Sri Lanka Stock Picks

Tuesday Markets- තවත් මන්දගාමි දිනක් නිමයි

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 09 Dec 2014 13:04:00 +0000

(www.randora.lk-09/12/14) - දේශපාලන අස්ථාවර බව,උත්සව සමය ආදි කාරණා හේතු කර කොළඹ කොටස් වෙළෙඳ පොළ කෙරෙහි මේ දිනවල දැඩ් මන්දගාම් උනන්දුවක් තවදුරටත් පවතින බව තැරැවිකාර වාර්තා කියයි. කෙසේවෙතත්,සමාගම් වල ඉපයුම් වාර්තා හොද නිසා මෙය මිලදි ගැනිමට සුදුසු කාලයක් බවද ඔවුන් කියයි. මෙම තත්ත්වයන් මැද CTC,SHAL,SLTL,CTHR,NEST යන සමාගම් වල මිළ පහළ යාම හමුවේ දිනයේ අවසන සියළු කොටස් මිළ දර්ශකයේ අගය ඒකක 23.53 කින් පහළ යමින් ඒකක 7,217.94 වු අතරේ S&P SL 20 දර්ශකය අද ඒකක 4.38 කින් ඉහළ යමින් ඒකක 4,063.70 ක් විය. දිනයේ පිරිවැටුම රුපියල් මිලියන 790 ක් විය. ජෝන් කීල්ස්,කොමාර්ෂල් බැංකු හා චෙව්රොන් ලූබිරිකන් හි ගිවිසගත් ගනු-දෙනු වාර්තා විය. මේ අනුව දිනයේ පිරිවැටුමට වැඩ්ම දායකත්වය රුපියල් මිලියන 271 කින් දායක විය. සියෙරා කේබල්ස් හා චෙව්රොන් ලූබිරිකන් පසුගිය සති 52 ක ඉහළම මිළ වාර්තා කළේය.

Daily market review and Foreign holding up date

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 02 Jul 2013 15:19:00 +0000

(click image to enlarge)

source - acuity research

Daily Market Review and Foreign Holding Update

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 02 Jul 2013 02:15:00 +0000

(click image to enlarge)

source - acuity research

Is the market experiencing a PULLBACK or is this the end of the up-trend?

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 01 Jul 2013 16:24:00 +0000

By Stefan Juriansz - Markets Never Lie (Pvt) Ltd

Ever since the beginning of time Investment professionals have been trying to answer the questionduring periods of uncertainty ‘Are we in a PULLBACK or is this the end of the up-trend?’ It is a question that I ask my self today in the Sri Lankan equity market.

Before we dig into some analysis, I want investors to know that there is only one certainty in the market and that is uncertainty. The more a trader accepts the fact that you can’t predict markets and more so that you don’t need to know the future to be profitable,the better your trading will become.

State of the market

The Sri Lankan equity markets are only UP 8.5% year to date (YTD) with the help of several heavy weights such as JKH, COMB and LLUB etc.;have all benefitted frompositiveinflows. However the current 6% pull back we are currently facing has been a cause for concern especially given the fact that we have witnessed an outflow of LKR 1 billion over the last few days. As foreign activity has contributed vastly towards the total turnover this year we should pay attention to these flows going forward.

The key technical levels for the All Share Price Index (ASPI) are between 5900 and 6300.In the coming month I will be taking a step back and observing howthe S&P SL20 heavy weights and the ASPI, trade around the levels mentioned.Over the last year previous consolidations in the market have lasted an average of 3 months and have witnessed a maximum drawdown of 10%. Therefore there is a possibility that the present situation could also last for a similar period of time and we would only get some much needed clarity on the markets by August. A 10% pull back could take us down towards 5900, which is a key support level for the index. However if we break below this level I would have to reevaluate the market and my portfolio.

S&P SL 20 analysis…

Part of my analysis includes observing the key support levels of each of the stocks on the table provided below and as long as the stocks can hold above these key support levels I would stay moderately bullish on this market while it takes time to decide on the direction. Furthermore, I would also want to see if the counters that performed the best YTD continue to stay strong or if we will witness some mean reversion in the market. (Mean reversion is when the original leaders of the market start to pullback and stagnate and the laggards start to see improvement by playing catch up to the original leaders).Remember I am not trying to predict what will happen but I will respond to the changes in conditions. Ultimately price pays and do not let anyone tell you otherwise. The market will tell me if I am right or wrong but right now it’s telling me to take some time off and move to the sidelines.

