Sri Lanka Newspapers Saturday 10/03/2012

Fri Mar 9, 2012 5:52pm IST
* Short-covering also drives rupee down

* Stocks flat in thin trade
(Reuters) - Importer dollar demand drove Sri Lanka's rupee down despite a low supply for the local currency caused by an earlier central bank order to commercial banks to unwind some dollar positions.

The rupee closed at 121.50/70 a dollar, down from Thursday's close of 121.10/30

The rupee has fallen 6 percent since Feb. 9, when the central bank stopped defending it. A Reuters monthly forex poll has forecast the rupee to fall as far as 128.50 by the end of August.

The stock market meanwhile closed flat in thin volume as many investors stayed away on fears of slowing economic growth, rising interest rates and broadly flat December quarter profits.

The main share index fell 0.24 points to hit 5,456.27.

The day's turnover was 381.3 million Sri Lanka rupees ($3.14 million) well below last year's daily average of 2.3 billion. The day's volume was 16.3 million. Last year's daily average was a record 102.7 million.

Foreign investors bought shares worth 50.3 million rupees, extending the offshore net foreign inflow to 2.77 billion rupees so far this year, after a net outflow of 19.1 billion last year.

The Colombo bourse is one of the worst performers this year among Asian markets, with a 10.2 percent loss while the majority have had positive returns. ($1 = 121.3500 Sri Lanka rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)
http://in.reuters.com/article/2012/03/09/markets-srilanka-idINL4E8E935T20120309

Turnover low, Milanka up, All Share flat

The Colombo bourse yesterday closed what brokers called "a very quiet week" on a low turnover of Rs.381.3 million, up from the previous day’s Rs.366.4 million, with the indices closing in opposite directions – the All Share Price Index marginally down a fraction of a point (0.24) while the Milanka was up 37.71 points (0.79%) with 94 gainers against 105 losers.

John Keells Holdings continued to be the most traded stock with 0.2 million shares traded closing Rs.3.20 up at Rs.189.30 on nearly 0.2 million shares traded between Rs.188 and Rs.189.70 generating the day’s top turnover.

However a crossing of 240,300 shares at Rs.188 categorized as a "block trade" was not included in the CSE’s share trading figures.

Regnis saw activity gaining Rs.2.30 to close at Rs.305.50 on 70,050 shares done between Rs.300 and Rs.310.

Other stock that showed volume and price gains included Marawila, up 20 cents to close at Rs.8.10 on nearly 1.5 million shares done between Rs.8 and Rs.8.20 and Aitken Spence Hotels up Rs.4.30 to close at Rs.70.90 on over 0.1 million shares done between Rs.66 and Rs.70.90.

Colombo Fort Land also gained Rs.1.60 to close at Rs.39.10 on nearly 0.2 million shares done between Rs.27.50 and Rs.40.50.

Brokers said that bulk of the Marawila trades were done in two big parcels of 700,000 and 400,000 shares at a Rs.8 price.

Expolanka closed flat at Rs.6.60 on nearly 1.8 million shares while Ceylinco, down Rs.33.40 to Rs.656.10 on 14,781 shares and Dimo down Rs.40 to Rs.1,000 on 9,324 shares, were on the losing side.

Dockyard closed flat at Rs.245 on 30,100 shares.

"It was a quiet day and a quiet week," a broker commented. "Issues still remain over the new automatic trading system with no correction likely before what is called ‘patch’ on March 26. So we must endure till then."
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=47021

Janashakthi Insu-rance PLC has entered in to an agreement with India’s multi-specialty dental clinic and orthodontic centre, Dentavista Healthcare Private Limited to launch a unique, one of its kind dental insurance scheme. The scheme Denta Shakthi, allows customers routine treatments such as scaling and root canals plus specific orthodontic and implantology treatment of dental implants, gum surgery, crown and bridge and even removable appliances for children based on the dental cover and premium structure.

