Gold Drops to 34-Month Low as Precious Metals Slide on Fed View

Gold plunged to a 34-month low, set for a record quarterly drop, as improving U.S. economic data strengthened the case for the Federal Reserve to reduce stimulus. Silver futures fell to the lowest since August 2010.

Gold has dropped 23 percent this quarter, heading for its biggest loss since at least 1920 in London. Fed Chairman Ben S. Bernanke said last week the central bank may slow its asset-purchase program this year if the economy continues to improve. U.S. durable-goods orders rose more than expected, home sales advanced to the highest in almost five years andconsumer confidence climbed, data showed yesterday.

Enlarge image

Gold bars are stored in a vault at the United States Mint at West Point in West Point, New York. Photographer: Scott Eells/Bloomberg

8:35

June 21 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the stock, bond and commodity markets. He speaks with Trish Regan and Tom Keene on Bloomberg Television's "Street Smart." (Source: Bloomberg)

2:17

June 11 (Bloomberg) -- Billionaire John Paulson, the hedge-fund manager trying to recover from losses related to bullion this year, posted a 13 percent decline in his Gold Fund last month, according to a letter to investors. The drop brings losses in the strategy to 54 percent since the start of the year, the firm said in the letter, a copy of which was obtained by Bloomberg News. Kelly Bit reports on Bloomberg Television's "Money Moves." Deirdre Bolton also speaks. (Source: Bloomberg)

4:26

June 4 (Bloomberg) -- Stephen Cucchiaro, chief investment officer at Windhaven Investment Management Inc., talks about the outlook for gold prices and investment strategy. He speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." Adam Parker, chief U.S. equity strategist at Morgan Stanley, also speaks. (Source: Bloomberg)

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About $60 billion was wiped from the value of precious metals exchange-traded product holdings this year as some investors lost faith in them as a store of value and speculation grew that the Fed will taper debt-buying that helped gold cap a 12-year bull run last year. A lack of accelerating inflation and mounting concern about the strength of the global economy is hurting silver, platinum and palladium, which are used more in industry than gold.

“The selloff is a continuation of the response to concerns over the Fed tapering stimulus,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “We’ll need to see evidence of more physical buying and demand from central banks before it really turns around. No one wants to catch a falling knife.”

Gold Price

Gold for immediate delivery fell as much as 4.4 percent to $1,222 an ounce, the lowest since Aug. 24, 2010, and was at $1,224 at 7:48 p.m. in London. Bullion futures for August delivery dropped 3.6 percent to settle at $1,229.80 on the Comex in New York.

Silver futures for September delivery tumbled 4.8 percent to $18.613 an ounce in New York after touching $18.385, the lowest since Aug. 25, 2010. Trading was more than double the average in the past 100 days for this time of day, according to data compiled by Bloomberg.

Gold entered a bear market in April, extending the retreat from its all-time high of $1,921.15 in September 2011. Analysts from Morgan Stanley to Credit Suisse Group AG and Goldman Sachs Group Inc. trimmed price forecasts this week. ABN Amro Group NV today said in a report that it sees the metal at $900 by the end of next year.

Technical Selling

“The fact that it has fallen below last week’s low is likely to have prompted follow-up selling for technical reasons,” analysts at Commerzbank AG wrote today in a report. Better-than-expected U.S. data “makes it all the more likely that the Federal Reserve will prematurely scale back its bond-purchasing program.”

Gold’s 14-day relative strength index was at 22, below the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent.

An ounce of gold bought as many as 66.5 ounces of silver inLondon today, the most since August 2010. Silver futures are down 34 percent this quarter, set for the biggest drop since the start of 1980. It’s the worst performer this year on the Standard & Poor GSCI Spot Index of 24 commodities. The index is down 5.5 percent this year, partly on concern that growth may slow inChina.

ETP Holdings

Assets in the SPDR Gold Trust, the largest bullion-backed ETP, fell 16.2 metric tons to 969.5 tons yesterday, the lowest since February 2009, according to its website. The number of hedge funds investing in bullion dropped to the lowest since 2010, according to EurekaHedge Pte Ltd., a Singapore-based fund-research company.

