Friday, 31 January 2014

2014 Year to Date Top 20 Gainers and Losers in Colombo Stock Exchange

Top 20 Gainers:

Top 20 Losers:

31-Jan-2014 CSE Trade Summary

Following Stocks Reached New High / Low on 31/01/2014

Crossings - 31/01/2014 & Top 10 Contributors to Change ASPI

Top 10 Gainer / Loser / Turnover / Volume for the day

Foreign Activity for the week ending 31/01/2014

Company Fact Sheet: Vallibel Power Erathna PLC - VPEL:N0000

About the company:

Established: 2001-11-07                 Quoted Date: 2006-05-16             Sector: Power & Energy

Vallibel Power Erathna PLC is a Sri Lanka-based company engaged in the generation of electricity using hydro resources and transmitting such electricity to the national grid of the Ceylon Electricity Board. The Company's Erathna Mini-Hydro Power Project, which is located in the Kuruwita Divisional Secretariat in the District of Ratnapura, has an installed capacity of 10 Megawatts (MW). Through its subsidiary, the Company owns two other power generating plants situated at Durekkanda in Rathnapura District and Norton Bridge in Nuwara Eliya District: Kiriwaneliya Mini-Hydro Power Project and Denawaka Gana Mini-Hydro Power Project, which begun commercial operations in December 2011 and February 2012 with installed capacity of 4.65 MW and 7.2 MW respectively. As of March 31, 2012, the Company's parent entity was Vallibel Power Limited. As of the same date, the Company held 84.53% stake in its subsidiary, Country Energy (Pvt) Ltd.

Chairman: Mr. K D D Perera

Board of Directors:
Mr. S.H. Amarasekera
Mr. P.K. Sumanasekera
Mr. D.S. Clark
Mr. S.E. De Silva
Mr. H. Somashantha
Mr. L.D. Dickman
Mr. S. Shanmuganathan
Mr. P.B. Perera
Mr. C.V. Cabraal

Alternate Directors:

Mr. W.D.N.H. Perera (for Mr. P.B. Perera)
Ms. D.S.N. Weerasooriya (for Mr. K.D.D. Perera)

52 Weeks Low: 7.00                                                         52 Weeks High: 5.20

Average Trading Volume: 323,600

Company Financial at a glance:
Click Table to Enlarge

1. 16-05-2006 Total Share were Indexed 249,036,577 after 50,000,000 shares were fully subscribed by public @ Rs. 8.00 in the IPO.
2. 05-07-2006 Bonus Shares Allotted 498,073,154 (Ratio 2:1)

Total shares in Issue: 747,109,731

Top 20 Shareholders as at 31/12/2013

The percentage of Shares held by the Public as at 31 December 2013 was 19.10%.

Thursday, 30 January 2014

30-Jan-2014 CSE Trade Summary

Following Stocks Reached New High / Low on 30/01/2014

Crossings - 30/01/2014 & Top 10 Contributors to Change ASPI

Top 5 Gainer / Loser / Turnover / Volume for the day

Foreign Activity for the day

Company Fact Sheet: The Autodrome PLC - AUTO:N0000

About the company:

Established: 1953                    Quoted Date: 1975-01-01             Sector: Motors

The Autodrome PLC is a Sri Lankan based trading company. The Company is engaged in the importing and distribution of Bridgestone-branded tires, tubes and flaps from Japan, Indonesia and Thailand; Yokohama-branded batteries from Malaysia; Futek-branded alloy wheels from Taiwan and China, and China Soong-branded wheels and tire accessories from China. The Company is the local distributor of beauty care and cosmetics for Revlon Lanka (Pvt) Ltd, a Joint venture of the Modi Group of India and Revlon USA. Other activities include the provision of services related to the above; real estate rental and leasing (as Landlord); design and hosting and maintenance of Websites. Its subsidiary Tourama (Pvt) Ltd is a travel agent and destination management company.

Chairperson: Ms. B.J. Aloysius 

Board of Directors:
Mr. J.D. Aloysius (Joint Managing Director )
Mr. R.A.J. Aloysius (Joint Managing Director)
Prof. John A. Aloysius
Mr. S.C. Weerasooria
Mr. M.S. Dominic
Mr. M.R. Ratnasabapathy
Mr. C.L. Sirimanne
Ms. J.J.B. Aloysius (Executive Director )
Ms. Julie A. Aloysius (Executive Director)

52 Weeks Low: 600.30                                                         52 Weeks High: 1050.00

Average Trading Volume: 51

Company Financial at a glance:
Click Table to Enlarge

Total shares in Issue: 1,200,000

Top 20 Shareholders as at 31/12/2013

The percentage of Shares held by the Public as at 31 December 2013 was 22.95%. 

