All share index gained 18.49 points & closed at 1503.02 while Milanka index closed 19.31 points higher at 1631.34.

Turnover was healthy at Rupees 208.4 million.
Seylan Bank was up by Rs. 8.25 (40.74%) and closed at Rs 29.00.
1025800 shares of John Keels Holdings traded at price range of Rs 49.50 to 50.25.

CSE Announcements

PUBLIC QUOTED DEBENTURE ISSUE 2008/2013 OF LKR MILLION EXTENDABLE BY THREE FURTHER TRENCHES OF LKR 200 MILLION EACH IN THE EVENT OF OVERSUBSCRIPTION

The ongoing Debenture Issue 2008/2013 of Seylan Bank PLC which was scheduled to close to the public on 31st December 2008 unless oversubscribed prior to same.However , in view of the Colombo Stock Exchange (CSE) declaring the 26th of December 08 and 1st January 2009 as CSE holidays, kindly note that the closing date of the Debenture Issue will fall on 2nd January 2009 unless oversubscribed prior to same

We wish our readers Happy & Peaceful 2009!

30th December 2008.

Market declined further. All share index fell 11.85 points & closed the day at 1484.53. Milanka index closed 24.51 points lower at 1612.03. Turnover was Rupees 97.4.

Seylan Bank trading halt was removed at 12.45 Hrs. Soon after removal of trading halt, Selyan shares reached Rs.22.00 then it was settled at Rs.20.00.

Announcements

COMMERCIAL DEVELOPMENT PLC DIVIDEND
Company ID:- COMD Date of Announcement:- 30.Dec.2008Rate of Dividend:- Rs.1.50 per share -Interim Dividend Financial Year:- 2008XD:- 12.Jan. 2009Payment:- 23.Jan.2009Share Transfer Book Open

Seylan Bank has issued the following statement

Newspaper Articles Re: Monetary Board decision taken on 29th December 2008 on Seylan Bank PLC

We refer to your fax dated 30th December 08 forwarded to us seeking clarification of the articles appearing in today’s Daily News and Daily Mirror newspapers and give below Seylan Bank’s position as follows:

The Monetary Board of the Central Bank of Sri Lanka at its meeting held on 29th December 08 decided in terms of Section 30 of the Monetary Law Act No. 56 of 1949 (as amended) to carry out the following measures in order to ensure the continued financial stability of the Bank with effect from 29th December 08:

(a) Suspend the business of Seylan Bank with effect from 3.30 p.m. on 29th December 08 and discontinue the services of all current directors of Seylan Bank PLC in terms of Section 30 (1) of the Monetary Law Act;

(b) Resume business of Seylan Bank with effect from 3.45 p.m. on 29th December 08;(c) appoint Bank of Ceylon to carry on the business of Seylan Bank PLC in terms of Section 30 (9) of the Monetary Law Act;

(d) request Bank of Ceylon to appoint the new Board of Directors of Seylan Bank PLC;

(e) continue with the services of the present CEO, Mr Ajita Pasqual and all current employees of Seylan Bank PLC without any interruption.

Accordingly, Bank of Ceylon has appointed the following Directors to the Board of Seylan Bank PLC with effect from 29th December 08:

Mr E Narangoda (Chairman)
Mr Nihal Jayamanne PC
Mr Lalith WithanaMr Neomal Gunawardena.

Yours faithfully

(SIGNED)
(Ms) M R S GUNASEKARA
COMPANY SECRETARY

Below is the full announcement issued by Central Bank of Sril anka

Bank Supervision Department
2008-12-29Press Release

Measures Taken to Ensure the Stability of Seylan Bank PLC and the Financial System
The attention of the Monetary Board has been drawn to the recent events in the Ceylinco Group and the difficulties being encountered by Seylan Bank PLC with regard to deposit withdrawals and ensuing liquidity problems. The difficulties of Seylan Bank PLC presented a potential danger to the stability of the financial system. Therefore, the Monetary Board is of the view that immediate measures require to be taken to stabilise the financial system. In that context, the Monetary Board has determined, under Section 30(1) of the Monetary Law Act No.58 of 1949, to do the following, with immediate effect:

(a) to discontinue the services of all current directors of Seylan Bank PLC;
(b) to appoint Bank of Ceylon to carry on the business of Seylan Bank PLC;
(c) to request Bank of Ceylon to appoint the new Board of Directors of Seylan Bank PLC;
(d) to continue with the services of the present CEO and all current employees of Seylan Bank PLC, without any interruption.

Seylan Bank PLC will be open for usual business with customers on 30/12/2008.

The Monetary Board of the Central Bank wishes to inform the public that they should continue with their normal financial transactions with Seylan Bank PLC and that the Monetary Board assures the public of the safety of deposits and the stability of the financial system.

ASI price index fell 9.72 points closed at 1496.38 while more sensitive Milanka index closed the day 11.61 points lower 1636.54.

Turnover was Rupees 36.44 million. John Keels Holdings contributed 21.4 million for the total turnover & closed Rs 2.00 lower at Rs.50.00

Seylan Bank PLC shares remained halted throughout the day due to pending announcement.
Meanwhile local currency depreciated further against US Dollar.

