Corporate news

Early end to war, a contributory factor Colombo Stock Exchange world's best

by Lalin FERNANDOPULLE

The Colombo Stock Exchange (CSE) was named the best performing market globally for the year 2009 by Bloomberg Newswire for the exceptional gains recorded by the All Share Price Index (ASPI) during the first month of trading this year.

The ASPI recorded a growth of 16.3 per cent for the year to date, making the Colombo Stock Market Index the best performing index globally, in US dollar terms. The Milanka Price Index (MPI) too recorded a year-to-date growth of 16.6 per cent on January 22.

According to Bloomberg Newswire Statistics, the ASPI has grown by 14.1 per cent for the year to date in (US$) and is placed at the top of 89 Indices tracked by them. The top three indices according to Bloomberg records are ASPI, Shanghai Composite Index 8.9 per cent and Chile Stock Market Select Index 6.4.

CEO, DFCC Stockbrokers (Pvt) Ltd., Ray Abeywardena said an anticipated early end to the war and stability of financial institutions have been the contributory factors for the exceptional market performance this year.

"The victories in the battle front and the tight monetary policies implemented by the Central Bank to ensure financial stability of institutions should be commended", Abeywardena said. CEO, Bartleet TransCapital Ltd., Indrajith Fernando said the achievement of the CSE will help revive the confidence of investors and increase market performance.

The CSE made the first listing for the year on Thursday with the Second Board listing Capital Reach Leasing Ltd.The company listed a total of 20 million ordinary shares on the CSE through an Initial Public Offering.

Dr. Amunugama appointed Dy. Minister of Finance and Planning

President Mahinda Rajapaksa has appointed Minister Dr. Sarath Amunugama, as Deputy Minister of Finance and Planning, sources. Earlier President Rajapaksa decided on Dr. Amunugama to fill the position that fell vacant following the crossover of Karu Jayasuriya to the Opposition. Dr. Sarath Amunugama is one of the few senior and scholarly and academic law makers in the country.

He has been the Finance Minister during Chandrika Kumaratunga's tenure in the '90s and later in the early 2000s.

Being one of the few personalities in the Ceylon Civil Service, he had served as GA, Director Government Media Department, and Chairman, Lake House and later as a senior Minister.

Rights Issue by KFP

The Board of Directors of Keells Food Products PLC has resolved that a Rights Issue of seven (7) Ordinary Shares for every ten (10) Ordinary Shares, at a price of Rs. 50 per share, be offered.

The Board has also resolved that in its opinion the price of Rs. 50 per share is fair and reasonable to the company and to all existing shareholders.

The total number of shares to be issued is three million five hundred thousand (3,500,000). The current stated capital of the company is Rs. 99,815,000. The proceeds of the rights issue will be utilized to fund the expansion plans of the company into India through its 100% owned subsidiary John Keells Foods India (Pvt) Limited.

The Rights Issue is subject to the Colombo Stock Exchange approving in principle the issue and listing of shares and obtaining of shareholder approval at a general meeting.

Fitch Upgrades ETI's Long-term Rating

Edirisinghe Trust Investments (ETI) National Long-Term Rating has been upgraded from a B+(lka) to a BB-(lka) in a recently released Fitch Ratings report. Chairperson Dr. Soma Edirisinghe said that "it is a reflection of our commitment to improving business processes and revenue streams." ETI completed the automation of all systems in its diverse business units in 2008, allowing it to operate more efficiently and effectively. Chief Executive Officer Mahendra De Silva said that "compared to our competitors, deposit growth rates are extremely high, giving us confidence that we'll not only be able to weather the financial storm but actually further strengthen our portfolio holdings.

Pathirana - People's Bank new CEO/GM

People's Bank announced the appointment of P. V. Pathirana as their new CEO/General Manager. He assumed duties on January 19.

Pathirana who has 37 years of experience at People's Bank, is a BSc Graduate in Business Administration and a Fellow Member of the Institute of Bankers of Sri Lanka (FIBSL). He also holds a Diploma in Bank Management from the Institute of Bankers of Sri Lanka.

His objective is to be in the forefront of empowering the sustainable development of the banking sector which will further develop the country's economy. Speaking on his vision for the bank under his leadership, Mr. Pathirana said, "Coming from the grass roots levels of the banking industry, I intend to, in keeping with the Government's 'Ten Years Horizon Development Plan 2006 - 2016,' which comes under the Mahinda Chinthana initiative as well as People's Bank's own extensive corporate plan, take this sector to greater heights. My aim is to further entrench the values of good governance, ethics and professionalism, to ensure that we provide an excellent service in the most caring and responsive manner possible."

John Keells Holdings PLC - second interim dividend

The Board of Directors of John Keells Holdings PLC will pay a second interim dividend of Re. 1 per share for the year ending 31st March 2009, the date of payment will be notified.

New Director at Distilleries

Dr. Naomal Balasuriya, motivational speaker and corporate trainer in Sri Lanka and Maldives was appointed an independent director of Distilleries Company of Sri Lanka.

A medical doctor turned entrepreneur, Dr. Balasuriya holds the unique distinction of being the first doctor of medicine in Sri Lanka to hold the degree of Master of Business Administration (MBA) and the CIM (UK).