FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Today at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Today at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

» LOLC hotels
by Maharaja Tue Mar 12, 2024 2:34 pm

» AEL target price ?
by suku502 Mon Mar 11, 2024 11:26 am

» WAPO 200% UP
by LAMDA Sun Mar 10, 2024 10:33 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Sri Lanka Newspapers Sunday 26/03/2012

2 posters

Go down  Message [Page 1 of 1]

1Sri Lanka Newspapers Sunday 26/03/2012 Empty Sri Lanka Newspapers Sunday 26/03/2012 Mon Mar 26, 2012 2:15 am

CSE.SAS

CSE.SAS
Global Moderator

Economy grows 8.3% in 2011


The economy grew 8.3 percent in 2011 to Rs. 6,542.7 billion with the per capita income increasing by 15.5 percent to Rs. 313,511, provisional data released by the Department of Census and Statistics showed, with industry sector contributing more at the expense of the agriculture sector with the services sector relatively static.

The annual average change in price was 7.8 percent in 2011, the highest for the last three years after dipping to 5.9 percent in 2009 from a high of 16.3 percent in 2008.

The department also showed that the rupee had appreciated 2.2 percent during the year.

In dollar terms, the per capita income for 2011 was US$ 2,836, up 18.2 percent from US$ 2,400 in 2010.

The agriculture, forestry and fisheries sector had grown 1.5 percent during the year, accounting for 11.2 percent of GDP, steadily declining since contributing 12.1 percent to GDP in 2008, peaking at 14.3 percent in 2002.

The tea industry fell 0.9 percent while the rubber and coconut industries grew 1.8 and 3 percent respectively. The minor export crops sector declined by 19 percent. Paddy production declined 8.4 percent during the year. Inland fisheries grew by 15.9 percent and marine fisheries recorded a 15.4 percent growth rate.

The industry sector reported a 10.3 percent growth rate, accounting for 29.3 percent of GDP, the highest contribution for the past ten years.

The manufacturing sector grew 7.9 percent. The tea, rubber and coconut processing sector grew by 0.9 percent. Food, beverages and tobacco grew by 7.1 percent and textiles, apparels and leather grew by 10.8 percent. Chemicals, petroleum, coal, rubber and plastic subcategory grew by 9.3 percent.

Electricity, gas and water recorded growth rates of 9.6, 5.7 and 6.1 percent respectively.

The services sector grew by 8.6 percent in 2011 and contributed 59.5 percent to GDP. The sectors contribution to the overall economy has changed little over the years.

Domestic trade grew 7.5 percent, import trade 14.3 percent and export trade 10.1 percent.

The hotels and restaurants sector grew 26.4 percent. Transport and communication grew 11.3 percent.

Cargo handling and civil aviation had grown by 7.2 percent.

Banking, insurance and real estate grew 7.9 percent.

Private sector services grew by 7.2 percent with government sector services far behind at 1.2 percent.

The Central Bank has forecast a growth rate of 8 percent for 2012, but has since downgraded the growth rate to 7.2 percent.

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48277

CSE.SAS

CSE.SAS
Global Moderator

Failure to reign in exposure could result in credit rating downgrade

Bartleet Finance PLC’s credit rating may be downgraded if the finance company failed to reduce its exposure to equity investments to within the regulatory limits and if it did not demonstrate a sustainable improvement in its core performance to be on par with similar-rated peers, RAM Ratings Lanka said.

RAM Ratings Lanka has reaffirmed Bartleet Finance PLC’s (BFL) respective long- and short-term financial institution ratings at BBB- and P3. Simultaneously, the long-term issue rating of BFL’s LKR 204 million Unsubordinated Unsecured Redeemable Debenture (2011/2016) has also been reaffirmed at BBB-. However, the outlook on the long-term ratings has been revised from stable to negative.