Announcement at Colombo Stock Exchange

NEWSPAPER ARTICLES RE: PROPOSED DIVESTITURE OF CEYLINCO GROUP HOLDING IN SEYLAN BANK AND RELATED ARTICLES

Seylan Bank’s position in connection with the above is given below.The Bank’s Founder Chairman/Managing Director, Deshmanya Dr. Lalith Kotelawala announced over the weekend of his intention to divest Ceylinco Group’s shareholding in Seylan Bank in order to raise funds to meet liabilities of credit card holders of Golden Key Credit Card Co. Ltd.The proposed divestiture of Ceylinco Group’s stake in the Bank to a potential reputed investor, the details of which have not been finalized as yet will be carried out with the permission of the Monetary Board of the Central Bank of Sri Lanka and other relevant regulatory authorities.In response to the misleading paper articles appearing in the newspapers, Seylan Bank wishes to emphasize that the intended sale relates only to the shares owned by Ceylinco Group in Seylan Bank. The intended sale is not of the assets of Seylan Bank or any investments made by the Bank. Moreover, the Bank wishes to inform that it will not utilize the depositor’s funds to meet the obligations of Golden Key Credit Card Holders.Seylan Bank again wishes to emphasize that as a licensed commercial bank, it is regulated and supervised by the Central Bank of Sri Lanka.The Bank hopes that the above release from the Central Bank and the Bank’s clarification of the correct position given herein will dispel any doubts regarding contradictory Articles which appeared in the newspapers the last two days and reassure the Bank’s shareholders, stakeholders and other members of the public as to the soundness and stability of the Bank.

NEWS PAPER ARTICLE PUBLISHED IN DAILY NEWS OF 22ND DECEMBER’2008 – SEYLAN BANK PLC

Company conforms that Dr.J.L.B Kotelawala continues to be on the Board of Directors of Seylan Bank PLC as its founder Chairman/ Managing Director.

Ceylinco group chairman Deshabandu Lalith Kothalawala said he decided to divest group stake in Seylan Bank to raise funds to pay back failed company (Golden Key) public deposits.

Selling controlling stake in a bank is not an easy task in Sri Lanka as it has to get approval from Central Bank.

Most probably the buyer will be existing local bank. Seylan shares last traded price was Rs.15.75.

We have to wait till Monday 29th December to see Seylan share price with this announcement.

Heavy trading in John Keels Holdings contributed Rupees 114.75 million for the total market turnover of Rupees 125.3 million. 2,206,000 shares of JKH traded & closed Rs.2.00 higher at 52.00.

CSE All share index closed 4.93 points higher at 1506.10 while Milanka index closed 4.94 points higher at 1648.15.

Ceylinco Group shares continued to fall. Ceylinco Insurance lost Rs. 16.25 closed at Rs 182.75.
Market will reopen for trading on Monday 29th December 2008.

We take this opportunity to wish a Merry Charismas to all of our blog readers.

23rd December 2008.

All share index fell 8.62 points & Milanka fell 6.59 points. Turnover was mere Rupees 15.9 million.

Almost all companies in Ceylinco group fell today except ceylinco Insurance PLC which was up by 14 rupees but only 200 shares traded.

John Keels Holdings fell Rs 4.00 & ended at Rs.50.00 while Dialog Telekom was up by 25 cents & closed at Rs. 6.00.

Announcement at CSE

COLONIAL MOTORS PLC -DIVIDEND

Company ID:- COLO Date of Announcement:- 23.Dec.2008Rate of Dividend:- Rs.0.50 per share-First & Final Dividend Financial Year:- 2008Date to be notified

CENTRAL FINANCE COMPANY PLC -DIVIDEND

Company ID:- CFIN Date of Announcement:- 23.Dec.2008Rate of Dividend:- Rs.1.25 per share-First Interim Dividend Financial Year:- 2008/2009XD:- 09.Jan.2009Payment:- 22.Jan.2009Share Transfer Book Open

CSE All share price index fell 1.11% or 16.97 points & closed at 1509.79 while Milanka Index declined 36.28 & ended at 1649.80.

Turnover was only Rupees 18.7 Million due to low investor participation.

Nawaloka Hospitals PLC (540,500 shares @ 1.70) &Tess Agro (431400) were the only highest quantities traded during the day.
Dialog Telecom was the highest negative contributor & SLT was the second.

Announcements

Associated Electrical Corporation PLC confirmed the investment of Rs. 600 million in AEC Properties (Pvt.) Ltd.

Bharti Airtrel Lanka a subsidiary of Indian Mobile operator expected to launch their cellular network on 18th of December. But it was postponed again.

Rumors are speeding that Airtel is going to offer cheapest mobile tariff than existing mobile operators in Sri Lanka.

Existing Mobile operators already started tariff cuts to face competition from newcomer.
Due to this tariff war the listed & biggest local cellular operator Dialog Telekom shares came down to Rs. 6.00. Investors worried about poor corporate results.

During the past five trading days CSE All Share Index lost 34.62 points while Milanka Price Index shed 52.79, closed the week at 1526.76 & 1686.08 respectively.

There was Rupees 467.8 million turnover recorded averaging RS.93.5 million per day.
Foreigners bought more than what they sold with net foreign inflow of Rs.116 million.

However total market capitalizations of the Colombo Stock Exchange declined to Rs 496.5 billion from 507.8 billion previous week. (Rs 112 = US$ 1)

Top Five Gainers (%)
Blue Diamonds Non Voting 0.40 (+0.10)
Seylan Merchant Bank Non Voting 0.40 (+0.10)
EB Creasy 235.00 (+35.00)
Arpico 30.00 (+4.00)
Hotel Reefcomber 0.80 (+0.10)

Top Five Losers
Udapussellawa Plantation 12.00 (-5.00)
Eastern Merchants 150.00 (-62.00)
Hotel Services 100.00 (-30.00)
Ferntea LTD 3.50 (-0.80)
Beruwella Walkinn 22.25 (-4.75)

CSE Announcements

Special Holiday

The CSE has declared Friday,26th December 2008 as a special CSE Holiday

FERNTEA LTD (NOW UNDER LIQUIDATION)

According to the Order for winding-up of the above, Company informs that the letter of appointment of Liquidators have been served on December 18, 2008.