Sri Lanka Central Bank Governor has been named as Top Governors of the World by Global Finance Magazine for below heroics. - Sri Lanka's inflation has returned to single digit with no real reduction in prices of consumer goods and services. - Interest rates are being normalised at the expense of EPF/ETF Pension Funds in an incomplete debt restructuring that favour bond traders and banks. - Volatility in the exchange rate has been curtailed with Hot Money deals and Export Taxes....
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Fuel and transport price increases will inevitably flow through to food and other goods, economists said. Fuel prices were increased with effect from midnight on Thursday (31) August 2023. The Ceylon Petroleum Corporation said a litre of 92 Octane Petrol was increased by Rs.13 to Rs.361. - A litre of 95 Octane Petrol was increased by Rs.42 to Rs.417. - A litre of Auto Diesel was increased by Rs.35 to Rs.341. - A litre of Super Diesel was increased by Rs.1 to...
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- Sri Lanka within a period of 7 years have produced some of the top financial and economic experts of the world. Top Central Bank Governor 2023- In. 2023 CSBL Governor Nandalal Weerasinghe has been rated among the top central bank Governors in the world by Global Finance magazine.! https://d2tyltutevw8th.cloudfront.net/media/document/press-release-central-banker-report-cards-2023-1693511830.pdf
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Stock Market investors have yet another opportunity to exit Colombo Stock market after the Covid 19 pandemic which caused economic crisis and sovereign debt default in Sri Lanka prior to the implementation of the IMF proposals and resultant market impact. Tombstones- Covid19 Start: February 2020 - Covid19 End: December 2021 - Economic Crisis Start: January 2022 - Debt Default: April 12, 2022 - IMF Staff Level Approval: September 2022
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Exceptional Profits Reported By Bond Trading Companies (Primary Dealers)Capital Alliance PLC#CALT owned by Ajith Fernando reported exceptional earnings (2.94 bn PAT) in June Q as expected. Q EPS (8.94) has exceeded last year annual EPS. Simply exceptional.
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Wonder of AsiaBond Trading Companies (Primary Dealerships) owned by few individuals make huge profits from Treasury Bills Sales whilst over 2 million EPF members undergo Domestic Debt Restructuring (DDR) and loss of value for their life time savings with no mercy from justice system. In the implementation of DDR, the government has excluded the country’s financial sector, mainly represented by banks and non-bank financial institutions since they are already...
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#SriLanka: Economy is yet to face serious crisis. - manipulated inflation Rate - Half Baked DDR - Contracting GDP Growth - Unstable Exchange Rate - falling Corporate Earnings - Overhyped stock market - Pending presidential elections Look below: Argentina Example. In the coming months, Sri Lanka's path will be shaped, possibly following the examples of...
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Sri Lanka Tourist Arrivals have recovered only 62.38% of 2019 (pre pandemic) levels in 2022. As a result Sri Lanka tourism recovery prolonged until 2024 to reach 2.3 mn tourist arrivals recorded in 2018.
The Tourism Ministry announced this week an ambitious target of luring 1.5 million international visitors in 2023 and double of that (3 million) in 2024.
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Sri Lanka Exchange Rate USD/LKR remain highly unpredictable due to FX shortages expected to be faced by the banks. Banks could face significant capital and FX shortfalls as a result of a sovereign debt restructuring. A sovereign debt restructuring will crystalize both sovereign credit risk and FX risk facing the banks. Banks’ exposure to the public sector as of end-September 2022 amounts to 33 percent of projected 2022 GDP, more than 5 times their total capital of 61⁄2...
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Extracts from the official valuation given in the prospectshttps://cdn.cse.lk/pdf/upcoming_listing/prime-pros6-23-04-2021.pdfWe have carried out a detailed analysis of the business operations of PLR to arrive at an average of the Discounted Cashflow based valuation method and P/E multiples based method on trailing 12 months’ earnings and forward earnings, and the results have been summarized below
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Japanese funded Light Rail Transport (LRT) from Colombo to Malabe (15km) Cost US$ 1.9bn compared to recently approved IMF facility of US$2.9bn. LRT cost is equivalent to almost 3 Southern expressways. Instead just serving minor section of the community, Government of Sri Lanka should utilise funds to expands current road network covering entire Sri Lanka by connecting the current expressways and creating new townships which will contribute more significantly to the future growth of...