"The revision of the outlook is underpinned by BFL’s heightened exposure to equity investments, which has increased its vulnerability to market risk and eroded its liquidity levels, as well as rising overheads driven by its branch expansion. Meanwhile, the ratings are supported by the sturdy franchise of the Bartleet Group and the Company’s moderate funding and capitalisation levels. On the other hand, the ratings are pressured by the potential influx of non-performing loans (NPLs) that could arise as the new loans season subsequent to its aggressive loan expansion, as well as its weak core performance and small size relative to its similar-rated peers," RAM Ratings said in a statement.

"RAM Ratings Lanka opines that BFL’s asset quality is moderate. The Company’s asset quality is weighed down by its heightened exposure to equity investments and the rapid expansion in its loan book. BFL had doubled its equity investments in the first 6 months of FYE 31 March 2012 (1H FY Mar 2012) to LKR 537.26 million as at end-September 2011; this amounted to 83.52% of its shareholders’ funds, far exceeding the Central Bank of Sri Lanka’s (CBSL) stipulated limit of 25%. Further, the Company does not mark-to-market its equity investments, which led to the overstatement of profits and shareholders’ funds; the unrealised losses during 1H FY Mar 2012 amounted to LKR 67 million. We view the management’s high-risk appetite with concern as it exacerbates BFL’s vulnerability to market risk.

"BFL remained small accounting for only 2.42% of the total registered finance company (RFC) industry’s assets as at end-March 2011. The Company’s loan book expanded 34.59% year-on-year (y-o-y) during FY Mar 2011 and further increased by 62.91% y-o-y in 1H FY Mar 2012. The Company’s credit quality had improved during fiscal 2011, subsequent to the clearing of BFL’s books by transferring its non-performing loan (NPLs) to its parent Bartleet Transcapital Limited (BTC) as well as curtailed lending to high-risk loan segments. Its gross NPL ratio ameliorated to 3.97% as at end-September 2011 from 4.55% as at end-FY Mar 2011, largely due to its enlarged credit assets. Going forward, loan delinquencies may increase as a considerable portion of BFL’s credit assets have yet to be seasoned.

"Although the Company’s performance improved in FY Mar 2011, mainly supported by the 187.53% y-o-y growth in non-interest income propelled by capital gains from its equity portfolio, it had weakened in 1H FY Mar 2012 as a result of the downturn in the stock market. BFL’s increased dependence on equity investments has increased the volatility of its profits. This, coupled with rising overheads driven by its aggressive branch expansion, had hampered profitability in 1H FY Mar 2012. Although its margins improved during 1H FY Mar 2012, our concerns hinge upon its weak core performance, as reflected in its thin net interest margin (NIM) of 7.10% relative to its peers as well as the higher cost-to-income ratio of 88.34% in 1H FY Mar 2012.

"RAM Ratings Lanka deems BFL’s liquidity levels to be weak, as reflected by the deterioration in its statutory liquid asset ratio as a result of channelling its funds to equity investments as well as the worsened maturity mismatches; its statutory liquid assets ratio clocked in at 10.81% as at end-September 2011, which is weak relative to its peers. Meanwhile, the Company’s funding position is deemed moderate owing to the deposit-dominated funding mix and conservative loans-to-deposit (LD) ratio of 89.87% as at end-September 2011.

"RAM Ratings Lanka deems the Company’s capitalisation levels to be moderate. This had weakened in fiscal 2011 amid the rapid loan expansion, as reflected in its respective tier-1 and overall risk-weighted capital adequacy ratios (RWCARs) of 8.48% and 8.98% as at end-FY Mar 2011, but it had improved to 10.64% and 11.02% respectively as at end-September 2011 on the back of a (relatively low) accumulation of profits, albeit above the regulatory limits.

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48279

3Sri Lanka Newspapers Sunday 26/03/2012 Empty Tuesday a hoodoo for AGMs? Mon Mar 26, 2012 2:26 am

CSE.SAS

CSE.SAS
Global Moderator

Despite the rush to hold AGMs this week, surprisingly there will be none on Tuesday 27 March, prompting some to query if the date is inauspicious.

