Ceylon Tea Brokers Limited – Initial Public offer.

Applications are invited from the public to subscribe for Fourteen Million (14,000,000) new ordinary voting shares at a price of Rupees Two (Rs.2.00) per share under the terms and conditions set out in Prospectus. Minimum subscription per application is 5,000 shares (Rs 10,000). Applications exceeding the minimum subscription should be in multiples of 1,000 shares.

This IPO is relatively small & will be listed on CSE “Diri Savi Board”. Currently Ceylon Tea Brokers Ltd is making profit & has the potential for future growth.  

There are currently eight brokers functioning in the industry & Currently Ceylon Tea Brokers Ltd market share is 6.2%. Their Staff strength consisted of sixty eight employees as at December 31, 2009 (People are one the key success factors in the tea brokering industry).

Considering current Bull Run at Colombo Stock Exchange this issue will oversubscribe on opening day. Ceylon Tea Brokers IPO will open on 16^th February 2010.

Definitely you will not get the total amount if you apply more than 5000 shares but can’t predict the allotment basis.

You can download the Ceylon Tea Brokers IPO prospectus & Application form by visiting cse.lk website.

Recommendation – Subscribe  

Source - Ceylon Tea Brokers IPO prospectus

Colombo stock recovered early losses.

After significant drop in early trading Colombo All Share Index managed to close marginally lower (-4.09 pints) at 3785.28. Turnover stood at 2.23 billion rupees. 

Heavily Traded Stocks.

 Marawila Resorts Plc - 6,938,800 shares traded & closed at Rs 7.75 (+1.50).

Piramal Glass Ceylon Plc – 5,679,000 shares traded & closed unchanged at Rs 2.40.

Seylan Merchant Bank (Nonvoting) – 4,613,700 shares traded & closed at Rs 1.20 (-0.10).

Nawaloka Hospitals – 4,593,000 shares traded & closed at Rs 3.50 down 20 cents.

Touchwood Investments Plc - 2,332,200 shares traded & closed Rs 12.25 higher at Rs 125.25.

Environmental Recourses Investments Plc gained Rs 56.75 to close at Rs 263.75 while Eagle Insurance an AVIVA subsidiary closed 14.50 higher at Rs 219.25. Hayleys Plc was up by four rupees to close at Rs 220.25. Watawala Plantations Plc gained eight rupees to end the day at Rs 168.00.

There were total of 38 gainers & 112 losers for the day.

Ceylon Tobacco Company Plc lost 10.75 to close at Rs 255.00 while Distilleries Company of Sri Lanka Plc lost 25 cents to close at Rs 115.75. The Bukit Darah Plc was down by 50.00 rupees to close at Rs 3050.00.

Foreigners were still on selling side with net outflow of Rs 41.1 million.

Colombo Stocks sky rocketed!

Huge gains in Sri Lanka’s monopolist tobacco producer Ceylon Tobacco Plc caused the indices to reach another all time high. Ceylon Tobacco Company Plc was up by 45.75 (20.80%) to close at Rs 265.75. ASI closed at 3789.37, up 82.65 points & MPI closed at 4373.75, up 104.57 points. Turnover was also impressive at 2.57 billion rupees.

Eagle Insurance Plc a member of international AVIVA group was up by 24.75 to end the day at Rs 204.75 while Environmental Resources Investments Plc closed at Rs 207.00, up 28.00. The Bukit Darah Plc gained 45.00 rupees to close at Rs 3100.00. Rarely traded Watapota Investments Plc was up by 150.00 to close at Rs 1050.00 but only 100 shares traded.

Quality floor tile producer Royal Ceramic Lanka Plc closed at Rs 97.25, up 11.75. The blue chip company Hayleys Plc gained 8.75 to close at Rs 216.25 after they announced better quarterly results.  Asia Capital Plc (ACAP) was up by three rupees to end the day at Rs 13.25. There were 34.16 million shares of ACAP changed hands today.

Still foreigners were net sellers with Rs 587.2 million purchases & Rs 713.7 million in sales. With this continuous foreign outflow I feel there will be market correction in near future. It is advisable to long term investors should wait & see. But there are opportunities for speculators & day Traders.

Higher gains in selected stocks helped the Indices to close positive.

After fluctuating within narrow range All Share Index managed to close 8.92 points higher at 3706.72 while Milanka index closed at 4269.18, up 29.61 points. Turnover was 1.51 billion rupees.

Top 5 percentage gainers.

·         The Fortress Resorts Plc (RHTL) gained 3.25 to end the day at Rs 18.50.

·         Arpico Finance Plc was up by 13.00 rupees to close at Rs 73.00.

·         Environmental Resources Investments Plc (GREG) closed at Rs 179.00, up Rs 30.25.

·         The Bukit Darah Plc gained 54.75 to close at Rs 3055.00.

·         Ceylon Hospitals Plc (Nonvoting) closed 10.50 higher at Rs 70.50.

Heavily traded stocks for the day.

·         Asia Capital Plc traded 34.4 million shares & closed 75 cents higher at Rs 10.25.

·         Seylan Merchant Bank Plc (Nonvoting) traded 20,850,000 shares & closed at Rs 1.30, up 10 cents.

·         Nawaloka Hospitals Plc traded 7,353,600 shares & closed 20 cents higher at Rs 3.30.

·         Dialog Telekom Plc traded 2,129,000 shares & closed unchanged at Rs 6.75.

·         3.8 million Shares of Renuka Agri Foods traded & closed unchanged at Rs 3.40.

Foreigners were net sellers for the day as Rs 408.3 million purchases & Rs 548.7 million sales. If foreign support will not come in big way within next few days there will be inevitable correction in the market as local investors alone can’t drive the market up for long run.   

Today we celebrate Sri Lanka’s 62nd Independence Day!

4^th February 2010.

This year Independence Day is very special to All Sri Lankans.  

Why? This is the first Independence Day we celebrate after 30 year old war that completely ended on May 2009. We honor our soldiers who gave their lives during the war to protect our country from terrorism. We should thankful to our President His Excellency Mahinda Rajapaksa & All Three Forces (SL Army, SL Air Force & SL Navy) for defeating terrorism. 

We all are Sri Lankans no more wars again. Let’s build our nation together!

We now have peaceful country to do business.