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- Blue Ocean Residencies (BORL) enters the Colombo Stock Market via the acquisition of the Kelsey Development PLC (KDL). -BORL is a company headed by wellknown property developer Sivarajah Thumilan - BORL acquired 60% stake (10,457,564 Shares) in Kelsey Developments PLC (KDL) on 15th November 2022 for a consideration of LKR 257.25 Mn (LKR 24.6 per share). - Independent Advisor has advised the shareholders to divest KDL Shares at the mandatory offer at LKR 24.60/= -...
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BANKING SECTOR Price Range for Banking Sector Investors based on 4x PER and 0.5x PBV #SrilankaDownload Report: www.stockplanets.com/research
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Lack of foreign investments and economic uncertainty resulting from IMF reforms has depressed the investor sentiments in the Colombo Stock market. SOE privatisation would be the key turning point for the next phase of growth for the stock market. #SrilankaSri Lanka stock market has witnessed a downward trend and exceptionally low turnovers ever since the relief package was approved by the board...
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Licensed Commercial Banks NPL ratio up in 1Q 2023 to 12.9% from 11.5% in 4Q 2022 The economic downturn in 1Q 2023 hit badly on the banking sector as the non-performing loan ratio has elevated to 12.9% from that of the previous quarter’s 11.5%. The moratorium offered during the pandemic era ended in Jan 2023 and many sectors are still struggling to recover has put banks in a bad position.
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ECONOMYNEXT – Sri Lanka’s stocks and sovereign bonds which are trading at steep discounts are an investment opportunity, emerging market investor Mark Mobius said as a sof-pegged exchange rate regime failed after output gap targeting and the country defaulted on its foreign debt. The...
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Contrary to popular belief, “money printing” by the CBSL was at its highest under Governor P N Weerasinghe, even while the IMF was closely involved with Sri Lanka since mid April 2022. Above table would be helpful to understand the context With the new IMF arrangement whereby CBSL’s “money printing” is discontinued, it will only be a matter of time before the Government will find it impossible to face the huge challenge of meeting its commitments...
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Sri Lanka declared the country was suspending payment on most foreign debt from April 12, 2022, kindling the Indian Ocean island's first sovereign default event and ending an unblemished record of repaying external debt despite experiencing milder currency crises in the past. By April Sri Lanka was suffering the worst monetary crisis in its history with a steeply falling rupee, high inflation and forex shortages which triggered shortfalls of fuel, power and medicine. Widespread public protests led...
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By Duruthu Edirimuni Chandrasekera More than a dozen pyramid schemes are on the Central Bank (CB) radar after the regulator got the Attorney General to file criminal cases against three such prohibited schemes recently. As the schemes were contravening Section 83C of the Banking Act cases will be filed against ‘Fast3cycle International (P) Ltd.,” ‘Sport Chain App, Sport Chain ZS Society Sri Lanka,” and ‘Onmax DT’ which have collectively...
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Sri Lanka Telecom (SLT) has invested in excess of LKR 35.5bn in property plant and equipments during last 9 months ended 30th Sep 2022, whilst net cash generated from operation was only LKR 28.8bn. This indicate that SLT has spent all but considerable amount of cash generated from the operations in purchasing assets to upgrade and maintaining its network. Key investments planned for 2022 included the optical fibre network, 4G network expansions with 5G capabilities along with Mobitel,...
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Analysis of Top companies in Sri Lanka on the basis of Price to Book Value (PBVx) and Price to Earnings (PERx) as at current market prices.
