How come this be profitable to our country?

zenobia · 1 How come this be profitable to our country? Fri Mar 16, 2012 10:42 am

zenobia

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malaysian whoever who bought JKH did so in US dollers at a time when sl rupee was thoroughly depreciated. i am not a financial expert but
i cant imagine the previous buying price of JKH( by EPF) was much higher than this price and can some one please explain how this became such a smashing profit to the EPF?

thanks in advance

zenobia · 2 Re: How come this be profitable to our country? Fri Mar 16, 2012 10:44 am

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sorry, much higher should be corrected to much lower

laureina · 3 Re: How come this be profitable to our country? Fri Mar 16, 2012 10:47 am

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This will help stabilize our currency peg.

raa · 4 Re: How come this be profitable to our country? Fri Mar 16, 2012 11:18 am

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zenobia wrote:malaysian whoever who bought JKH did so in US dollers at a time when sl rupee was thoroughly depreciated. i am not a financial expert but
i cant imagine the previous buying price of JKH( by EPF) was much higher than this price and can some one please explain how this became such a smashing profit to the EPF?

thanks in advance

JKH has a had a share split last year. EPF had over 5% at an average maybe below current price before the share split. Not sure of the specifics, i could be wrong..

Not to mention LKR 3.00 dividend per year for every year they've held JKH.

hariesha · 5 Re: How come this be profitable to our country? Fri Mar 16, 2012 11:31 am

hariesha

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EPF had JKH shares for a long time. Though they have purchaed some at a higher price, since they have exposed to several share splits, I think they have made a capital gain of more than Rs.50/- per share.

sriranga · 6 Re: How come this be profitable to our country? Fri Mar 16, 2012 11:45 am

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hariesha wrote:EPF had JKH shares for a long time. Though they have purchaed some at a higher price, since they have exposed to several share splits, I think they have made a capital gain of more than Rs.50/- per share.

In Financial Year 2007 their stake was less than 1%.
During 2011 FY the increased their stake considerable amount.
Even in FY 2011/12 also they bought some million shares.
Anyway they made a good profit in the deal.(Calculating in SL Currency)

Xmen · 7 Re: How come this be profitable to our country? Fri Mar 16, 2012 2:36 pm

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Sri Lanka conglomerate stake bought by Malaysia's Khazanah
Mar 16, 2012 (LBO) - Malaysia's Khazanah Nasional Berhad, a sovereign wealth fund has bought an 8.8 percent stake in Sri Lanka's John Keells Holdings in a deal valued at over 14 billion rupees (114 million US dollars), officials said.
Khazanah had bought 74 million shares at 194 with Sri Lanka's Employee's Provident Fund, a state-managed fund of private sector workers' retirement money, among key sellers.
"It is a very positive signal for John Keells and it adds to our very stable long term shareholder base," JKH deputy chairman Ajit Gunewardene said.
Sharhan Muhseen, director investment banking of Bank of America Merrill Lynch, which arranged the purchase, was in Sri Lanka to wrap up the deal, sources said.
The EPF sold 71 million shares at 194 rupees, bringing a capital gain to the fund, Kalyani Gunatilleke, superintendent of the Employees provident fund said.
"It has shown the confidence foreign investors have in the economy," she said.
"It has brought liquidity to the stock exchange and boosted transactions. It has brought foreign exchange into the country."
Central Bank governor Nivard Cabraal said the deal was part of the several into equity and bond markets that will help stabilize a currency peg. The rupee opened stronger Friday below 124 to the US dollar, from a close of 125.00/25 a day earlier.
"We have seen some fairly strong inflows and that trend seems to be continuing," he said.
"All these will stabilize the currency as we have consistently maintained."
Khazannah Nasional manages over 36 billion US dollars in assets and owns parts of Telekom Malaysia, Axiata and other state enterprises in Malaysia, as well as overseas investments.
John Keells Holdings has interests in ports and shipping, leisure, financial services, commodity broking and food processing.
Its leisure interests include hotels in the Maldives. JKH had assets of 119 billion rupees by end 2011.
The group posted profits of 5.6 billion rupees in the nine months to 2011 unchanged from a year earlier giving earnings of 6.70 per share.

http://www.lbo.lk/fullstory.php?nid=909575518

bullrun · 8 Re: How come this be profitable to our country? Fri Mar 16, 2012 5:01 pm

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Initially deleted Government in 1977 and all Governments later let the rupee float to reflect the reality. This nature of investments and demand for rupee will help to stability as well as future development.
ETF never decide to sell or buy without a very good analysis. Yes everyone including highly intellectual private investors also had portfolios losses. That does not mean that ETF is losing. They do long term investment and selling also aiming at the same direction.

aj · 9 Re: How come this be profitable to our country? Fri Mar 16, 2012 6:21 pm

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bullrun wrote:Initially deleted Government in 1977 and all Governments later let the rupee float to reflect the reality. This nature of investments and demand for rupee will help to stability as well as future development.

I'm not knowledgeable on the subject but as I've read this current floating method which has been introduced since the 50s is the main culprit for all the trouble after the establishment of the central bank like US federal reserve private company. Probably this was something given to us by The Money Masters.

bullrun wrote:
ETF never decide to sell or buy without a very good analysis. Yes everyone including highly intellectual private investors also had portfolios losses. That does not mean that ETF is losing. They do long term investment and selling also aiming at the same direction.

Let's face it. Your pension fund sold the JKH not because of it was a good time sell or it was a good price to sell or it was a strategic long term objective or whatever blah blah blah. Pension fund sold it because the central bank commanded them to sell it to foreigners because of the current economic condition. Period.

But I'm sure the there will be press releases saying how wonderful, how profitable this was and how foreigners are investing in our country blah blah blah specially by the daily news, rupavhini and indenpednt television natwork.

KAROSH95 · 10 Re: How come this be profitable to our country? Fri Mar 16, 2012 10:49 pm

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Agree with you aj it was part economical part political decision to preventing rupee from further depreciating. But the way EPF handle the portfolio is far below professional level. They bought GRAN at 170 or something and now its trading at 60 something. And they claim it as a strategic investment. In essence this is gambling using public funds!

market bull · 11 Re: How come this be profitable to our country? Sat Mar 17, 2012 3:05 am

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Yep definitely government has pushed EPF to do this transaction to temporarily stop further depreciation of Rupee.

Any way it is a temporarily difference.

EPF sold to Foreign Buyer=Foreign Money inflow

Next step
If Foreign buyer sell to Foreign buyer:Good
to Locals :No effect

KAROSH95 wrote:Agree with you aj it was part economical part political decision to preventing rupee from further depreciating. But the way EPF handle the portfolio is far below professional level. They bought GRAN at 170 or something and now its trading at 60 something. And they claim it as a strategic investment. In essence this is gambling using public funds!

kasper · 12 Re: How come this be profitable to our country? Sat Mar 17, 2012 1:45 pm

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Following snapshots are taken from EPF's annual report-2010 www.epf.lk/Publications/Annual-Report.pdf

Long term invetments: Pg:146
How come this be profitable to our country? Epf10