"Every once in a while you must go to cash, take a break, take a vacation. Don’t try to play the market all the time. It can’t be done"- Jessie Livermore

Markets Never Lie (Pvt) Ltd is a private trading consultancy which manages discretionary portfolios and provides advice to investors on local and global markets. The founder, Stefan Juriansz partners with the Island and Investors.lk to help provide investors with unbiased advice and encourages investors to contact him regarding their investments. Email:Stefan@marketsneverlie.com

source - www.island.lk

Sri Lanka stocks close up 0.6-pct

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 27 Jun 2013 15:21:00 +0000

June 27, 2013 (LBO) - Sri Lanka's stocks closed up 0.64 percent on Thursday, with the heavy index stocks showing gains, ending a week of losses, brokers said.

The benchmark Colombo All Share Index closed 38.68 points higher at 6,111.36 and the S&P SL 20 Index closed 12.85 points higher at 3,426.48 up 0.38 percent.

Turnover was 1.3 billion rupees up from 2.2 million a day earlier.

Foreigners brought 450 million rupees worth shares while selling 947 million rupees in a day that 131 stocks advanced and 47 stocks declined.

Ceylon Tobacco Company contributed most to the index closing at 989.50 rupees up 9.70 rupees, John Keells Holdings gained 2.00 rupees to close at 251.80 rupees with over 2.6 million shares traded. Dialog Axiata gained 20 cents to close at 8.60 rupees.

Negative contributors included The Bukit Darah losing 13.40 rupees to close at 695.60 rupees, Ceylon Cold stores lost 7.70 rupees to close at 162.00 rupees.

Hatton National Bank closed at 161.20 rupees up 1.80 rupees and Sampath Bank closed at 204.70 down 0.30 rupees.

Nestle Lanka lost 9.30 rupees to close at 1940.50 cents and Distilleries Company closed at 194.70 rupees up 4.70 rupees and Aitken Spence closed at 130.00 rupees down 0.20 rupees.

source - www.lbo.lk

Monetary Policy: Impact of SRR Reduction

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 27 Jun 2013 02:08:00 +0000

(click image to enlarge)

source - acuity research

LOLC ties up with world giant BRAC to buy control of Nanda Investments

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 27 Jun 2013 01:58:00 +0000

BRAC, one of the world’s largest micro financing providers, entered into a ground breaking strategic alliance with LOLC, one of the largest conglomerates whose core business is financial services, to acquire the controlling interest of Nanda Investments and Finance PLC (Nanda Investments).

This transaction will transfer 90,645,057 shares with a 56.6% stake of Nanda Investments to BRAC with LOLC taking a stake of 33.4%. LOLC is expected to make this equity investment through its fully owned subsidiary, LOLC Micro Investments Ltd.

Nanda Investments yesterday saw 91.2 million of its shares traded between a high of Rs. 9 and a low of Rs. 8.40 before closing at Rs. 8.60, up by 10 cents. The BRAC-LOLC buying was at Rs. 9 per share in a deal worth Rs. 815.8 million. Strike price is above the Net Assets Value per share of Rs. 5.29 as at 31 March 2013.

Nanda Investments is a registered finance company listed on the Colombo Stock Exchange with a lending portfolio of Rs. 290 million and a fixed deposit base of Rs. 88 million. The total assets of the company as at 31 March 2013 were Rs. 663 million.

BRAC is the largest development organisation in the world in terms of the scale and breadth of its operations and was founded 10 years ago in Bangladesh by its Chairman, Fazle Hasan Ahbed.

He is one of the ‘Global Greats’ in the social sector and for his outstanding contribution to social improvement, he has received the Ramon Magsaysay Award, the UNDP Mahbub Ul Haq Award, the inaugural Clinton Global Citizen Award and the inaugural WISE Prize for Education.

BRAC reaches out to the less privileged communities across the globe through microfinance, education, healthcare, legal services, community empowerment and more, catalysing lasting change and creating an ecosystem in which the less privileged have the chance to seize control of their own lives. Through this initiative, BRAC has reached and touched the lives of an estimated 126 million people, spanning across 11 countries in Asia and Africa and the Caribbean.

BRAC, with its 100,000 employees dedicated to spreading antipoverty in the world, focuses on social and financial empowerment of women, healthcare and education, empowering farmers though inclusive financial solutions, not only catering to financial needs, but also improving livelihood and financial literacy among the less privileged.

LOLC Group is one of the largest non-banking financial institutions in Sri Lanka formed in 1980 and pioneered leasing in the country. Within the open economy, the company revolutionised SME financing of income generating. This initiative changed millions of lives of the SME sector and many of them over the last three decades have graduated to the level of medium to large scale enterprises.

With this objective achieved, LOLC moved on with its next objective of reaching the non-bankable micro sector to facilitate financing to empower the micro sector with financial solutions that not only provided the much needed seed capital but to be a partner with interests in sustainable improvement of the livelihood of this community.

