Despite positive start, bearish trend started as usual within few hours of the market opening. Most of stocks has fallen to attractive levels but lack of fresh funds is preventing retail investors coming back to the market. The current overall Market Price Earning Ratio of Colombo Stock Exchange is 16.32.
ASI lost 40.80 points to close at 6347.72 while MPI closed 27.47 points lower at 5704.83. Day’s total equity turnover amounted to 689.1 which is significantly low compared to last few days.
127 stocks lost their value during the day’s trading while only 27 stocks managed to close higher. The Bukit Darah Plc lost 30.50 to close at Rs 1038.00 while index heavy Sri Lanka Telecom (SLTL) closed at Rs 49.00, down one rupee. Distilleries Company of Sri Lanka Plc was down by 2.60 to end the day at Rs 165.50.
Total of Rs 136,699,954.00 net foreign outflow reported for the day. Softlogic Holdings Plc (SHL) has announced interim dividend of 13 cents per share. SHL shares closed unchanged at Rs 19.00.No tags for this post.
Weekly Stock Market Review for the week ended 14th October 2011.
Fresh foreign investor participation in Colombo Stock Exchange during the week failed to motivate local investors. CSE All Share Index fell 148.92 points for the week under review to close at 6,549.91 while Milanka Index dipped by 99.81 points to close the week at 5,878.33. Total turnover for the period amounted to 6.81 billion rupees. Net foreign purchases amounted to Rs 592,612,099.00.
Central Bank of Sri Lanka declare that Employees’ Provident Fund has purchased 33,000,000 ordinary voting shares of Laugfs Gas PLC at a price of Rs 48/- per share on October 10, 2011. With this purchase Employees’ Provident Fund’s stake in Laugfs increased to 17.28 percent.
TFIL IPO Basis of Allotment.
At a meeting of the Board of Directors of the TFIL it was resolved that the Six Million (6,000,000) Ordinary voting shares in the Company applied for under the above offer be allotted to the aforesaid applicants in the following manner.
Applicants up to 25,000 shares, be allotted and issued the entire amount of shares applied for. Applicants of over 25,000 shares be allotted and issued 25,000 shares and 25% of the remaining shares applied for, provided that applicants entitled to 50 shares on this percentage basis be allotted and issued a further 50 shares to prevent the allocation of odd lots.
During the week Expolanka has announced further investments in their foreign joint ventures namely in Expolanka Pakistan (Pvt) Ltd and Expolanka Freight (Vietnam) Limited.
Market is expected to stabilise during the next week with increased institutional and foreign activity.No tags for this post.
People’s Leasing Company Ltd (PLCL) is a subsidiary of State owned People’s Bank (PB). People’s Leasing Company was incorporated in 1995 as a fully owned subsidiary of People’s Bank , the second largest state owned bank in Sri Lanka, with the objective of providing leasing and related services to the customers of PB.
PLCL is planing to offer Three Hundred and Ninety Million and Forty (390,000,040) Ordinary Voting Shares at Rs. 18/- per Share to the public.
Summary of PLCL IPO
Number of shares to be issued 390,000,040.
Issue Price Rs 18.00 per share.
Issue Opening Date 3rd November 2011.
Total Amount to be raised Rs. 7,020,000,720.00.
Minimum Subscription 1000 shares.
Registrars to the Issue S S P Corporate Services (Private) Limited
Bankers to the Issue
Sampath Bank PLC
National Development Bank PLC
Nations Trust Bank PLC
PLCL IPO will be Sri Lanka’s largest IPO after Dialog IPO in year 2005. NDB Investment Bank and Capital Alliance Holdings Limited are the joint financial advisors and managers to the offer.
Future growth prospects for Leasing Industry in Sri Lanka is promising. There are several reasons for it.
1. There is a untapped market in North and East provinces of the country.
2. Increased vehicle purchases due to import tax reduction.
3. Growth of the Economy.
PLCL bears a long term rating of ‘A (lka) Stable’ from Fitch Ratings Lanka Limited, signifying its strong credit profile and excellent track record of performance. Company made a profit of 2.6 billion rupees (2.07 per share) for the year ended 31st March 2011 and 1.73 billion rupees for the three months ended 30th June 2011.
Is it worth subscribing for People’s Leasing IPO?
Without doubt it is worth. PLCL IPO is the most reasonably priced IPO among recent IPOs. It is huge IPO with large quantity of shares but it doesn’t matter if it is having reasonable Earning Per Share and future growth potential. Based on 31st March 2011 EPS and issue price its Price Earnings Ratio is 8.69 which is significantly discounted compared to current CSE Market Price Earnings Ratio (17.17).
Download People’s Leasing IPO Prospectus
Please read the Prospectus carefully prior to making an investment decision.No tags for this post.
Colombo main stock index ASI was down by 61.85 points to close at 6721.54 while more liquid Milanka index fell 49.02 points to end the day at 5982.95. Days turnover amounted to 1.96 billion rupees. Capital Alliance Finance Ltd the newly listed company by the way of introduction was closed at Rs 39.90 and more than 13.5 million shares changed hands. All most all Asian Market Indices were ended red today except NZSE 50 and Taiwan Weighted.
