HIDDEN in the Indian Ocean like a verdant dollop dripping from the southern coast of tropical India, Sri Lanka has lingered in geographical and economic obscurity. It is a land that lures European tourists, is fighting a vicious but relatively contained civil war, and has quietly managed to attract investors from all over the world.

This would be a great place to publish investment and insider tips.














Company Volume **VWA Day’s High Low **VWA Change
previous Open today’s (Rs.)
close close
Main Board

A. Spen. Hot. Hold. 400 75.00 70.25 78.25 70.25 78.00 3.00
ACL XC 294,300 207.25 207.00 207.00 205.00 205.00 (2.25)
ACL Plastics 2,100 47.00 47.00 47.00 47.00 47.00 -
Agalawatte 10,000 20.00 21.00 21.00 21.00 21.00 1.00
Ahot Properties 13,700 50.00 50.00 51.00 50.00 51.00 1.00
AMW 100 155.00 160.00 160.00 160.00 160.00 5.00
Ascot 30,400 60.00 61.00 62.00 59.50 59.73 (0.25)
Asiri 27,900 86.00 86.50 88.00 86.25 88.00 2.00
Bairaha Farms 700 10.75 10.75 10.75 10.50 10.50 (0.25)
Balangoda 300 16.25 17.00 17.00 17.00 17.00 0.75
Blue Diamonds 4,800 3.70 3.60 3.80 3.60 3.60 (0.10)
Blue Diamonds (NV) 64,300 1.20 1.20 1.30 1.20 1.20 -
Brown’s Beach 300 26.50 27.00 27.00 27.00 27.00 1.25
C. W. Mackie & Co. 3,100 21.00 22.00 22.25 20.75 20.75 (0.25)
Caltex 203,700 87.25 87.75 88.00 87.75 88.00 0.75
Cargo Boat 7,900 22.75 22.75 24.50 22.75 23.75 1.00
Central Finance 2,200 232.50 230.25 233.00 230.25 233.00 0.50
Central Sec. 200 70.00 70.00 70.00 70.00 70.00 -
Ceylinco Housing 1,000 37.50 38.00 38.00 37.50 37.50 -
Ceylinco Ins. 500 170.00 166.00 170.00 166.00 170.00 -
Ceylinco Sec. 9,900 19.25 19.25 20.00 19.25 19.75 0.50
Ceylinco Seylan 36,500 7.75 7.75 7.75 7.50 7.75 -
Ceylon Glass 1/- 39,500 2.30 2.30 2.30 2.30 2.30 -
Ceylon Guardian 10,500 144.75 146.00 149.00 146.00 148.00 3.25
Ceylon Inv. 10,300 89.75 89.00 94.50 89.00 92.25 2.50
Ceylon Leather 10,500 17.75 18.50 18.50 17.25 17.50 (0.25)
CIC 4,800 98.00 98.00 99.00 97.00 97.00 (1.00)
CIC (NV) 39,600 59.75 60.00 60.50 58.75 59.00 (0.75)
Coco Lanka 3,300 22.00 22.50 22.50 22.00 22.25 0.25
Colombo Land 1/- 26,600 4.30 4.40 4.40 4.30 4.30 -
Colombo Land
(W-C2009) 29,200 1.40 1.40 1.50 1.40 1.50 0.10
Commercial Bank 1,500 187.00 187.00 187.00 185.00 185.00 (2.00)
Commercial Bank (NV) 11,200 84.25 85.00 85.00 84.00 84.00 (0.25)
Dankotuwa Porcel 100 10.25 10.75 10.75 10.75 10.75 0.50
DFCC 15,300 176.75 177.00 177.00 177.00 177.00 0.25
Dialog 1/- 686,900 26.75 27.00 27.25 26.75 27.25 0.50
DIMO 100 109.00 107.00 107.00 107.00 107.00 (2.00)
Dipped Products 700 105.75 105.00 107.00 105.00 106.00 0.25
Distilleries 1/- 171,000 89.00 90.00 90.50 90.00 90.00 1.00
Dockyard 1,500 34.00 34.75 35.00 34.75 34.75 0.75
Durdans (NV) 1,600 29.00 30.00 30.00 29.75 30.00 1.00
Eagle Insurance 500 130.00 130.25 130.25 130.25 130.25 0.25
East West 4,100 11.50 11.50 11.50 11.50 11.50 -
Eden Hotel Lanka 2,700 11.75 12.00 12.50 12.00 12.25 0.50
Equity 2,800 27.50 28.00 28.00 28.00 28.00 0.50
Equity Two Ltd 3,800 13.75 14.25 14.75 13.75 13.75 -
Galadari 8,100 11.00 11.00 11.25 11.00 11.25 0.25
Grain Elevators 38,300 12.75 13.00 13.00 13.00 13.00 0.25
Hayleys 3,800 127.00 127.00 130.00 127.00 127.75 0.75
Hayleys Exports 300 39.00 39.00 39.00 39.00 39.00 -
HDFC 100/- 300 177.00 175.25 175.25 175.00 175.25 (1.75)
Hemas Holdings 12,400 116.00 117.00 117.00 114.00 114.50 (1.50)
HNB 37,600 140.50 140.50 142.00 140.50 142.00 1.50
HNB Assurance 2,500 22.50 22.50 22.50 22.50 22.50 -
HNB (NV) 15,400 59.00 59.00 60.00 59.00 59.25 0.25
Hotels Corp. 2/- 200 225.00 207.25 207.25 207.25 207.25 (17.75)
Hunas Falls 2,000 30.00 30.00 30.00 30.00 30.00 -
JKH 132,600 193.50 193.50 194.50 193.50 194.00 0.50
John Keells 1,400 87.00 87.00 87.00 86.50 86.75 (0.25)
Kahawatte 10,500 8.50 8.75 9.00 8.75 8.75 0.25
Kegalle 19,500 44.00 44.00 45.00 43.50 43.50 (0.50)
Kelani Cables 7,100 152.75 155.00 155.00 149.25 151.50 (1.25)
Kelani Valley 4,600 51.00 52.00 52.50 51.50 51.75 0.75
Kotagala 4,000 25.50 26.00 26.25 26.00 26.00 0.50
Kuruwita Textile 1,300 55.00 53.25 56.00 53.25 56.00 1.00
Lanka Ashok 200 185.00 185.25 185.25 185.25 185.25 0.25
Lanka Cement 3,000 8.25 8.25 8.50 8.25 8.50 0.25
Lanka Hospitals 5,000 25.25 25.25 25.50 25.00 25.00 (0.25)
Lanka IOC 276,500 25.50 26.00 26.75 25.75 25.75 0.25
Lanka Tile 6,900 66.00 66.00 66.00 66.00 66.00 -
Lanka Walltile 1,600 61.25 58.75 61.25 58.75 60.25 (1.00)
Lankem Dev. 100 18.00 18.50 18.50 18.50 18.50 0.50
Laxapana 30,800 7.25 7.50 7.75 7.50 7.50 0.25
LB Finance 1,700 39.00 39.00 39.00 39.00 39.00 -
LMF 1,300 36.50 37.00 37.00 36.00 36.75 0.25
Madulsima 2,700 7.50 7.50 7.75 7.50 7.75 0.25
Malwatte 35,000 17.50 17.50 18.75 17.50 18.00 0.50
Maskeliya 700 27.25 28.00 28.00 27.50 28.00 0.75
Merch Shipping XD 200 100.00 96.25 96.25 96.25 96.25 (3.75)
Merchant Bank 16,700 14.75 15.00 15.50 14.75 15.00 0.25
Mullers 1/- 46,400 1.20 1.20 1.20 1.20 1.20 -
Namunukula 400 16.50 16.50 17.00 16.50 16.75 0.25
Nat. Dev. Bank 200 198.00 197.00 197.00 197.00 197.00 (1.00)
Nations Trust 24,800 27.00 26.75 28.00 26.75 27.75 0.75
Nawaloka 225,400 2.80 2.90 3.00 2.80 2.90 0.10
Overseas Realty 79,900 13.25 13.25 13.25 13.00 13.00 (0.25)
Parquet 700 19.00 16.00 16.00 16.00 16.00 (3.00)
Pegasus Hotels 700 17.25 17.50 17.50 17.25 17.25 -
Pelwatte 39,500 33.00 33.50 35.00 33.50 34.75 1.75
People’s Merch 500 22.75 22.50 22.50 22.50 22.50 (0.25)
Reefcomber 1/- 20,700 1.10 1.10 1.20 1.10 1.20 0.10
Rich Pieris Exp 300 21.25 21.00 24.00 21.00 24.00 2.75
Richard Pieris 13,100 76.50 76.50 77.00 76.50 77.00 0.50
Riverina Hotels 1,100 32.00 32.00 32.00 32.00 32.00 -
Royal Ceramic 1/- 255,400 3.40 3.40 3.60 3.40 3.60 0.20
Sampath 299,800 108.75 109.00 109.00 100.00 104.50 (4.25)
Seylan Bank 100 33.75 33.25 33.25 33.25 33.25 (0.50)
Seylan (NV) 36,500 9.50 9.50 9.50 9.50 9.50 -
Seylan Merchant 500 7.50 7.25 7.25 7.00 7.00 (0.50)
Seylan Merchant (NV) 135,000 0.80 .80 .80 .80 .80 -
Sigiriya Village 100 45.00 36.00 36.00 36.00 36.00 (9.00)
Singer Ind 600 60.50 60.25 60.25 60.25 60.25 (0.25)
Singer Sri Lanka 2,000 70.00 71.00 72.00 71.00 71.25 1.25
SLT 63,800 27.00 27.25 28.00 27.25 27.75 0.75
Stafford 100 11.50 11.50 11.50 11.50 11.50 -
Taj Lanka 1,300 11.50 11.50 12.00 11.50 11.75 0.25
Tangerine 400 38.00 37.50 37.50 37.25 37.25 (0.75)
Tea Smallholder 400 60.00 62.00 62.00 62.00 62.00 2.00
The Finance Co. 2,400 54.00 53.00 54.00 53.00 53.25 (0.75)
Three Acre Farms 17,100 10.00 10.00 10.00 10.00 10.00 -
Tokyo Cement 1,000 196.00 193.00 193.00 193.00 193.00 (3.00)
Tokoyo Cement (NV) 258,800 16.75 16.75 16.75 16.75 16.75 -
Union Assurance 2,000 98.00 98.00 98.00 98.00 98.00 -
United Motors 500 70.00 70.50 70.50 70.25 70.25 0.25
Walk and Greig 2/- 3,900 7.25 7.50 7.50 7.25 7.50 0.25
Watawala 3,300 60.75 61.50 62.00 59.00 61.00 0.25

Why dont we do more of a CSE analysis like daily how many companies are capitalised more than 10 and 5 Billion Rupees... etc. rather than just share prices day to day...

Yes, why not.

But, what if we invest lets say 500,000 virtual Rupees in Blue Chip Lankan Stocks and check this deposit in a months time.

Also this place would be good for tips on hot stocks. What about options and futures? Does CSE trade this?

Aha, yeah so it is more like to see what the market trend is... Good idea.

I suggest we buy John Keells A.Spence and Seylanbank.
Whats your recommendation?
Anybody else?

I would buy JKH, AMW, Dialog, Hayleys/Hemas...

Your choice........

JKH 193.50
AMW 155.00
Dialog 26.75
Hayleys 127.00
Hemas 116.00

My choice.........

John Keells 87.00
A.Spence 75.00
Seylanbank 33.75
Sampath 108.75
Dialog 26.75



Put togeather a portfolio with the above prices per 22.Dec that totals up to 500,000 virtual Rupees. You buy your choice and I shall buy mine.





Per 22 Dec......