LOLC Micro Credit Ltd. (LOMC) was formed with this intention in 2009 along with FMO (The Netherlands Development Finance Company) who has a stake of 20% in the company. LOMC today is one of the largest micro financing institutions in the country, serving more than 160,000 customers and is reaching the poorest of the rural community through its 128 service outlets.

In the medium term, it is expected that BRAC and LOLC will invite Triodos Bank to invest in a stake of 10% and the new shareholder is expected to spearhead the provision of micro funding to fuel portfolio growth.

Triodos Bank is one of the world’s leading sustainable banks formed 30 years ago with the mission of making money work for positive social, environmental and cultural change and transacts only with sustainable companies. The bank has transactions with more than 355,000 customers with 6.8 billion euros under its management. The bank provides financial support for more than 6,000 sustainable enterprises in 40 countries worldwide.

Nanda Investments was founded in 1961 by Sirisena Mallawarachchi and in 1990, Anura Mallawarachchi took over the management of the company as the Chairman. Later, he stepped down and managed the company as Managing Director in line with Central Bank guidelines.

BRAC together with LOLC makes a formidable partnership in acquiring Nanda Investments which is expected to be positioned as a micro finance company to reach the rural community with whom both shareholders are familiar names for sustainable financial solutions.

BRAC will extend its current business model together with the backing of its global business operations platform while LOLC will play a key role in providing the know-how on the local micro credit business. Together with Triodos Bank, this partnership will flourish as a strong microfinance company with a sustainable business model of providing financing to less privileged rural community.

source - www.ft.lk

Daily Market Review - Foreign Buying Up date

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 27 Jun 2013 01:50:00 +0000

(click image to enlarge)

source - acuity research

Daily market update and Foreign Holding up date - 24 06 2013

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 25 Jun 2013 02:04:00 +0000

(click image to enlarge)

source - acuity research

NDBS tips stock market upturn to persist

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 24 Jun 2013 01:20:00 +0000

NDB Stockbrokers is forecasting the upturn in the stock market to persist aided by lower interest rates and improved corporate earnings.

“The ASPI has gained 28% since our review in May 2012. However, the rise in stock prices of 13% in 2013 (by end of May) is slightly ahead of our expectations. Accordingly we expect a lower rate of appreciation of stock prices in 2013H2 compared to 2013H1. We remain optimistic regarding the prospects in the equity market in 2014 on the premise the interest rates would ease resulting in improved corporate profitability and attraction of investors to equities (from fixed income investments). Therefore, we maintain the bull-run would continue in 2014 to reach our ASPI target of 9,000,” NDBS said in its latest Sri Lanka Equities report.

“We expect a modest increase in profits of 10% to 15% for 2013. With the pickup in economic activity and lower interest rates we expect a robust growth in profits of 20% in 2014. According to our estimates, the broad market is currently trading at a forward P/E of 12x based on 2013 expected earnings. We feel it is attractively priced compared to the regional equity markets considering the optimism and growth expectations in Sri Lanka over the next two to three years,” NDBS said. It also said as expected the market interest rates have come down in most commercial banks by 100 to 200 basis points in May 2013.

“We expect the private sector credit growth to be lower at 15% in 2013 compared to 18% in 2012. The anticipated reduction in the losses made by state owned enterprises (SOEs) and the attempt to reduce budget deficit may contain the demand for credit from Government entities. However, due to the high debt service obligations in 2013 we expect robust Government borrowing,” the company said.

“Accordingly, we do not foresee further significant reductions in interest rates in the short term. Since the government debt service obligations are comparatively less in 2014 further reductions in interest rates could be expected by early 2014 (or late 2013),” NDBS added.

Noting that global bond and equities runs may slow down, the broking firm said the interest rates in USA were maintained at historical lows since 2011 to revive the economy. Therefore, the interest rates were exceptionally low in most parts of the world. Interest rates have gained since May 2013 with the assumption that USA would scale down quantitative easing programs in view of the improving economic conditions (continuing the program eternally was not sustainable).

The global equities which were on a run from 2012 slowed down significantly in May simultaneously. “We do not expect an increase in global interest rates to have a significant upward pressure on local interest rates since the domestic market interest rates are around 5% to 10% higher than global interest rates (and also because the capital account is not fully liberalised). Accordingly, only a steep rise in global interest rates would have an upward pressure on the domestic interest rates,” NDBS said.

source - www.ft.lk

Buy on the pullback, says DNH Financial

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 24 Jun 2013 01:12:00 +0000

Despite fears that foreign investors may continue to exit emerging markets off in response to the cut back in the US fed’s bond buying program, DNH Financial believes that foreign allocations to domestic equities could remain (notwithstanding the possibility of a temporary sell-off), with robust domestic economic and corporate EPS growth providing the necessary tailwind.

