finance.  Foreign investors reversed their sentiment by being net sellers on Wednesday, while the net foreign outflows amounted to LKR 93 Mn.

Shares gained for the sixth straight session on Thursday to hit a new 18 month high backed by strong performance in the banking sector in anticipation of a rate cut. The ASI gained 28.61 points (+0.5%) to close at 18 month high of 6,238.71. S&P SL 20 index closed at 3,526.51 with gain of 5.21 points (+0.2%). Investor anticipation over a policy rate rate reduction drove the activity levels across the board and the market turnover reached Rs. 2.1bn. Crossings were witnessed on several counters, namely Commercial Bank, HNB, NDB and Distilleries while strong retail activity was taking place in Touchwood, NTB and Capital Alliance Finance. Commercial Bank foreign stake was reduced by 2,677,198 shares while the share price closed at LKR 118.50. Accordingly, Bank, Finance and Insurance sector contributed mostly to the market turnover while the sector index rose by 1.16%.

Foreign participation accounted for 26% of the market activity as foreigners were net buyers with a net foreign inflow of Rs.194.1mn.

On a decisive move, the Central Bank of Sri Lanka cut policy rates by 50bps on Friday as anticipated by investors throughout the week. On this backdrop, the main share ASI index gained 11.29 points (+0.18%) to close at 6,250 points while the more liquid S & P SL index gained 4.39 points (+0.12%) to close at 3,530.90 points. This positive investor sentiment drove the main ASI index up more than 225 points this week. Turnover for the day was at Rs 1.472 Bn as several crossings were recorded on Commercial Bank, Distilleries and The Lion Brewery Ceylon. Beverage, Food and Tobacco sector contributed mostly to the market turnover posting a rise in sector by 47.30 points while on the contrary; Bank, Finance and Insurance sector suffered a decline of 13.15 points. Foreigners were active buyers for the day with a net foreign inflow of Rs 285 Mn.

In the backdrop of this prevailing positive market sentiment, we are particularly bullish on Access Engineering, Vallibel One and a few counters in the Banking sector. Having strong growth rates Access Engineering is geared up to perform on solid price levels. Vallibel One was recorded as one of the top traded shares this week as well as a top contributor to daily turnovers throughout the week after closing at Rs 20.60 on Friday. The Banking sector in particular, Commercial Bank, HNB and NTB recorded several crossings this week with strong retail and foreign activity focused on these counters. The Banking sector with a sector PE of close to 9x (last 4 Quarters) as well as Central Bank’s easing of the Monetary Policy poses a fairly confident drive ahead.

(Courtesy: Innovest Investments Pvt. Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)

source - www.island.lk

Results Update - March Quarter 2013

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source -  CAL Research

Sri Lanka Stock Picks Forum

Sri Lanka Stock picks one of the oldest blogs in the country which is involved in publishing updates, news articles, research reports etc. with regard to day to day happenings/activities of the Colombo Stock Exchange is proud to announce that the launching of their forum titled as "Sri lanka Stock picks - forum".

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Weekly Foreign Holding Update - 10 05 2013 - By Acuity

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source -  acuity research

Weekly Foreign Holding Update - 10 05 2013

 

 

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source -  CAL Research