A. Spen. Hot. Hold. 400 75.00 70.25 78.25 70.25 78.00 3.00
ACL XC 294,300 207.25 207.00 207.00 205.00 205.00 (2.25)
ACL Plastics 2,100 47.00 47.00 47.00 47.00 47.00 -
Agalawatte 10,000 20.00 21.00 21.00 21.00 21.00 1.00
Ahot Properties 13,700 50.00 50.00 51.00 50.00 51.00 1.00
AMW 100 155.00 160.00 160.00 160.00 160.00 5.00
Ascot 30,400 60.00 61.00 62.00 59.50 59.73 (0.25)
Asiri 27,900 86.00 86.50 88.00 86.25 88.00 2.00
Bairaha Farms 700 10.75 10.75 10.75 10.50 10.50 (0.25)
Balangoda 300 16.25 17.00 17.00 17.00 17.00 0.75
Blue Diamonds 4,800 3.70 3.60 3.80 3.60 3.60 (0.10)
Blue Diamonds (NV) 64,300 1.20 1.20 1.30 1.20 1.20 -
Brown’s Beach 300 26.50 27.00 27.00 27.00 27.00 1.25
C. W. Mackie & Co. 3,100 21.00 22.00 22.25 20.75 20.75 (0.25)
Caltex 203,700 87.25 87.75 88.00 87.75 88.00 0.75
Cargo Boat 7,900 22.75 22.75 24.50 22.75 23.75 1.00
Central Finance 2,200 232.50 230.25 233.00 230.25 233.00 0.50
Central Sec. 200 70.00 70.00 70.00 70.00 70.00 -
Ceylinco Housing 1,000 37.50 38.00 38.00 37.50 37.50 -
Ceylinco Ins. 500 170.00 166.00 170.00 166.00 170.00 -
Ceylinco Sec. 9,900 19.25 19.25 20.00 19.25 19.75 0.50
Ceylinco Seylan 36,500 7.75 7.75 7.75 7.50 7.75 -
Ceylon Glass 1/- 39,500 2.30 2.30 2.30 2.30 2.30 -
Ceylon Guardian 10,500 144.75 146.00 149.00 146.00 148.00 3.25
Ceylon Inv. 10,300 89.75 89.00 94.50 89.00 92.25 2.50
Ceylon Leather 10,500 17.75 18.50 18.50 17.25 17.50 (0.25)
CIC 4,800 98.00 98.00 99.00 97.00 97.00 (1.00)
CIC (NV) 39,600 59.75 60.00 60.50 58.75 59.00 (0.75)
Coco Lanka 3,300 22.00 22.50 22.50 22.00 22.25 0.25
Colombo Land 1/- 26,600 4.30 4.40 4.40 4.30 4.30 -
Colombo Land
(W-C2009) 29,200 1.40 1.40 1.50 1.40 1.50 0.10
Commercial Bank 1,500 187.00 187.00 187.00 185.00 185.00 (2.00)
Commercial Bank (NV) 11,200 84.25 85.00 85.00 84.00 84.00 (0.25)
Dankotuwa Porcel 100 10.25 10.75 10.75 10.75 10.75 0.50
DFCC 15,300 176.75 177.00 177.00 177.00 177.00 0.25
Dialog 1/- 686,900 26.75 27.00 27.25 26.75 27.25 0.50
DIMO 100 109.00 107.00 107.00 107.00 107.00 (2.00)
Dipped Products 700 105.75 105.00 107.00 105.00 106.00 0.25
Distilleries 1/- 171,000 89.00 90.00 90.50 90.00 90.00 1.00
Dockyard 1,500 34.00 34.75 35.00 34.75 34.75 0.75
Durdans (NV) 1,600 29.00 30.00 30.00 29.75 30.00 1.00
Eagle Insurance 500 130.00 130.25 130.25 130.25 130.25 0.25
East West 4,100 11.50 11.50 11.50 11.50 11.50 -
Eden Hotel Lanka 2,700 11.75 12.00 12.50 12.00 12.25 0.50
Equity 2,800 27.50 28.00 28.00 28.00 28.00 0.50
Equity Two Ltd 3,800 13.75 14.25 14.75 13.75 13.75 -
Galadari 8,100 11.00 11.00 11.25 11.00 11.25 0.25
Grain Elevators 38,300 12.75 13.00 13.00 13.00 13.00 0.25
Hayleys 3,800 127.00 127.00 130.00 127.00 127.75 0.75
Hayleys Exports 300 39.00 39.00 39.00 39.00 39.00 -
HDFC 100/- 300 177.00 175.25 175.25 175.00 175.25 (1.75)
Hemas Holdings 12,400 116.00 117.00 117.00 114.00 114.50 (1.50)
HNB 37,600 140.50 140.50 142.00 140.50 142.00 1.50
HNB Assurance 2,500 22.50 22.50 22.50 22.50 22.50 -
HNB (NV) 15,400 59.00 59.00 60.00 59.00 59.25 0.25
Hotels Corp. 2/- 200 225.00 207.25 207.25 207.25 207.25 (17.75)
Hunas Falls 2,000 30.00 30.00 30.00 30.00 30.00 -
JKH 132,600 193.50 193.50 194.50 193.50 194.00 0.50
John Keells 1,400 87.00 87.00 87.00 86.50 86.75 (0.25)
Kahawatte 10,500 8.50 8.75 9.00 8.75 8.75 0.25
Kegalle 19,500 44.00 44.00 45.00 43.50 43.50 (0.50)
Kelani Cables 7,100 152.75 155.00 155.00 149.25 151.50 (1.25)
Kelani Valley 4,600 51.00 52.00 52.50 51.50 51.75 0.75
Kotagala 4,000 25.50 26.00 26.25 26.00 26.00 0.50
Kuruwita Textile 1,300 55.00 53.25 56.00 53.25 56.00 1.00
Lanka Ashok 200 185.00 185.25 185.25 185.25 185.25 0.25
Lanka Cement 3,000 8.25 8.25 8.50 8.25 8.50 0.25
Lanka Hospitals 5,000 25.25 25.25 25.50 25.00 25.00 (0.25)
Lanka IOC 276,500 25.50 26.00 26.75 25.75 25.75 0.25
Lanka Tile 6,900 66.00 66.00 66.00 66.00 66.00 -
Lanka Walltile 1,600 61.25 58.75 61.25 58.75 60.25 (1.00)
Lankem Dev. 100 18.00 18.50 18.50 18.50 18.50 0.50
Laxapana 30,800 7.25 7.50 7.75 7.50 7.50 0.25
LB Finance 1,700 39.00 39.00 39.00 39.00 39.00 -
LMF 1,300 36.50 37.00 37.00 36.00 36.75 0.25
Madulsima 2,700 7.50 7.50 7.75 7.50 7.75 0.25
Malwatte 35,000 17.50 17.50 18.75 17.50 18.00 0.50
Maskeliya 700 27.25 28.00 28.00 27.50 28.00 0.75
Merch Shipping XD 200 100.00 96.25 96.25 96.25 96.25 (3.75)
Merchant Bank 16,700 14.75 15.00 15.50 14.75 15.00 0.25
Mullers 1/- 46,400 1.20 1.20 1.20 1.20 1.20 -
Namunukula 400 16.50 16.50 17.00 16.50 16.75 0.25
Nat. Dev. Bank 200 198.00 197.00 197.00 197.00 197.00 (1.00)
Nations Trust 24,800 27.00 26.75 28.00 26.75 27.75 0.75
Nawaloka 225,400 2.80 2.90 3.00 2.80 2.90 0.10
Overseas Realty 79,900 13.25 13.25 13.25 13.00 13.00 (0.25)
Parquet 700 19.00 16.00 16.00 16.00 16.00 (3.00)
Pegasus Hotels 700 17.25 17.50 17.50 17.25 17.25 -
Pelwatte 39,500 33.00 33.50 35.00 33.50 34.75 1.75
People’s Merch 500 22.75 22.50 22.50 22.50 22.50 (0.25)
Reefcomber 1/- 20,700 1.10 1.10 1.20 1.10 1.20 0.10
Rich Pieris Exp 300 21.25 21.00 24.00 21.00 24.00 2.75
Richard Pieris 13,100 76.50 76.50 77.00 76.50 77.00 0.50
Riverina Hotels 1,100 32.00 32.00 32.00 32.00 32.00 -
Royal Ceramic 1/- 255,400 3.40 3.40 3.60 3.40 3.60 0.20
Sampath 299,800 108.75 109.00 109.00 100.00 104.50 (4.25)
Seylan Bank 100 33.75 33.25 33.25 33.25 33.25 (0.50)
Seylan (NV) 36,500 9.50 9.50 9.50 9.50 9.50 -
Seylan Merchant 500 7.50 7.25 7.25 7.00 7.00 (0.50)
Seylan Merchant (NV) 135,000 0.80 .80 .80 .80 .80 -
Sigiriya Village 100 45.00 36.00 36.00 36.00 36.00 (9.00)
Singer Ind 600 60.50 60.25 60.25 60.25 60.25 (0.25)
Singer Sri Lanka 2,000 70.00 71.00 72.00 71.00 71.25 1.25
SLT 63,800 27.00 27.25 28.00 27.25 27.75 0.75
Stafford 100 11.50 11.50 11.50 11.50 11.50 -
Taj Lanka 1,300 11.50 11.50 12.00 11.50 11.75 0.25
Tangerine 400 38.00 37.50 37.50 37.25 37.25 (0.75)
Tea Smallholder 400 60.00 62.00 62.00 62.00 62.00 2.00
The Finance Co. 2,400 54.00 53.00 54.00 53.00 53.25 (0.75)
Three Acre Farms 17,100 10.00 10.00 10.00 10.00 10.00 -
Tokyo Cement 1,000 196.00 193.00 193.00 193.00 193.00 (3.00)
Tokoyo Cement (NV) 258,800 16.75 16.75 16.75 16.75 16.75 -
Union Assurance 2,000 98.00 98.00 98.00 98.00 98.00 -
United Motors 500 70.00 70.50 70.50 70.25 70.25 0.25
Walk and Greig 2/- 3,900 7.25 7.50 7.50 7.25 7.50 0.25
Watawala 3,300 60.75 61.50 62.00 59.00 61.00 0.25

Interesting to know that there is interest in stcoks, but this is a skyscraper and urbanscape forum. I wonder if this is the appropritate place for this. Just my thoughts.

who cares, the bourse is also a big part of the economy etc.

Ok i have 500,000 Virtual Rupees(100,000 per Company); I would buy the following number of shares as at 22nd dec. 2006:

JKH 100,000 Rs= 517 Shares (193.50 Rs.)
AMW 100,000 Rs= 645 Shares (155 Rs.)
Dialog 100,000 Rs= 3738 Shares(26.75 Rs.)
Hayleys 100,000 Rs= 787 Shares (127 Rs.)
Hemas 100,000 Rs= 862 Shares (116 Rs.)

1150 John Keells 87.00
1340 A.Spence 75.00
2960 Seylanbank 33.75
920 Sampath 108.75
3740 Dialog 26.75

JKH 100,000 Rs= 517 Shares (193.50 Rs.)
AMW 100,000 Rs= 645 Shares (155 Rs.)
Dialog 100,000 Rs= 3738 Shares(26.75 Rs.)
Hayleys 100,000 Rs= 787 Shares (127 Rs.)
Hemas 100,000 Rs= 862 Shares (116 Rs.)


1150 shares John Keells 87.00
1340 shares A.Spence 75.00
2960 shares Seylanbank 33.75
920 shares Sampath 108.75
3740 shares Dialog 26.75

Lets check the deposits somewhere around end of January.

Ok,

I think I went for very safe shares, which do not make too much profit. However in contrast you went for some safe and some risky shares, but at times you might make more profit... Let wait and see...

Ok,

I think I went for very safe shares, which do not make too much profit. However in contrast you went for some safe and some risky shares, but at times you might make more profit... Let wait and see...

I think its only fair to trade your shares at any time. This means you could sell any of your shares at the traded price for that day and either retain virtual cash or speculate on another share.

Yeah, i know but i'm more curious to know whether my 5 company shares will rise or fall until the deadline 31 Jan. 2007...

OK, lets compare with the following link on the 31st Jan. 2007.

http://www.cse.lk/home/main.jsp

ok fine...

Despite the recent turmoil in the country Colombo exchange gained over 41% for the year 2006.

yeah I know, superb...

Phil
I just checked our deposits and found that my choice has improved when compared with yours. But what happened to A.Spence, I bought them at 75 per share and it now shows 340. Have they done a reverse split?

Oh dear, I think ^you might have bought N-V shares because the share was always so high, my mistake for not checking

Why has this share been taken off the list and instead you now see the one thats 340?

because it onlz shows the stocks of companies traded on that particular day...

Ah OK!!!!
Thanks, shall leave it as it is.

ok

Shares reached all time highs today on 12th January 2007... they finsihed the week on a high note after losses at the beginning of the week...

All international markets are hitting new records. Hope this trend keeps going
as my Swiss shares are doing well too.
By the way, a small question.....if I imported a TV from Switzerland to Sri Lanka would the thing work or does Sri Lanka have a different system?

it should work...

Sri Lanka Uses NTSC I think. Most of my consoles and Players are NTSC and NTSC-J.
Darn my lack of knowledge in share market :P

You should try to buy this book called ''The Naked Trader'' which explains all the tricks of the trade in a simple way. Even though this is my profession, I read this very 'down to earth' 'easy to understand' book.

Edited Press Release
STOCKHOLM (MarketWatch) -- Ericsson (ERIC) Tuesday said it has been chosen as the lead partner for building Dialog Telekom's (DIAL.SL) 3G/HSPA network in Sri Lanka.
Edited Press Release
Ericsson said Dialog's 3G/HSPA rollout, the first in the South Asian region, will see it provide the entire core network, as well as supply the majority of the radio access network. Dialog's 3G service rollout will enable mobile users to experience a full service broadband, and a range of media-rich services such as video telephony, mobile TV streaming, IP telephony, and GPS-based services.
Amarjeet Singh, managing director, Ericsson Sri Lanka, said, "Dialog is driving the growth of the telecom industry in Sri Lanka. We respect their thorough professionalism and commitment as the first 3G operator in the region. We will continue to support them to make sure we have a world-class 3G network in Sri Lanka."

nice stuff, other great news is that the share market has boomed today; Milanka gained by 3% moving past the 4,000 Index mark. The ASPI also gained by about 2.25%, great day at the bourse...

Hey I was reading the forum through, and i m jus startin to invest in CSE, hoppin to buy Dial - 100000/=. @ 25/= would you think it will come down to 25 in the near future?

Heres another one for you guys,would you think the current trend of Dist would continue the same way, last close 19-01-06 was 104/= shit!!!

anyways comments would be appreciated.

thanks :cheers:

I'm not familiar with the CSE and started this thread to learn more on this market. But I would say CSE is in the middle of a Bull Market and as long as the political situation stays positive this trend would continue.


Here's news I cut out from LBO
**********************************************************
Dealers say buyers are chasing the stock before it becomes ex-rights tommorrow.

The All Share Price Index gained 9.91 points or 0.34 percent to 2,920.83 points while the Milanka Index gained 12.03 points, 0.30 percent to 4,067.13 points.

Last week’s telecom frenzy had died down and the state operator Sri Lanka Telecom traded 301,600 shares flat at 32.50 rupees while a bit over 36,000 Dialog Telekom shares changed hands into two hours of trading.

Dialog shares traded at flat 28.75 rupees.
*********************************************************

I personally think, Dialog and Dist. will go up not down... especially not to Rs. 25...

Invested virtual 500'000 in following shares on 26.12.2006

1150 John Keells 87.00
1340 A.Spence 75.00
2960 Seylanbank 33.75
920 Sampath 108.75
3740 Dialog 26.75

The capital now is 532.260 -
Not bad eh?

I think there is a misunderstanding among you all abt Aitken spence and Aitken Spence Hotel Holding. Hotel Holding Co. is a subsidiary of Aitken spence Co. Ltd.

And does anyone see the potential of Tokyo Cement? I feel the stock will get much stronger in the near future. CMP-Rs.225/-

ACL too is a strong share with much potential.

Yea that's true also think NTB is on a good way...

Found this on LBO today Friday 2.2.2007


Commercial Bank declared a rights issue of 3 shares for every ten shares and a 1 for 3 bonus on the new capital, at the close of the last market day on Wednesday.

A week ago, the share touched 250 rupees after a text message circulated like wildfire among market players that a bonus and rights was imminent.

"Com.bank rights 3 for 10 voting at 138 non voting 85 followed by bonus at 1 for 3," the mysterious text message said.

Dealers believe the message must have been leaked from an inside source, because it was uncannily accurate, except for the price of the non voting share.

Commercial Bank shares fell back after only a dividend announcement came, until excitement was rekindled today.

guys
didnt i tell u abt Tokyo and ACL. Tokyo CMP 270
ACL CMP 155(Ex bonus)


HEy watch for a change in IOC. CMP 35.75

Sri Lanka stock exchange blacks out foreign trading stats online


March, 01 (LBO) – Colombo Stock Exchange blacked out foreign trading statistics off automated trading terminals Thursday in a bid to reduce 'market manipulation and discriminative practices', the exchange said.


"This is not an exercise to hide foreign buying and selling," Rajeeva Bandaranaike, CSE's head of marketing told LBO.

"It would be shown at the end of the day."

The exchange had circulated the decision to brokers two weeks ago. Bandaranaike says the decision was taken in consultation with members, and such practices are followed elsewhere including Singapore and Malaysia.

Sri Lanka's investors have a habit of chasing stocks that foreign investors trade which can increase volatility both ways.

"The CSE has noted that displaying real time information on foreign purchases and sales on the ATS has resulted in market manipulation and/or discriminatory practices amongst market participants," the exchange said a statement to member brokers on February 15.

From today foreign purchases and sales numbers would be displayed as zero until end of trading.

Good for market stability, i think it is an intelligent move...

Mon, 30 July 2007 19:45:10
LBO >> Equities
Edging Lower
30 July 2007 16:46:47
Sri Lanka stocks sink further, state names sell dollars


July 30, 2007 (LBO) – Sri Lankan share prices sank lower Monday with heavyweight telecom stocks and a big conglomerate dipping further.


The market closed lower with the All Share losing 20.14 points (0.82 percent) at 3,441.40 points. The Milanka Index shed 36.28 points (1.07 percent) to close at 3,353.91 points. The market turnover was 55 million rupees.

State operator Sri Lanka Telecom lost 75 cents to close at 33 rupees while Dialog Telekom slipped 25 cents to 22.25 rupees.

Distilleries slipped 2.25 rupees to 87.25 following news of a raid by Customs on Periceyl, one of its subsidiaries over the valuation of spirits imported to the country.

John Keells Holdings slipped 1.25 rupees to 127 rupees.

Sri Lanka stocks were down 0.8 percent by noon Monday while

Meanwhile, the rupee traded around 111.78 to the dollar in morning trade with state names intervening in the market, dealers said.

In cash markets, overnight repo rates moved between 14.50 to 15.00 percent while call was higher at 15.00 to 15.50 with liquidity being short.

The rupee had been coming under pressure in the last two months and the Central Bank said last week that the balance of payments surplus had come down to 160 million from 250 million two months ago.


However, a 400 million dollar government bond issue is expected to shore up reserves as well as help a high budget deficit originally projected at 9.2 percent of GDP but now claimed to be around 7.6 percent.



Overall disappointing...

Malaysia: Biggest Investor But Ignored By Sri Lankan Media - Envoy


By Feizal Samath

COLOMBO, July 29 (Bernama) -- Malaysia has been Sri Lanka's biggest investor for two years in a row, ousting Japan and many other western nations since 2005 but is largely ignored by the Sri Lankan media, lamented departing Malaysian envoy here.

Many more Malaysian investors are also eyeing Sri Lanka as an investor base but unfortunately the media doesn't highlight the fact that Malaysia is the biggest investor in Sri Lanka.

"Often the focus is on the bigger countries although we have been the biggest, two years in a row," noted High Commissioner Nazirah Hussain at a ceremony at the Ceylon Chamber of Commerce (CCC).

Nazirah leaves next week after a three-year stint which saw the East Asian country which in her words "is a developing nation just like Sri Lanka", ousting other high fliers from the biggest investor status here.

Much of that credit goes to "Dialog Telekom", part of Malaysia's Telekom group, which represents almost half of Malaysian investments in Sri Lanka of US$ 600 million between 2004-2006. Dialog is the biggest investor in Colombo's stock market and Sri Lanka's most profitable listed company.

Among the top five investors with Malaysia are Singapore, the United Kingdom and India.

The high commissioner, who implied Malaysia's success in Sri Lanka is being overshadowed in the media by the exploits of countries from the west like the United States and UK, made these comments at a ceremony to fete her by the Sri Lanka-Malaysia Business Council which comes under the aegis of the CCC.

Nazirah's tenure has been the most successful for any Malaysian envoy in which many Malaysian companies have invested in Sri Lanka while many more are considering investments.

Some of the main new highways including the crucial Colombo-Kandy (in the central hills) toll road is being undertaken by Malaysian companies.