It said descending close to the 6,200 support level, it is easy to shy away from the market on the conviction that it may lose further ground due to the perceived lack of any relevant support despite expectation of robust 2Q2013 corporate results for blue-chip counters.

“While we don’t rule out the possibility of further sideways movement in the short term, we are nevertheless reasonably convinced that the market should garner firm interest from foreign investors who may adopt a cherry-picking approach focusing on counters that present strong and sustainable value in high growth and defensive sectors,” DNH said.

“This should provide the necessary foundation for the market’s systematic rise over the medium to longer term. In this respect, we advise investors to focus on companies with largely monopolistic attributes and strong brand loyalty within sectors and sub-sectors that are both growth and resilient.

We reiterate the need to construct a diversified portfolio of stocks that have strong top line revenue growth and low debt to equity ratios,” DNH Financial added.

source - www.ft.lk

1Q GDP growth slows but still amongst world’s highest

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 24 Jun 2013 01:03:00 +0000

Sri Lanka’s first quarter GDP growth slowed to 6% but still remains amongst the highest in the world, according to stock broking firm DNH Financial.

It said Sri Lanka reported 1Q2013 GDP growth rate of 6.0% in line with its expectations. Growth was spearheaded by the industrial, services and agriculture sectors which rose by 10.7%, 4.3% and 2.0% compared to 10.8%, 5.8% and 12.0% reported during 1Q2012.

“We view this performance as satisfactory and indicative of the country’s resilience in an environment of globally heightened risk, while also setting the foundation for our expectation of 6.5% to 7.0% GDP growth rate for FY2013.

With the exception of China, which has reported a GDP growth rate of 7.7% in 1Q2013, it is encouraging to note that Sri Lanka has outperformed all BRICS countries in terms of 1Q2013 GDP performance during the period,” DNH Financial said.

source - www.ft.lk

Foreign Participation @ CSE - 14 to 21 June

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 24 Jun 2013 01:01:00 +0000

(click image to enlarge)

source - acuity research

Daily Review - 18 06 2013

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 18 Jun 2013 15:55:00 +0000

(click image to enlarge)

source - acuity research

Sri Lanka stocks close down 0.4-pct

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 18 Jun 2013 15:25:00 +0000

June 18, 2013 (LBO) - Sri Lanka's stocks closed down at 0.42 percent on Tuesday, continuing its downward trend with investors taking profits and index heavy stocks continuing to drop, brokers said.

The benchmark Colombo All Share Index closed 26.11 points lower at 6,193.00 and the S&P SL 20 Index closed 0.33 points higher at 3,497.12 up 0.01 percent.

Turnover was 291 million rupees down from 310 million a day earlier.

Foreigners brought 92 million rupees worth shares while selling 59 million rupees of shares, in a day that 48stocks advanced and 153 stocks declined.

Ceylon Tobacco Company contributed most to the index closing at 1002.20 rupees up 12.20 rupees helped by a crossing of 25,000 shares at 1000 rupees per share.

Commercial Leasing & Finance closed at 4.30 rupees up 20 cents and Ceylinco Insurance gained 56.90 rupees to close at 1016.90 rupees.

Negative contributors included N D B Capital Holding's losing 45.00 rupees to close at 450.00 rupees, The Lions Brewery closed at 400.00 rupees down by 10 cents and Sri Lanka Telecom lost 50 cents to close at 41.40 rupees.

Pan Asia closed at 19.60 rupees down 30 cents. Union Bank of Colombo closed at 18.30 rupees down 10 cents and Sampath Bank closed at 211.40 rupees up 40 cents. Commercial Bank of Ceylon gained 10 cents to close at 116.50 rupees
.
Nestle Lanka gained 2.20 rupees to close at 1930.80 rupees and John Keells Holdings lost 20 cents to close at 264.00 rupees.

Dialog Axiata closed at 8.70 rupees down 10 cents, Chevron Lubricants Lanka gained 3.20 rupees to close at 288.20 rupees and Distilleries Company closed at 192.00 rupees down 1.00 rupee.

source - www.lbo.lk

Sri Lanka stocks close flat

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 17 Jun 2013 11:45:00 +0000

June 17, 2013 (LBO) - Sri Lanka's stocks closed flat Monday, due to index heavy stocks continuing to drop and profit taking by some investors, brokers said.

The benchmark Colombo All Share Index closed 0.28 points lower at 6,219.11 and the S&P SL 20 Index closed 7.56 points lower at 3,496.79 lower at 0.22 percent.

Turnover was 310 million rupees down from 577 million on last week Friday.

