CSE to educate undergrads and teachers on capital market investment

In a ground breaking achievement for capital market education the University Grants Commission (UGC) and the Education Ministry have approved a program proposed by the Colombo Stock Exchange (CSE) to conduct compulsory workshops for undergraduate students and commerce teachers across the country. The introductory sessions that were held recently saw avid interest generated from the parties involved.

Accordingly workshops will be conducted throughout the year at State universities, national schools and provincial schools across the island. In turn the workshops will have a reach of over 15,000 undergraduate students and a reach of nearly 13,000 teachers. These workshops intend on making capital market investment a prevalent topic of discussion amongst an important group of future investors and influencers.

For university undergraduate students the two-day program, conducted by the investor education arm of the CSE, will provide an introduction to personal financial planning and the role of the CSE in facilitating transactions within the capital market.

The aim of the program is to motivate students to channel their savings or excess funds towards the capital market and give them an understanding of the alternative investment avenues available, while providing a theoretical and practical overview of the fundamentals of the market.

The first day of the workshop will cover the areas of savings and investment, investment opportunities, capital market processes and the benefits of investing in shares. The second day of the workshop will explain the role of the Stock Exchange as a facilitator, the role of the Securities and Exchange Commission, and the role of listed companies, stockbrokers, investors and the capital market’s contribution to the economy.

In addition to this information the teacher training workshops will also focus on providing participants with an understanding of the basics necessary to analyse financial statements and the intricacies of investing in debt securities.

“The objective of the teacher training workshop program is to educate an important and influential group of educators who will be catalysts in nurturing future investors to develop the ability to make informed investment decisions,” said CSE CEO Rajeeva Bandaranaike.
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Sri Lanka stocks inch down on foreign outflows

(Reuters) - Sri Lankan shares edged down on Tuesday in thin trade, led by a fall in Nestle Lanka Plc and foreign outflows as investors were cautious ahead of a U.N. resolution on the country's human rights record later this month.

The main stock index fell 0.11 percent, or 6.47 points, to 5,907.64.

The day's turnover was at 509 million rupees ($3.90 million), nearly half of this year's daily average of about 912.8 million rupees.

Analysts said investor sentiment has been dented on concerns over the U.N. resolution, which could have an impact on the country's economy. Many potential buyers in risky assets are staying on the sidelines awaiting clear direction.

Foreign investors were sellers for the third straight session, with net selling of 61.2 million rupees worth of shares on Tuesday. Net outflows so far in 2014 stand at 3.88 billion rupees. They were 22.88 billion rupees in 2013.

Shares in Nestle Lanka fell 3.94 percent to 1912.10 rupees.

Earlier this month, Sri Lanka questioned the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lanka government related to the civil war.

A vote on the resolution is scheduled for the last week of the session, starting on March 24. 

($1 = 130.6000 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka shares end weaker

Mar 18, 2014 (LBO) - Sri Lanka's shares end 0.11 percent lower with food and beverages firm Nestle losing ground amid net foreign selling on the board, brokers said.

The Colombo benchmark All Share Price Index closed 6.47 points lower at 5,907.64 down 0.11 percent. The S&P SL20 closed 1.22 points higher at 3,214.64, up 0.04 percent.

Turnover was 509.27 million rupees, up from 91.19 million rupees a day earlier with 91 stocks close positive against 74 negative.

Foreign investors bought 307.99 million rupees worth shares while selling 369.22 million rupees of shares.

Nestle Lanka closed 78.40 rupees lower at 1,912.10 rupees and Commercial Leasing and Finance closed 20 cents lower at 3.80 rupees, contributing most to the index drop.

Asiri Surgical closed 10 cents higher at 13.90 rupees and Sampath Bank closed 2.60 rupees higher at 178.20 rupees, attracting most number of trades during the day.

Carson Cumberbatch closed 5.00 rupees lower at 345.00 rupees and Bukit Darah closed 3.90 rupees higher at 555.00 rupees.

Ceylon Tobacco Company closed flat at 1,120.00 rupees and John Keells Holdings closed 90 cents higher at 219.00 rupees.

JKH’s W0022 warrants closed 2.00 rupees higher at 64.00 rupees and its W0023 warrants closed 2.40 rupees higher at 67.30 rupees.

Commercial Bank closed 50 cents higher at 115.00 rupees and Lanka Orix Leasing Company closed 2.00 rupees lower at 75.00 rupees.

Distilleries closed 30 cents lower at 199.20 rupees.

Associated Motor Finance Company closed flat at 308.00 rupees with the company on Monday allowed a due diligence in line with central bank’s financial sector consolidation process.