Wednesday, 29 January 2014

Company Fact Sheet: Richard Pieris Exports PLC - REXP:N0000

About the company:

Established: 1983                            Quoted Date: 1993-10-11                     Sector: Manufacturing

Richard Pieris Exports PLC is a Sri Lanka-based company engaged in the manufacture and export of rubber-based products and supply of fillers for the rubber industry. The Company's rubber products include rubber mats, food jar seals and crutch tip markets. Its rubber mat product line comprises entrance mats, industry mats, food service mats, sports and leisure mats, agriculture mats, electrical safety mats, domestic mats and general purpose mats. The Company, through its subsidiaries, manufactures and exports molded and extruded rubber based products, foam rubber products and resin rubber shoe soling sheets, as well as manufactures minerals for the rubber industry. The Company's subsidiaries include Richard Pieris Natural Foams Ltd., Micro Minerals (Pvt) Ltd., Arpico Natural Latexfoams (Pvt) Ltd. and Arpitalian Compact Soles (Pvt) Ltd.

Chairman: Dr. Sena Yaddehige

Board of Directors:
Mr. Shaminda Yaddehige
Mr. J. H. Paul Ratnayeke
Mr. Sunil S G Liyanage
Mr. W.J.Viville P Perera
Mr. W R Abeysirigunawardena
Mr. Kumar Abeysinghe

Dr. L.M.K. Tillekeratne
Mr. A.M. Patrick
52 Weeks Low: 29.40                                                                52 Weeks High: 59.90

Average Trading Volume: 25,730

Company Financial at a glance:
Click Table to Enlarge

Total shares in Issue: 11,163,745

Top 20 Shareholders as at 30/09/2013

Percentage of Public Holding as at 30th September 2013 was 19.74%

29-Jan-2014 CSE Trade Summary

Following Stocks Reached New High / Low on 29/01/2014

Crossings - 29/01/2014 & Top 10 Contributors to Change ASPI

Top 5 Gainer / Loser / Turnover / Volume for the day

Foreign Activity for the day

Tuesday, 28 January 2014

28-Jan-2014 CSE Trade Summary

Following Stocks Reached New High / Low on 28/01/2014

Crossings - 28/01/2014 & Top 10 Contributors to Change ASPI

Top 5 Gainer / Loser / Turnover / Volume for the day

Foreign Activity for the day

Company Fact Sheet: CIC Holdings PLC - CIC:N0000 & CIC:X0000

About the company:

Established: 1964                    Quoted Date: 1964              Sector: Chemical & Pharmaceuticals

CIC Holdings PLC is engaged in the business of merchandising and manufacturing. The Company operates in six segments: Agriculture & Livestock, consumer & pharmaceutical, construction, industrial raw materials, packaging, and others. Brands under its crop solutions business include Solito and Superdash. Pharmaceutical products, it carries include Betaserc and Duphaston. Link Naturals Products manufactures and retails a range of herbal, health and personal care products, such as Samahan, Link Paspanguwa, Link Kesha and Samahan Balm. CIC Agri Businesses Group's main brands are CIC Pohora, CIC seeds, Golden Corp, Juiceez, Fresheez, CIC Agri fruits, CIC Yoghurt and Tikria. The Feeds group has invested in brands, such as CIC Feeds, CIC Day-old, Chicks and CIC Chicken. The main brands in Chemanex Group's portfolio are stop brake oil, Nexo Bleech, Menara and Panora. Its product categories include speciality chemicals and additives, yarn sizing chemicals, seamless knitted gloves and liners.

Chairman: Mr S H Amarasekera (Acting)

Managing Director / CEO: Mr S.P.S. Ranatunga

Board of Directors:
Mr. E.F.G. Amerasinghe
Mr. R.N. Asirwatham
Mr. R.S. Captain
Mr. S.M. Enderby
Mr. M.P. Jayawardena

Prof. P W M B B Marambe

52 Weeks Low: 46.20                                                                52 Weeks High: 77.70
Average Trading Volume: 6,160

52 Weeks Low: 30.50                                                                52 Weeks High: 54.20
Average Trading Volume: 15,130

Company Financial at a glance:
Click Table to Enlarge

Total Voting shares in Issue: 72,900,000
Total Non - Voting shares in Issue: 21,870,000

Top 20 Shareholders as at 30/09/2013
Percentage of public holding as at 30th September 2013 was 46.37%

Percentage of public holding as at 30th September 2013 was 85.18%

Monday, 27 January 2014

27-Jan-2014 CSE Trade Summary

Crossings - 27/01/2014 & Top 10 Contributors to Change ASPI

Following Stocks Reached New High / Low on 27/01/2014

Top 5 Gainer / Loser / Turnover / Volume for the day

Foreign Activity for the day

Are you ready to face a growing stock market?