Foreigners brought 146 million rupees worth shares while selling 55 million rupees of shares, in a day that 77stocks advanced and 104 stocks declined.

Ceylon Tobacco Company contributed most to the index closing at 990.00 rupees up 10,20 rupees helped by a crossing of 25,000 shares at 1000 rupees.

The Lion Brewery Ceylon closed at 399.90 rupees up 12.50 rupee and Carsons Cumberbatch gained 6.00 rupees to close at 444.00 rupees.

Negative contributors included John Keells Holdings which lost 1.40 rupees to close at 264.20 rupees, Chevron Lubricants Lanka lost 8.20 rupees to close at 285.00 rupees and Distilleries Company gained 60 cents to close at 195.00 rupees.

Distilleries Company closed at 193.00 down 2.00 rupees with a crossing of 200,000 shares at 195 rupees.

Pan Asia closed at 19.90 rupees down 30 cents. Union Bank of Colombo closed at 18.20 rupees down 70 cents and Sampath Bank closed at 211.80 rupees up 60 cents. Commercial Bank of Ceylon lost 0.30 rupees to close at 116.40 rupees.

Nestle Lanka gained 8.40 rupees to close at 1928.60 rupees and Dialog Axiata closed flat at 8.80 rupees.
source - www.lbo.lk

ASPI tracks MSCI Emerging Market performance

noreply@blogger.com (SRILANKANSTOCKPICKS) — Mon, 17 Jun 2013 02:16:00 +0000

Contrary to popular rhetoric, foreign investor sentiment appears to have a not inconsiderable impact on the ASPI’s performance, as can be seen in the chart in which the MSCI Emerging Markets Index has been juxtaposed against the ASPI.

DNH Financial said with foreign participation accounting for approximately 30-50% of daily market turnover, it is not surprising thawt a strong correlation exists between emerging market performance and the ASPI’s trajectory on an YTD basis. Notwithstanding this however, given the robustness of the domestic economy and its impact on corporate EPS growth, it is believed that the Colombo Bourse will be spared much of the contagion that may continue to sweep through major markets in Europe and in other areas as a result of the Eurozone debt crises.

Commenting on the market’s trajectory, DNH said that with robust EPS growth expected in selected counters, it recommends investors to focus on companies that are liquid, cash generative, have a dominant market position and are intrinsically sound while advising against taking speculative positions in stocks.

“We reiterate a focus on companies with sustainably high ROCEs and defendable competitive advantages, resulting in above average earnings growth potential that is still not fully factored into share prices,” it said. “In terms of market trajectory, we expect the Bourse to re-test the 6,500 key resistance level over the coming weeks, although intermittent bouts of profit taking could result in temporary dislocations,” DNH added.

Heading into the last few weeks of 2Q2013, DNH also expects a number of themes to emerge which are likely to shape the market trajectory; volatility in the global markets as they continue to capitulate to US and Eurozone debt tensions which could encourage foreign fund managers to increase their allocations to emerging/frontier markets such as Sri Lanka (even though foreign participation in the local bourse could peter out slightly in the short term if the sell-off in global equities continue), the likelihood of an improvement in 2Q2013 corporate EPS growth for listed blue chips which should in turn result in a decline in the PE and PEG valuations in turn providing a trigger for medium term to longer term buying interest.

The convergence of these factors is likely to provide the perfect backdrop for the Sri Lankan Bourse to commence its re-rating, despite the fact that there could be sporadic bumps along the way.

source - www.ft.lk

Orient Finance PLC net profit up by 23% for the year

noreply@blogger.com (SRILANKANSTOCKPICKS) — Sun, 16 Jun 2013 06:38:00 +0000

Dr. D. C. Jayasuriya PC – Chairman, Orient Finance PLC

According to the un-audited Interim Financial Statement for the Financial Year ended 31st March 2013 released to the Colombo Stock Exchange, Orient Finance PLC has recorded a 23% increase in Net Profit after Tax over the previous year to Rs. 168.4 Mn. This is the highest ever profit made by the Company in its decade of operations.

Income for the year recorded a growth of 70%, registering Rs. 825 million as against the Rs. 529 million income recorded in the previous year.

The Company’s Earnings Per Share (EPS) improved to Rs. 1.46 for the year from Rs.1.30 recorded in the previous year which is a 23% increase.

By the end of the financial year, the Company’s net lending portfolio increased to Rs.3.3 Bn from Rs. 2.2 Bn as at 31st March 2012 recording a 49% growth despite the decrease in the overall demand for motor vehicles.

During the year, five window offices located at Anuradhapura, Gampaha, Galle, Kalutara and Kandy were converted to fully fledged branch status while three window offices in Jaffna, Killinochchi and Batticaloa were opened to provide a convenient reach to all its leasing customers. The Company has planned to upgrade more window offices to fully fledged branches during the current financial year.

The Company commenced mobilizing public deposits in August 2012 subsequent to the receipt of the Finance Business license from the Central Bank of Sri Lanka in June 2012. During the year the company has also added Gold Loans to its product lines to become a full service provider in the Financial Services Sector. The company pioneered the concept of a 365 day leasing through its upgraded Welisara branch in December 2012.

Orient Finance PLC is licensed under the Finance Business Act No.42 of 2011 by the Monetary Board of the Central Bank of Sri Lanka. It has a Rating of BBB- (Stable outlook) from ICRA Lanka. Its main lines of businesses’ are Leasing, Hire Purchase, Debt Factoring, Gold Loans and acceptance of Fixed Deposits.

source - www.island.lk

Weekly Foreign Holding Update - Block Trade update

noreply@blogger.com (SRILANKANSTOCKPICKS) — Sat, 15 Jun 2013 09:02:00 +0000

(click image to enlarge)

source - CAL Research

We are almost there for a recovery - History is repeating

noreply@blogger.com (SRILANKANSTOCKPICKS) — Fri, 14 Jun 2013 02:26:00 +0000

(click image to enlarge)

* Mkt came to its lowest level in June 2012 after its bull run started in year 2009.

* The lowest ASI reported was 4737.75 on June 6 2012.

* The ASI moved up to 5078.06 after that until 20 June 2012. - first stage of recovery we witnessed.

* After that ASI took a dip and came to 4822.64 on 18 of July 2012.

* Once again a recovery was witnessed until 28 Sep and the ASI hit 6000 all important mark and ended up at 5971.99 - second stage of recovery.

* Again a mkt dip took place which is a natural behaviour in every mkt in the world. ASI dip up to 5323.21 and the lowest reported date was 05 December 2012.

* After that we witnessed another recovery up to 5883.66 until end of jan 2013. - third stage of recovery.
* Mkt was hit by another dip and this time ASI ended up in 5626.77 on 5 march 2013.

* The all important mkt recovery took place after that and that bull run helps to touch ASI all important mark of 6500 for the first time almost after two years. ASI hit 6488.85 on 23 may 2013. - fourth stage of recovery

*Now we are witnessing another dip in the mkt which is necessary for the all important fifth stage of recovery where we can expect ASI to hit 6750 levels or more.

Important points to remember

* look at the RSI movement of the mkt at every mkt bottom and at the highest point in every recovery. - We are almost there.

* look at the movement of ASI between Bollinger bands in every bottom and every recovery - We are almost there.

* look at MACD movement at every mkt bottom and every recovery. - We are almost there.

* After hitting low of ASI 4737.75 in June 2012 mkt is heading towards upward direction with required corrections from time to time.

( This is only the personal view of the writer )

source - yahoo finance

CB may take more measures to get lending rates down

noreply@blogger.com (SRILANKANSTOCKPICKS) — Fri, 14 Jun 2013 01:37:00 +0000

Reuters: The Central Bank could take more steps to reduce high lending rates if commercial banks do not fall in line with monetary policy rate cuts, a top Central Bank official said on Thursday.

Deputy Central Bank Governor Nandalal Weerasinghe said lending rates remain too high despite trims of 75 basis points in policy rates since December. The high rates are crimping the country’s growth, he said.

His comments come two days after the Central Bank told commercial banks to cut the rate charged on credit card advances by four percentage points in a bid to get other lending rates down.

“We don’t see a justification for very high interest rate margin for the banks. They are making huge profits and the interest margins are high,” Weerasinghe told Reuters.

“If the rates are not coming down, we have instruments. We can impose regulations if we want,” he said, without elaborating on what the Central Bank might do.

In 2009, President Mahinda Rajapaksa in his capacity as the Finance Minister ordered State banks to slash lending rates by almost half, after repeated cuts by the Central Bank failed to reduce commercial lending rates.

Sri Lanka is expected to release first quarter economic growth on Monday. Growth, which hit a record 8.2% in 2011, cooled last year to 6.4%.

Central Bank Governor Ajith Nivard Cabraal last week said first quarter growth would be slightly lower than a year earlier, but this year’s 7.5% target should be achievable.

The Central Bank kept key policy rates steady last Friday after slashing them 50 bps in May. The repurchase rate and the reverse repurchase rate are at one-year lows of 7% and 9% respectively.

Since the Central Bank slashed the policy rates on 12 December, Treasury bill yields have declined more than 200 bps. But rates on commercial loans have declined only by about 100 bps and remain around 18%, bankers say.