With 22 AGMs this week some on the same date and time, shareholders have queried why companies eager to meet the good governance deadline of 31 March cannot spread the AGMs.
No AGMs on Tuesday is also strange given the fact that this year, 31 March falls on a Saturday, cutting short the deadline by one day. In that context, analysts said companies could have considered Tuesday as an alternative.

Among 31 December-ending financial year firms that have decided to forgo the 31 March timeline this year are CTC, Ceylinco Insurance and Chevron Lubricants. Last year Chevron held its AGM before 31 March, whilst others were Bogala Graphite and plantation firms Hapugastenne, Udapussellawa and Agalawatte.

http://www.ft.lk/2012/03/26/tuesday-a-hoodoo-for-agms/

CSE.SAS

CSE.SAS
Global Moderator

The biggest outside shareholder, the Subasinghe family and connected parties, last week upped their stake in Ceylinco Insurance Plc.

A 0.21% stake amounting to 42,700 shares of the illiquid Ceylinco Insurance traded on Friday for Rs. 30 million. The block was done at Rs. 700 per share, a big discount in comparison to Thursday’s closing of Rs. 750, Rs. 774.70 closing price in the previous week and Rs. 775 highest last week.
The buyer was Subasinghes’ Global Rubber Industries Ltd., which previously held a 20.17% stake. The seller was high net worth investor Dr. T. Senthilverl. As at end last year, the Subasinghe family and connected parties held a 28.04% stake.

Their other holdings are held by Prabash Subasinghe (5.24%) and Global Sea Foods (2.64%). Analysts said their collective stake now must be above 29% but below the mandatory offer trigger of 30%.
Last week a total of 44,913 shares of Ceylinco Insurance transacted via 14 trades for Rs. 31.5 million before closing at Rs. 725, down by Rs. 49.70 from the previous week.

The Subasinghe family first bought into Ceylinco Insurance in February last year at Rs. 500 per share level followed by another block in March at Rs. 750 levels.

The acquisition by the Subasinghe family of a further stake in Ceylinco Insurance narrows the difference between them and internal or Ceylinco-founder-related shareholding.

At present around a 33% stake in Ceylinco Insurance is controlled by Ciesot Ltd. (22.86%) and Pictet & Cie (10.68%). These companies are believed to be those set up by Lalith Kotelawala whilst Ceylinco Insurance’s Gratuity Fund and Pension Fund owns a nearly 10% stake.

A few blocks remain at large including that of Nation Lanka Finance (2.82%) and Castle Realty Ltd. (2.63%).

http://www.ft.lk/2012/03/26/subasinghe-family-ups-stake-in-ceylinco-insurance/

CSE.SAS

CSE.SAS
Global Moderator

The achievement of record US$ 1 billion worth of Foreign Direct Investments (FDIs) in 2011 has defaced critics and doomsday pundits in the Opposition, the Government said.

“Despite negative predictions made by ‘doomsday pundits’ in the Opposition saying that the economy will collapse and several thousands in the private sector will face retrenchment, Sri Lanka’s FDIs doubled last year,” Cabinet Spokesman Deputy Minister Lakshman Yapa Abeywardena said last week.

He said that FDIs in 2011 amounted to $ 1.06 billion, up from $ 516 million in the previous year.

Employment in the Investment Zones had increased by 5.8 % last year compared to the figures of 2010. Abeywardena said 426,084 persons were employed in the investment zones in the year 2010 and this number was increased to 450,913 in 2011, including persons re-employed by new companies. In the apparel sector alone jobs have increased by 24,826, he added.

The Cabinet Spokesman also said that exports of BOI-approved enterprises had increased by 27% to $ 6.57 billion, with textile wear, apparel and leather sector accounting for 67% followed by chemicals, petroleum, coal rubber and plastic products (20%).

http://www.ft.lk/2012/03/26/record-fdi-inflow-in-2011-defeats-doomsday-pundits-yapa/

6Sri Lanka Newspapers Sunday 26/03/2012 Empty CSE to upgrade its trading system today Mon Mar 26, 2012 3:53 am

sriranga

sriranga
Co-Admin

The ASPI closed the week at 5422.33 points, down 0.49% (26.72 points) from its previous week?s close. The MPI too recorded a week-on-week decline of 0.34% (16.39 points) to close at 4847.86 points.

