Central Bank announced that they have relaxed the statutory reserve requirements for commercial banks.

The Bank said reducing statutory reserve requirements by 150 basis points to 7.75%. the liquidity of banking system will improve LKR 17 Billion.

Bank further said this move will not have any threat to inflation as it is already declining.

With the technology boom that has changed the way business is done across the globe, one unintended result has been the rise of day trading. Day trading is a risky and stressful form of trading that involved buying stock and selling it within one days time. It’s thought that if this is done enough time, with the right foresight and financial advice, that a person can make quite a lot of money each day. Day trading wasn’t even an option before the 1990’s. Here’s why.
Back before the computer age allowed instant stock buying and selling, the financial settlement period use to take much, much longer. It was possible to buy a stock, and not have to pay for it for another 10 business days. It was common practice in those days to try to sell the stock for more than it was worth before you had to pay for it in an attempt to make a profit. Many traders who had no actual money of their own would make their livings this way, and it’s obvious how dangerous this was.

A day trader has many different strategic options that he or she can follow to try to make a profit. The first is trend following. This is a tool that is used by all investors and its simply the idea that stocks that have been going up will continue to go up and stocks that have been going down will continue to go down. Obviously, this isn’t always the case, which makes trend following a dangerous method to base all of your day trading investments on.

Range trading is another tool used by day traders. This is the practice of buying and selling stocks once they reach their respective highs and lows. The trader figures that a stock that is headed up will continue to go up, but only until it reaches a new high, and then it’s due to go back down. The same is thought for stocks headed the other way. Once they reach a brand new low, they tend to rebound and head back up.

Playing news is another common tool of the day trader. The technique is exactly what it sounds like, buying stock that has just released good news and selling stock that has just released bad news.

While none of these techniques are guaranteed, day trading is increasing in popularity every year, and while the potential for significant loss is very real, many continue to walk the tightrope that is day trading.

Indices were up marginally today. High turnover recorded mainly due to heavy trading (11,283,700shares) in Distilleries.

All share index rose 14.06 points & closed 1639.94 while Milanka index gained 11.78 & closed the day at 1842.23. Turnover was LKR 641.8 Million.

Following companies released their quarterly financial statements for the quarter ended 30th September 2008.

Hatton National Bank PLC

Ceylon Grain Elevators PLC

DFCC Bank

Distilleries Company of Sri Lanka PLC

Kalani Cables PLC

Lanka Milk Food PLC

Although market up today it may be temporary as investor confidence at very low level due to world economic crisis & poor corporate earnings.

All share index gained 54.59 points & closed at 1625.88 while Milanka gained 66.67 points & closed at 1830.75.

Over one million shares traded in local Liquor manufacturing company Distilleries. Distilleries closed the day at LKR 53 (+1.75)

Dividend Announcements

LANKA CERAMIC PLC – DIVIDEND

Company ID:- CERA Date of Announcement:- 27.Nov.2008.Rate of Dividend:- Rs.1.25 Per Share-Interim Dividend (Net of taxes)Financial Year:- 2008/2009XD:- 08. Dec. 2008 Payment:- 22.Dec. 2008Share Transfer Book Open

NESTLE LANKA PLC – DIVIDEND

Company ID:- NEST Date of Announcement:- 27.Nov.2008.Rate of Dividend:- Rs.10.00 Per Share-Interim DividendFinancial Year:- 2008XD:- 02. Dec. 2008 Payment:- 15.Dec. 2008Share Transfer Book Open

Indian Stock Exchange closed today due to terrorist attack in commercial capital Mumbai. Indian government advised citizens to stay indoors.
Indian industry leaders today demanded tougher laws to tackle terrorism.
According to officials there is an uncertainty for opening Market on Friday.

The All share index down by 53.96 (3.32%) & more liquid Milanka index fell 56.44 (3.1%). All share index closed the day at 1571.29 & Milanka closed at 1764.08.

Turnover was LKR 86.7 million. Sharp decline in indices recorded due to fall in high value blue chip shares.

Distilleries closed LKR 1.50 lower at 51.25.
Dialog Telekom closed LKR 6 (Down by 25 cents)
JKH closed the day at LKR 62.25 (-1.50)

This negative activity will prevail in coming weeks as local & international economies facing difficulties.

Local investors in Colombo Market are not willing to put fresh funds in equities as they can get risk free high return from Fixed Deposits with banks.