The Sri Lankan equity market experienced certain developments during the past few years and is currently poised for growth. The daily average turnover for the current year is Rs.1,132 million, while the net foreign inflow is Rs.826.6 million.

Further on, the All Share Price Index (ASPI) has grown by 5.8 percent since the beginning of the year. The incentives given by the 2013 and 2014 budgets, prevailing monetary indicators (lowering interest rates) and the initiatives taken by the regulator and other stakeholders will continue to have a positive impact on the market.

If we are to maintain growth, it is vital that market stakeholders act with precision and caution. It is only then that we could maximize the returns of a growing market.

At this juncture, it is timely to highlight the initiatives taken by the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) in the recent past to create a fair and transparent market in which interests of the investors are protected. It is undoubted that a suitable environment is created for new investors to enter the market, while existing investors can be more active.

Yet, it is equally important to note that it does not allow investors to blindly enter the market. It is the duty of the investors to assist the regulator in maintaining fair markets by acting with responsibility.

On that note, today’s article will unfold a few areas that investors should look sharp on when investing in a growing market. It is important to bear in mind that your decisions will not only determine your return to investment but also the performance of the market in general.

Invest based on financial goals.  
Almost all the stocks seem lucrative in a growing market. Don’t get carried away as all of those stocks might not be the ideal pick for you. Make sure that your transactions go in line with your investment goals.

Diversify your investment portfolio.
It is vital to maintain a balance portfolio if you are to maximize returns. Invest in all types of asset classes ranging from risk-free investments as Treasury bills to real estate, bonds and equity while keeping in line with your investment goals. When the market reaps high returns, rational investors will divert the money in other assets/financial tools to the market. Diversion is acceptable as long as it is kept within manageable limits.

Research before you invest.
It is important for investors to do their own research before they enter the market. When you are given recommendations always ask for a justification on the same. More over take time to do your own independent research on the matter.

Never base your decisions simply on unsolicited emails, message board postings and company news releases. Verify the details. Understand a company’s business and its products or services before investing. Look for the company’s financial statements on the CSE website ( Interpret them in the light of current economic, political, legal and economic framework.

Know your investment advisor.
Spend some time checking out the person touting the investment before you invest – even if you already know the person socially. Always find out whether the advisor who contacted you is licenced to act in the capacity of an investment advisor. You can check out the relevant details from the SEC.

Take time off from your busy schedule to talk to your advisor and see if he understands your investment goals. He should have a wide knowledge on financial markets and update himself on current happenings. Above all, bear in mind that knowledge can be gained but integrity cannot.

Be informed about documents and agreements you sign.
There are several documents and agreements you will have to sign when investing in the market. The Client Agreement and the Agreements on Discretionary Accounts are two important agreements investors should pay attention to. Read and understand the terms and conditions prior to signing them. Further on, certain individuals hand over the discretionary power to their advisors. Think twice before you do so.

If it sounds too good to be true, think twice before you invest.
Any investment opportunity that claims you’ll receive “incredible gains” or “a pre-determined rate of return” should be dealt with caution. It is true that investors have earned more by investing in the market compared to risk-free instruments as Treasury bills. Yet, any stock cannot generate abnormal returns within a short time period and the return for a stock cannot be guaranteed in advance. Never enter the market with such a mind frame.

Be especially careful if you receive an unsolicited pitch to invest in a company or see it praised online but can’t find current financial information about it from independent sources.

Protect yourself online.
In present days investors prefer to trade online by themselves. When they are in front of the computer and see prices shooting up, they are tempted to do transactions. This method is recommended for seasoned investors. History taught us bitter lessons of how new investors randomly traded on stocks without sufficient knowledge on the market or the stock.

Credit increases liquidity in the market.  
Investing on credit is important to increase liquidity in the market and can be rather profitable in a growing and liquid market. Yet, it is important that investors refrain from overly trading on credit. However, lucrative the market may be, don’t get carried away.