Counters that dominated turnover value for the week were Aitken Spence Plc, JKH and Commercial Bank Plc, which collectively accounted for 59.18% of total turnover value.

Aitken Spence Plc alone contributed 43.98% of the week?s total turnover value as EPF sold a 5% stake in the company to a foreign buyer. Weekly turnover value nevertheless recorded a dip of 70.27% to LKR 5.42bn compared to LKR 18.22bn recorded last week, averaging LKR 1.08bn. Market Capitalization meanwhile declined 0.48% to LKR 1988.30bn relative to last week?s value of LKR 1997.99bn. The Diversified sector accounted for 66.76% of the market?s weekly turnover value, representing a value of LKR 3.62bn. The Banking and Finance sector, backed by Commercial Bank Plc, contributed 14.97% of the week?s turnover, (amounting to LKR 810.49mn) while the Manufacturing sector contributed LKR 264.86mn or 4.89% to total market turnover value.

Turnover volume for the week was also led by the Diversified sector which contributed 39.90mn shares or 28.76% to total market volume. This was followed closely by the Banking and Finance sector which accounted for 24.73% (or 34.30mn shares) of the market?s share volume. The Manufacturing sector meanwhile contributed 21.52% to total market volume as 29.85mn shares changed hands over the week.

Industrial Asphalts (Ceylon) Plc recorded the highest price gain (17.14%) over the week, closing at LKR 410.00 relative to its previous close of LKR 350.00. Kegalle Plantations Plc closed at LKR 103.10, up 12.68% from last week?s close, while CDB[NV] gained 12.47% to close at LKR 51.40.

Hayleys Exports Plc and Namunukula Plantations Plc were also amongst the top price gainers, recording gains of 12.14% and 11.67%, respectively. This week?s top price loser was HDFC which declined 21.52% to close at LKR 70.40 from to last week?s close of LKR 89.70. Coco Lanka Plc [NV] trailed behind, closing at LKR 33.00, down 19.32% from last week. Sigiriya Village Hotels Plc meanwhile, declined 19.05% to close at LKR 68.00.

Aitken Spence Plc led the volume list this week, accounting for 14.97% or 20.76mn shares of the week?s aggregate share volume. Blue Diamonds and Blue Diamonds [NV] were also among the top contributors, adding 9.50% and 8.03%, respectively.

Foreign investors remained net buyers yet again this week, recording a net buying position of LKR 2.39bn relative to last week?s net buying position of LKR 14.93bn. Total inflows of amounted to LKR 3.33bn, with Aitken Spence accounting for a majority (LKR 2.40bn) of the week?s total inflow. Total foreign sales meanwhile increased significantly by over 100% to LKR 937.31mn from last week?s LKR 283.06mn.

Markets slumped over the week as net foreign inflows which bolstered volumes last week and on Monday dwindled over the week. By Friday however, markets retracted some of its mid-week losses, with the Index picking up 72 points and volumes hovering just under LKR 1.0bn. Retail interest in the market should revive next week as the CSE upgrades its trading system on Monday.

The Government's recent sales of large blue-chip stakes to foreign investors failed to ease pressure on the LKR, with the LKR hitting a new low against the USD on the back of seasonal importer demand. The Central Bank however hastened to reassure markets, stating that it expects further FX inflows to the country in addition to the recent inflows via equities, capital raising by private commercial banks and investment in SLDBs and Treasuries.

The CB added that these increasing FX inflows, along with a deceleration of import demand should stabilize the LKR in the coming weeks.
http://www.dailynews.lk/2012/03/26/bus16.asp

http://sharemarket-srilanka.blogspot.co.uk/

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum