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CSE indices reach all-time high; market resumes bull run

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By Hiran H.Senewiratne

The CSE yesterday began on a positive bullish note with sharp gains in both indices, propelling them to an all – time high amid robust turnover. It is said that the All-Share Price Index reached the 11796 mark or 116 points, stock analysts said.

With the extending of the import restrictions in the recent budget, local manufacturing sector counters noted some positive gains, especially in the tile sector. Amid those developments, throughout the day, the stock market was positive and the rally was driven by Expolanka Holdings, which surpassed Rs 700 billion with Rs 737 billion in market capitalization, which accounts for 14 per cent of the overall market capitalization in the CSE, analysts said.

The Expolanka share price appreciated by Rs 26.75 or eight points. Its share price shot up to Rs 377 from Rs 300.25, thus contributing 117 points to the All- Share Price Index. Profit- takings were witnessed in LOLC Group of companies but did not happen in a significant manner, market analysts added.

The All- Share Price Index gained by 2.00 per cent or 116 points and the S&P SL20 shot up by over two per cent or 48.6 points. Turnover improved to Rs. 8.5 billion, involving a whopping 533 million shares with five crossings. Those crossings were reported in Chevron Lubricants, which crossed 277,000 shares to the tune of Rs 38 million and its shares traded at Rs 108, Expolanka Holdings 80000 shares crossed to the tune of Rs 28.6 million; its shares traded at Rs 358, Resus Energy 750,000 shares crossed for Rs 26.6 million; its shares fetched Rs 35, Lanka IOC 600,000 shares crossed for Rs 23.8 million and its shares traded at Rs 39.70 and Windforce 1.3 million shares crossed for Rs 23.3 million, its shares traded at Rs 18.70.

In the retail market five companies that mainly contributed to the turnover were; Expolanka Holdings Rs 1.8 billion (4.9 million shares traded), Browns Investments Rs 635 million (44.7 million shares traded), Resus Energy Rs 457 million (12.6 million shares traded), ACL Cables Rs 358 million (3.5 million shares traded), Hayleys PLC Rs 335 million (2.8 million shares traded), Vallibel One Rs 322 million (four million shares traded) and LOLC Holdings Rs 322 million (273,000 shares traded).

It is said the Capital Goods sector was the top contributor to the market turnover (due to Brown & Company), while the sector index gained 2.11 per cent. Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), while the sector index increased by 3.47 per cent. During the day 533 million share volumes changed hands in 58000 transactions.

Moreover, Kapruka and Co-operative Insurance will go for IPOs. Kapruka will start their initial offering to the public on December 22. The company will issue 32.8 million shares at a share value Rs 15.40 to raise Rs 5.5 million. With those funds they expect to expand, develop and upgrade infrastructure while launching a Kapruka digital platform. Co-operative Insurance will issue 166 million shares at a share price of Rs 3.60 to raise Rs 600 million. The objective of the IPO would be to expand and strengthen the asset portfolio, digital transformation of the business by leveraging IT and to construct a salvage yard at Ja-ela.

Yesterday, the US dollar rate was quoted at Rs 201.87, which was the controlled price set by the Central Bank to prevent price escalations in imported essential items. This artificial price suppression could negatively impact the economy. But a US $ one billion worth swap by the Indian government will give some economic relief in the short term, analysts said.



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Berendina bags Silver at the CA Sri Lanka 56th Annual Report Awards

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From left: Sarath Chandra Fernando - Director-BMIC, Charith Fernando - Deputy Managing Director-BMIC, Saman Manatunga - Acting Head of Finance-BMIC, Dilhara Jayasinghe - Assistant Manager Compliance & Corporate Relationship-BMIC, Ranel T Wijesinha - Past President CA Sri Lanka, Jagath Godakanda – Chairman-BMIC, Chaaminda Kumarasiri – Chairman-Annual Report Awards Committee 2021 and Chamila Cooray - Alternate Chairperson-Annual Report Awards Committee 2021

Berendina Micro Investments Company Limited, better known as BMIC among its microfinance clientele and partners, won the Silver award at the 56th Annual Report Awards organized by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), under the category of Finance Companies and Leasing Companies (total assets up to Rs. 20 Billion). Over 70 companies, ranging from conglomerates, multinationals to non-profit organisations, and SMEs, were honoured at this year’s competition for their excellence in financial reporting. The gala event of this year held on 09th December 2021 at BMICH. Being the first Microfinance Company licensed by the Central Bank of Sri Lanka, BMIC is no stranger to this annual competition having won a prestigious Gold Award in 2017 and Merit Award in 2018.