Don’t blindly follow others.
At times some people might blindly purchase shares simply because others are buying it. Think about whether you are interested in the product and infer why the demand is building up.

Be patient.
However lucrative an opportunity may be and fear that the opportunity will not last, don’t make rash decisions. Resist the pressure to invest quickly and take the time you need to investigate before investing.

As an investor you should keep the following points in your mind

Stocks aren’t just pieces of paper.
When you buy a share of stock, you are taking a share of ownership in a company. 

Collectively, the company is owned by all the shareholders and each share represents a claim on assets and earnings.

There are many different kinds of stocks.
The most common ways to divide the market are by company size (measured by market capitalization), sector and types of growth patterns. Investors may talk about large-cap vs. small-cap stocks or growth vs. value stocks, for example.

Stock prices track earnings.
Over the short term, the behaviour of the market is based on enthusiasm, fear, rumours and news. Over the long term though, it is mainly company earnings that determine whether a stock’s price will go up, down or sideways.

Stocks are your best shot for getting a return over and above the pace of inflation.
Since the end of war, through many ups and downs, the average yearly return of the stock market is 44 percent -- well ahead of inflation and the return of bonds, real estate and other savings vehicles. As a result, stocks are the best way to save money for long-term goals like retirement.

Individual stocks are not the market.
A good stock may go up even when the market is going down, while a stinker can go down even when the market is booming.

A great track record does not guarantee strong performance in the future.
Stock prices are based on projections of future earnings. A strong track record bodes well but even the best companies can slip.

You can’t tell how expensive a stock is by looking only at its price.
Because a stock’s value depends on earnings, a Rs.100 stock can be cheap if the company’s earnings prospects are high enough, while a Rs.20 stock can be expensive if earnings potential is dim.

Investors compare stock prices to other factors to assess value.
To get a sense of whether a stock is over- or undervalued, investors compare its price to revenue, earnings, cash flow and other fundamental criteria. Comparing a company’s performance expectations to those of its industry is also common -- firms operating in slow-growth industries are judged differently than those whose sectors are more robust.

A smart portfolio positioned for long-term growth includes strong stocks from different industries.
As a general rule, it’s best to hold stocks from several different industries. That way, if one area of the economy goes into the dumps, you have something to fall back on.

It’s smarter to buy and hold good stocks than to engage in rapid-fire trading.
Active trading requires paying close attention to stock-price fluctuations. That’s not so easy to do if you’ve got a full-time job elsewhere. And it’s especially difficult if you are a risk-averse person, in which case the shock of quickly losing a substantial amount of your own money may prove extremely nerve-wracking.

“To know values is to know the meaning of the market” -Charles Dow
(Charles Dow invented the Dow Jones Industrial Average as a journalist in 1896, so his thoughts on stocks should be listened to rather closely)

Company Fact Sheet: Tokyo Cement Company (Lanka) PLC - TKYO:N0000 & TKYO:X0000

About the company:

Established: 1982                    Quoted Date: 1984-01-01              Sector: Manufacturing

Tokyo Cement Company (Lanka) PLC is a Sri Lanka-based company engaged in the manufacturing and selling of cement and ready mixed concrete to the local market. The Company's product lines include Nippon Ordinary Portland Cement (OPC), Tokyo Super Ordinary Portland Cement, Tokyo Super Portland Pozzolana Cement and Tokyo Super Masonry Cement. As of March 31, 2012, The Company had four subsidiaries, namely Tokyo Super Cement Company Lanka (Pvt) Limited, Fuji Cement Company (Lanka) Limited, which were both engaged in manufacturing and selling cement; Tokyo Cement Power (Lanka) Limited, which was still in gestation stage; and Tokyo Cement Colombo Terminal (Pvt) Limited, which was active in the import and distribution of cement.

Chairman: Mr Edgar Gunatunga

Managing Director: Mr S. R. Gnanam

Board of Directors:
Mr A.S.G. Gnanam  (Non Executive Director)
Mr E. J. Gnanam  (Non Executive Director)
Mr R Seevaratnam  (Non Executive Independent Director)
Dr Harsha Cabral  (Non Executive Independent Director)
Dr Indrajit Coomaraswamy  (Non Executive Independent Director)
Mr S.V. Wanigasekera  (Non Executive Director & Nominee Director of Nippon Coke & Eng)
Mr Tatsuro NARUSE  (Non Executive Director & Nominee Director of Nippon Coke & Eng) 
Mr Shiro Takihara  (Non Executive Director & Nominee Director of Nippon Coke & Eng)