Doubling up as dental tourism, customers could avail themselves of a holiday in Chennai, while attending to their dental and oral care needs. Janashakthi Insurance’s Managing Director Prakash Schaffter signed the agreement with Denta Vista’s Chairman Dr. Ganapathy at a simple ceremony held at the Janashakthi head office premises.
Health insurance policies by and large do not cover dental insurance unless it requires hospitalisation. Many insurance policies completely rule out any or all dental or oral treatments. Growing awareness for dental care among customers is what prompted Janashakthi to launch Denta Shakthi. “We are pleased to team up with such a well-established dental healthcare practice as Denta Vista for our Denta Shakthi Insurance policy,” said Schaffter. “We understand that dental treatment can be expensive and we are responding to a growing consumer need, particularly in orthodontics and cosmetic dentistry,” he revealed.

Denta Vista too has a unique offering in terms of their service. “The difference between what you pay as insurance premium, and treatment of dental ailments is substantial,” said Dr. Ganapathy, adding, “This could be the means of providing yourself a holiday in South India, while getting your dental treatment attended to by our team of expert dentists” he counselled.

Janashakthi is one of the most profitable and stable insurers in Sri Lanka with the highest stated capital of Rs. 1.49 billion among quoted insurance companies, and a strong track record of claims payments that now top Rs 20 billion. Spending over 30 million per annum on human capital, it aspires to be simply the best at what it does. As part of its pledge to offer the fairest and greatest value in risk mitigation to its customers, it has an exceptional track record of market delivery and pro-people-market innovation.

The Company has served the nation for 17 years, and continues to blaze a trail in Sri Lanka’s insurance sector. The Company offers life and general insurance products and services in Sri Lanka, and provides life, health, vehicle, household, travel, and retirement insurance to individuals. Janashakthi Insurance PLC also offers fire, marine, motor, engineering, employee protection, and other related insurance for corporate customers, in addition to other miscellaneous insurance policies such as burglary, public liability, professional indemnity, product liability, fidelity guarantee, and cash in transit insurance.
http://www.ft.lk/2012/03/10/janashakthi-launches-first-of-its-kind-dental-insurance-policy/#more-76043

Reuters: The Central Bank will soon lower its 2012 growth forecast of eight per cent to a figure no lower than seven per cent, owing to tighter monetary policy measures and the depreciation of the rupee, the Bank’s overnor told Reuters on Friday.

The bank had originally forecast this year’s growth at eight per cent, slowing from an estimated 8.3 per cent expansion in 2011.

The International Monetary Fund (IMF), which has given a $ 2.6 billion loan program to Sri Lanka, on Monday said the economic growth would be less than 7.5 per cent.

“We are getting ready to lower our growth forecast, around next week’s monetary policy announcement.It won’t be below seven per cent,” Central Bank Governor Ajith Nivard Cabraal told Reuters.

The bank meets on interest rates next Wednesday, when it should announce the changed forecast formally. Two other Central Bank officials confirmed the revision is under way.

“We will be looking at all the conditions. There are some areas going to be better and some areas not so good. So we are taking a calculated call,” Cabraal said. A record trade gap and a growing current account deficit forced the Central Bank to raise its policy rates for the first time since 2007.

The Central Bank last month halted its defence of the rupee at a specific price against the dollar, having spent more than $ 2.7 billion of its foreign exchange reserves last year to stave off depreciation.That removed a point of friction with the IMF and relieved pressure on its fast-dwindling reserves. Market interest rates have risen by 115-143 basis points since the bank raised its main policy rates by 50 basis points to 7.5 and 9.0 per cent respectively on 3 February. The rupee has also depreciated more than 5.7 per cent since the Central Bank stopped defending it on 9 February. The country is expected to have recorded a balance-of-payments deficit in 2011, although the official figures have not been released yet.
http://www.ft.lk/2012/03/10/2012-growth-forecast-to-be-lowered-below-8-cb/