Some months back, she also helped launch a Sri Lanka-Malaysia Business Council in Kandy, the first time ever a country-connected business council was set up outside Colombo.

She also made a salient point about donor aid, saying: "I don't like the word donor. I prefer sharing or partnership. We work in partnership with our neighbours. We like to share; not make conditions. We want our neighbours to prosper as we prosper," she said.

Sri Lanka is among many countries in South Asia that depends on aid from the West that come with strings attached. In January, the International Monetary Fund (IMF) closed its office in Colombo, with the official explanation being it doesn't have any more programmes in the country.

Unofficially, however, the decision was based on government policy not to bow to stringent IMF conditions in return for structural adjustment financial assistance or budgetary relief.

CCC chairman Mahen Dayananda, reflecting on the achievements of the outgoing Malaysian envoy who was described by many others as humble, simple and very accessible, said Nazirah has been a truly inspiring diplomat not only to the chamber but the country at large.

"You have made a deep impression on the business community in Sri Lanka with your work," he said. Nazirah, asked by journalists about the high and low points during her tenure, said there were many positives.

"Not many low points but maybe poverty. I was moved by the poverty," she said.

In fact, rather than giving her an expensive send-off ceremony and expensive gift, the Sri Lanka-Malaysia Business Council, at her request, donated sports equipment to a poor school in southern Colombo.

July 26, 2007 (LBO) – Colombo Stock Exchange (CSE) plans to open its fourth branch in Negombo on Sri Lanka's western beach stretch this August, the exchange said in a statement Thursday.

The branch, close to the Bandaranaike International Airport, will house 10 brokering firms offering debt and equity facilities, online access to the stock market and other services such as order acceptance and investment advice.

The Negombo branch will also conduct awareness programs for investors and students on a regular basis, CSE said.

CSE branches account for 15 percent of domestic individual investors' turnover.

Separate branches in Kandy, Kurunegala and Matara were also established since 1999 and over 23,000 individual investors have opened accounts through its network.

Over 5.2 billion rupees in turnover was generated through the branches last year and around 2.1 billion in the first half of this year, CSE said.

http://www.lbo.lk/fullstory.php?newsID=2122463051&no_view=1&SEARCH_TERM=13

Curious how much activity ^there is in those regional branches...

The Colombo Stock Exchange (CSE) opened a Branch office in Negombo on August at Greens Road, Negombo.

The Branch office was opened by Ms. Surekha Sellahewa, Chief Executive Officer of the CSE, by switching on the Automated Trading System at the Branch, in the presence of a large gathering of senior officials of the CSE and SEC, CEOs of member firms which will be represented in Negombo, investors and other stakeholders from the area.

Manager - Business Development of the CSE, Tushara Jayaratne delivered the opening address. The vote of thanks was delivered by Manager, Negombo Branch Susantha Bandara.

The branch which houses 10 stockbroker firms at the CSE recorded a total turnover of Rs. 11 Mn on the first day of trading.

The branch office provides an opportunity for investors in and around Negombo to actively participate in live trading at the CSE.
sunday observer (http://www.sundayobserver.lk/2007/08/05/fin08.asp)

not bad, 100,000 USD on day one... hope that keeps up... what about the other regional branches how much turnover are they netting in...

26 July 2007 18:10:15
Sri Lanka liberalizes foreign exchange rules


July 26, 2007 (LBO) – Sri Lanka has relaxed foreign currency transactions in the country by allowing money changers to sell as well as buy forex and also relaxed rules on operating non-resident foreign currency accounts.


The Central Bank, which regulates the industry, said in a public notice that nine money changers out of 62 authorized licensees have been allowed to sell foreign exchange up to 1000 dollars per customer from this month.

Money changers, usually operating from a small office, are open after banking hours and they also have low overheads allowing them to give competitive rates to people travelling abroad.

They were earlier required to buy foreign currency from tourists and those returning from abroad and deposit them in a commercial bank instead of selling back to customers. But the rule was widely flouted.

City Exchange, Crown Money Exchange, Devi Forex, Prasanna Money Exchange, Shifaz Money Exchange of Colombo 01, Devi Forex of Colombo 11, Thomas Cook (India) Limited of Katunayake and Montecarlo Exchange of Colombo 11 has been allowed to sell foreign exchange to those travelling abroad.

The Central Bank recently asked money changers to beef up their capital.

In another development, banks have been allowed to accept foreign currency deposits into accounts from third parties such as close family members of the foreign resident account holder.

Officials say this will allow currency notes sent home through the post, friends and other informal means to get back into the banking system.



Sri Lankan citizens who were earlier allowed to keep only 500 dollars worth of currency at hand are now also allowed to keep up to a 1000 dollars.

nice development...

Wed, 8 August 2007 21:12:18
LBO >> Equities
Stock Faces
08 August 2007 19:49:54
Sri Lanka stock exchange gets two new directors


August 08, 2007 (LBO) – Colombo Stock Exchange (CSE) has appointed two new directors to the board with the resignation of two longstanding members from this month.


Paul Ratnayeke from Asia Securities and Murtaza Jafferjee from J B Securities were elected to the governing board of the exchange at a recent annual general meeting, CSE said.

Jafferjee is the Vice President of Chartered Financial Analysts Sri Lanka from 2006 and Ratnayeke is a member of the Bar Association of Sri Lanka and the International Bar Association.

They replaced Rienzie Wijetilleke who represented HNB Stockbrokers and Eraj Wijesinghe from Bartleets who had been on the CSE board for more than a decade


The Board of Directors of the CSE consists of five directors elected by the 15 Member Firms of the CSE and four directors nominated by the Minister of Finance.

Capital markets are taking a heavy beating all over the world at the moment.
The end is still not calculable, but my forcast is that the markets including Colombo are in for a big correction.
All new investments should be freezed untll the markets have cooled off,
as investing after a good correction has always triggered big profits.


Sri Lanka's stock market, which was among the world's best performers in 2006 when it rose 42 percent, has fallen around 20 percent since peaking in mid-February, after official interest rates rose to their highest levels since 2002.

The leading All Share Price Index is now down around 10 percent so far this year after local investors turned to fixed assets and deposits instead -- and was Asia's worst performer during the first half of 2007.

Capital markets are taking a heavy beating all over the world at the moment.
The end is still not calculable, but my forcast is that the markets including Colombo are in for a big correction.
All new investments should be freezed untll the markets have cooled off,
as investing after a good correction has always triggered big profits.


Sri Lanka's stock market, which was among the world's best performers in 2006 when it rose 42 percent, has fallen around 20 percent since peaking in mid-February, after official interest rates rose to their highest levels since 2002.

The leading All Share Price Index is now down around 10 percent so far this year after local investors turned to fixed assets and deposits instead -- and was Asia's worst performer during the first half of 2007.

but it was due to external factors like us subprime mortgages & also violence in the island:ohno:

Tue, 14 August 2007 20:24:37
LBO >> Equities
Equity Paradox
14 August 2007 16:17:20
Sri Lankan shares close lower but seen more attractive for long term investors: brokers


Aug 14, 2007 (LBO) – Sri Lanka's share market closed lower on thin trading Tuesday and it is very attractive for long term investors, stockbrokers say.


The steady slide in the Colombo share market offers a good opportunity for investors to buy stocks at lower rates to reap long term benefits, Vajira Premawardena of LOLC Stockbrokers says.

"If you look at the market, it looks very attractive now."

Despite attractive share prices, investors are still drawn to fixed income schemes which guarantee a higher 21-24 percent return, Premawardena says.

The virtually zero advantage for margin traders who use borrowed funds to trade seeking day-to-day profits is another reason for dwindling market activity, brokers say.

The All Share Price index closed seven points lower at 2,420.16 while the Milanka Index closed nine points lower at 3,316.41. Turnover was 132 million rupees with trading volumes thin.

Dialog Telekom closed flat at 22.25 rupees. Sri Lanka Telecom also closed flat at 32.75 rupees with volumes traded being lower.

Over half-a-million shares of John Keells Holdings (JKH) changed hands with the share closing flat at 126.25 rupees.

JKH, has been included in a new frontier market index, the S&P/IFCG Extended Frontier 150, by Standard and Poor's Ratings Services.

The index is made up of the largest and most liquid stocks from a pool of over 30 emerging and frontier markets.

Ceylon Tobacco Company (CTC) closed 25 cents lower at 54.75 rupees.

The firm's earnings increased 19.6 percent to 373 million in the quarter ending in June which the company attributes to good revenue and lower material costs.


CTC's revenue increased 6.3 percent to 11.5 billion rupees during the quarter, company reports said.



http://www.lankabusinessonline.com/fullstory.php?newsID=987135920&no_view=1&SEARCH_TERM=13

Wed, 15 August 2007 16:48:04
LBO >> Equities
Small Perk
15 August 2007 15:06:04
Sri Lanka stocks perk up on hospital, finance shares


August 15, 2007 (LBO) – Active trading in a hospital and financial sector stocks helped Colombo stocks close higher Wednesday, dealers said.


The all share index closed up 4.7 points or 0.2 percent on a turnover of 243 million rupees.

"There was a bit buying interest today," says Vajira Premawardena, of Lanka Orix Securities.

"The market is looking for direction."

Asha Central Hospitals closed up 3 rupees at 44 with more than 100,000 shares being traded. The hospital had earlier said it was looking for a buyer for its Horton Place property.

Sampath bank which reported stronger earnings the day before closed up 3.25 at 112 rupees.

Asian Alliance closed up 3.50 recovering losses earlier in the week following a news report that the regulator may be looking into the firm.

Distilleries gained four rupees to close at 90, while Hayleys gained 4.50 to close at 119.75 rupees.

Sri Lanka Telecom closed flat at 32.50 and while Dialog closed at 22.25 and JKH ended the day 25 cents down at 126.00


Tokyo Cement which had been suspended at the company's request pending an announcement declared a 15 cent bonus disappointing investors who had expected a major development. It resumed trading at 20 rupees.


http://www.lankabusinessonline.com/fullstory.php?newsID=257424274&no_view=1&SEARCH_TERM=13

Thu, 16 August 2007 21:58:18
LBO >> Equities
Share Sale
16 August 2007 18:52:32
Sri Lanka's Hayleys unit sells stake in parent to overseas partner


Aug 16, 2007 (LBO) – Volanka Limited, an industrial fiber manufacturing unit of the conglomerate Hayleys, has sold 1.6 million shares of its parent to Promar Overseas, a long standing business partner.


Hayleys said in an announcement to the Colombo Stock Exchange Thursday that the stake was sold at 125 rupees per share.

Promar Overseas (Orlatrade Monaco) holds 6 percent equity in Hayleys' Dipped Products PLC rubber gloves subsidiary.

Hayleys share closed 25 cents higher at 125 rupees.

Volanka, an exporter of coir fibre, is in the surface care, industrial fibre and bedding and cushioning businesses.

Hayleys is the world's largest producer of natural fibre brushware and holds 22 percent of the global market share.

It also holds 55 percent global market share for coir twine.

The conglomerate's annual turnover increased to 27.6 billion rupees in 2007 from 24 billion in 2006.

The group lost 60 million rupees in the June 2007 quarter with consumer durables dragging down the consolidated bottom line despite exports performing well.

Meanwhile, in another big transaction involving another conglomerate, 4.8 million shares of John Keells Holdings were traded.

Both deals pushed turnover up to 876.8 million rupees.

JKH closed flat at 126 rupees, Colombo Stock Exchange provisional data showed.

Less than ten million shares were traded during the day.

The All Share closed 10.4 points lower at 2,414.52 while the Milanka lost 22.4 points to close at 3,303.89.



http://www.lankabusinessonline.com/fullstory.php?newsID=1197702255&no_view=1&SEARCH_TERM=13

Good day at the CSE...


Tue, 21 August 2007 21:30:00
LBO >> Equities
Asset Play
21 August 2007 16:26:38
Sri Lanka stocks perk up amid take-over talk


Aug 21, 2007 (LBO) – The controlling shareholder of Asha Central Hospital said he was exiting while the stock of a rival hospital that has expressed interest also shot up on retail buying Tuesday.


Euroam Management Services a family owned unlisted holding company said it had decided to sell its 82 percent stake in Asha. Euroam is controlled by Dr Neville Fernando.

Asha Central share closed 75 cents lower at 84.00 rupees on Tuesday.

Asiri Surgical hospitals said Monday it was talking to Asha Central with other investors.

The counter traded 2.6 million shares, up one rupee at 12.75 Tuesday.

In another development, Walker and Greig said it was changing its name to Environmental Resource PLC and was changing its articles to enable the firm to invest in securities and financial instruments issued by companies, funds and governments.

The new amendments will also grant the board of directors the right to issue shares to any amount in any manner, the statement by the company said.

The firm had been taken over by a foreign financial firm.

Meanwhile, the Lanka Cement shares closed up 2.25 rupees to 8.25 rupees. The firm traded 1.8 million shares in volume.

The management of Lanka Cement says the sudden share price increase and the growth in volume can be assumed to be a result of the floated cement tender for 300,000 metric tonnes by its parent Sri Lanka Cement Corporation.

Lanka Cement said it was expecting 150,000 tonnes of cement out of the contract and the firm was expected to resume cement trading.

The All Share closed up 18 points at 2,458.13 points and the Milanka was up ten points at 3,338.31.

The DFCC bank traded 1.5 million shares closing four rupees up, at 125 rupees.

John Keells Holdings was up 25 cents at 128 rupees with over 3.2 million shares traded.


The market turnover was 795 million rupees.


http://www.lankabusinessonline.com/fullstory.php?newsID=354784144&no_view=1&SEARCH_TERM=13

Would the 'credit crunch' in the US effect the Sri Lankan real estate market?

Sri Lanka rupee at 13th straight low as importers buy dollars
COLOMBO, Aug 27 (Reuters) - Sri Lanka's rupee weakened to a 13th consecutive life closing low on Monday as importers bought dollars to settle trade bills and amid a lack of dollar liquidity in the market, dealers said.
The rupee closed at 112.82/112.90 per dollar, surpassing the previous life low of 112.68/112.75 hit on Friday. The local currency has hit a series of new all-time lows in recent months.

The rupee weakened by 0.68 percent last week alone after the central bank temporarily lifted restrictions on its reverse repurchase agreement window, which it imposed in January to help curb bank credit and contain inflation, to ease a liquidity crunch.

"Importer demand and a lack of liquidity made the dollar more attractive. Although the Central bank intervened in the foreign exchange market through a state bank, it couldn't control the weakening of rupee today," said one currency dealer.

Some analysts expect the rupee to weaken to as much as 118-120 per dollar by the end of the year. Others are eyeing 114 per dollar. The rupee has depreciated 4.9 percent so far this year, after weakening by around 5 percent in 2006.

The rupee is steadily depreciating mainly due to trade-related moves in an economy that runs a hefty trade deficit because of costly fuel imports and the impact of inflation. (US$1= 112.86)

Not very good, however if people change dollars into rupees now and the currency comes back to around 100 rupees per dollar their will be a lot of gainers in the situation but overall the rupee depreciation is terrible and has a devasting impact on the economy...

NEW YORK, Aug 28, 2007 (AFP) - Global stock markets saw dizzying declines Tuesday as a drop in US consumer confidence suggested slow growth ahead and Federal Reserve comments hinted at deeper-than-expected housing market woes.



Wall Street losses accelerated late in the day, driving the main US share indexes down over two percent, while European shares suffered steep losses earlier.

Jitters resurfaced as the Conference Board, a business research group, said its consumer confidence index fell to 105.0 in August from 111.9 in July. The group attributed the decline to "softening" business and labor market conditions and financial market turmoil.

But the market action turned ugly after minutes released by the Federal Reserve from its August 7 meeting said the US housing meltdown "could well prove to be both deeper and more prolonged than had seemed likely earlier this year," and that a "policy response" or rate move, might be needed.

Marc Pado, market strategist at Cantor Fitzgerald, said the market was worried that the Fed may have been less than fully candid in its original statement earlier this month.

"The Fed is supposed to have been more transparent, more willing to be honest about its opinion" about the state of the economy, Pado said.

"The minutes released didn't offer any surprises, but it did rekindle some of the nerves," added Carley Garner at Alaron Trading.

"Inflation remains a predominant concern of the Fed's. The fight between liquidity, growth and inflation may leave the Fed with its hands tied behind its back."

In New York, the Dow Jones Industrial Average plunged 2.10 percent to 13,041.45 and the Nasdaq sank 2.37 percent to 2500.64. The broad-market Standard & Poor's 500 market retreated 2.35 percent to 1,432.36.

Meanwhile one measurement for the ailing US housing industry showed prices continuing to fall.

The S&P/Case-Shiller national home price index fell 0.9 percent over the past month and 3.2 percent from the second quarter, its steepest drop in 20 years.

At Seven Investment Management, director Justin Urquhart Stewart warned of further volatility until the full extent of the meltdown in the US high-risk mortgage sector, also known as the subprime market, was known.

The stock market "cannot start to get any composure until we can find out how much damage it has done," Stewart said.

Dendra Lambert at Hilliard Lyons said "credit concerns resurfaced" early in the day, keeping the financial sector under pressure.

She said a report that State Street Corp. had 22 billion dollars in exposure to asset-backed commercial paper raised more fears for the sector. Merrill Lynch meanwhile lowered its ratings on Lehman Brothers, Bear Stearns and Citigroup due to exposure to the debt markets.

In London, the FTSE slid 1.90 percent to 6,102.20 while in Paris the CAC 40 gave up 2.08 percent to 5,474.17.

In Frankfurt the DAX lost a more modest 0.74 percent to 7,430.24.

In other markets, the Bovespa in Brazil slid 2.7 percent and Mexico's Bolsa lost 3.13 percent. Toronto's S&P/TSX index lost 1.65 percent.

Earlier Tuesday, many Asian markets eased back as investors took a breather from recent choppy trading, with Hong Kong's Hang Seng index losing 0.91 percent to 23,363.76.

In Tokyo the Nikkei index was off by a slight 0.09 percent at 16,287.49.

Sri Lanka has not really felt the impact of this debacle, investors are more focused on Sri Lanka itself rather than being negative and joining this global stock nightmare...

Fri, 31 August 2007 18:37:19
LBO >> Equities
Naughty Trades
31 August 2007 15:40:10
Sri Lanka foreign favorites stocks shoot up in last minute trade


August 31, 2007 (LBO) – Sri Lanka's top listed foreign favourite counters shot up in last minute trading Friday pushing the Colombo Stock Exchange's benchmark All Share Index up 1.5 percent at the close.


The liquid Milanka Index, which went up 2.2 percent closed at 3435.92.

Market analysts suspect that one or more foreign funds which were hit by collapsing markets around the world could have pushed up the stocks in Sri Lanka's tiny illiquid markets to make the month end portfolio values look good.

Markets generally see some 'window dressing' led buying on the last trading day of December and March, but the price gains seen today was unusually large, dealers said.

Among the stocks that gained was John Keells Holdings up 11 rupees to 140 rupees.

DFCC shares closed up 10 rupees at 135 rupees.

Commercial Bank closed up 1.25 at 134 rupees and Hatton National Bank was up six rupees to 102.50.

The celco, Dialog Telecom was up 50 cents at 22.50 and Sri Lanka Telecom closed one rupee higher, at 34.

The All share index closed up 1.4 points to 2517.76 points.

The buying spree started shortly after 1400hour local time, 30 minutes before the close.

The sell orders that were already online were quickly cleared at rapidly rising prices, dealers said.


But there were no takers for seller who offered stocks later even at much lower than the last traded prices.



http://www.lankabusinessonline.com/fullstory.php?newsID=1789605305&no_view=1&SEARCH_TERM=13

HSBC Sri Lanka AAA (lka) rating confirmed, bad loans up

September 01, 2007 (LBO) – Fitch Ratings Lanka has confirmed the AAA (lka) rating of HSBC's Sri Lanka branch with a 'stable' outlook, the rating agency said.

Lankabusinessonline.com

Wed, 12 September 2007 16:54:40
LBO >> Equities
Trading Day
12 September 2007 13:02:21
Sri Lanka shares up on telecom gains; rupee flat


Sept 12, 2007 (LBO) – Sri Lanka's stocks were up at mid-day Wednesday with an index-heavy telecom stocks moving up ahead of a court hearing and news of naval victory over Tamil Tigers in the eastern sea, dealers said.


The All Share Index moved up 26.93 points at 2,598.07 while the Milanka index gained 40.18 points at 3,548.99 by noon Wednesday.

"The market is very active and the telecoms are moving up. There is healthy turnover," Reshan Kurukulasuriya, assistant vice president of DFCC stockbrokers said.

Sri Lanka Telecom shares moved up 75 cents at 35.75 ahead of a court hearing next week.

Japan's NTT which holds a 35.2 percent stake in Sri Lanka Telecom was negotiating to sell a 25.3 percent stake of the Telco to the Usaha Tegas group of Malaysia controlled by billionaire Ananda Krishnan.

However the deal hit a snag after a former minister went to court alleging that the sale caused losses to the government and the country.

The market bustling with activity saw CIC share price go up by 2.25 rupees to 38.75.

Local shipbuilder Dockyard's share was up 1.50 rupees at 46.50 rupees while John Keells Holdings traded 1.25 rupees higher, at 134.75.

Distilleries was up 2.25 rupees at 105.50 while Dialog Telekom share was up 25 cents.

Brokers say the navy victory over Tamil sea tiger activities brought in positive sentiment to the market.

The turnover was 290 million rupees by midday on Wednesday.

In forex markets the spot dollar was quoted 113.28/30 Wednesday.

The rupee closed at 113.28/32 on Tuesday with active buying from a state name with foreign names selling dollars.


Bond markets were quiet ahead of the release of this week's Treasury bill auction. Dealers say in the secondary markets bills were trading below last week's auction prices.



http://www.lankabusinessonline.com/fullstory.php?newsID=1915665376&no_view=1&SEARCH_TERM=13

Maldives borrows US$30mn from HSBC


Sept 25, 2007 (AFP) - The Maldivian government has secured a 30 million dollar commercial loan from the global banking giant HSBC to rebuild harbours, a senior minister said Tuesday.


The money will be used to repair jetties damaged by the December 2004 tsunami that cost the atoll nation nearly two thirds of gross domestic product (GDP), Finance Minister Gasim Ibrahim said.

The tsunami damaged 20 islands -- a 10th of the 200 inhabited islands in the Maldives. Almost a third of the country's 369,000 Sunni Muslims were also directly affected by the destructive waves.

"We got about 400 million dollars in international aid, but we are still short of about 70 to 80 million dollars to complete projects related to fishing and transport," Ibrahim told AFP by telephone from the capital island Male.

Maldives imports virtually everything ranging from oil to timber and Ibrahim said the post-tsunami phase is facing cost overruns.

The eight-year loan from HSBC carries an interest rate of 2.25 percent over the London Interbank Offered Rate, or LIBOR, he said.

In 2002, the government borrowed 10 million dollars from HSBC to finance the nation's second international airport on Gan island, which opens in November.

Meanwhile, Maldives has appointed international credit rating agency, Standard and Poor's, to rate its credit worthiness.

A sovereign, or country rating serves as an indication of a nation's ability to repay its debt and is a key requirement to raise money from the international capital markets.

Maldives has never defaulted on debt and the country enjoys the region's highest per capita income of 2,674 dollars.

About 700 kilometres (435 miles) southwest of Sri Lanka, Maldives is a string of 1,192 coral islands scattered across the equator. Eighty-nine coral islands have been developed as exclusive tourist resorts.

Tue, 2 October 2007 21:11:18
LBO >> Equities
High Note
02 October 2007 15:30:28
Sri Lankan share prices end higher


Oct 02, 2007 (LBO) – Sri Lankan share prices closed higher Tuesday with turnover topping a hundred million rupees and widespread buying seen towards the end of trading, brokers said.


The All Share Price Index closed up 13.07 points or half a percent at 2,573.75 and the Milanka was up 18.26 points at 3,493.70 with turnover at 111.3 million rupees.

Most of the buying was seen on LMF, SLT, Distilleries, Malwatte Valley Plantations and HNB, said Arjuna Dassanayake of DFCC Stockbrokers.

There was also some trading in Commercial Bank.

"We saw some buying coming in on all counters towards the end of the day," said Dassanayake.

Brokers spoke of a 'gut feeling' among investors that the market might move up in the next week or so as it has usually improved in the October-December period in recent years.


Sri Lankan shares have been affected by uncertainty caused by deteriorating economic conditions and a surge in interest rates that make investing in money markets more attractive than equities.



http://www.lankabusinessonline.com/fullstory.php?newsID=389847818&no_view=1&SEARCH_TERM=13

Wed, 3 October 2007 16:46:13
LBO >> Equities
Marginal High
03 October 2007 16:22:45
Sri Lankan stocks end higher, HNB trade pumps up turnover


Oct 03, 2007 (LBO) – Sri Lankan stocks closed firmer Wednesday with turnover pumped up by a big transaction in Hatton National Bank while some speculative trading was seen in a forestry firm shares, brokers said.


The All Share Price Index closed up 4.50 points or 0.17 percent at 2,578.25 and the Milanka was up 9.63 points at 3,503.33 with turnover hitting 573.9 million rupees.

Geeth Balasuriya of HNB Stockbrokers Research said trading was dull except for the HNB transaction.

Brokers said the market is moving purely on speculation, ignoring the fundamentals.

"We don't expect a major improvement unless we see positive news on the economic or political front," said a broker.

"The market is likely to remain very sluggish with interest rates continuing to go up and other things looking pretty gloomy."

Brokers said they anticipate some speculative trading this month ahead of the government budget in November which is expected to give some direction to the market.

"Early morning we saw a crossing of almost 4,359,700 HNB at 93 rupees," said Arjuna Dassanayake of DFCC Stockbrokers. "That gave some confidence to the market and prompted others to come in."

There was some trading in SLT which appeared to be by institutional and foreign buyers.

There was also some speculative buying of Touchwood, a forestry firm which initially traded at around 81-82 rupees but towards mid-day moved up to 84 and strong buying in the last half an hour pushed it up to 85.50.


Touchwood has been dogged by allegations of accounting irregularities which are being investigated by the market regulators. The firm has denied wrongdoing and the issue is now embroiled in litigation.



http://www.lankabusinessonline.com/fullstory.php?newsID=1545467105&no_view=1&SEARCH_TERM=13

Wed, 3 October 2007 16:52:56
LBO >> Equities
Family Stocks
03 October 2007 16:38:13
Sri Lanka bourse in fresh push to get family firms to list


Oct 03, 2007 (LBO) – Sri Lanka's stock exchange and a top business chamber is making a fresh effort to get family firms to list with an interactive session with an international consultancy planned for next month.


"We want to encourage the family companies to list in the stock exchange and give owners a chance to unlock the value of their companies," CSE Director General Surekha Sellahewa told LBO.

"For family companies that have taken the decision to list like Hemas it has been a win-win experience."

An expert from The Family Business Consulting Group Inc. of the Netherlands, Albert Jan Thomassen who has held a number of academic positions relating to family businesses, will lead the sessions to be held on November 03.

"He is known for his ability to constructively work on balancing family, ownership and business issues to support clear strategic choices for the continuity and prosperity of the family business," the organizers said.

"Identifying and addressing emotional interests in a functional manner is an integral part of his work."

"He regularly works with business owning families, especially multi generation families with sibling or cousin teams."

Thomassen has previously advised family businesses in Europe, the Middle East, and North and South America.

The sessions will look at the pros and cons of going public and examine issues such as sharing control with outsiders, how transparency pushes professionalizing the business and whether family firms can outperform the market.

The sessions will also look at managing the process of taking a family public and evolving the role of the family.


Experience of family firms that have gone public in Sri Lanka would also be shared with a case study.



http://www.lankabusinessonline.com/fullstory.php?newsID=1368285876&no_view=1&SEARCH_TERM=13

Wed, 3 October 2007 16:52:56
LBO >> Equities
Family Stocks
03 October 2007 16:38:13
Sri Lanka bourse in fresh push to get family firms to list


Oct 03, 2007 (LBO) – Sri Lanka's stock exchange and a top business chamber is making a fresh effort to get family firms to list with an interactive session with an international consultancy planned for next month.


"We want to encourage the family companies to list in the stock exchange and give owners a chance to unlock the value of their companies," CSE Director General Surekha Sellahewa told LBO.

"For family companies that have taken the decision to list like Hemas it has been a win-win experience."

An expert from The Family Business Consulting Group Inc. of the Netherlands, Albert Jan Thomassen who has held a number of academic positions relating to family businesses, will lead the sessions to be held on November 03.

"He is known for his ability to constructively work on balancing family, ownership and business issues to support clear strategic choices for the continuity and prosperity of the family business," the organizers said.

"Identifying and addressing emotional interests in a functional manner is an integral part of his work."

"He regularly works with business owning families, especially multi generation families with sibling or cousin teams."

Thomassen has previously advised family businesses in Europe, the Middle East, and North and South America.

The sessions will look at the pros and cons of going public and examine issues such as sharing control with outsiders, how transparency pushes professionalizing the business and whether family firms can outperform the market.

The sessions will also look at managing the process of taking a family public and evolving the role of the family.


Experience of family firms that have gone public in Sri Lanka would also be shared with a case study.



http://www.lankabusinessonline.com/fullstory.php?newsID=1368285876&no_view=1&SEARCH_TERM=13



Even the Lankan Banks should heavily back up Family enterprises and provide the experience and financing to develop these small businesses and have them listed in the stock exchange. This will help in a big way to likewise develop the country.

Fri, 5 October 2007 21:26:50
LBO >> World
Trading Day
05 October 2007 16:52:13
Sri Lanka stocks given life by hotel punting but closer lower


Oct 05, 2007 (LBO) – Sri Lanka's stock market was active following a takeover offer for three Confifi hotels by John Keells Hotels but the broader market closed lower Friday.


The benchmark All Share Index lost three points to close at 2,586.65 while the Milanka index closed seven points lower at 3,506.23.

Riverina shareholders are being paid 5 KHL shares, those of Confifi Hotel Holdings which owns Palm Garden will be paid 11 shares and Eden 3 KHL shares for 5, Confifi and JKH said on Thursday.

All the counters were actively traded Friday.

Brokers also speculated that a rival party may give a counter offer and outbid John Keells. The Keells offer is conditional on 50 percent of the shareholders selling out.

John Keells Hotels was most active with over 3.5 million shares changing hands closing flat at nine rupees after peaking at 10.25.

Though actively traded the firms are not very profitable given the current downturn in Sri Lanka's tourism market.

Keells Hotels however has protection from Maldives. But its shares would be diluted by some 22 percent if the take-over goes ahead.

Riverina Hotels traded over 127,000 shares and closed 2.75 rupees lower at 44. The firm has net assets of 1.25 billion rupees.

Eden Hotels traded 278,000 shares, peaked at 16 rupees and closed at 14.50 rupees flat. The company has net assets of 1.22 billion rupees.

Confifi Hotel closed down 12 rupees at 95 after peaking at 113 rupees. The firm has net assets valued at 1.32 billion rupees.

"This is not a short term bet but long term play on the hotel sector," says Channa Amaratunga of Boston Capital, a boutique investment house.

"Here we have an opportunity to buy a property at a discount to net assets. Whether it will boost your EPS [earnings per share] in the short term is a question."

HNB non voting share closed 25 cents higher at 45.50 rupees with 137,000 shares changing hands.

Dialog Telekom traded flat at 23.50 rupees and Sri Lanka Telecom closed 50 cents lower at 34.

In the forex markets, the spot dollar traded at 113.48/50 dollars. Earlier in the day money peaked at 20.5 percent and came down to 19 percent levels.

The central bank has been printing money largely for state banks continuously this week through the reverse repo window.

On Monday volumes peaked at 20,000 partly because of a reserve short on the previous Friday.

http://www.lankabusinessonline.com/fullstory.php?newsID=168459795&no_view=1&SEARCH_TERM=35

Mon, 15 October 2007 18:55:42
LBO >> Equities
Market Momentum
15 October 2007 17:59:24
Sri Lankan shares driven up by retail rush


Oct 15, 2007 (LBO) – Sri Lankan stocks ended higher Monday with a rush by retail investors to buy shares in Touchwood Investments, People's Merchant Bank (PMB) and Lanka Orix Leasing Company sending their prices up, brokers said.


The All Share Price Index rose 22.08 points or 0.85 percent to 2,607.68 while the Milanka rose 23.59 points or 0.67 percent to 3,542.73 with turnover at 425.9 million rupees.

Brokers said retailer's speculative interest had been sparked by last week's strategic buying.

Rajeev Dissanayake of HNB Stockbrokers said turnover rose sharply because of the rush by retail investors to collect shares of Touchwood, PMB and LOLC. "Although there were no strategic stakes traded today, turnover went up mainly because retailers were active."

Touchwood contributed 132 million to the turnover and the share rose by 15.25 rupees to close at 107.

PMB contributed 98.7 million to the day's turnover with the price moving up by 25.50 to close at 65 rupees.

"LOLC's price went up mainly because it bought into PMB," Dissanayake said.

LOLC, which triggered the interest with its strategic buying into Touchwood and PMB, went up 25 rupees to close at 130.

Tushan Wickramasinghe, managing director of Lanka Orix Securities said investors bought into Touchwood and PMB as they felt there would be more potential with the new management.

"LOLC wants to diversify into micro finance and forestry as part of its corporate responsibility programme and also because it feels it can make super normal profits in these sectors," he said.

PMB's share price went up following the strategic buying by LOLC and two foreign funds.

"The PMB share has been re-rated due to the strength of the four major shareholders – People's Bank, LOLC, Galleon International and Lionhart Investments," Wickramasinghe said.

PMB announced last week that Lanka Orix Leasing Company had bought 7.8 percent of the bank, Galleon International Master fund SPC had bought 11 percent and Lionhart Investments 10 percent.

Those shares were bought from DPMC Financial Services, owned by the David Peiris Motor group, which sold a stake of 29.27 percent or 7,317,000 shares.

PMB said in a statement to the Colombo Stock Exchange on Friday that R. M. Nanayakkara sold a stake of 12.04 percent of PMB (3,010,753 shares) to LOLC.

The Nanayakkara family which owns LOLC already had a 12 percent stake in PMB at the time of last week's transactions.

Peoples' Bank has 39.2 percent of Peoples' Merchant while a company called Southbridge Capital Investments (Lanka) also owns a 7.5 percent stake.

The indices were also pushed up by trades in Dialog and John Keells Holdings.

Dialog moved up 25 cents to 24.25 with 1.2 million shares traded and contributed 29.5 million rupees to turnover and JKH went up by 75 cents to 129.75.





http://www.lankabusinessonline.com/fullstory.php?newsID=1173902436&no_view=1&SEARCH_TERM=13

Good recovery^^

Thu, 18 October 2007 22:16:59
LBO >> Equities
Big Trades
18 October 2007 17:50:54
Sri Lanka shares end firmer with big deals boosting turnover


Oct 18, 2007 (LBO) – Sri Lankan stocks closed higher Thursday with investor interest in selected shares boosting turnover to 2.6 billion rupees, brokers said.


The benchmark All Share index closed 19.75 points (0.76 percent) higher at 2,625.62 while the Milanka index closed 23.40 points (0.66 percent) higher at 3,549.48 points.

Brokers also said the government's 500 million dollar bond issue could have a positive impact on equities if the funds are put to good use and it helps ease the government's borrowing requirements and therefore pressure on interest rates.

"The overall sentiment is very high. The (500 million dollar) bond issue will bring down interest rates and a positive impact is expected in equity markets," Mohandas Thangarajah of First Capital Equities told LBO.

Over 47.5 million shares were traded on the floor with investor interest in Hatton National Bank contributing over one billion in turnover following a transaction of 9.45 million shares of HNB.

This was believed to be a foreign purchase. HNB closed 2.75 rupees higher at 106.75 rupees after peaking at 111.50 rupees.

The day also saw trades of 20 million shares of Dialog which closed 25 cents higher at 23.75 rupees, adding 475 million rupees to turnover.

This trade too was believed to be a foreign purchase, brokers said.

Touchwood, the forestry company, closed 50 cents higher at 136.75 with 2.8 million shares changing hands amid swirling rumours of a takeover.

Touchwood hit a peak of 160 rupees during the day's trading.

Over 1.97 million shares of Lanka Orix Leasing Company were also traded and the share closed 18.25 rupees higher at 151.50 after peaking at 167.50.

High cap Sri Lanka Telecom closed at 33.75 rupees flat while John Keells closed flat at 130 rupees.

Brokers said the dollar bond issue could turn investors from debt instruments back in to the equity market if interest rates drop with the government's borrowing requirements easing.

"It all depends on how the funds would be used," said a broker. "If the funds are used in infrastructure and development projects it will be give positive indicators to the market and the economy.

"But if they are used for recurrent expenditure or consumption it will not do any good."

The bond issue, the government's first sale of debt overseas, attracted 1.25 billion dollars.


The government offered to pay a yield of 8.25 percent for the five-year bonds.




http://www.lankabusinessonline.com/fullstory.php?newsID=1000542813&no_view=1&SEARCH_TERM=13

Mon, 17 December 2007 16:50:37
LBO >> Money
Trading Monday
17 December 2007 14:58:36
Sri Lanka stocks weaker, rupee steady


Dec 17, 2007 (LBO) - Sri Lanka stocks closed 0.55 percent lower amidst lackluster trading Monday, while the rupee was steady against the greenback at 108.95/109.00 dealers said.


The All Share Index fell 13.75 percent to close at 2,493.27 while the Milanka Index of liquid stocks ended the day at 3,253.5, 0.6 percent lower (down 19.52 points).

Some excitement was seen around Radiant Gems which was subject to speculative trading. The stocks close 15.00 rupees up at 46.00 with 313,000 shares being traded.

Chevron Lubricants said it was declaring a 3.50 rupee dividend.

HNB Assurance said it had received an insurer financial strength rating of A(lka) from Fitch Ratings and a long-term rating of A-(lka).

Dealers say financial markets are quiet ahead of the year end with most foreign fund managers already on holiday. Turnover was 137 million rupees.

Forex markets were also quiet with the rupee steady amid thin trading.

"Most of the exporters have converted to pay year end bonuses and salary advances so there is not much activity," a dealer said.

In debt markets one year bills were quoted around 19.75/20.00 percent.

Overnight money was 14.00/14.50 level and the market excess liquidity was more than a billion rupees, dealers said.

Reserve money last Friday was 267.8 billion rupees and the market expects a seasonal drawdown to also increase this week.


A Treasury bill auction is due Tuesday.

http://www.lankabusinessonline.com/fullstory.php?newsID=1602834741&no_view=1&SEARCH_TERM=16

Thu, 20 December 2007 21:08:33
LBO >> Money
Trading Day
20 December 2007 18:00:53
Sri Lanka rupee closes higher on equity flows, money spikes


Dec 20, 2007 (LBO) – The Sri Lanka rupee closed higher against the greenback as money spiked in tight conditions Thursday, while the state debt office was again fishing for cash with short term bills offers, dealers said.


The rupee closed 108.65/75 against the dollar in spot trade with an eight million dollar inflow of cash from an equity purchase hitting a thin market.

In the morning, money markets remained tight with overnight rates spiking to 17 percent as banks sought to square off before a three day weekend.

Liquidity melted from the system amidst a seasonal drawdown and there was no reverse repo auction Thursday.

Bankers say the customary drawdown of cash from the banking system was muted this year, indicating that the demand for ready cash was not as high as in the past.

The Central Bank, which also raises debt for the government, was again offering short term bills on 'tap' to raise cash for rates just under 20.0 percent, dealers said.

The debt office had resorted to the so-called tap issues in December indicating that the government's year-end cash demand was unusually strong.

The bank also has to meet a year-end reserve money target, which has now become largely an academic exercise as the bank printed 45.2 billion rupees from May to September and sent inflation rocketing to 19.6 percent.



Reserve money on Thursday was 270.4 billion rupees, marginally higher than the year-end target.

Stocks closed marginally higher with the All Share index closing 0.15 percent higher (3.75 points) and the Milanka index of liquid stocks closing 0.19 percent (6.24 points) higher.

Hatton National Bank, which drew investor interest amidst signs of a control tussle, closed 3.75 rupees higher at 121.00. Brown and Company, which is a key shareholder of HNB, saw its stock climb 3.75 rupees to close at 929.25.

John Keells Holdings closed flat at 125.75 rupees, Aitken Spence closed up one rupee at 399.75.



http://www.lankabusinessonline.com/fullstory.php?newsID=264262816&no_view=1&SEARCH_TERM=16

Thu, 3 January 2008 19:01:30
LBO >> Equities
Rights Record
03 January 2008 15:12:03
Sri Lanka companies raise Rs 43 bn in rights issues


Jan 03, 2008 (LBO) – Sri Lankan companies listed on the Colombo Stock Exchange raised a record 43 billion rupees in equity capital through rights issues in 2007, the CSE announced Thursday.


The funds collected were the highest amount of capital raised through the stock market in any given year either through the primary or the secondary market.

The capital raised by the 21 companies was used mainly to fund growth and expansion and to retire debt, surpassing the previous highest when 29 listed companies raised 7.8 billion rupees in 1994, the CSE said in a statement.

Previously, the highest amount of capital raised collectively through the primary and secondary market was 13.3 billion rupees in 2005.

"One of the key benefits of being listed is the ability to raise additional capital from the secondary market and the CSE is happy to note that 21 such companies have opted to make use of the capital market to finance their activities in 2007," the statement said.

However, 2007 was also the only year when listed firms made no initial public offers (IPOs) and the All Share Price Index ended six percent lower.

Listed firms were apparently reluctant to risk IPOs and several which planned to list postponed their plans because of the unsettled political and economic conditions.

Analysts said companies did not make IPOs owing to fears of a weak response with skyrocketing inflation and high interest rates diverting funds away from equities.

http://www.lankabusinessonline.com/fullstory.php?newsID=344408055&no_view=1&SEARCH_TERM=13

Fri, 11 January 2008 21:41:05
LBO >> Equities
Trading Day
11 January 2008 17:20:29
Sri Lankan stocks end firmer buoyed by Cargills trades


Jan 11, 2008 (LBO) – Sri Lankan stocks extended gains Friday with illiquid Cargills (Ceylon), part of the Ceylon Theatres group which is being revamped, rising 90 rupees on the back of a 110 rupee increase a day before.


The All Share Price Index rose 11.43 points or 0.47 percent to 2,446.38, while the Milanka index of liquid stocks gained 6.83 points or 0.22 percent to 3,120.28.

Turnover was 283.7 million rupees.

"There's no aggressive buying but the fall has been stalled for the moment," said a broker.

"Some institutions were picking up stocks and there was not much of selling pressure which eventually led the market to rise."

Brokers said the interest in Cargills, which rose 90 rupees or 8.91 percent to 1,100 on a volume weighted average, may have been because of the restructuring of the Ceylon Theatres group.

The transactions added over 119 million rupees to the day's turnover.

The stock is closely held by the Page family, but the broker involved in the deal declined to comment on market speculation that the family had sold down a part of the stake.

Cargills, which runs Sri Lanka's largest supermarket chain branded 'Food City', is to take over the operations of Millers, another group firm.

Plantation stocks were also sought after, with Kegalle Plantations closing 1.50 rupees higher at 51 and Namunukula Plantations also up 1.50 rupees at 34.25 rupees.

Telecoms traded flat with Dialog trading at 18.50 and Sri Lanka Telecom at 30 rupees.

Commercial Bank of Ceylon slipped one rupee to close at 144.

The rupee which dipped to 108.49 levels against the spot dollar in early trade firmed to 108.08/12 levels later in the day.



http://www.lankabusinessonline.com/fullstory.php?newsID=1450648115&no_view=1&SEARCH_TERM=13

Fri, 18 January 2008 21:42:38
LBO >> Equities
Trading Friday
18 January 2008 16:29:04
Sri Lankan stocks battered by war, high rates


Jan 18, 2008 (LBO) – Sri Lankan stocks edged slightly higher in thin trading Friday with brokers saying intensifying violence and high interest rates were keeping investors away.


Margin traders were under pressure to reduce their exposure owing to sky high interest rates.

Stocks were battered this week because of stepped up attacks by Tamil Tigers who blew up a bus killing 27 people and later killed nine farmers in southern Sri Lanka this week.

The All Share Price Index gained 3.45 points or 0.15 percent to close at 2,382.33, while the more liquid Milanka index rose 8.59 points or 0.28 percent to 3,061.22.

Turnover was 131.5 million rupees.

"Retail investors are waiting on the sidelines," said Harsha Fernando, chief executive of SC Securities.

"There's hardly any incentive for anyone to come to the stock market. Interest rates are very high and have not come down so people won’t borrow and invest money. They also have alternative investment vehicles with interest rates at 20 percent."

Lanka IOC, which accounted for the largest turnover with over a million shares changing hands in two large blocks, closed 50 cents lower at 19 rupees on the volume weighted average price.

Environmental Resources Investment plc, formerly Walker & Grieg, rose five rupees to 18.25 with 993,800 shares being traded while 1.5 million shares of Kshatriya Holdings were done with the stock ending flat at nine rupees.

Dialog Telekom was flat at 18.25 rupees with 203,300 shares changing hands.

http://www.lankabusinessonline.com/fullstory.php?newsID=526240776&no_view=1&SEARCH_TERM=13

Stock markets worldwide plummeted on Monday, as a financial crisis that began in the market for U.S. home mortgages spread to almost all corners of the global economy.

Stocks lost value in 42 of the 43 nations with widely followed markets; the only exception was Sri Lanka.

U.S. markets were closed for the Martin Luther King Jr. holiday, but all of the world's other major economies experienced a sell-off. Stock prices fell 7 per cent in France and Germany, 5 percent in China and Great Britain, and 4 per cent in Japan.

And if U.S. markets' futures contracts are any indication, markets will be in for a major decline today amid concerns about bond insurers and the health of financial institutions. "It was all about blood on the wall" yesterday, said Georges Ugeux, chairman of Galileo Global Advisors.

He was visiting the Indian stock exchange, which fell 7.4 per cent, the equivalent of a 900-point drop in the Dow Jones industrial average.

"For them, this is a Black Monday," he said. Behind it all: Investors worldwide grew fearful that problems from massive losses on loans made to U.S. home buyers will cascade through the world financial system.

For example, the Bank of China is now forecast to record a multibillion-dollar loss on U.S. mortgage investments.

Add to that the slowing U.S. economy, and it was too much for investors worldwide. "We're in a global economy," said Randy Bateman, chief investment officer of Huntington Asset Advisors. "This is just the result of a perfect storm of problems that have surfaced here in the last two weeks that have manifested in the stock markets - all of them."

Although the European stock markets have avoided most of the volatility of the U.S. stock exchanges in recent weeks, European Union officials voiced anxiety yesterday that the U.S. economic slowdown might begin having a stronger impact on Europe.

"We are all concerned," said Finance Minister Andrej Bajuk of Slovenia, whose country holds the EU's rotating presidency. "We are following the events on a daily basis. We hope things will not be as bad as they may look."

Other European officials said they hope the strong European economy, driven by declining unemployment and a strong euro, will outweigh the emotional response to the economic slowdown in the United States.

"It seems that the markets are considering the possibility of a more pronounced slowdown, even a recession in the U.S.," EU Monetary Affairs Commissioner Joaquin Almunia said yesterday.

"I hope they will pay attention also to the real information about the economy, in particular in Europe, because, at least in Europe, the economic fundamentals of our economies are sound."

Washington Post

Not good worldwide, but good news for us...

Some more good news:

Wed, 23 January 2008 21:14:51
LBO >> Equities
Hot Cement
23 January 2008 20:19:31
Lanka Cement shares shoot up on speculation over Birla deal


Jan 23, 2008 (LBO) – Lanka Cement shares closed up 50 percent and accounted for the highest turnover Wednesday on the Colombo bourse, on speculation over a deal with India's Birla group.

Investors were buying on expectations that India's Birla group would take over Lanka Cement's 500,000 tonnes a year cement plant in Kankesanturai (KKS) in the northern Jaffna peninsula.

The shared surged to 15.00 rupees before closing at 11.75 up 4.00 rupees for the day with 5.3 million shares changing hands and generating 58 million rupees in turnover.

Industry officials said Birla group officials are due in Colombo for talks with senior government figures soon and that they would take over the KKS plant as a project approved by the Board of Investment, which regulates and gives tax breaks for foreign investors.

The government holds up to 80 percent of Lanka Cement, including stakes held by the Treasury, Bank of Ceylon, Ceylon Petroleum Corp and state pension funds.

The public holding is only around four percent, Lanka Cement officials said.

They said the integrated cement plant at KKS, that takes limestone and converts it into cement, can be revived.

Birla's plan appears to be to ship cement across the Palk Strait to markets in southern India which are facing a cement shortage, officials said.



http://www.lankabusinessonline.com/fullstory.php?newsID=1892010944&no_view=1&SEARCH_TERM=13

Wed, 27 February 2008 21:38:59
LBO >> Equities
Trading Wednesday
27 February 2008 18:27:16
Sri Lanka share trading zooms over Rs 1 bln on telecom, banking deals


Feb 27, 2008 (LBO) – Trading in Sri Lanka's share market went over a billion rupees Wednesday following deals in telecom and bank shares which helped the market end marginally higher.

The All Share Index climbed 6.5 points to end at 2,534.19 while the Milanka Index closed 13.07 points higher at 3,202.12.

Turnover reached 1.16 billion rupees when over 35.27 million Dialog Telekom shares held by foreign parties changed hands around mid-day, brokers said.

The share closed 25 cents lower at 18.25. The big block of shares traded added over 643.6 million rupees to total turnover.

The company has a market capitalization of over 146.58 billion rupees which is 17.81 of total capitalization of the Colombo share market.

State operator Sri Lanka Telecom shares ended 1.50 rupees higher at 34.75.

Over 1.72 million Sampath Bank shares changed hands with the share closing one rupee lower at 114.00 rupees.

Sampath Bank share transactions added over 196.5 million rupees to market turnover. Brokers say the trade was an internal transfer of shares by Dhammika Perera, a member of the bank's board of directors.

Investor interest was also seen in Lanka Cement with 4.68 million shares traded during the day. The share closed flat at 15.25 rupees.

The stock price has shot up following a government announcement it would give a defunct cement plant in the northern Jaffna peninsula to India's Birla group to operate.

The local unit of cement multinational Holcim on Tuesday said it too was interested in the Jaffna plant and limestone deposit.

Investors paid less attention to plantation counters Wednesday while the local ship builder, Colombo Dockyard, lost 25 cents to end at 65 rupees.

John Keells Holdings traded flat at 119.75 rupees.



http://www.lankabusinessonline.com/fullstory.php?newsID=266584598&no_view=1&SEARCH_TERM=13

Anyone knows the Market Capitalization of Sri Lanka's largest Telecom company that is listed on the Stock Exchange?

Anyone knows the Market Capitalization of Sri Lanka's largest Telecom company that is listed on the Stock Exchange?

There are only two strictly telecommunications companies listed. Dialog Telecom has a market cap. of Rs. 146 billion and SLT Rs. 62 billion.

www.cse.lk

I have started tradin in CSE online, somethin i been waition to do for a long time., but not quite sure what to buy when. anyone has any suggestions as to what shares i should buy now. and how do you decide on what to buy and when.. any tips please?

I don't know, maybe buy some dialog shares now because they are low and are bound to go up again soon... Make sure that you don't invest too much in one particular stock at once, investing smallish amounts in a variety of different stocks seems to be quite a good idea at the moment, you just have gain some experience to fully enjoy all the possibilities of a stock market...

I have started tradin in CSE online, somethin i been waition to do for a long time., but not quite sure what to buy when. anyone has any suggestions as to what shares i should buy now. and how do you decide on what to buy and when.. any tips please?

Honestly this isn't the best time though. If the war starts to drag on, the economy is just going to start off on a long period of decline. Best advise would probably be to take it easy to start off with, and be really cautions investing in tourism (war so no tourists) and general consumer products (high inflation, so people aren't spending much) companies

Hi,

Thanks for your valuable inputs. will keep them in mind. and hope to see more comments in time to come.

However its been about a month since i started, have made small profit, no loss so far (hope not in the future). I get the feeling that the market is controlled by a force. may be a few major investors, or may be the stock brokers. any comments?:cheers:

Since i made some instant profits with the stocks which go up like crazy (LCEM, CFI & bit of plantation stocks) i got carried away and ended up buying YORK @ avg 13.00. & was hoping to make more money. next 3 days the prices came down. I got paranoid, and wanted even to get rid of them at a loss. however on Friday i just put them to sale at 13.50 and the bloody thing ended up at 14.50. Errrrrrrrrrrrrrrrr.

and i still dont know why i bought YORK..:lol:

Tue, 11 March 2008 21:47:34
LBO >> Equities
New Face
11 March 2008 16:55:25
Sri Lanka stock exchange gets new director


Mar 11, 2008 (LBO) – John Keells Stockbrokers director Krishan Balendra has been appointed to the board of the Colombo Stock Exchange (CSE), the bourse said Tuesday.

He has been the head of corporate finance and an executive vice president of John Keells Holdings since 2002.

Balendra has a Bachelor's degree in Law from the University of London and a Masters in business administration from INSEAD, France, the CSE said.

His appointment takes effect from March 07.

The board is now chaired by A N Fonseka and made up of the following members; M M Udeshi, J H Paul Ratnayeke, Murtaza Jafferjee, Ashroff Omar, Dhashitha Thalgodapitiya, Malik Ranasinghe in addition to Krishan Balendra.



http://www.lankabusinessonline.com/fullstory.php?newsID=1898488479&no_view=1&SEARCH_TERM=13

Wed, 12 March 2008 20:57:40
LBO >> Equities
Telecom Wednesday
12 March 2008 16:52:02
Sri Lanka shares driven higher in telecom chase


March 12, 2008 (LBO) – Colombo stocks closed higher Wednesday with investors chasing after shares of Sri Lanka Telecom in a buying frenzy triggered by speculation of a mandatory offer, brokers said.

The stock exchange All Share Price Index closed up 5.51 points (0.21 percent) at 2,577.03 while the more liquid Milanka Index closed 10.82 points (0.33 percent) higher at 3,242.17.

A total of over 12 million SLT shares were traded with the stock closing 1.75 rupees higher at 40.00.

The frenzy to buy into telecom stocks was driven by speculation that NTT's SLT shares will be sold to UT at a higher price and a mandatory offer to all shareholders would be made by UT group to buy at that price.

According to market regulations, a mandatory offer is triggered only if a party buys more than 29 percent of a company.

At present, the government of Sri Lanka holds 49.5 percent of SLT shares, Japan's NTT holds 35.2 percent while the rest is dispersed among institutions and individuals.

NTT was originally proposing to sell a 25 percent stake in SLT to Global Communications NV, a UT group investment vehicle, retaining a 10 percent stake.

But brokers are now speculating that NTT may sell a larger stake perhaps its entire 35.2 percent holding to the UT group.

"If NTT sells only 25 percent of their share, there would not be such a mandatory offer," a broker said.

"Everything depends on what the parties bring to the table."

Over 17 million SLT shares have changed hands during the week, provisional stock exchange information showed.

Meanwhile, in other trading, Dialog Telekom fell 25 cents to 17.50 rupees.

The Distilleries Company, which was also sought after by retailers, closed up 50 cents at 100.50.

John Keels Holdings slipped one rupee to close at 120.25.


Total turnover reached 876.7 million rupees with over 23.3 million shares changing hands.



http://www.lankabusinessonline.com/fullstory.php?newsID=1531560684&no_view=1&SEARCH_TERM=13

* Ups stake in Hayleys to 11% with over Rs. 1 b investment
* Planned sale of 75% stake in listed Vallibel Power to US firm for Rs. 3 billion sparks investor interest

Investor-turned top official, Dhammika Perera, continues to move the Colombo Stock Market, when he yesterday picked up further shares in manufactured-export-rich Hayleys Ltd., increasing his stake to over 11% at a cost of slightly over Rs. 1 billion.

His growing thirst for Hayleys shares prompted analysts to speculate of a possible shakeup was midst a company of his, Vallibel Power, also stirring investor interest.

A fortnight ago, Dhammika, who is also the Chairman and Director General of the Board of Investment (BOI), in his personal capacity, picked up a near 7% stake in Hayleys for Rs. 637 million. Yesterday, he further bought 2.6 million Hayleys share for Rs. 338 million or Rs. 130 each, Rs 5 higher than the previous block. In between, he had picked up around 600,000 Hayleys shares as well. The 52-week highest price of Hayleys is Rs. 136.With an 11% stake, Dhammika becomes the single largest individual shareholder in Hayleys, prompting market analysts to speculate whether the Company would now invite him to the Board.

Hayleys is to some extent vulnerable, though it has previously managed to ward off any perceived hostile forays into the Company. D.S. Jayasundera Trust owns 11.6%, while Hayleys Employees Share Trust controls a further 10%.

Among yesterday’s sellers were Renuka Hotels Group’s Ravi Thambaiyah, who still owns around 4% and Ceybank Unit Trust. Cashing in on the profit from the sale, Thambaiyah picked up around 1 million shares of premier blue chip JKH at Rs. 112, with the seller being Questnet, linked to the controversial Goldquest.

Dhammika’s investment advisor Nimal Perera said that, the formers’ interest in Hayleys was strategic and long term, hence, not hostile. Dhammika directly or through his companies, controls companies such as Royal Ceramics, Amaya Resorts, Pan Asia Bank and LB Finance, in addition to owning stakes in Sampath Bank, Asian Alliance and Lanka Ceramics.

Recently, he sold a privately-owned mini hydro project in Kahawatte for Rs. 2 billion, which is being reinvested via the stock market in Hayleys. Dhammika’s planned sale of publicly listed Vallibel Power, also triggered widespread investor interest.

A US company, which also bought the Kahawatte project, is doing a due diligence on Vallibel, to acquire controlling stake for Rs. 5 per Re 1 share. If the deal goes through, Dhammika, who controls around 75% stake in Vallibel Power, will get close to Rs. 3 billion.

Since the pending deal, Vallibel shares had been widely chased after. Since last Thursday, over 70 million shares (or over 10% stake) of the Company have changed hands between Rs. 2.50 and Rs. 4.40 and the share price remains the highest.

To ensure transparency and better returns for minority shareholders, Dhammika had indicated that, though an MoU had been reached with the US buyer, any other interested parties would be considered, if they can quote 12% higher than the price offered to the US firm, which Rs. 5.

Indian officials’ visit boost Bourse

Market capitalisation up by Rs. 16 b in 3 days

Hopes over likelihood of greater involvement by India to resolve the ethnic conflict have apparently, encouraged investor sentiment at the Colombo Bourse, boosting the market capitalization by Rs. 16 billion in just three days.

Brokers said that investors see a silver lining to the conflict being resolved sooner than later or, the country seeing a credible breakthrough following the visit of a high powered Indian delegation on Friday.

Market capitalization, which was Rs. 787.2 billion as of last Thursday, rose to Rs. 803.3 billion yesterday. The rebound helped reduce the year to date decline in market capitalisation to 2% from 4% as of Thursday. The active Milanka Price Index also moved to the 3,000-points territory yesterday.

TBL (http://www.thebottomline.lk/2008/06/25/index%2050.htm)

Great and interesting...

Sri Lankan Government Bonds as an investment
or
would you stay clear and only invest in overseas markets?


Whats up with the Sub-Prime Crisis? Or dont we have a Sub-Prime Market in Sri Lanka?

Sri Lankan Government Bonds as an investment
or
would you stay clear and only invest in overseas markets?


Whats up with the Sub-Prime Crisis? Or dont we have a Sub-Prime Market in Sri Lanka?

It doesn't affect us so much given the fact that SL mortgage level still at a considerably low rate, mortgage market is only high in western province, Colombo city has 4000-5000 apartments under construction which likely play a sizable role after 2010!!!

It doesn't affect us so much given the fact that SL mortgage level still at a considerably low rate, mortgage market is only high in western province, Colombo city has 4000-5000 apartments under construction which likely play a sizable role after 2010!!!

WOW !!
4000 to 5000 apartments that need to be accomodated. Do you think there is a demand for this capacity?

WOW !!
4000 to 5000 apartments that need to be accomodated. Do you think there is a demand for this capacity?

Certainly, but the war has to be ended before that:)

The Colombo Stock Exchange (CSE) was yesterday named as the best performing stock exchange in the world for the year 2009. Bloomberg Newswire statistics, made this accolade from among 89 selected bodies in the world.
http://www.dailynews.lk/2009/01/23/z_pi-cse.jpg
The main price index of the Colombo Stock Exchange (CSE) recorded exceptional gains during the first month of trading in 2009. The All Share Price Index (ASPI) recorded a growth of 16.3% for the year to date, making the Colombo Stock Market Index the best performing index globally, in US Dollar terms.

The Milanka Price Index (MPI) too recorded a year-to-date growth of 16.6% yesterday.

According to Bloomberg, the ASPI has grown by 14.1% for the year to date (in USD) and was placed at the top of 89 Indices tracked by them.

A financial analyst said that that this would have a major positive impact on foreign direct investments to the country as the growth of the index was measured in US dollars.

The top three best performing indices in the world as per Bloomberg, records that growth Year to date (USD) at the Colombo All Share Price Index was 14.1% as against the Shanghai Composite Index of 8.9%.

The Chile Stock Market Select Index, which was placed third stood at 6.4%.

The CSE also recorded the first listing for the year 2009 yesterday with the Second Board listing of Capital Reach Leasing Ltd. The company listed 20 million ordinary shares on the CSE through an Initial Public Offering (IPO). The shares traded within a price range of Rs. 18 and Rs. 36 during the first three hours of trading yesterday.

Managing Director, Bartleet Mallory Stock Brokers, R. Muralitharan said that this was a very positive development for the country. “We anticipate that this trend would continue in the future too,” he said.

“Inflation is on the decline and it would lead to lowering of interest rates as well and investors can now look at the equity market,” he added.

A broker from J. B. Stock Brokers said that they hope this positive sentiment would continue. “This while stimulating more foreign direct investments to the country would also encourage more local entrepreneurs to invest in the CSE, “he said.

DN (http://www.dailynews.lk/2009/01/23/bus01.asp)

http://www.dailymirror.lk/DM_BLOG/ArticleImages/ord0bt45n0ez1fzdcdli0u2g_FT1.jpg
Just one week after the guns of the East went silent, the Colombo Stock Exchange (CSE) extended its run yesterday by breaking its own record of generating over one billion rupees’ turnover for five consecutive market days. The earlier record stood at four consecutive one billion rupee market days in 2006 and 2003.

As a senior stock broker associated with CSE told the Daily FT, this run was a natural outcome of the sterling and inherent prospects the country has to offer investors.

"Investors are confident that what we have achieved in peace now translates into optimism in business prospects. The ending of the war has generated strong feelings that peace is here to stay in Sri Lanka. The recent lowering of interest rates will also help businesses” the stockbroker said.

"Sri Lanka has always been unduly depressed over and above global sentiments. If you take the Indian stock market generally, it went down by 40% to 60% after the global financial crisis. The conclusion of the election cycle in India has now boosted the prospects of the Indian market," said our source at the CSE, who spoke on conditions of anonymity.

In terms of attracting investments, Sri Lanka still lacks adequate and liquid sectoral representation or depth, compared to the multifaceted markets of India. However, the optimistic prospects for the banking, telecommunication, infrastructure and tourism sectors, among others, pave the way in raising the hopes of stockbrokers for the future.

DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=50175)

Sri Lanka May Sell Rupee as Post-War Inflows Increase (Update1)
By Cherian Thomas

June 3 (Bloomberg) -- Sri Lanka may sell its currency should it gain too much as foreign aid and investments flow into the country after the end of a 26-year civil war, central bank governor Nivard Cabraal said.

“The currency could appreciate when large amounts of money come in,” Cabraal said in an interview in Colombo yesterday. “But we learnt some good lessons in 2005 post-tsunami that we shouldn’t allow these conditions to drive the economy by itself and there has to be some kind of intervention.”

Cabraal said excessive gains in the rupee could damage exports, which make up a third of the $32 billion economy and employ more than 2 million people in the island’s tea plantations and textile factories. Millions of dollars of aid after a tsunami hit Sri Lanka on Dec. 26, 2004, increased demand for the rupee, strengthening the currency by 5.4 percent the following month and halving export growth from a year earlier.

“The near-term pressure appears to be toward appreciation of the rupee,” said Anushka Shah, an economist at Citigroup Plc. in Mumbai. Buying dollars will also help “build foreign- exchange reserves.”

The Lankan rupee has gained 2.5 percent to 114.85 against the U.S. dollar since May 16, when President Mahinda Rajapaksa declared victory over the Liberation Tigers of Tamil Eelam, who have been fighting for a separate homeland for ethnic Tamils since 1983.

‘Very Comforting’

Sri Lanka’s benchmark stock index, the Colombo All-Share Index, has climbed 16 percent since the Tamil Tigers were defeated, taking its gains this year to 47 percent. The index rose 0.6 percent to 2,197.73 at 11:15 a.m. local time, paced by John Keells Holdings Plc., which has investments ranging from transportation to tea and tourism. John Keells has increased 41 percent since May 16.

Cabraal said foreign-exchange reserves increased by about $120 million in the past two weeks as overseas investors snapped up local shares on optimism of political stability returning to the Indian Ocean island nation.

“That has been very comforting to the foreign exchange situation,” Cabraal said.

The nation’s reserves more than halved in the six months from September to $1.4 billion as the global recession hurt export earnings, prompting Sri Lanka to start talks with the International Monetary Fund in March for a $1.9 billion bailout.

IMF Loan

Sri Lanka’s overseas sales dropped 7.8 percent in March from a year earlier, falling for the fourth straight month. That’s the longest period of declines since 2002.

Standard & Poor’s said May 21 the timing and implementation of the IMF loan was “uncertain” and cut the island’s rating outlook to negative from stable. S&P rates the nation’s long- term foreign currency debt at ‘B’, five levels below the investment grade.

The IMF on May 21 said it is near an agreement to lend the money to Sri Lanka, clarifying its position a week after U.S. Secretary of State Hillary Clinton said the U.S. was reluctant to support an IMF loan to Sri Lanka given the escalation in the country’s civil war.

“The IMF loan has been delayed because some countries have expressed concerns which are of a non-economic nature,” Cabraal said. “The IMF charter doesn’t allow for such issues to be raised in the provision of structural loans - this will set a bad precedent.”

Civil War

Now that the war is over, foreign direct investments into Sri Lanka could quadruple to as much as $4 billion a year by 2012, according to Dhammika Perera, chairman of the Board of Investment of Sri Lanka.

The last time Sri Lanka faced a huge inflow of foreign cash was when the tsunami struck the nation and killed more than 30,000 people.

The challenges the inflows may pose this time include higher inflationary pressures, Cabraal said.

“For the moment, inflation is benign and we expect it to touch zero percent by June,” Cabraal said, adding that such a scenario would give him room to keep interest rates low and support economic expansion. He said the 3.3 percent increase in consumer prices in May from a year earlier, after a 2.9 percent gain in April, was a “blip.”

Cabraal said the central bank will this month revise the nation’s growth forecast for 2009, and may almost double it to 5 percent because of the increase in business confidence and as the liberation of rebel-occupied land boosts farm production.

“For a long time, every time someone spoke about Sri Lanka’s economy, the response was if only not for this war,” Cabraal said. “Today that has been removed and we have a tremendous new scope for economic development.”

To contact the reporter on this story: Cherian Thomas in Colombo at Cthomas1@bloomberg.net.

une 07, 2009 (LBO) - Sri Lanka's Aitken Spence said net profit for the 2008-09 financial year rose 10.8 percent to 2.0 billion rupees from a year ago despite the difficulties caused by an economic crisis.

The company said in a statement its maritime transport, logistics, power, printing and inward remittances businesses did well during the year.
But returns from plantations and garments were below expectations while its tourism profits fell as arrivals slumped.

The audited annual results of Aitken Spence released to the Colombo Stock Exchange showed revenue increased by 6.5 percent to 29.3 billion rupees from the previous year.

Aitken Spence Managing Director J M S Brito said the group ended the year on a "positive note" with its major sectors performing "creditably" amidst the global turmoil.

He said the group would continue to focus on "aggressive expansion" in Asia and the Middle East in the year ahead.

Profits from the tourism sector declined mainly due to the slump in tourist arrivals due to the global recession combined with negative travel advisories and high inflation during the first nine months.

The company said that the "encouraging performances" in the overseas expansions helped offset losses in Sri Lankan hotels.

During the year under review Aitken Spence expanded its hotels portfolio in three countries with the addition of Adaaran Prestige Vadoo in the Maldives, Heritance Madurai, Hotel Athithi in Puducherry in India and Desert Nights Camp in Oman.

The group’s airline business expanded with the addition of the General Sales Agency for Kingfisher Airlines.

During the year the company’s maritime transport division expanded its operations in South Africa.

Aitken Spence said that it is presently "exploring a number of opportunities in the African and Asian continent for maritime services."

Companies belonging to the group's logistics division also grew while the freight forwarding arm experienced narrowing margins mainly due to the pressure of intense competition, the company statement said.
"The power division maintained its solid performance this year while unveiling its future strategic direction in renewable energy," it said.

"The company’s plantations arm produced disappointing results during the year mainly due to high costs, price volatility and drought."
ref:http://www.lankabusinessonline.com/fullstory.php?nid=454147989

http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vp6Q51Lhq5AA.asf&vCat=/video&RND=645379972&A=http://media2.bloomberg.com/ads/Qatar/Qatar_15_Cutdown_200.wmv

June 5 (Bloomberg) -- Sri Lanka wants George Soros, Mark Mobius and other top fund managers to invest in the country and help the Colombo Stock Exchange “take off” after the end of a 26-year civil war.

“The exchange is at a very primary level and foreign participation is critical for it to grow,” Channa de Silva, director general of the Securities and Exchange Commission of Sri Lanka, said in an interview in Colombo yesterday.

The commission is working “to create liquidity and depth” in the market by starting derivatives trading and persuading the nation’s biggest companies such as Brandix Lanka Ltd. and Dilmah Tea Co. to list on the stock exchange. Almost three decades of war with Tamil Tiger rebels curbed the island’s economy and reduced the need for companies to seek funding by selling shares.

“It will happen now as the level of economic activity picks up after the war,” said Malik Fernando, a director at Dilmah Tea, among the best-known Ceylon tea brands in the world.

Sri Lankan troops defeated the Liberation Tigers of Tamil Eelam last month, ending the rebels’ quest for a separate homeland in the Indian Ocean island nation. President Mahinda Rajapaksa said this week the country will find a political solution to the issue of Tamil separatism.

“Sri Lanka is now open for business,” de Silva said. “Opportunities are tremendous and it’s a country waiting to unfold its potential.”

Declared Victory

Daily average trading on the Colombo Stock Exchange surged 20 times to 1 billion rupees ($8.7 million) after the government declared victory over the Tigers on May 16, driven by demand from the local population, de Silva said. The key Colombo All- Share Index has climbed 12 percent during the period, taking its gains this year to 42 percent.

The exchange wants to double its capitalization to $14 billion in a year, he added.

Sri Lanka operates one of the most open economies in the world and no approvals are required for any overseas investor to buy shares in the country. Profits made on stock trading aren’t subject to capital gains tax and can be repatriated. Dividends are taxed at the rate of 10 percent at the withholding stage.

De Silva says the end of the war is a “paradigm shift” in the country’s history which could spark a lot of interest among overseas investors in Sri Lanka.

“Sri Lanka has been in the news, for right or wrong reasons, but at the end of the day it is in the minds of people,” de Silva said. “It’s like Vietnam -- there wouldn’t be many people in the world who don’t know Vietnam. In the same way, there wouldn’t be many who don’t know Sri Lanka.”

‘Wonderful Opportunities’

Investor Jim Rogers, who correctly predicted a commodity price rally in 1999, said May 21 he sees “wonderful opportunities” in the island nation and that he would like to go to the country to see “great, cheap” opportunities after the “dramatic” changes.

Governor Nivard Cabraal said this week the central bank will this month revise the nation’s growth forecast for 2009, and may almost double it to 5 percent because of the increase in business confidence and as the liberation of rebel-occupied land boosts farm production. The Board of Investment of Sri Lanka expects foreign direct investments to quadruple to $4 billion in three years.

De Silva said the Colombo Stock Exchange will start a trading floor in the next three months in Jaffna, located in the north of the country and the unofficial capital of the Tamil Tigers, who at one point controlled a third of Sri Lanka.

“The north was never tapped,” de Silva said. “A trading floor brings investors together at the retail end, which will help mobilize money.” He said Sri Lanka’s savings rate, at 23 percent of gross domestic product, “will not cater to the development agenda” the country envisages.

Derivatives, ETFs

He said the stock exchange will set up a clearing corporation soon, facilitating derivatives trading. The authorities are also working to start a real-estate investment trust and exchange traded funds to complement derivative operations, de Silva said.

Interest to set up a commodities market in Sri Lanka, a producer of tea, coffee and rubber, has also been made by investors in India and Nepal, de Silva said without naming them.

“Sri Lanka has a story to tell,” de Silva said. “If you look at our map, you realize it can be a strong destination for logistics. Any vessel going from East to the West or from West to the East needs to virtually refuel in Lanka.”

Accordingly, the government has embarked on a three-year plan to increase Colombo’s port capacity by four times and bring it on par with Singapore.

“Then there is tourism, and if the government is clever, it can even turn Sri Lanka into a major financial center,” de Silva said. “It will take a while for people to realize the momentous change that has taken place in Sri Lanka and the massive opportunities that brings to the table.”

To contact the reporter on this story: Cherian Thomas in Colombo at Cthomas1@bloomberg.net.

Last Updated: June 4, 2009 22:49 EDT

I think this is the best time to start investing in Colombo Stock Market. Banks already started to tap the market in north & east of the country. Huge growth potential is out there for listed companies.

.Lanka bourse among world's best performing markets
Thu Jun 18, 2009 8:27am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]

Market News
Stock futures turn higher after jobless claims
Oil dips below $71 on firm dollar, weak equities
Global stocks near three-week low
More Business & Investing News... * Bourse up nearly 60 pct in 2009

* Top bluechips are at over one-year high

* Bourse sees record volumes-official

By Shihar Aneez

COLOMBO, June 18 (Reuters) - Sri Lankan shares .CSE jumped 2.61 percent on Thursday to become one of the best-performing bourses among the world stock markets after a global recession, with top bluechips hitting over one-year highs.

Turnover hit a record of 2 billion rupees ($17.5 million), more than four times last year's daily average of 464 million rupees, according to a bourse official.

The rupee <LKR=> closed flat with the central bank preventing appreciation through buying dollars.

The bourse has risen around 59.9 percent so far for this year and 26 percent since the government declared victory in a near 26-year war.

Only China's Shenzhen Stock Exchange .SZSB has given a higher return this year among Asian bourses, according to Reuters data.

The bourse' performance is more than double of the benchmark emerging market equities .MSCIEF, Reuters data showed, and among one of the few global stock markets to have recovered almost all its losses since September.

The market fell 59.2 percent last year due to an intensified war and high inflation.

The Colombo All-Share Price Index rose 61.05 points to 2403.97, its seventh straight rise and the highest close since Sept. 1, with foreign inflows yet to pick up.

"There is some renewed foreign interest on John Keells shares," said Geeth Balasuriya, head of research at Acuity Stockbrokers. "IMF loan hopes and the interest rate cut also helped the market."

The central bank on June 10 said Sri Lanka's request for a $1.9 billion IMF loan is expected to be approved by the end of June, though IMF has yet to comment. [ID:nCOL430797]

Two central bank officials told Reuters the central bank had only asked for $1.9 billion, but said the IMF could increase the amount to $2.5 billion before finalising the package.

The central bank cut its policy rates by 50 basis points on Tuesday to boost access to credit and spur economic growth [ID:nCOL436423], while T-bill rates have steadily fallen and the benchmark 91-day T-bill was at 11.56 percent on Wednesday.
John Keells Holdings jumped 7 percent to 137.25 rupees to its highest close since Nov. 1, 2007, on a weighted average, while market heavyweight Sri Lanka Telecom SLTL.CM rose 5.6 percent to 47.25 rupees, its highest close since June 11, 2009.

Top listed private lender Commercial Bank of Ceylon jumped 5.04 percent to 135.50 rupees, its highest close since May 23, last year, while development lender DFCC Bank DFCC.CM gained 5.26 percent to a 17-month high of 135 rupees.

The 2009 daily average turnover, which was 260.7 million rupees up until May 15, has now jumped to 399.4 million rupees since the military declared victory in a 25-year war though there are still concerns over foreign inflows to the bourse.

Net foreign inflows had been 1.4 billion rupees before the end of war, but turned to a net outflow of 229.2 million rupees as of Wednesday, with foreign investors gradually coming in. ------------------------------------------------------------

For Q+A on post-war foreign share buying see [ID:nCOL8675] ------------------------------------------------------------

Sri Lanka's economic growth in the first quarter of 2009 hit a 7-year low of 1.5 percent, while unemployment also has seen a rise for the first time in more than five years due to global recession, the government said on Tuesday. [ID:COL190950]

The rupee closed flat at 114.90/95 a dollar as the central bank bought dollars at 114.90 rupees with active trading on foreign exchange forward market after the central bank's decision to relax banks' foreign currency holdings, dealers said. [ID:nCOL481776]

The rupee hit a record low of 120.80/121.10 on April 23, as the central bank stopped preventing depreciation amid discussions on the IMF loan.

The interbank lending rate or call money rate CLIBOR edged up to 9.888 percent from Tuesday's 9.725 percent.

The Colombo Stock Exchange creates history today (June 18) by recording the highest number of transactions in a single day (15290 trades). This is the fourth best performing trading markets in the world (in US dollar terms) after Peru, Brazil and Russia.

Ada Derana (http://www.adaderana.lk/news.php?nid=3868)

Nice news on the stock exchange front, but I would hope that such positive momentum is carried on to the common man and not just simply restricted to high net worth individuals and large corporations, we need a complete nationwide resurgence...

Nice news on the stock exchange front, but I would hope that such positive momentum is carried on to the common man and not just simply restricted to high net worth individuals and large corporations, we need a complete nationwide resurgence...

Yes I totally agree with you.
I think Colombo Stock Exchange is currently doing their part by conducting seminars in Sinhala language. Ordinary people think that only multimillionaires can invest in shares.

July 8, 2009 (LBO) - India's Tata group has bought 51 percent control of Sri Lanka' Dutch Lanka Trailers (DLT), for 8.67 million US dollars (997 million rupees) and has an option to buy the balance, a listed unit in the conglomerate has said.

TRF Ltd, a Tata unit said in a Bombay stock exchange filing that it had an option to buy the balance 49 percent of Dutch Lanka Trailers for 8.33 million US dollars.
TRF said, DLT had a factory in Sri Lanka that exported trailers to 30 countries and it had a fully owned subsidiary, Dutch Lanka Engineering (Private) Limited which was engaged in repair and maintenance.

The firm also had a unit in Oman which made and sold trailers to Middle Eastern markets.

It also had a joint venture with Tata International, through which it made and sold trailers in India.


DLT makes large trailers and tankers for prime movers.

Interesting development here, btw who are the owners of Dutch Lanka Trailers?

http://www.dailymirror.lk/DM_BLOG/ArticleImages/g3j3wgqqz0etgf555kyfjhmm_c1600.jpg
The Colombo Stock Exchange (CSE) re-opened the trading floor to the public today to accommodate several brokering firms offering their services to prospective clients. The trading floor was kept closed for nearly a year. Picture shows activity at the trading floor today
http://www.dailymirror.lk/DM_BLOG/ArticleImages/g3j3wgqqz0etgf555kyfjhmm_c2.jpg
http://www.dailymirror.lk/DM_BLOG/ArticleImages/g3j3wgqqz0etgf555kyfjhmm_c3.jpg
http://www.dailymirror.lk/DM_BLOG/ArticleImages/g3j3wgqqz0etgf555kyfjhmm_c4.jpg

http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=55278

Nice work, how did proceedings go ahead before this???

FPB1h6HIRxo

July 21, 2009 (LBO) – Sri Lankan shares rallied Tuesday on news the government had secured a long-awaited loan from the International Monetary Fund (IMF) that brokers said could boost investor confidence and bring in more foreign investors.

Share prices shot up over 2.5 percent in early morning trade as news broke the government had secured a 2.5 billion dollar IMF loan, brokers said.

The benchmark Colombo All Share Price Index (ASPI) ended the day up 2.09 percent (50.65 points) at 2,473.57 Tuesday, while the Milanka index of liquid stocks gained 1.79 percent (14.33 points) to close at 2,749.08, according to provisional stock exchange data.

Turnover was 1.01 billion rupees.

There was a net foreign inflow worth 69.7 million rupees, with foreigners buying 315.4 million and selling 245.7 million rupees worth of shares, brokers said.