“That’s why we are asking the banks to reduce the (lending) interest rates because they are not following our monetary policy path,” Weerasinghe said.
source - www.ft.lk

Sri Lanka stocks down 1.2-pct, rupee weaker

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 13 Jun 2013 16:04:00 +0000

June 13, 2013 (LBO) - Sri Lanka's stocks closed down 1.22 percent on Thursday for third straight day and the rupee closed lower touching 128 to the dollar, amid turmoil in global markets, dealers and brokers said.

The benchmark Colombo All Share Index closed 76.89 points lower at 6,207.87 and the S&P SL 20 Index closed 52.3 2points lower at 3,499.09 down 1.47 percent.

Turnover was 480 million rupees down from 566 million day earlier. Foreigners brought 67 million rupees worth shares while selling 24 million rupees of shares, in a day that 46 stocks advanced and 147 stocks declined.

The spot US dollar closed at 127.97/128.05 to the US dollar, near three month low, dealers said.

There had been some profit taking in Treasuries by foreign investors said. In many Asian markets foreign investors have cut their positions, leading to currency weakness.

Indonesia made a surprise rate hike Thursday, to shore up the rupiah.

In equity markets Ceylon Cold Stores contributed most to the index gain closing at165.00 rupees up 6.20 rupees. Overseas Realty closed at 18.70 rupees up 30 cents and N D B Capital gained 7.40 rupee to close at 488.00 rupees DFCC Bank closed at 140.70 rupees down 2.60 rupeess and National Development Bank closed at 167.70 rupees down 4.70 rupees.

Pan Asia closed at 19.90 rupees down 10 cents. Union Bank of Colombo closed at 18.90 rupees down 10 cents and Sampath Bank close at 213.00 rupees down 2 rupees. Commercial Bank Of Ceylon lost 1.50 rupees to close at 96.00 rupees.

Distilleries Company lost 60 cents to close at 194.40 rupees, The Lion Brewery closed at 385.00 down 50 cents and Ceylon Tobacco Company closed at 952.20 rupees down 23.80 rupees.

John Keells Holdings lost 6.50 rupees to close at 267.00 rupees and Nestle Lanka lost 5.30 rupees to close at 1978.20 rupees.

source - www.lbo.lk

DFCC posts Rs. 3.5 b profit after tax in FY13

noreply@blogger.com (SRILANKANSTOCKPICKS) — Thu, 13 Jun 2013 02:10:00 +0000

DFCC Bank in its Annual Report for 2012/13 released last week presented good progress on all fronts. The consolidated profit after tax of the group increased 16% to Rs. 3,538 million. The contribution from the combined banking business of DFCC Bank (DFCC) and its 99% owned subsidiary, DFCC Vardhana Bank (DVB) was up 19% to Rs. 3,407 million.

Commenting on the results, Chief Executive Nihal Fonseka stated: “I am happy to say that DFCC delivered better results in many areas compared to 2011/12 and even more importantly was able to make progress on several key aspects of the strategic re-positioning which commenced in the previous year. Amidst a somewhat challenging operating environment, total income of the combined DFCC Banking Business (DBB) comprising of interest income and other income recorded an increase of 47.8% to Rs. 17,862 million in the year under review.

Gross loans and advances of DFCC Bank increased 10%, while DBB grew by 14.7%.

“DFCC Vardhana Bank increased its exposure to personal financial services assets whilst construction, especially finance for contractors, and domestic trading sectors recorded relatively higher levels of credit growth. Customer deposits of DBB grew by 37.3% during the year.”

It is heartening to note that DFCC’s overall credit quality of the portfolio has been maintained. The DFCC banking business’s impaired loans, advances and receivables as measured in accordance with the applicable new IFRS-based accounting standards which came into effect, as a proportion of the total portfolio has reduced from 7.3% to 7.1% during the year.

Expenses have also been managed effectively with DFCC Bank’s ratio of operating expenses to total operating income (before impairment charge) improving further from 30% to 28.7% during the year.

Chairman J.M.S. Brito noted in his message: “A key deliverable is return on investment. A shareholder of DFCC would have received a total of Rs. 57.50 in dividends for each share held over the ten-year period from 2003 to 2012, which works out to an average dividend of Rs. 5.75 per share per annum. In overall terms taking into account the bonus issues and the rights issue during this period, the Total Shareholder Return (TSR) works out to approximately 20% per annum.”

Consolidated group equity increased from Rs. 32,927 million (including minority interest) to Rs. 37,252 million. Earnings per share increased to Rs. 13.04 from Rs. 11.19.