Hatton National Bank lost 5.90 to close at Rs 196.00 while Commercial Bank was down by 2.20 to close at Rs 112.80. Another index heavy company Sri Lanka Telecom (SLTL) lost 80 cents to close at Rs 48.20.
Alliance Finance company was up by 49.80 to close at Rs 1249.70 while Hayleys Plc closed at Rs 370.00, up five rupees. 155 stocks reported price declines and only 47 stocks reported gains. Net foreign selling of Rs 68,548,856.00 witnessed for the day.
The CSE has approved in-principle an Application for listing the ordinary voting shares of the People’s Leasing Company Ltd for a Main Board listing. People’s Leasing Company will issue 390,000,040 Ordinary Voting Shares at a price of LKR 18.00 per share. People’s Leasing IPO will open on 3rd November 2011 and Prospectus and Application forms will be available from 10th October.No tags for this post.
CSE Press release.
|Frontier markets, as per the FTSE Global Equity Index Series, Country Classification
(September 2011 Review)
The Colombo Stock Exchange (CSE) continues to reinforce its position among the regional
markets, as the All Share Price Index (ASPI) records positive performance, when compared
with regional exchanges.
Globally, most stock exchanges have recorded negative growth as measured by their
respective broad market indices which track the market price movements.
Asian Alliance Insurance Plc (AAIC) the insurance company recently acquired by Softlogic Group was up by 116.80 or 49.96 percent to close at Rs 350.60 while ASCOT Holdings Plc closed at Rs 188.90, up 58.90. ASI closed at 6747.91. Milanka index however lost 1.13 points to end at 5998.15 mainly due to price decline in John Keells Holdings Plc. JKH was down by 3.10 to close at Rs 205. Day’s total turnover was amounted to 2.81 billion rupees.
Heavy trading reported in both Voting and Non-voting shares of Blue Diamond Jewellery Worldwide Plc (BLUE). 20,957,700 non-voting and 12,612,200 voting shares of BLUE changed hands today. BLUE voting stocks closed 1.20 higher at Rs 10.10 while non-voting stocks closed at Rs 4.80, up by 80 cents.
There were 123 price gainers and 77 negative contributors for the day. Index heavy weighted Carsons Cumberbatch Company Plc was down by 9.80 to close at Rs 580.20.
1,110,500 shares of Union Bank changed hands during the trading session but closed 20 cents lower at Rs 21.80. Foreigners were net sellers with net outflow of Rs 134,014,880.00.
33,920,282 shares of Capital Alliance Finance Ltd (CALF-N-0000) would be permitted for trading from 4th October 2011 and would be classified under the Banks, Finance and Insurance Sector. These shares would be listed on the CSE-Diri Savi Board.No tags for this post.
Sri Lanka main stock index ASI closed 1.42 points higher at 6736.02 while MPI closed at 6025.81, up 1.88 points. Day’s total turnover amounted to 1.42 billion rupees. Tess Agro Plc (TESS) was the most active stock today with more than 25 million shares changing hands. TESS closed 80 cents higher at Rs 6.60.
11,025,800 shares of Muller and Phipps (Ceylon) Plc (MULL) traded during the day and closed 20 cents higher at Rs 3.30. MULL is a favourite penny stock of day traders with little fundamental value. HVA Foods Plc was up by 8.60 to close at Rs 58.60. Illiquid Harishchandra Mills Plc was up by massive 800 rupees on mere 100 shares and closed at Rs 2400.00
99 stocks lost their value today while 91 stocks managed to close higher than previous day’s closing prices. Ceylinco Insurance Plc was down by 72.50 to end the day at Rs 717.20. Hatton National Bank closed at Rs 195.00, down four rupees.
PC House PLC has acquired a 90% interest in Infoserve (Private) Limited for Rs 45 million. Infoserve (Private) Limited is a BOI approved Sri Lanka based Company, which operates under the brand name “athandz”, and is a pioneer in offering internet research services. PC House closed 10 cents higher at Rs 17.10.No tags for this post.
At the end of Friday’s trading Colombo All Share Price Index lost 27.78 points or 0.41 percent to close at 6734.60 while Milanka Index lost 83.67 points to end the day at 6023.93. Friday’s total market turnover amounted to 1.13 billion rupees.
Despite declining trend some stocks was gained due to speculative buying. REGIS was up by 26.30 to close at Rs 304.30 while Radiant Gems (RGEM) too received attention of speculators. RGEM closed 8.90 higher at Rs 192.50.
John Keells Holdings was down by 3.90 to close at Rs 209.10 while Commercial Bank of Ceylon Plc voting stocks lost two rupees to end the day at 113.40. Laugfs lost one rupee to close at Rs 40.50. There were 126 negative contributors and only 56 positive contributors for the day.
6,718,400 shares of Tess Agro Plc changed hands during the day’s trading and closed 70 cents higher at Rs 5.80. 4,068,300 shares traded in Amana Takaful Plc and closed unchanged at Rs 2.70. Foreign investors continues to be net sellers with net outflow of Rs 21,785,657.00.No tags for this post.