52 Weeks Low: 21.50                                                                52 Weeks High: 38.00
Average Trading Volume: 367,410

52 Weeks Low: 22.70                                                                52 Weeks High: 30.30
Average Trading Volume: 274,140

Company Financial at a glance:
Click Table to Enlarge

1. On 04/08/2005 75,000,000 Non - Voting Shares were listed by way of Introduction.
2. O
n 27/12/2007 3,000,000 Ordinary Voting Shares and 15,000,000 Non - Voting Shares of the company were listed , pursuant to a capitalization of reserves in the proportion of 1:5.
3. On 01/02/2010 Sub Divided Voting Shares in the proportion of 1:10 were started to trading.
4. On 29/06/2010 22,500,000 Ordinary Voting Shares and 11,250,000 Non - Voting Shares of the company were listed , pursuant to a capitalization of reserves in the proportion of 1:8.
5.On 21/08/2013 20,250,000 Ordinary Voting Shares and 10,125,000 Non - Voting Shares of the company were listed , pursuant to a capitalization of reserves in the proportion of 1:10.

Total Voting shares in Issue: 222,750,000
Total Non - Voting shares in Issue: 111,375,000

Top 20 Shareholders as at 30/09/2013

Percentage of public holding as at 30th September 2013 was 25.5%

Non Voting:

Percentage of public holding as at 30th September 2013 was 100.00%

Sunday, 26 January 2014

Realistic Investing Expectations

Over the long term stocks have provided us with great average return results. But this average return masks a great deal of volatility, because returns have fluctuated within a very wide band.

This extreme volatility is the chief risk of investing in stocks, but it is a risk that tends to recede from investors memories after a lengthy period of generally rising stock prices.

Those investors new to investing in stocks may underestimate the volatility of stocks because volatility has been muted in recent years.

Time greatly reduces, but certainly does not eliminate the volatility in returns from stocks. On the other hand, there is no guarantee that you will earn above average returns even if you hold stocks for two decades or more.

Investors who are relatively new to investing in stocks may benefit from some perspective about bear markets.

During the bear markets, Indexes declined an average of 25-35%. Although the average bear market lasted a little longer than 12 months, it took an average of almost 20 months for the Indexes to return to the levels achieved before the market downturns.

Although no one can reliably predict the timing of bear markets (or bull markets, for that matter), a prudent investor should understand the extent to which stock prices can decline and should be prepared to "ride out" these periods when they occur.

The big danger from bear markets is that investors will sell at or near the bottom of the downturn. Those who got out of stocks missed an extraordinary rebound in stock market performance.

Since risk is inescapable when investing in stocks, perhaps the greatest risk is that you will never invest in stocks because you can never be sure when is "the right time" to invest.

Uncertainty is a permanent feature of the investing landscape, and trying to discern the ideal time to invest is almost always a futile exercise.

Don't be swayed by market fluctuations or the opinions and predictions from market analysts and forecasters!

Your investment strategy and expectations should all be based on your personal objectives, time horizon, risk tolerance and financial situation.

It should not be determined by the direction of the financial markets or the opinions of "The Experts!"

Friday, 24 January 2014

Company Fact Sheet: Convenience Foods (Lanka) PLC - SOY:N0000

About the company:

Established: 1971-03-27                    Quoted Date: 1992-05-13              Sector: Beverage Food & Tobacco

Convenience Foods (Lanka) PLC, formerly as Soy Foods (Lanka) PLC), is a Sri Lanka-based company. The Company is engaged in the manufacturing and marketing of textured vegetable protein (TVP), which is known as soya meat and other food products. As of March 31, 2012, the Company's parent undertaking was Ceylon Biscuits Ltd and its wholly owned subsidiary was Soy Products (Pvt) Ltd.

Chairman: Mr. M.P. Wickremasingha

Managing Director: Mr. E.T. De Zoysa

Board of Directors:
Mr. R.S. Wickremasingha
Ms. D.S. Wickremasingha
Mr. N.A. Wickramage
Mr. D.M.A. Kulasooriya
Mr. M.U.S.G.Thilakawardene 
Mr. M.S. Nanayakkara

52 Weeks Low: 120.00                                         52 Weeks High: 250.00

Average Trading Volume: 70

Company Financial at a glance:
Click Table to Enlarge

Total shares in Issue: 2,750,000

Top 20 Shareholders as at 30/09/2013