Electricity tariff revision and the CSE

WildBear · 1 Electricity tariff revision and the CSE Sun May 25, 2014 10:00 am

WildBear

Assistant Vice President - Equity Analytics

Posts : 723
Equity Stars : 5748
Reputation : 65
Join date : 2011-07-02

We noticed that the second phase of Norochcholai Coal plant is now operational with 600 MW capacity amounting to 37 % of total elctricity requirement.
http://www.ceb.lk/sub/other/egy.aspx

Third Phase of the project will be operational by the end of this year dramatically reducing the high cost Diesel power generation (Of cause which is not a good news for some CEB engineers who have vested interests)
I guess a significant electricity tariff reduction is on the card especially for heavy industries. This will more possible if we get good rainfall in catchment areas of Mega Hydro power Stations.

http://www.sundaytimes.lk/140525/news/35-per-cent-of-power-from-coal-experts-call-for-reduction-of-rates-100445.html.

With this developing trend, we should look at energy intensive industries/stocks with vigilance.I feel following stocks/sectors will be benefited most

GLAS
RCL/VONE
CERA/TILE
TKYO
Hotel Stocks

VALUEPICK · 2 Re: Electricity tariff revision and the CSE Sun May 25, 2014 11:13 am

VALUEPICK

Expert

Posts : 3326
Equity Stars : 11489
Reputation : 347
Join date : 2014-02-26

This is good news for lot of industries which used energy such as ceramic, tiles, hotels and tea factories (they are trying to become self sufficient in energy) etc.

In a major uptrend those stocks too should go up. When market become bullish we may see all types of players such as short term traders, professional investors and traders, institutional investors, retailers and high net worth individuals. Illiquid stocks will become more liquid. Once market establish major up trend many stock will go up. For example many stocks such as production, agriculture including tea plantations, food, tech and banking stocks etc are having great run in Indian stock market due to their major up trend these days. Remember three out of four stocks will follow the general market trend. Therefore if we can identify uptrending markets, we believe our picks will have a much greater chance of success.

dhanurrox · 3 Re: Electricity tariff revision and the CSE Sun May 25, 2014 1:47 pm

dhanurrox

Vice President - Equity Analytics

Posts : 1158
Equity Stars : 7241
Reputation : 65
Join date : 2011-08-28

better talk about "Electricity tariff revision and the presidential election." Big carrot on the way.

dineshfernando · 4 Re: Electricity tariff revision and the CSE Sun May 25, 2014 2:53 pm

dineshfernando

Senior Manager - Equity Analytics

Posts : 573
Equity Stars : 6046
Reputation : 32
Join date : 2011-02-05

In Sri Lanka if anything goes up it will never come down except the share price. Do you think these politicians will pass the benefit to the general public? Highly doubtful.

hettdas · 5 Re: Electricity tariff revision and the CSE Mon May 26, 2014 8:53 am

hettdas

Assistant Vice President - Equity Analytics

Posts : 611
Equity Stars : 6852
Reputation : 31
Join date : 2011-02-01

dineshfernando wrote:In Sri Lanka if anything goes up it will never come down except the share price. Do you think these politicians will pass the benefit to the general public? Highly doubtful.

I totally agree with you. Lets see the milk prices. World milk prices reduced considerably, but Still no one is ready to reduce local milk prices.

stevenapple · 6 Re: Electricity tariff revision and the CSE Mon May 26, 2014 1:00 pm

stevenapple

Assistant Vice President - Equity Analytics

Posts : 632
Equity Stars : 5519
Reputation : 15
Join date : 2014-04-10

dineshfernando wrote:In Sri Lanka if anything goes up it will never come down except the share price. Do you think these politicians will pass the benefit to the general public? Highly doubtful.

Yep highly unlikely.