Market down
The Colombo Stock Exchange declined along with Asian markets with the
ASPI dropping 22 points (-1.3%) to close at 1,672, and the MPI declined
24 points (-1.3%) to 1,750. Turnover for the day was Rs 76 million with
about a third coming from John Keells Holding.
JKH declined to Rs 59.25 at the end of the day. Colombo Dockyard
closed down at Rs 63.00 on turnover of Rs 7.8 million, while Lanka
Cement contributed 6.1 million to turnover. The defunct cement company’s
share closed down at Rs 11.75
Seylan Bank reported results for the financial year ended 31st
December 2008, showing a net loss of Rs 164 million, compared to a
profit of Rs 1,021 million in 2007. During the last quarter, the bank
posted a net loss of Rs 799mn with the bank’s deposits declining by
Rs9.2bn during the period to Rs 110bn.
Seylan Bank’s total loan loss provision increased by 236% to Rs906mn
for the quarter and by 150% to Rs 1.4 billion for the year ended 2008.
It’s net non performing loans at the end of 2008 was 9.29%.
The bank which saw a run on its deposits due to the problems with a
related company, the Golden Key Credit Card Company, saw its management
taken over by the state owned Bank of Ceylon, in late December.
The company made a per share loss of 97 cents, while its NAV was Rs
46.61. Seylan Bank’s voting share closed at Rs 34.50, while its non
voting share closed at Rs 5.75
Asian markets continued to decline, despite the stimulus package that
was passed in the United States, on fears that the global economic
recession will last beyond the 2009. Company results and bank failures
continue to impact business and investor confidence.
In the US, 16 small and medium banks failed while it’s biggest,
CitiGroup sought a further cash infusion, the third since the crisis
began. Citi shares, at US$1.50, were down 92% since the crisis began.
India’s largest company, Reliance Industries, owned by Mukesh Ambani,
announced a merger with its 70% owned subsidiary, Reliance Petroleum.
Reliance Petroleum’s minority shareholder, but, key business partner
Chevron had indicated that it did not want to increase it’s 5% stake,
which triggered to decision to merge with its parent.
Japan’s Nikkei Index, Hong Kong’s Hang Seng Index and Singapore’s
Straits Times Index were down 4% for the day, while India’s benchmark
the Sensex was down 3%.
Source: First GuardianEquities
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