The award from CA Sri Lanka is the fourth award to be won by BMIC during the financial year 2021, having won 3 international awards, namely, ‘The Best Microfinance Company in Sri Lanka’ and ‘The Best Agricultural Lending Company in Sri Lanka’ awards from the UK based Global Banking and Finance Review magazine as well as ‘Donor’s Choice Award’ at the international competition conducted by SCALE Green Creative Adaptation Awards in USA in 2021. Focused on poverty alleviation, BMIC as a Microfinance Institution (MFI) extends micro-credit facilities and enterprise development services that ensure long term sustainability and growth of business ventures of its clients, providing loans at the lowest interest rate compared to other MFIs in Sri Lanka. At present, BMIC manages a loan portfolio of over Rs. 3.1 billion and an annual turnover exceeding Rs. 900 million. It supports well over 70,000 microfinance clients through its 30 Branches in 11 districts. The CA award bestowed on BMIC is another testament to its commitment in continuously supporting its clients to overcome the obstacles during difficult times, while preserving its transparency in reporting, corporate governance, sustainability and social responsibility.

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SLIC repositions Business Club insurance with more focus on SMEs

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Sri Lanka Insurance last week announced repositioning of its Business Club insurance, a trade insurance policy which provides a comprehensive business insurance solution to fit for the diverse insurance need of small and Medium enterprises (SME).

“According to the Export Development Board of Sri Lanka SMEs are considered to be the backbone of the economy with a contribution up to 52% of the GDP. SMEs play a crucial role to battle the poverty in the country providing employment opportunities for the youth as the SMEs does not require capital than large firms. Further SMEs increase tax bases much quickly when compared to large firms,” an SLIC news release explained.

“Recognizing the importance and vital contribution made to the economy by SMEs, Sri Lanka Insurance went back to the drawing board to refine the “Business Club” comprehensive insurance solution to cater to the unique requirements of the businesses,” it said.”

“Therefor the insurance solution was developed to reinforce the success and safety of the businesses.”

The insurance plan will provide protection for any businesses be it retail, grocery store, supermarket, pharmacy or any other covering many perils inclusive of environmental dangers such as floods, cyclone, fire, lightning as well as other factors such as breaking and burglary, SLIC explained.

The release further said an array of main covers are available for businesses inclusive of fire and/or lightening, explosion, malicious damage, aircraft damage, earthquakes along with the free covers such as cost of removal of debris, loss of rental, architect, surveyors, consulting engineering fees, cost of alternative accommodation etc..

A range of additional covers are also available at an additional premium for businesses to choose. Money insurance during transit and while at premises, accidental breakage of glass cover, sign board cover, electronic equipment all risk cover are among the many additional covers offered.

Interested parties who’d like SLIC to assist in developing an insurance solution that covers the business risks can contact SLIC call center on 011 2 357 357.

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German fruit and tea importers stresses importance of packaging

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Jan Paul Bethke, a leading German importer of Sri Lankan fruits and tea, at a recent

EDB-organized event, urged Sri Lankan agri-product exporters to practice effective and superior packaging if they are to be successful in terms of capturing markets in Europe.

“If you package your product well, include a QR code (incorporating extensive details such as the farmer who grew products), and convey a personalized story, customers in advanced markets such as Germany and Europe would develop an affinity with your products”, Bethke noted.

He made these remarks at a Jan. 12 forum forum organized by the Sri Lanka Export Development Board (EDB) on packaging and value addition strategies to enhance Sri Lanka’s agri-product exports to Germany, an EDB news release said.

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