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Bitcoin, Blockchain, and Cryptocurrencies are the new phenomena of the 21st century. There is so much hype surrounding these subjects that it is almost impossible to ignore them and how they may affect our day to day lives. However, not all of us may be in the know when it comes to the maze of jargon surrounding Bitcoin. Blockchain, Distributed Ledger Technology, cryptocurrencies, Initial Coin Offerings; what does any of it mean? Are you feeling left behind when the ‘techies’ speak...
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ASTRO ANALYSISConcept: Concept to evaluate future movement of stock prices of companies on the basis of the change of Price Book Value (PBVx) and Price to Earnings (PERx) ratios over a period of time. Methodology Price Earnings (PERx) and Price to Book Value (PBVx), ratios of sample companies are calculated and plotted on a graph, X Axis representing PBVx and Y Axis representing PERx respectively. Market capitalization is depicted...
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14, February 2023, SRI LANKA. Stock Planets Research introduces Astro Analysis and NFT trading to the Colombo Stock Market. Sri Lanka's First ever Corporate NFT was launched on 14th February 2023 together with the release of its first ever Astro Analysis Report on Expolanka Holdings PLC. Visit www.stockplanets.com for more details. Download Report:
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Officially known as the Democratic Socialist Republic of Sri Lanka, it is a South Asian country possesses GDP of about $ 85 billion according to the statistics of world bank. Over the past few years, the contribution of agriculture sector in Sri Lana’s GDP has experienced a rising trend. According to the latest report of statista, agriculture sector accounts for approximately 9 percent of Sri Lanka’s total GDP. Major crops are rice, tea, coconut, rubber, maize, wheat,...
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Background on LOLC Group, One of Sri Lanka’s Largest Conglomerates With a Collective Market Capitalisation of LKR 590.5 Billion (U.S. $1.6 Billion)
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A blue chip stock is a huge company with an excellent reputation. These are typically large, well-established, and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors. A blue chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name. For all of these reasons, blue chip stocks are among...
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Foreign Investments awaits future LossesLOLC Holdings PLC (LOLC) foreign investments awaits future capital losses due to fall of investment value on the back of depreciating African currencies. According to recent announcement by the LOLC Holdings PLC, group foreign investments now account for more than 50% of it total assets. Find above the Exchanges Rates of the countries LOLC has made its foreign investments. Excessive Goodwill...
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Hayleys PLC (HAYL) reported a Net Profit of LKR 7.15bn (EPS of LKR 5.40 per share) for the quarter ended 30th September 2022. Earnings per share (EPS) for last 12 months/TTM is LKR 37.11 per share whilst forecast EPS for the year ended 31st March 2023 expected be LKR 39.77 per share. Hayleys PLC share is currently trading at a price of LKR 74.10 per share or Price to Earnings Ratio (PER) multiple of 2X (TTM) and 1.86X (Forward Earnings) basis respectively which is attractive in terms...
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- LOLC group lacklustre performance clearly reflects the negative Earnings per share (EPS/ttm) of its group companies despite efforts to restructure. - LOLC owned hotels are likely to continue its losses in to FY 2023 causing financial concerns to the group. - LOLC Financial sector performance is likely to have significant impact on the banking sector of Sri Lanka
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The Sri Lanka Rupee (LKR) has depreciated against the USD by 47.69% since Jan 2022, which is why #LKR takes the 4th place in this week's #CurrencyWatchlist. LKR is the 4th junk currency in the world. @CBSL
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How Greece was able pay off its 260 billion Euro debt* Three stage financial assistance from the EU, European Central Bank and International Monetary Fund known as the troika. * Three successive bailout totalling some 260bn Euros between 2010 and 2018 prevented free from going bankrupt and exiting from the shared euro currency. * Entire Timeline on the Debt Crisis of Greece -
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Forecast Government Revenue from the Colombo Stock Exchange in 2023. What can investors expect in return? CSE & CDS & SEC Earns: LKR 1.17bn, Government Earns: LKR 3.12bn whilst all Stock Brokering companies expected to earn only LKR 2.03bn.
