26 August 2009

Colombo Stock Market Continued its Positive Momentum

25th August 2009, www.news.lk

The Colombo Stock Market continued its positive momentum with the market indices recording gains for the second consecutive day due to high investor interest in selected blue chip stocks and mid cap stocks.

The All Share Price Index (ASPI) gained 16.98 points or 0.67% to close the day at 2,547.44 points while the Milanka Price Index was up by 22.91 points or 0.80% to close the day at 2,891.86 points.

The turnover for the day was Rs.540.40 million compared with Rs.627.00 million recorded on the previous day.

Heavily traded stocks for the day, in terms of volume were Lanka Cement, Seylan Bank (Non Voting), Nations Trust Bank, Nawaloka Hospitals, Piramal Glass Ceylon, Environmental Resources Investments (Share Warrants), John Keells Holdings and Dialog Telekom.

The highest contributor to the market turnover was John Keells Holdings (JKH) contributing Rs.110.98 million. The JKH share gained Rs.0.25 or 0.19% to close the day at Rs.135.00, while trading at a high of Rs.136.00 and a low of Rs.135.00.

Lanka Cement continued to attract investor interest with over one million shares trading between Rs.32.00 and Rs.34.75 gaining Rs.0.50 or 1.54% to close the day at Rs.33.00.

Retail trading was seen in Coco Lanka with over three hundred thousand shares trading between Rs.29.00 and Rs.30.50 gaining Rs.1.00 or 3.45% to close the day at Rs.30.00.

Index heavyweight Sri Lanka Telecom lost Rs.0.50 or 1.18% to close the day at Rs.41.75 while Dialog Telekom closed flat at Rs.5.25.

In the hotels sector, Taj Lanka Hotels gained the most with an increase of Rs.2.00 or 10.00% to close the day at Rs.22.00 while Tangerine Beach Hotels was up by Rs.3.00 or 5.36% to close the day at Rs.59.00. Asian Hotels and Properties was up by Rs.2.50 or 4.17% to close the day at Rs.62.50. Galadari Hotels gained Rs.0.50 or 3.64% to close the day at Rs.14.25.

Among the banking shares to attract investor interest during the day were Nations Trust Bank, Seylan Bank (Non Voting) and Sampath Bank. Nations Trust Bank recorded a turnover of Rs.31.57 million with a negotiated deal (Crossing). However, the share closed flat at Rs.30.50.

Seylan Bank (Non Voting) gained Rs.0.50 or 6.90% to close the day at Rs.7.75 with 1,079,600 shares traded. Sampath Bank lost Rs.1.25 or 0.92% to close the day at Rs.135.00.

The top gainers for the day were M T D Walkers up by Rs.8.25 or 11.62% to close at Rs.79.25, Asia Capital up by Rs.0.75 or 11.54% to close at Rs.7.25, Tess Agro up by Rs.0.10 or 11.11% to close at Rs.1.00 and Vidullanka up by Rs.2.50 or 10.00% to close at Rs.27.50.
The top losers for the day were Beruwela Walk Inn down by Rs.7.75 or 11.92% to close at Rs.57.25, Hotel Sigiriya down by Rs.3.00 or 4.62% to close at Rs.62.00, Asiri Hospitals down by Rs.2.75 or 4.04% to close at Rs.65.25 and Amaya Leisure down by Rs.1.25 or 3.18% to close at Rs.38.00.

1 comment:

Sri Lanka Equity Analytics said...

HNB Bank's net profit up 76% YoY in 2Q2009
www.srilankaequity.com

Hatton National Bank s (HNB) net profit has risen by a sharp 76% YoY to LKR996.4 mn in 2Q2009 whilst lifting the cumulative 1H2009 net earnings by 32% to LKR1,708.2 mn. The net profit growth in the latest quarter has bettered our forecast and was driven by net interest income growing by 22% YoY and a 32% YoY dip in total provisioning cost.

HNB was incorporated in 1888 and since then has grown to become the second largest private sector bank with an asset base of around LKR275 bn and an island wide branch network of 178. The bank already has a relatively strong presence in the recently liberated Northern and Eastern provinces of the island and also boasts the largest low cost deposit base amongst the private sector banks. HNB has been fairly aggressive compared to its peers and is expanding both its corporate and retail loan books on the back of a strong deposit base whilst maintaining a loans to deposit ratio of around 90%. Further due to the stable low cost deposit base HNB s net interest margin has been approx. 50 bps to 75 bps above peer average. HNB despite being aggressive continues to be well capitalised with a Tier 1 CAR of 8.5% and Total CAR of 10.6%.

However the main negative of the bank has been its lateness in technology adoption and also the average performance in Non Performing Loans (NPL). However since lately HNB has made remarkable inroads in technology adoption and now offers real time ATM networks, internet/sms banking etc. The bank would also shift to a single IT platform in 2010E whilst phasing off the non compatible two IT platforms which are presently in use. Based on management reports, circa 64% of operational losses are due to drawbacks in delivery, process management and system failure, which we believe would be markedly reduced in future with the introduction of a single core banking IT platform. With regard to risk mitigation HNB has strengthened its credit risk analysis function and has managed to bring down the NPL levels to around the industry average. Further HNB had fully provided for a LKR2.6 bn bad loan (which was a resultant of the borrower going bankrupt) in 2006 and is presently awaiting to collect compensation in lieu of the land and building which was initially placed as collateral. However the recovery could be based on a phased compensation plan since the government has taken over the properties of the bankrupt borrower and compensation would be more so based on the terms put forward by the government.

Read more www.srilankaequity.com

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