News, Events and Detailed Announcements

CAPITAL REACH LEASING LIMITED (“THE COMPANY”) – OFFER FOR SALE

The CSE has approved, in principle, an Application for the listing of the above mentioned shares on the Second Board. The details are as follows:-Number of shares to be offered: Offer for sale of 3,100,000 ordinary shares at Rs. 18/- per share. Date of opening of the subscription list: 8th December 2008.Managers to the offer: Capital Reach Holdings No.1 Lake Crescent Colombo 2.Registrars to the offer: SSP Corporate Services (Pvt) LimitedNo.101 Inner Flower Road Colombo 3.The date on which the Prospectus would be delivered to Member Firms /Trading Member would be 18th November 2008.

Market ended further down today. ASI closed at 1655.19 (-14.69) & MPI closed at 1848.71 (-21.55).
Low turnover of LKR 70.6 Million recorded during the day showing much lower investor activity.
1,135,100 Seylan Bank nonvoting shares traded.

News, Events and Detailed Announcements

OFFER TO REPURCHASE, ON A PRO RATA BASIS OF 1 SHARE FOR EVERY 25 SHARES HELD. UP TO A MAXIMUM OF 25,500,000 ORIDINARY SHARES AT RS 90.00 PER SHARE

The offer by John Keells Holdings PLC (“the Company”) for repurchase, on a pro rata basis of 1 share for every 25 shares up to a maximum of 25,500,000 ordinary shares closed on 18 November 2008.The total number of shares tendered for repurchase (acceptances of the shareholder entitlements together with applications for repurchase of additional shares) exceeded the maximum number of shares offered for repurchase by the Company. Payments for the shares repurchased will be made by cheque and posted within 10 market days of the close of the offer.

VANIK INCORPORATION LIMITED – WINDING UP ORDER

Further to our earlier Announcement on the above subject Company wishes to inform that a Stay Order has been issued today on the Winding Up order on respect of Case No.WP/HCCA/COL/31/2008(R.A) against Vanik Incorporation Limited.

CAPITAL REACH LEASING LIMITED (“THE COMPANY”) – OFFER FOR SALE

The CSE has approved, in principle, an Application for the listing of the above mentioned shares on the Second Board. The details are as follows:-Number of shares to be offered: Offer for sale of 3,100,000 ordinary shares at Rs. 18/- per share. Date of opening of the subscription list: 8th December 2008.Managers to the offer: Capital Reach Holdings No.1 Lake Crescent Colombo 2.Registrars to the offer: SSP Corporate Services (Pvt) LimitedNo.101 Inner Flower Road Colombo 3.The date on which the Prospectus would be delivered to Member Firms /Trading Member would be 18th November 2008.

All share index up by 55.77 points to1928.68 & more sensitive Milanka index up by 82.17 to 2168.89.
The upward momentum began last week after market reached three & half year low.

News, Events and Detailed Announcements

NATIONS TRUST BANK PLC (BANK) – DEBENTURE ISSUE

The debentures of the above Bank will be listed on 6th November 2008 on the Debt Securities- Main Board of the CSE.The assigned securities codes are as follows:Debenture Type:- Fixed rate debenture 21% payable annuallySecurity Code:- NTB.D0131Deposits would be accepted by the Central Depository Systems (Pvt.) Ltd., (CDS) with immediate effect

S K M Lanka Holdings (Pvt.) Limited – Prohibition on Trading by the Colombo Stock Exchange

In terms of paragraph one (01) of Rule 5 of Section 3 of the Colombo Stock Exchange (CSE) Member Regulations, the Chief Executive Officer of the CSE prohibited S K M Lanka Holdings (Pvt) Limited from carrying out trading activities on the Automated Trading System and the DEX system of the CSE with effect from 4th November 2008 (today), due to S K M Lanka Holdings (Pvt) Ltd being in violation of Rule 2.3 of Section 3 of the CSE Member Regulations, which requires a Broker trading on the CSE to bring in additional capital within 14 calendar days of the Net Capital falling below the required minimum Net Capital of Rs. 35 Mn.In terms of paragraph two (02) of Rule 5 of Section 3 of the CSE Member Regulations, the ability to carry out trading will be reinstated no sooner S K M Lanka Holdings (Pvt.) Limited complying with the Net Capital requirement.