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Standard Chartered - Global Research (10th January 2023)• We think debt restructuring could be pushed back to end-2023 due to delays in the IMF programme • Economy is likely to contract in 2023; external sector has improved due to import contraction • Financial-sector liquidity and solvency risks are building with looming domestic debt restructuring • We refresh our recovery model; we now see fair value between 22 and 33 at exit yields...
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- All retail investors are disgusted and disappointed by LOLC group's methodology to hoodwink the minority shareholders through the purported amalgamation of NIFL and LOFC. - Investors are likely to lodge a complain to the SEC, CSE and Central Bank regarding the manner in which LOFC & NIFL amalgamation is valued. - LOLC group to-date has not declared any dividends to its shareholders but continue to inflate its earnings and share price through unknown foreign investments...
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The triangular relationship between researchers, stockbrokers and investors which causes stock market tension resulting in a positive or negative movement the share prices. What is the role of a stockbroker?Stockbrokers are individuals who buy and sell stocks and other securities for retail and institutional clients, through a stock exchange or over the counter, in return for a fee or a commission. Institutional stockbrokers work with fund managers and other...
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- JKH is a fully Diversified Group but Expolanka is mainly in shipping business which is more service related. - Tourism business is expected to recover and boom in next 3 years but freight/transport cost which reached its peak due to pandemic continue to fall. - JKH's Asset base is far greater than Expo due to nature of business which result in lower ROI and ROA. - JKH share trades at a greater discount to its Book Value (BV) as against Expo. - Foreign investors are interested...
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- EXPO expected to be delisted upon purchase of shares by majority shareholders SG Holdings. - LOFC and NIFL to be amalgamated as per CBSL guidelines by end January 2023. - SLTL to be privatised by the GOSL as per the recent announcement in order to raise foreign funds to overcome current economic crisis. - NIFL remains the most overvalued whilst JKH is the most under valued company among the top 10 capitalized companies. - DIAL, LIOC and CTC majority shares continued...
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The Insurance sector is dominated by six companies in terms of total assets of the sector. Out of twenty-seven insurance companies in the sector, six companies contributed to 76.7 per cent of the total assets of the sector at end June 2022. In addition, 71.1 per cent of the market share based on total assets was dominated by the long term insurance sub sector at end June 2022. High concentration in terms of institution poses additional risks as any vulnerability in a large company could significantly...
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Shoppers, retailers and street vendors in Pettah district in in Colombo, Sri Lanka, on Monday, Sept. 12, 2022. Sri Lanka is announcing its gross domestic product (GDP) figures on Sept. 15. (Bloomberg)In May, Sri Lanka defaulted on its overseas debt. Amid political upheaval and human suffering, the Indian Ocean island is still awaiting a $2.9 billion rescue by the International Monetary Fund. Lacking resources to buy even essentials...
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- Colombo Stock Exchange (CSE) Market Capitalisation declined more than 30% (LKR terms) and 61% (USD terms) during 2022. - In Dec 2021, market cap stood at LKR. 5,489 bn (USD 27.5bn) whilst current market cap is LKR 3,888 bn (USD 10.7bn). - During the same period LKR depreciated from LKR 200/= to current LKR 365/= against the USD Exchange Rate. - Sri Lanka's stock market capitalisation in Dec 2022 as a% to Gross Domestic Product (GDP) was 14.86% compared to 10 year high...
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For decades, the International Monetary Fund has been the scourge of countries that get into economic trouble, yet its authority has never been seriously challenged. Today, this is especially dangerous. The deadly combination of inflation and food shortages is putting numerous nations on the brink of disaster. A few, most notably Sri Lanka, are already in chaos. All too many countries are particularly vulnerable because they loaded themselves with debt during the easy-money years following...
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Domestic Debt RestructuringDDR in Sri Lanka is complicated by the large holdings of rupee debt by financial institutions such as banks. As Sri Lanka’s banks are heavily dependent on income from coupon payments on rupee bonds (around 36% of their income arises from government securities, and this income is used to pay the interest on deposits and savings of the public), it would not be advisable to implement a reduction in the coupons. Consequent to a DDR that extends...
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