"The positive news about the IMF bailout package has boosted investor confidence," Geeth Balasuriya of Acuity Stockbrokers said.

"We saw most of the blue chip stocks gaining. Despite today's rally being led by local investors we expect foreign participation to increase significantly."

Brokers said 1.64 million John Keells Holdings (JKH) shares changed hands. JKH closed at 135.25 rupees, up 2.25.



Distilleries Company of Sri Lanka closed at 88.00 rupees, up 3.00.
Sri Lanka Telecom closed at 47.50 rupees, up 1.00, while Sri Lanka's largest celco, Dialog Telekom, closed flat at 5.25 rupees with 11.8 million shares changing hands.

Commercial Bank of Ceylon closed at 138.00 rupees, up 3.25, while National Development Bank closed at 161.00 rupees, up 5.00.

Brokers said 1.86 million shares of Hotel Reefcomber changed hands. Reefcomber closed at 1.60 rupees, up 10 cents. Brokers said 1.17 million John Keells Hotels shares changed hands. It closed at 13.25 rupees, up 75 cents.

The spot dollar remained unchanged at 114.85/114.95 rupees in late afternoon trade, dealers said.

UPDATE 1-S.Lanka's Keells Q1 net down 22 pct
Thu Jul 30, 2009 7:49am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]

Market News
Futures extend gains after claims report | Video
Motorola gains after reports profit
Oil bounces above $64
More Business & Investing News... *Loss of marine bunkering monopoly hits Q1 *Shares lose 0.2 pct
(Adds company comments, details, byline) By Shihar Aneez COLOMBO, July 30 (Reuters) - John Keells Holdings JKH.CM,
Sri Lanka's biggest conglomerate by market value, posted a drop
in its net profit in the first quarter after losing its monopoly
in the marine bunkering business, analysts said. Net profit fell 22 percent to 650.4 million rupees ($5.67
million) in the quarter ended on June 30 and revenue dropped 9
percent, the company's said on Thursday. "This is due to loss of revenue from its profitable
bunkering unit Lanka Marine Services (LMS)," said Channa
Amaratunge, director at CT Capital. The results showed performance in the conglomerate's most
profitable sector, transportation, hit a significant low, with
net profit slumping by around 40 percent to 496.3 million rupees
in the quarter and revenue plummeting by 58 percent. "The decline is mainly due to Lanka Marine Services
experiencing a decrease in revenue and increased costs from the
new operating format," S.C. Ratnayake, the chairman of the
company said in a statement. Analysts said the company has revived its bunkering business
plan after losing monopoly due to a court ruling amid stiff
competition from seven other players. Sri Lanka's Supreme Court in July 2008 nullified Keells'
2002 purchase of state-owned oil bunkering assets that became
its profitable LMS division. The conglomerate said on Sept. 18 a court ruling against the
privatisation of LMS could cost it up to $18.84 million, and the
total cost from the loss of business was likely to be much more. The company shares plummeted 60.9 percent last year, mainly
due to the court ruling. "The good sign is its tourism sector has done better than
expected and there is a huge potential for the company to
perform well with a recovering global economy and the end of the
war," said Danushka Samarasinghe, head of research at Asia
Securities. The conglomerate's tourism division recorded a loss of 50.7
million rupees in the first quarter, compared to a loss of 311.9
million rupees a year ago. Sri Lanka's tourism industry is expected to perform better
after the government ended a 25-year war against Tamil Tiger
rebels in May this year. Shares in John Keells Holdings are up 175 percent so far
this year, compared to a 67 percent rise in Colombo Stock
Exchange .CSE.They closed down 0.2 percent on Thursday.
($1=114.925 Sri Lankan Rupee)
(Editing by Rupert Winchester)

5VvPqVHyOVw

^^^^^^^^^^:cheers::cheers::cheers::cheers:

Touchwood shares seems to be on high demand. There are plans by foreign sources to invest on the company which will expand to the islands north and east. This kind of replanting projects have been very successful in a number of countries. The current stock value is around 90 Sri lankan Ruppees and that is less than dollar. And it is predicted to go up in multiples.

Sri lankan Stock market is placed 2nd in the rankings and these kind of companies will rise
by huge propertion in the near future.

LSE poised to acquire Sri Lankan technology company
By Jeremy Grant in London

Published: September 14 2009 22:40 | Last updated: September 14 2009 22:54

The London Stock Exchange is expected to announce, possibly as early as Wednesday, the acquisition of Millennium IT, a Sri Lankan trading technology company, as the group embarks on a massive upgrade of its trading platform.

The move marks the biggest step yet taken by Xavier Rolet, chief executive, to dismantle the legacy of his predecessor Clara Furse. The exchange’s existing TradElect trading system was upgraded two years ago at a cost of £40m ($66m).


The purchase of Millennium IT, founded by Sri Lankan entrepreneur Tony Weeresinghe in 1996, is likely to cost under £50m. The LSE has £370m in loan facilities at its disposal.

Millennium IT has developed, in laboratory conditions at a facility in the UK, what it claims is the fastest trading system in the world. It handles trades in 130 microseconds, compared with 250 microseconds on Nasdaq OMX, which had claimed to be the fastest based on commercial application.

The Sri Lankan company won its first contract integrating systems for the Colombo Stock Exchange.

Since then it has expanded rapidly to the UK – where it includes Icap, the inter-dealer broker, as a client – and the US, where it has offices in Boston and New Jersey.

The company has developed a system that can handle up to 1m messages per second, compared with 20,000 available on TradElect currently. Chi-X Europe operates a system capable of handling 225,000 messages per second.

Mr Rolet told the Financial Times this month that lack of capacity was holding the LSE back. “We have to [upgrade] because the technology specifications are no longer competitive and that’s impacting our ability to support volume growth,” he said.

The LSE has been burdened by the cost of maintaining dozens of staff needed to run TradElect that were “in-sourced” from Accenture, the consultancy.

That helped drive the LSE’s technology costs unacceptably high, in Mr Rolet’s view, to 47 per cent of the group’s total costs. The LSE is now taking direct control of its technology as it tries to recover lost ground in the technological race between exchanges.

Bernstein Research estimated on Monday that the LSE could save “almost £70m” in costs as a result of staff cuts, replacing the TradElect system and migrating its MTS bond trading onto a new platform.

The choice of Millennium IT highlights how some of the most innovative trading technology is emerging from the Indian sub-continent. Financial Technologies, an Indian company, provides trading systems to exchanges in the Gulf and Asia.

The Sri Lankan company operates a technology “campus” on the outskirts of Colombo, complete with a cricket field and gymnasium for employees, as well as accommodation for staff working late.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Profile: Raj Rajaratnam
By Sam Jones, Hedge Fund Correspondent

Published: October 16 2009 20:53 | Last updated: October 16 2009 20:53

In 1997, when the Sri-Lankan born Raj Rajaratnam launched his hedge fund Galleon Technologies, he told a journalist his favourite quote - one borrowed from Intel’s totemic President Andy Grove: “only the paranoid survive.”

Galleon – and Mr Rajaratnam – have to date proved to be consumate survivors.

EDITOR’S CHOICE
Six charged in $20m insider trade case - Oct-16Wire taps used to fight white-collar crime - Oct-16Tapes lift lid on high pressure world of dealers - Oct-17FT Alphaville: FBI cracks alleged Rajaratnam ring - Oct-16SEC hires Goldman alum for enforcement job - Oct-16US ruling exposes insider trading divide - Oct-12In mid-2008, with close to $8.3bn in assets, Galleon Group was one of the larger hedge funds on Wall Street and it rewarded its principal and founder with money that put him in the top-flight of hedge fund billionaires.

Mr Rajaratnam was estimated to have received $200m in 2007 alone from Galleon, making him that year one of the best-paid hedge fund managers in the world. Last month - in spite of the financial crisis - his wealth was such that Forbes Magazine named him the 236th richest man in America.

A Tamil, Mr Rajaratnam received an English boarding school education and a degree in engineering from the University of Sussex before turning to the US and to finance.

After receiving an MBA from Wharton, he joined the boutique investment bank Needham & Co in New York in the early 80’s and became its president by 1991. In 1992 Mr Rajaratnam set up an in-house hedge fund at the bank to invest in technology stocks.

In 1997, as the alternative asset industry began to boom, Mr Rajaratnam left Needham and took the technology fund - renamed Galleon Technology - with him.

The same fund, which remains at the core of Galleon’s business today, has delivered stellar returns to investors since its foundation. Before the collapse of Lehman Brothers last year, the fund boasted an annualised return of 23 per cent for its clients.

Now, however, suspicion has been cast on those returns by criminal charges filed by the FBI against Mr Rajaratnam.

Law enforcers allege Mr Rajaratnam was part of an insider-dealing ring that profited from price-sensitive information unavailable to the wider market - information that almost exclusively concerns technology stocks.

The implications for Galleon are huge. Although the charges relate only to a handful of securities, specific to only a couple of Galleon’s funds, investors are likely to take flight at any inference of wrongdoing.

The charges are not, however, Galleon’s first run in with the law.

In May 2005 Galleon paid a $2.4m fine to settle a case brought about by the US market regulator, the SEC. Galleon, it was alleged, alongside two other prominent hedge funds, had made illegal gains by breaking market manipulation regulations.

Some investors say they were wary of investing with Galleon since. “We couldn’t get comfortable with some of their valuations,” one large money manager told the Financial Times. ”Their general attitude seemed to be ‘trust us, we’re Galleon’.”

This will also have severe repercussions on the CSE if things get bad, this guy has major stakes in Blue Chip Companies including nearly 10% in JKH, so things look grim at best...

19-01-2010 Colombo Stock Market

Colombo Stocks crashed as profit taking continues.

Stocks fell in almost all sectors. Total of 120 companies lost their share prices while only 34 companies managed to record gains. Investors confused with uncertainty over next presidential election results. It is very hard to predict the results as this is the first election that entire country is waiting to vote after three decades.

July 08, 2010 (LBO) - The initial public offer by Sri Lankan retailer Odel has been oversubscribed by 63 times, setting a record on the Colombo Stock Exchange (CSE) in recent times, a statement said.
The Colombo Stock Exchange’s previous record for oversubscription of an IPO was by 20 times, it said.

Channa Amaratunga, Director of CT Capital, lead manager of the Odel IPO, said 22,686 applications had been received from the public, with a cumulative value of 15.995 billion rupees.

The IPO on June 5 closed the same day owing to oversubscription.

Odel offered 16.7 million shares, an 11.5 percent stake in the company’s equity, at 15 rupees per share.

The statement quoted CSE chairman Nihal Fonseka as describing the Odel IPO as a potential catalyst for more listings on the Colombo Stock Exchange.

Fonseka said the very high degree of interest sparked by the IPO also reflected the optimism prevailing in the market, and is an indication that investors are looking for exciting new stocks.

Of the IPO shares, 1.2 million were set aside for applications from employees, three million for applications of up to 5,000 shares, and 12.5 million shares for applications for more than 5,000 shares.

"We are overwhelmed by the response we have had for our IPO," the statement quoted Odel founder and chief executive Otara Gunewardene as saying.

"The figures have been much higher than our usually high expectations. We are extremely pleased with the confidence and the support shown by the public for the brand. We are also happy that it has influenced many first timers to invest in the stock market."

The basis for the allocation of shares to applicants is to be decided shortly.

The government is looking to sell stakes in state-owned entities in the near future through public share issues, according to officials. They said that after SriLankan Airlines Catering and Shell Gas goes public, Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB), SriLankan Airlines, ITN and Sri Lanka Insurance Corporation (SLIC) will follow suit.

Media Minister Keheliya Rambukwella also confirmed this and told the Business Times that the government is favourably looking at selling stakes in these institutions. “The time is right (to list) and all indicators are pointing favourably at listing. The concept of the government at present is to ‘give to the people’ so that they will have a say,” he said, adding that such public participation in these entities will facilitate the people to voice their opinions (at Annual General Meetings).

A team of experts from the Treasury, the Central Bank and some financial consultants are working on the modalities of listing these entities. “They are planning the strategies taking into consideration the mood in the share market and the interest of the people,” he said.

Highly placed sources told the Business Times that many of these entities are debt ridden and that the government is discussing to list about 15 to 20% of each entity at the Colombo Stock Exchange to initially retire their debts and then streamline these entities.

“Listing brings in better corporate governance and better performance to these entities,” one source said. Minister Rambukwella added that the government is constantly realigning its strategy and will infuse private sector participation while keeping the people’s interest at heart when going for Initial Public Offerings.

Nishantha Wickremasinghe, Chairman SriLankan Airlines (SLA) told the Business Times that SriLankan Airlines is planning to divest a part of its fully owned catering unit through a public listing to raise around Rs 60 million. He said that SLA is planning to separate its MRO Department – Maintenance, Repairs and Overhaul - into another subsidiary. “We will form a separate firm at Mattala, Hambantota with a larger engineering facility,” he added, noting that this company too will be listed at a later date.

He said that SLA is also planning an aeronautical engineering academy to be formed in the same area to train technicians. “We can attract international students with such a facility and also retain local engineering students,” he noted. He added that this entity too will be listed in time to come. “After this we’ll consider an SLA listing,” he added.

ST (http://www.sundaytimes.lk/101017/BusinessTimes/bt04.html)

http://upload.wikimedia.org/wikipedia/commons/c/c4/Dhaka_stock_exchange.jpg
:nuts::nuts::nuts::nuts:

DHAKA, December 8, 2010 (AFP) - Riot police took to the streets of the Bangladeshi capital on Wednesday to control thousands of angry investors protesting over a dramatic fall in shares on the national stock exchange.
Protesters burnt office furniture in front of the Dhaka Stock Exchange building and brought traffic in the centre of the city to a standstill.

Shares on the benchmark DSE General Index showed a loss of more than six percent at one point during a volatile day before recovering to close down 1.56 percent at 8,451.59

"There were 2,000-3,000 small investors who protested over the stock market plunge. They broke up as the market rebounded later in the day," local police chief Tofazzal Hossain told AFP.

Scores of others held protests in the southern city of Barisal, police said.

Reaz Islam, head of New York-based LR Global Fund, said a series of measures to cool the overheated stock exchange by the country's Securities and Exchange Commission (SEC) and the central bank had created panic among investors.

On Monday, the SEC had stopped brokerage houses from executing share transactions until the cheques are cashed, but Islam said this order has been frozen on Wednesday, which had helped lift the market.

Analysts have warned for the past 18 months that the market is dangerously overheated, with share values no reflection of the underlying value of the companies.

Wednesday's protests are likely to raise fears of the social impact of a major correction if the bubble bursts.

On Sunday, the index hit a record high of 8,918.51 points, up around 60 percent since the start of the year.

The bull run has lured tens of thousands of new investors, with demand for shares far outstripping supply.

Last month, the government forced the listing of dozens of state-owned companies in a bid to create new shares to satisfy local demand and soak up excessive liquidity.

"People wanted to make money quickly so they bought into the stock exchange without knowing anything about market fundamentals," said Islam.

"In the last three months, banking stocks, which account for 30 percent of the market alone, gained 40 percent, which is absurd," he said. ....


.........
I guess DSE badly need a new building first:ohno:

http://img2.photographersdirect.com/img/19309/wm/pd1271886.jpg
:cheers::cheers::cheers:

.........
I guess DSE badly need a new building first:ohno:[/QUOTE]

mmmmmmmmm..............:laugh::laugh:

Sri Lanka’s Dialog to expand network
14 February 2011

Axiata’s Sri Lankan subsidiary Dialog is to spend $150m on upgrading its broadband network

Read more: [Axiata] [Dialog] [Sri Lanka] [broadband] [fibre] [Malaysia]

Sri Lankan mobile operator Dialog Axiata is investing a total of $150 million to finance a fibre upgrade and broadband network expansion.
The unit of Malaysia’s Axiata will invest $150 million towards the advancement and expansion of ICT infrastructure in Sri Lanka with the Board of Investment of Sri Lanka.
The investment will boost the nation’s information and communication technology sector, which the government has aimed to help fuel rapid economic growth.
Dialog, which was listed on the Colombo Stock Exchange in 2007, has brought $1 billion in foreign direct investment since its inception in 1994. It now has seven million subscribers in a market, which had over 15 million subscribers.
Apart from being a core mobile company, Dialog has operations in broadband, fixed voice and pay television. GTB