The dollar rose for the sixth straight session against a basket of major currencies, heading for the longest rally in 13 months.

“The raft of figures that came out of the U.S. all pointed to a stronger growth pattern, which pushed the dollar higher,” David Lennox, an analyst at Fat Prophets, said from Sydney. “That’s two nails in the coffin for gold: a stronger U.S. dollar and expectations that quantitative easing will be scaled back.”

On the New York Mercantile Exchange, platinum futures for October delivery fell 3.4 percent to $1,307.40 an ounce, after earlier dropping to $1,305.60, the lowest for a most-active contract since October 2009.

Trading was more than double the average in the past 100 days for this time of day, according to data compiled by Bloomberg.

Palladium futures for September delivery retreated 5.3 percent to $633.25 an ounce, the biggest slump since April 15.

http://www.bloomberg.com

Rupee falls to near 7-month low, Bourse dips

Reuters: The rupee hit a near seven-month low on Monday, before a State-controlled bank intervened to stabilise the currency, dealers said, amid continuous depreciation pressure due to dollar demand from importers and foreign investors who are exiting in the wake of rising US treasury yields.

The lowest trade was at 129 per dollar, dealers said, before the currency closed at 128.90/129.00, edging down slightly from Friday’s close of 128.90/95.
Two dealers said one of the two State-run banks, through which the Central Bank usually directs the market, sold dollars to ease depreciation pressure.
Dealers said some foreign investors also booked forwards to hedge their exposure, tracking foreign outflows in other Asian peers.
“The rupee is going to remain under pressure until the US treasuries settle. Until such time we are going to see a highly volatile rupee,” a currency dealer said on condition of anonymity.
The rupee fell 0.33% last week, after losing 1.6% in the week previous to that, which currency dealers attributed to foreign investors selling debt as part of a broader selloff in emerging markets.
Foreign investors have been shifting to treasury bills while selling longer tenure T-bonds, the latest central bank data showed on Friday, as a rise in US treasury yields has prompted many offshore investors to rush to the exits.
The local currency has weakened 1.1% so far this year, following a 10.7% depreciation in 2012 as the Central Bank opted for a flexible exchange rate regime in February 2012.
The Central Bank on Monday shrugged off the likelihood of fresh pressure on the rupee, despite the widening of the trade deficit in April.
Sri Lanka’s main stock index edged down to a seven-week low with turnover slumping to a six-month low with some retail investors taking profits.
The Bourse ended 0.1%, or 5.89 points, weaker at 6,149.38, its lowest since 6 May on concerns of a possible pullout by more foreign funds.
The market witnessed net foreign inflows of Rs. 47 million ($ 364,800) on Monday in low foreign activity, extending net foreign buying in shares to Rs. 16.25 billion so far this year.
The day’s turnover was at Rs. 201 million, its lowest since 24 December, a fifth of this year’s daily average of Rs. 1.02 billion.

source -FT Sri Lanka

We are almost there for a recovery - History is repeating

(click image to enlarge)

* Mkt came to its lowest level in June 2012 after its bull run started in year 2009. 

* The lowest ASI reported was 4737.75 on June 6 2012.

* The ASI moved up to 5078.06 after that until 20 June 2012. - first stage of recovery we witnessed.

* After that ASI took a dip and came to 4822.64 on 18 of July 2012.

* Once again a recovery was witnessed until 28 Sep and the ASI hit 6000 all important mark and ended up at 5971.99 - second stage of recovery.

* Again a mkt dip took place which is a natural behaviour in every mkt in the world. ASI dip up to 5323.21 and the lowest reported date was 05 December 2012.

* After that we witnessed another recovery up to 5883.66 until end of jan 2013. - third stage of recovery.
* Mkt was hit by another dip and this time ASI ended up in 5626.77 on 5 march 2013.

* The all important mkt recovery took place after that and that bull run helps to touch ASI all important mark of 6500 for the first time almost after two years. ASI hit 6488.85 on 23 may 2013. - fourth stage of recovery

*Now we are witnessing another dip in the mkt which is necessary for the all important fifth stage of recovery where we can expect ASI to hit 6750 levels or more.

Important points to remember

* look at the RSI movement of the mkt at every mkt bottom and at the highest point in every recovery. - We are almost there.

* look at the movement of ASI between Bollinger bands in every bottom and every recovery - We are almost there.

* look at MACD movement at every mkt bottom and every recovery. - We are almost there.

* After hitting low of ASI 4737.75 in June 2012 mkt is heading towards upward direction with required corrections from time to time.

( This is only the personal view of the writer )

source - yahoo finance

More forex rules relaxed

•  Central Bank announces wide-ranging moves to improve efficiency, ease of doing business and economic activity

The Central Bank yesterday announced a wide-ranging relaxation of foreign exchange regulations across 10 activities aimed at boosting the overall competitiveness and attractiveness of the country apart from enhancing convenience.

It said that during the past few years, Sri Lanka’s macroeconomic fundamentals have improved and the domestic financial sector has become stronger and more resilient.
“In that background, foreign exchange regulations have been reviewed and relaxed gradually with the objective of achieving greater efficiency in the conduct of international financial transactions and further facilitating economic activity of the private sector through greater ease of doing business, thus enhancing the overall competitiveness of the economy,” the Central Bank said.

In keeping with this policy framework, new relaxation measures have been implemented with effect from 12 June 2013. The highlights of these policy measures are as follows:

(i) General permission to transfer funds in an NRFC/RFC account of one bank to another bank: Currently those who wish to open new NRFC/RFC accounts with the existing funds in NRFC/RFC accounts maintained with a different authorised dealer have to obtain the permission of the Controller of Exchange on a case-by-case basis, to do so.

In order to provide greater flexibility for persons operating NRFC/RFC accounts, individuals will now be permitted to open new NRFC/RFC account(s) utilising funds transferred from existing NRFC/RFC account(s) maintained with another authorised dealer, without first obtaining the permission of the controller.

(ii) Holders of Foreign Exchange Earners Accounts (FEEA) to be eligible to obtain foreign currency loans: Currently, foreign currency loans can be obtained only by a limited category of foreign exchange earners, such as exporters and indirect exporters. Henceforth, banks will be permitted to extend foreign currency loans to all categories of FEEA holders.

(iii) General permission to repatriate capital gains from the sale of residential properties by non-residents: As a measure of encouraging investments in immovable property, non-residents will henceforth be permitted to repatriate both capital and capital gains upon sale of immovable property owned and/or developed by the non-resident, provided the property had originally been acquired and/or developed by such owner through funds remitted into Sri Lanka through international banking channels.

(iv) Extension of migration allowance to each migrant of age 18 and above: The current direction re. the remittance of the migration allowance is that it is applicable to ‘family units’ and not to individuals. Henceforth, it will be revised, making it applicable to an individual. Therefore, migrants aged 18 years and above will be eligible for a maximum migration allowance of US$ 150,000 at the time of migration, and an annual allowance of US$ 20,000 thereafter. Further, proceeds from current transactions, provident fund and gratuity benefits will also be freely repatriable in addition to the afore-stated allowances. A dedicated non-resident account shall be assigned per migrant for the purpose of such fund transfers.

(v) Permission for banks to open and maintain Nostro accounts and invest Nostro balances abroad: As a measure to facilitate efficient settlement of foreign exchange transactions in other countries by authorised dealers, licensed commercial banks will be permitted to open and maintain separate Nostro accounts in different currencies and invest balances of such accounts in foreign money markets.

(vi) Increase in the amount of foreign currency notes that may be issued for travel purposes: The quantum of foreign currency notes that may be issued for travel purposes by an authorised dealer will henceforth be increased from the current level of US$ 2,500 to US$ 5,000.

(vii) Introduction of standard criteria to permit non-bank financial institutions to accept foreign currency deposits: Licensed Finance Companies (LFCs) which are rated at a credit rating of A- or above by the Central Bank specified credit rating agencies will be permitted on application, to open and maintain foreign currency deposit accounts for their customers. The total quantum of such deposits that could be harnessed by each LFC will be subject to guidelines to be issued by the director, supervision of non-bank financial institutions.

(viii) Repatriation of Pre-SIERA (Share Investment External Rupee Account) foreign investments in Sri Lanka: The Central Bank has now established a mechanism to grant permission on a case-by-case basis for the repatriation of dividends and sale or maturity proceeds of investments made by foreign investors in shares and business ventures in Sri Lanka, prior to the introduction of the SIERA in 1990.

(ix) Opening and maintaining of bank accounts abroad by dual citizens: As per the new rules, Sri Lankan dual citizens or Sri Lankan holders of permanent residency permits issued by foreign Governments will henceforth be permitted to maintain bank accounts outside Sri Lanka, without obtaining prior permission from the Exchange Control Department.

(x) Amendments to the Securities Investments Account (SIA): As a measure of facilitating inward remittances into Sri Lanka for investment purposes, SIA holders will be granted more flexible avenues to receive and repatriate funds into and out of SIA. Accordingly, in the case of foreign institutional investors, routing of inward remittances via Nostro accounts into Vostro or SIA accounts of banks will henceforth be permitted.
The relevant directions with respect to above measures have been issued to authorised dealers on 12 June 2013.

source - www.ft.lk

DFCC posts Rs. 3.5 b profit after tax in FY13

DFCC Bank in its Annual Report for 2012/13 released last week presented good progress on all fronts. The consolidated profit after tax of the group increased 16% to Rs. 3,538 million. The contribution from the combined banking business of DFCC Bank (DFCC) and its 99% owned subsidiary, DFCC Vardhana Bank (DVB) was up 19% to Rs. 3,407 million.

 Commenting on the results, Chief Executive Nihal Fonseka stated: “I am happy to say that DFCC delivered better results in many areas compared to 2011/12 and even more importantly was able to make progress on several key aspects of the strategic re-positioning which commenced in the previous year. Amidst a somewhat challenging operating environment, total income of the combined DFCC Banking Business (DBB) comprising of interest income and other income recorded an increase of 47.8% to Rs. 17,862 million in the year under review.
  
Gross loans and advances of DFCC Bank increased 10%, while DBB grew by 14.7%.

“DFCC Vardhana Bank increased its exposure to personal financial services assets whilst construction, especially finance for contractors, and domestic trading sectors recorded relatively higher levels of credit growth. Customer deposits of DBB grew by 37.3% during the year.”

It is heartening to note that DFCC’s overall credit quality of the portfolio has been maintained. The DFCC banking business’s impaired loans, advances and receivables as measured in accordance with the applicable new IFRS-based accounting standards which came into effect, as a proportion of the total portfolio has reduced from 7.3% to 7.1% during the year.

 Expenses have also been managed effectively with DFCC Bank’s ratio of operating expenses to total operating income (before impairment charge) improving further from 30% to 28.7% during the year.

 Chairman J.M.S. Brito noted in his message: “A key deliverable is return on investment. A shareholder of DFCC would have received a total of Rs. 57.50 in dividends for each share held over the ten-year period from 2003 to 2012, which works out to an average dividend of Rs. 5.75 per share per annum. In overall terms taking into account the bonus issues and the rights issue during this period, the Total Shareholder Return (TSR) works out to approximately 20% per annum.”

Consolidated group equity increased from Rs. 32,927 million (including minority interest) to Rs. 37,252 million. Earnings per share increased to Rs. 13.04 from Rs. 11.19.

 In this reporting year, DFCC made a transition to the new Sri Lanka Accounting Standards that are IFRS-compliant. Commencing with this Annual Report, DFCC has also made a transition to presenting integrated reports drawing on concepts from the International Integrated Reporting Framework. The aim is to report how strategy, governance, performance and prospects lead to the creation of value to all the bank’s stakeholders, shareholders, customers and business partners, employees, community and the Government.

 DFCC Bank is one of the oldest development financial institutions in the world. Established under an act of parliament in 1955, it is private sector in form with project financing continuing to be its forte. 

As Fonseka noted: “DFCC Bank is the apex entity in the group. It has never lost sight of its special role in the development agenda of the country, even after its conversion in the late 1990s from Development Finance Corporation of Ceylon, an unregulated provider of finance, to a specialised bank regulated under the Banking Act. It required a change in its business model, but it has continued to be in the forefront of sustainable development financing.”

Veteran banker Fonseka who will relinquish office at DFCC by the end of September 2013 after serving 14 years as Chief Executive noted in his conclusion: “The transformation from a narrowly focused specialised bank to a financial services group, with growth of total assets from Rs. 24,071 million to Rs. 151,124 million and market capitalisation from Rs. 3,350 million to Rs. 34,754 million during my tenure could not have been achieved without  the support of our valued customers from all over the country. I salute them all for the faith they have demonstrated in the DFCC Group.”

source - www.ft.lk

Sri Lankan bourse edges lower after cbank holds rates

COLOMBO, June 7 (Reuters) - Sri Lankan shares fell for a fifth straight session on Friday  to a three-week low, led by a decline in John Keells Holdings after the central bank held policy rates steady.

The central bank, before the market opened, kept the key policy rates steady after it unexpectedly cut them by 50 basis points month ago. 

"For the market to continuously move up, there should be some news. Even keeping the rates steady does not help investors to get in," said a stockbroker who declined to be named. 

The main stock index fell 1.02 percent, or 64.95 points, to 6,307.43, the lowest close since May 16.

However, foreign investors were net buyers of shares for a 21st straight session. The bourse saw a net foreign inflow of 291.6 million rupees ($2.31 million), extending the year-to-date inflows to 15.6 billion rupees. 

Foreign investors accounted for around 46.47 percent of the day's turnover of 883.7 million rupees, less than this year's daily average of 1.04 billion rupees.

Shares in conglomerate John Keells Holdings fell 3.00 percent to 265.00 rupees, while leading mobile phone operator Dialog Axiata Plc lost 3.23 percent to 9.00 rupees.

The rupee ended weaker at 126.45/50 per dollar from Thursday's close of 126.30/40 on demand for greenbacks from importers, dealers said.

($1 = 126.4250 Sri Lanka rupees)  (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Jijo
Jacob)

source - www.reuters.com

Sri Lanka Sunshine Holdings cuts plantations unit stake

June 7, 2013 (LBO) - Sri Lanka's Sunshine Holdings said it had sold a stake in its plantations unit to Pyramid Wilmar Plantations (Pvt) Ltd, for 910.3 million rupees.

The sale cut its stake in Estate Management Services (Pvt) Ltd to 33.15 percent from 51 percent by the sale of 5.59 million shares, the firm said in a stock exchange filing. 

Estate Management Services (Pvt) Ltd is a joint venture with Tata Global Beverages Ltd of India. 
It owns a 53.75 percent stake in Watawala Plantations Ltd, which produces tea, rubber and oil palm. 
Pyramid Wilmar, a unit of the Singapore based firm is in the palm oil business.
lk
source - www.lbo.

Foreign investors’ craving persists; net inflow tops Rs. 15 b mark

The craving for select Sri Lankan equities by discerning foreign investors persisted as the net inflow surpassed the Rs. 15 billion market yesterday, though profit taking by locals especially retailers with the Bourse up 15% last week remained a dampener.

 Heavy buying into Commercial Bank and HNB resulted in a net foreign inflow of Rs. 552 million yesterday, propelling the year-to-date figure to Rs. 15.2 billion. This healthy development is on top of a record Rs. 39 billion worth of net inflow last year. With the current inflows and that of last year, the Colombo Bourse has overtaken the net outflow experienced in 2010 and 2011 combined.

NDB Stockbrokers said the Banking, Finance and Insurance sector became the top contributor to the turnover (due to Hatton National Bank and Commercial Bank) and the sector index dipped 0.39%. The share price of Hatton National Bank increased by Rs. 1.20 (0.71%) to close at Rs. 170 with the counter’s foreign holding increasing by 2,063,399 shares. The share price of Commercial Bank decreased by 0.32% to close at 122.90 with the counter’s foreign holding increasing by 2,000,000 shares. “Despite starting on a positive note, market lost steam predominantly due to the fall in prices witnessed in index heavy counters John Keells Holdings and Ceylon Tobacco Company,” NDBS said.

 The ASI was down 50 points or 0.7% bringing the year-to-date gain lower to 13% from 15% on Friday and S&P SL 20 Index dipped by 39 points or 1%.

“The correction phase has set in with indices extending a steep downtrend,” Softlogic Stockbrokers said, adding that indices encountered a sharp dip as the Bourse moved on a volatile note.

 It said John Keells Holdings, Ceylon Tobacco Company and Kotmale Holdings also recorded one crossing each. The latter saw strong on-board participation whilst having touched a 52-week high at Rs. 58. (+25.0%).

“Key dividend players which saw considerable rallies recently encountered steep price dips today as Chevron Lubricants and Ceylon Tobacco weighed strongly negative on the ASPI dipping to Rs. 310 (-12.8%) and Rs. 960 (-4.0%) at their respective intra-day low prices. John Keells Holdings recorded a notable dip of 4.0% at its intra-day low of Rs. 268. Investor play was observed in Nations Trust Bank which dipped 0.3% to Rs. 66.5, leaving further opportunity to accumulate,” Softlogic said.
 Retailers remained cautious of the correction in the index, thereby focusing on a few selected counters. Nation Lanka Finance, Laugfs Gas and Tokyo Cement [Non-Voting] gathered significant interest.

source - www.ft.lk

Adam Investments buys 9% stake of Ceylon and Foreign Trades for Rs. 100 m

Dr. Ali Asger Shabbir Gulamhusein and his spouse Danushya Mediwake Wethasinghe Gulamhusein’s controlled entity Adam Investments yesterday purchased an 8.9% stake in Ceylon & Foreign Trades PLC via a private crossing on the CSE for Rs. 100 million.

 The block amounting to 12.5 million shares was done at Rs. 8 each, up from Rs. 7.10, CFT’s Wednesday’s closing price. The shares were sold by CFT Director Ali Asger Shabbir.

Adam Investments is also a leading investor in the Colombo stock market and its purchase of 9% stake in CFT is one of several strategic transactions initiated by Dr. Ali Asger Shabbir Gulamhusein and Danushya Mediwake Wethasinghe Gulamhusein.

 Adam Investments is a member of the Adam Group of Companies which is contemplating sharing its future success with the public through a proposed IPO. The details of the public offer are being discussed with the financial advisors and regulators at present. CFT, the flagship company has a subsidiary which is a freight forwarding company and an associate company which is a public quoted company, On’ally Holdings PLC popularly known as Unity Plaza.

 Dr. Gulamhusein serves as Chairman of the board of Adam Investments Ltd. He holds a PhD from Tokyo, Japan and a Degree from King’s College London, UK. He has been bestowed with the prestigious title of “Deshabandhu Manawahithawadhi Lankaputhra” and also serves as advisor to the Ministry of Justice, Ministry of Co-operatives and Internal Trade and as a Justice of Peace (all island). Danushya Gulamhusein is the great-granddaughter of Sir William Gopallawa, Sri Lanka’s first President and last Governor General. Wethasinghe Gulamhusein has served as an Executive Director of Adam Investments from the inception of the company. She holds a degree in Psychology and Business Management (UK) and also serves as an advisor to the Ministry of Justice and the Ministry of Co-operatives and Internal Trade.

 Adam Investments Ltd. was incorporated in 2011, to focus on key growth industries that play a pivotal role in the country’s economy. The companies that function under Adam Investments are;

Adam Apparels Ltd., a premier manufacturer and exporter of garments for leading global fashion labels. For three decades this company has contributed to the largest export earning industry in the island, which despite local and international challenges, has continued to grow steadily year-on-year.

  Adam Metals Ltd. which is one of the oldest manufacturers of metal hardware items in the island is expertly positioned today to take advantage of the rapidly booming construction and infrastructure development projects in the island.

 Network Communications Ltd. is the group’s IT / Electronics arm. With the rapid urbanisation of the island and the government’s systematic drive to push the ICT industry forward, Network Communications shows a very promising future as a key player in a growing ICT industry in future Sri Lanka.

 The group recently inaugurated two new companies, namely Adam Automobiles (Pvt) Ltd. and Adam Air Conditioners Ltd. In 2011/2012, Sri Lanka saw its largest ever volume of vehicle imports.

 Thus, Adam Automobiles Ltd. was conceived with the aim to provide spare parts and services to cater to the rapidly increasing demand for these items. 2012 saw a drop in importation of consumer electronics except for three items, which were, TVs, mobile phones and air conditioners. Since the group is already engaged in the importation of TVs and mobile phones through Network Communications (Pvt) Ltd., Adam Air Conditioners Ltd. was inaugurated to tap the growing demand for air conditioning systems in the country and the company has already placed purchase orders and opened L/Cs to import air conditioners from China.  Ceylon & Foreign Trades PLC goes back to 1949; one year after the country gained independence from British rule, when a group of pioneering businessmen banded together to form this company. The company, which began operations by exporting traditional Ceylonese commodities gradually, expanded and consolidated its status as an import/export house of repute.  A major development following increasing activity of the company was the broad basing of its ownership and it assumed the status of a Public Limited Liability Company in 1978. The company’s major exports were tea, rubber and coconut during the first and second phases of its operations, which were also the major export products of the country.

 During the last one and half decades, the CFT group diversified its operations to enter the field of spice and desiccated coconut exports. The export trade forms the backbone of the country’s economy and it is with justifiable pride that CFT could claim to be a stakeholder in the task of earning vital foreign exchange to the country for decades. An important facet of CFT’s operations have not merely enabled it to gain a degree of domestic fame for its stability and reliability but also to establish itself as an export house of repute among overseas buyers on the basis of its honourable conduct in fulfilling its contractual obligations to its buyers in various parts of the world.

source - www.ft.lk

We Are Traders - A Tribute to All Those Trading the Markets

Robin Sharma - 35 Tips for life

Profit taking pushed indices down

The Colombo bourse yesterday lost ground for the third consecutive day with turnover down to Rs.818.4 million from the previous day’s Rs.1.03 billion with the All Share Price Index losing 26.82 points (0.42%) and S&P SL20 10.85 points (0.30%) with 92 gainers outpaced by 128 losers while 91 counters closed flat.

"Profit taking had something to do with the indices moving down," a broker said. "It was basically a very quiet day with a block trade in Chevron contributing Rs.225 million to turnover."

This was the biggest transaction of the day with 0.6 million Chevron crossed at Rs.375 with a further 139,651 shares traded on the floor between Rs.354.20 and Rs.375. The counter closed Rs.10.90 down at Rs.355.70 on the floor contributing Rs.50.9 million to turnover.

"The ASPI ended lower for a third consecutive day amid a drop in activity levels dominated by trades on LLUB which accounted for over 30% of market turnover. The market also saw crossings on DIAL and CTC," John Keells Stock Brokers said.

There was a net foreign inflow of Rs. 314.22 with purchases of Rs. 432.33 million and sales of Rs. 118.12 million.

JKH edged down to Rs.279.90 on nearly 0.2 million shares traded between Rs.278.50 and Rs.281.50, Rs.1.80 below the previous close.

Other block trades included Dialog where slightly over 4.7 million shares were done at Rs.9.30 contributing Rs.43.8 million to turnover and a 34,884 shares Ceylon Tobacco done at Rs.1,000 contributing Rs.34.9 million to turnover.

Brokers said that foreign buying was seen in Ceylon Tobacco and Commercial Bank with Ceylon Tobacco also seeing 18,603 shares done on the floor between Rs.981 and Rs.1,000 closing 10 cents up at Rs.999.60 generating a turnover of Rs.18.6 million.

