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Market remained quite sluggish today as it struggled to keep up with its morning start. Participation levels in the bourse were affected with interest predominantly wandering around the presentation of Sri Lanka’s Budget for 2012. Investors were not reckless enough to take any speculative decisions prior to the budget but instead moved on a quiet note waiting to accumulate on the counters to be positively returned by the Budget.
The President initiated the Speech at the Parliament at around 1:50 pm in Sri Lanka. Briefing on the news release so far have been changes to the vehicle registration fee with an increase on luxury vehicles, increase of CESS on imported corn, green grams, peanuts & ginger, VAT removal in tourist buses and engines for lorries, halving of import duties for airport taxi services, 50% tax reduction on tyres for buses and lorries, Rupee depreciated by 3% to increase competitiveness for exporters, incentive for rice exporters and Economic Service Charge on first LKR100 mn exempt for firms with quarterly revenues less than LKR500 mn and take back around 37,000 acres of unutilized land by plantations. [Await Arrenga’s Budget Report for deeper analysis]
Four crossings adding to 2.6 mn shares at LKR175.0 on heavy index, John Keells Holdings, supported to heave up the market turnover to LKR870.8 mn as it contributed 58.8%. Foreign sales continued to rise as it netted with an outflow of LKR51.7 mn.
Cargills (Ceylon), reported an earnings with a 3.4% YoY dip during 1HFY12 to LKR545.3 mn whilst seeing a QoQ dip of 32.7%. The dip in performance has been reasoned out with the acquisition of Millers Brewery Limited & Cargills Quality Confectionaries (Pvt) Ltd. With both the operations remaining under-utilized previously, Cargills (Ceylon) had to bear up all the fixed costs at its acquisition point especially those relating to labour. Hence, administration costs were seen surging to LKR984.2 mn (up 68.4% YoY) during 1HFY12. Finance cost element has also moved up in line with the company’s move in financing its expansion and acquisition plans. Borrowings as at 30.09.2011 increased to LKR4.7 bn from LKR1.6 bn as at 30.09.2010 (Vs. LKR5.4 as at 30.06.2011). However, the management believes that the newly acquired units would breakeven soon though the ‘Three Coins’ product will take some time due to the time frame involved in the brewing of natural beer.
Investor participation continued in Sampath Bank and Seylan Bank as well as in Softlogic Holdings. Royal Ceramics, Brown & Co., Lanka Orix Leasing and CIC Holdings were seen being heavily being picked up during the day, but with all moving on thin volumes. Orient Garments, Blue Diamonds [Voting & Non-Voting] and Environmental Resources Investments were seen on the favourite speculative investor list as they were seen closing with gains of 8.9%, 2.4%, 2.6% and 0.9% respectively. Despite the morning surge to LKR40.5, price of HVA Foods lost grounds as it moved on a volatile note to close at LKR39.20 (down 1.0%). Ceylon Leather Products attracted some buying interest after their disclosure on the 60% acquisition of a footwear exporter.
Euro stocks drop for the third consecutive day whilst Asian stocks were on their 5-day slump: The MSCI Asia Pacific Index declined 1.2% to 112.78 points at around 5:35 pm in Tokyo. The Stoxx Europe 600 Index slid a further 2.2% to 227.17 points, at around 10:45 am in London. US law makers struggle to reach a decision on budget cuts raises questions on another credit downgrade for US. They had failed to cut on their high USD1.2 trillion expenditure cuts.
Oil fell for the third consecutive day on increased worry on Europe’s debt crisis and slower Asian economic growth. Crude for January delivery on the New York Mercantile Exchange fell as much as USD2.06 to USD95.93 a barrel at around 10:47 a.m London time.
The President initiated the Speech at the Parliament at around 1:50 pm in Sri Lanka. Briefing on the news release so far have been changes to the vehicle registration fee with an increase on luxury vehicles, increase of CESS on imported corn, green grams, peanuts & ginger, VAT removal in tourist buses and engines for lorries, halving of import duties for airport taxi services, 50% tax reduction on tyres for buses and lorries, Rupee depreciated by 3% to increase competitiveness for exporters, incentive for rice exporters and Economic Service Charge on first LKR100 mn exempt for firms with quarterly revenues less than LKR500 mn and take back around 37,000 acres of unutilized land by plantations. [Await Arrenga’s Budget Report for deeper analysis]
Four crossings adding to 2.6 mn shares at LKR175.0 on heavy index, John Keells Holdings, supported to heave up the market turnover to LKR870.8 mn as it contributed 58.8%. Foreign sales continued to rise as it netted with an outflow of LKR51.7 mn.
Cargills (Ceylon), reported an earnings with a 3.4% YoY dip during 1HFY12 to LKR545.3 mn whilst seeing a QoQ dip of 32.7%. The dip in performance has been reasoned out with the acquisition of Millers Brewery Limited & Cargills Quality Confectionaries (Pvt) Ltd. With both the operations remaining under-utilized previously, Cargills (Ceylon) had to bear up all the fixed costs at its acquisition point especially those relating to labour. Hence, administration costs were seen surging to LKR984.2 mn (up 68.4% YoY) during 1HFY12. Finance cost element has also moved up in line with the company’s move in financing its expansion and acquisition plans. Borrowings as at 30.09.2011 increased to LKR4.7 bn from LKR1.6 bn as at 30.09.2010 (Vs. LKR5.4 as at 30.06.2011). However, the management believes that the newly acquired units would breakeven soon though the ‘Three Coins’ product will take some time due to the time frame involved in the brewing of natural beer.
Investor participation continued in Sampath Bank and Seylan Bank as well as in Softlogic Holdings. Royal Ceramics, Brown & Co., Lanka Orix Leasing and CIC Holdings were seen being heavily being picked up during the day, but with all moving on thin volumes. Orient Garments, Blue Diamonds [Voting & Non-Voting] and Environmental Resources Investments were seen on the favourite speculative investor list as they were seen closing with gains of 8.9%, 2.4%, 2.6% and 0.9% respectively. Despite the morning surge to LKR40.5, price of HVA Foods lost grounds as it moved on a volatile note to close at LKR39.20 (down 1.0%). Ceylon Leather Products attracted some buying interest after their disclosure on the 60% acquisition of a footwear exporter.
Euro stocks drop for the third consecutive day whilst Asian stocks were on their 5-day slump: The MSCI Asia Pacific Index declined 1.2% to 112.78 points at around 5:35 pm in Tokyo. The Stoxx Europe 600 Index slid a further 2.2% to 227.17 points, at around 10:45 am in London. US law makers struggle to reach a decision on budget cuts raises questions on another credit downgrade for US. They had failed to cut on their high USD1.2 trillion expenditure cuts.
Oil fell for the third consecutive day on increased worry on Europe’s debt crisis and slower Asian economic growth. Crude for January delivery on the New York Mercantile Exchange fell as much as USD2.06 to USD95.93 a barrel at around 10:47 a.m London time.