Sri Lanka plantation firm terminates ‘Management Services’ agreement

Sri Lanka’s Watawala Plantation Company has terminated the Management Services agreement it entered into with Estate Management Services (Pvt) Limited.

The company says it has also decided to terminate the payment of management fees to the EMS (Pvt) Limited.

Watawala says, both the decision were entered into mutually.

The agreement between the two firms was signed for a period of five years starting from 1st of July 2013 and running up to 31st of June, 2018.

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http://www.cse.lk/cmt/upload_cse_announcements/4771395054075_.pdf

LLUB wary of new entrants midst poor regulation

Ceylon FT: Chevron Lubricants Lanka PLC (LLUB) is wary of new entrants to the market in the absence of proper regulation and a legal framework to ensure fair play and consumer protection.

"While all big global and regional lubricant players have a presence in the Sri Lankan market, with 13 players operating in a market that is relatively small with a potential of 55 million litres per annum, the Ministry of Petroleum Industries has initiated action to award further licenses to new entrants to the lubricants industry. While more competition may be good for the consumer it becomes imperative to bring about the right regulations and put in place a legal framework to ensure sanity in the market for fair play and to safeguard the consumers," Managing Director/CEO Kishu Gomes told shareholders in the company's annual report for 2013.

"In the absence of a proper regulator the Public Utilities Commission of Sri Lanka (PUCSL) which operates as the shadow regulator has not been empowered to deal with the issues the industry has been confronted with. These have been brought to the notice of all stakeholders by the industry players, but without success.

"Product adulteration in various forms continues, posing a serious risk to the consumer. 

The re-branding and distribution of products by non-licensed players also continues unabated while 'cross filling', the filling of products to containers proprietary to other players thereby misleading the customer and avoiding duties and taxes to the government coffers in some cases.

"With the increased number of players that may enter the market in 2014, these issues are likely to get aggravated. Therefore the necessity for an effective regulator is an urgent need of the hour from the perspective of all stakeholders. It is hoped that the government be judicious in issuing licenses to more players, as this could have an adverse effect on the industry as a whole. We have been lobbying for greater regulation of companies and products to protect consumers from the serious negative consequences including product adulteration," Gomes said.

Turnover fell 5% to Rs 11.2 billion in 2013 and net profit grew 12% 2.5 billion in a "high-pressure environment".
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Ceylinco Insurance posts After Tax Profit of Rs 2.1 billion

Ceylinco Insurance recorded an after tax profit of Rs.2.1 billion, for the year ended December 31, 2013, which represents a growth of 28 % over the previous year. ‘Both the General and Life Divisions of Ceylinco Insurance contributed to this notable performance, contributing Rs.878 million and Rs.1,240 million, respectively. Moreover, the consolidated results too recorded imposing growth, with the profit before tax reaching an exceptional Rs.3.1 billion, and the after tax profit standing at Rs.2.9 billion, which signified an increase of 37% over the previous year, a press release said.

It adds: ‘Ceylinco Insurance, in 2013, built upon the continuous success of previous years, further consolidating its position as the market leader for the 10th consecutive year. 

Accordingly, the Company recorded a mammoth premium income of Rs. 22.7 billion in 2013, with the premium income of the General Division reaching Rs.11.6 billion, signifying an increase of nearly Rs.500 million, year on year. Similarly, Ceylinco Life recorded a premium income of Rs.11.1 Billion. Meanwhile, the Motor Insurance premium income alone stood at an extremely noteworthy Rs.7 billion, with Non Motor Insurance contributing a striking Rs.4.6 billion to the total premium income of the General Division.

‘Commenting on last year’s achievements, the Managing Director / Chief Executive Officer of Ceylinco Insurance – General, Ajith Gunawardena, said: " in a keenly competed insurance arena, Ceylinco Insurance maintained the leading edge and what we have achieved in 2013 was in line with our expectations. We have succeeded by holding true to our beliefs, and we are committed to managing our business with great discipline and forethought. Our main focus, as always, remains the driving force in our business: the customer, and accordingly, during the year under review, Rs 5.7 billion was paid out by Ceylinco Insurance – General, as claims."

‘Commenting on the Life Division’s performance during 2013, its Managing Director/Chief Executive Officer, R. Renganathan, said: " the year under review marks a decade of unbroken market leadership for Ceylinco Life in the long term insurance segment. This is a huge achievement in the context of the ever-increasing levels of competition and the tactics employed by some smaller players in the market to achieve short term growth. Ceylinco Life has always focussed on the principal basis for Life Insurance – to provide the assurance of the best possible protection to policyholders and their loved ones".
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