Commercial Bank (voting) closed 60 cents down at Rs123.40 on over 0.3 million shares done between Rs.122.50 and Rs.124.50 generating a turnover of Rs.42.5 million.

Haycarb gained Rs.10.20 to close at Rs.211.70 on over 0.1 million shares done between Rs.205 and Rs.215 contributing Rs.25.8 million to turnover while Tokyo (voting) closed Rs.1.10 up at Rs.27.10 on nearly 1.3 million shares traded between Rs.26 and Rs.27.30 contributing Rs.23.3 million to turnover.

Piramal Glass closed flat at Rs.6.70 trading between Rs.6.70 and Rs.6.80 with 2.4 million shares transacted.

source - www.island.lk

Sri Lanka stocks close down 0.8-pct

June 06, 2013 (LBO) - Sri Lanka's stocks closed down 0.79 percent on Thursday with the for a fourth consecutive day due to profit taking by investors and losses in heavy index companies, brokers said. 

The benchmark Colombo All Share Index closed 50.46 points lower at 6,372.38 and the S&P SL 20 Index closed 53.49 points lower at 3,581.56 down 1.47 percent. 

Turnover was 1.3 billion rupees up from 818 million day earlier. 

Foreigners brought 744 million rupees worth shares while selling 191 million rupees of shares, in a day that 59 stocks advanced and 137 stocks declined. 

The Lion Brewery contributed most to the index gain closing at 405.00 rupees up 13.70 rupees, Ceylinco Insurance closed at 1,039.00 rupees up 39.00 rupees and Commercial Leasing and Finance gained 10 cents to close at 04.20 rupees. 

Kotmale Holdings was the top gainer Thursday gaining 7.30 rupee to close at 53.50 rupees, helped by a crossing of 500,000 shares at 55 rupees per share. Brokers speculate that Cargills, the parent of Kotmale is trying to increase its stake.

Cargills closed at 180.60 rupees down 3.40 rupees. 

The main crossing were recorded by Ceylon & Foreign, a crossing of 12.5 million shares at 8 rupees per share to close at 7.30 rupees up 20 cents. 

Asian markets sank Thursday following a sell-off on Wall Street, where dealers were spooked by disappointing US jobs data. The dollar rose slightly after shedding around one percent against the yen in New York. 

Tokyo fell 0.85 percent, or 110.85 points, to 12,904.02, extending an almost four percent decline on Wednesday while Hong Kong lost 1.05 percent, or 230.81 points, to close at 21,838.43. Shanghai was down 1.27 percent, or 28.82 points, at 2,242.11. 

Commercial Bank of Ceylon closed at 122.90 rupees down 40 cents with a crossing of two million shares at 123.50 rupees per share, Hatton National Bank too had a crossing of two million shares at 169.50 rupees per share and closed at 169.30 rupees up 50 cents. 

DFCC Bank closed at 142.80 rupees up 1.10 rupees and National Development Bank closed at 172.80 rupees, down 80 cents. 

Pan Asia closed at 20.40 rupees down 10 cents. Union Bank of Colombo closed at 19.10 rupees down 10 cents and Sampath Bank lost 60 cents to close at 219.30 rupees. 

LB Finance closed at 132.50 rupees down 1.40 rupees and Peoples Leasing and Finance closed at 15.00 rupees up 10 cents. 

Distilleries Company lost 3.00 rupees to close at 196.90 rupees and Ceylon Tobacco Company too lost 24.60 rupees to close at 975.00 rupees. 

John Keells Holdings lost 6.20 rupees to close at 273.20 rupees and Nestle Lanka closed at 1,980.10 rupees down 3.30 rupees. 

Aitken Spence closed at 134.50 down 40 cents. Browns Investments closed flat at 03.30 rupees. 
Softlogic Holding closed at 11.10 rupees down 20 cents and Vallibel One closed at 19.10 rupees down 10 cents.

Sri Lanka Telecom closed at 42.00 rupees down 30 cents and Dialog Axiata closed flat at 09.30 rupees. (Ends)
 
source - www.lbo.lk

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