In this reporting year, DFCC made a transition to the new Sri Lanka Accounting Standards that are IFRS-compliant. Commencing with this Annual Report, DFCC has also made a transition to presenting integrated reports drawing on concepts from the International Integrated Reporting Framework. The aim is to report how strategy, governance, performance and prospects lead to the creation of value to all the bank’s stakeholders, shareholders, customers and business partners, employees, community and the Government.

DFCC Bank is one of the oldest development financial institutions in the world. Established under an act of parliament in 1955, it is private sector in form with project financing continuing to be its forte.

As Fonseka noted: “DFCC Bank is the apex entity in the group. It has never lost sight of its special role in the development agenda of the country, even after its conversion in the late 1990s from Development Finance Corporation of Ceylon, an unregulated provider of finance, to a specialised bank regulated under the Banking Act. It required a change in its business model, but it has continued to be in the forefront of sustainable development financing.”

Veteran banker Fonseka who will relinquish office at DFCC by the end of September 2013 after serving 14 years as Chief Executive noted in his conclusion: “The transformation from a narrowly focused specialised bank to a financial services group, with growth of total assets from Rs. 24,071 million to Rs. 151,124 million and market capitalisation from Rs. 3,350 million to Rs. 34,754 million during my tenure could not have been achieved without the support of our valued customers from all over the country. I salute them all for the faith they have demonstrated in the DFCC Group.”

source - www.ft.lk

Net foreign inflow to CSE tops Rs. 16 b

noreply@blogger.com (SRILANKANSTOCKPICKS) — Wed, 12 Jun 2013 01:41:00 +0000

The Colombo stock market closed weaker yesterday but net foreign inflows continue to be robust topping the Rs. 16 billion mark yesterday.

The addition of a fresh billion rupees comes after the Bourse crossed the Rs. 15 billion year-to-date net inflow on Thursday. The market saw net foreign buying of Rs. 213 million yesterday, marking the 23rd straight session of net inflow. Foreign institutional investors sought after Commercial Bank and Sampath Bank shares.

Making Monday’s upturn short-lived, local investor sentiments were weak as the ASI dipped by 37 points and the S&P SL 20 Index lower by 11 points. Turnover was Rs. 750.6 million.

Softlogic Stockbrokers said the Bourse depicted a rather stagnating pattern where the early uptrend in the benchmark index failed to sustain as it fluctuated between marginal gains and losses during mid-day. The key dividend players which saw considerable rallying recently; Ceylon Tobacco Company (-1.3%) and Chevron Lubricants Lanka (-5.2%) weighed negatively on the indices outweighing gains in John Keells Holdings, Lanka Orix Leasing Company and Hemas Holdings.

Investor focus stayed in John Keells Holdings depicting strong on-board activity weighing largely on the selling side while off-board activity highlighted a block of 126,000 shares at Rs. 275. The counter closed with a gain of 0.8%. United Motors Lanka added a block of one million shares to the crossings board at Rs. 119 each, however on-board participation remained insignificant.

Sampath Bank and Commercial Bank continued to gather focus with their strong valuation status as they dipped 0.1% and 0.3% during the day’s trading enabling opportunity for further accumulation.

The former saw a block of around 231,000 shares being transacted on-board at Rs. 217, while the latter encountered significant buying interest as several mid-sized blocks traded between Rs. 119.5 and Rs. 121.5.

The BFI and diversified sectors collectively added 61% to turnover. Hemas Holdings sustained interest with a few large blocks being picked between Rs. 36.5 and Rs. 37 while renewed interest in Aitken Spence was noted as two blocks totalling c. 170,500 shares were collected on-board at Rs. 135. Some renewed interest was also observed in Lanka Orix Leasing Company.

Selected retail favourites gathered attention amidst the consolidation phase of the Bourse. Interest continued in Kelsey Developments and Nation Lanka Finance while Blue Diamond [Non-Voting] and FLC Holdings also saw notable activity.

source - www.ft.lk

Sri Lanka DFCC, NDB plan $250 mln, 10-yr global bonds-Treasury

noreply@blogger.com (SRILANKANSTOCKPICKS) — Tue, 11 Jun 2013 16:07:00 +0000

(Reuters) - Sri Lanka's top development lenders, National Development Bank and DFCC Bank are planning a $250 million bond issue each, Deputy Treasury Secretary S.R. Attygalle told Reuters on Tuesday.

"Both NDB and DFCC are working on the bond issue. Each of them will go for $250 million, 10-year bond issue," Attygalle said. He did not say when the lenders planned to tap the global capital market.

On Friday, Attygalle said Sri Lanka's state-owned National Savings Bank (NSB) is likely to sell up to $1 billion of global bonds by the end of this month, the biggest corporate bond issue so far.

(Reporting by Shihar Aneez; Editing by Sanjeev Miglani)
source - www.reuters.com