      Business Editor : Eriq Dewanarayana |
Business Editor : Eriq Dewanarayana |
There was strong all-round demand for teas on offer in the Ex-Estate catalogue. Western BOPFs continued to attract strong demand and moved up in value. Price gains were more significant however for the below best and at the bottom end of the market. The feature of the sale however was the sharp increase in the prices for BOPs. The bottom end of the market as forecast by us previously, has turned around and is now quoted at around Rupees 100 per kilo. This is a 20% increase on the lowest levels reached just three weeks ago.
Best Low Grown leafies were lower once again, but price drops were not as marked when compared with the two previous sales. Other leafy teas together with semi and small leaf types generally sold at around last weeks levels. The exceptions being the Ops which moved up in value, whilst some semi leaf types were not as strong.
The weather has been unusually erratic so far this month and most of September. Continual morning showers restricted production on the western side of the island whilst eastern slopes saw very little rain. Ex-estate offerings have declined sharply as a result, with the catalogue for the sale of 18th November which closed this week carrying around six hundred thousand kilos, one of the smallest sales this year.
Further it is a 40% drop on the million kilos that came up on offer at the auction of 30th September. The western side has dried up, but Uva could do with more rain. Crop is unlikely to increase immediately. The Minister of Trade leads a delegation of tea traders to Iraq this weekend it is likely that negotiations would clear the way for direct trade between the countries under the Oil for Food deal.
— Asia Siyaka
Time Management Seminar for Managers
Mansoor Ghouse’s classic Executive Time Management Seminar (TIMEX) will be sponsored by the Lions Club of Colombo (Host) for presentation on 18th November 1998 at the Colombo Hilton.
Typically, managers are caught in a time trap. How to focus on the vital few amid a tide of trivial manys, how to distinguish between the important and the urgent, how to cope with the classic Time Wasters — interruptions, visitors, phone calls, and meetings will be addressed in the seminar.
Among the 49 Time Management techniques highlighted in the seminar will be a demonstration of how to gain 1-1 1/2hrs per day in one stroke! Most managers will give their eye teeth of know how that’s accomplished. Another is how to use a surprisingly simple $10,000-value tool to do more in less time.
Registration particulars can be had from the Co-ordinator Mr. Nihal Ranasinghe — Tel-323441: Fax-447674.
Speculation will lead the rest
Expectations did not materialize. The Dow Jones lead rally could not do much to Asian markets. The Japanese economy continued to show signs of deterioration while state spending did not stimulate the required growth of 8% making the devaluation of Chinese Yuan inevitable in the medium term.
Domestic sentiment cntered around the much awaited budget coupled with the growing speculation of an election year. The impact on the capital market from the upcoming budget appears to be minimal with some incentive for the debt market.
As expected the market continued to show sluggish signs with the All Share fluctuating within 489-498. The ASI shows great resistance to pass 500 while the Sensitive Index gained 21 points to close at 723. The turnover was moderate with greater foreign interest. The week witnessed changing hands of large quantities.
Foreign investors showed some optimism in trading though a net foreign outflow was witnessed on three days. They focused on a few growth potential blue-chips. The net foreign inflow for the week was Rs. 0.73 million while sales amounted to Rs. 61.71 million.
Speculation continued on the outcome of the upcoming budget and the slow moving economic indicators. In a surprise move, the Rupee showed a greater decline over the last few days. The selling price of the US$ touched Rs. 67.11, though the speculations are for the SLR to hold in the short term. The signs of a prosperous winter too appears to be bleak while interest rates show seasonal increases.
The budget is expected to look at critical economical issues as the year ahead seems to be gloomy for the global economy. With an overall expenditure of Rs. 339 billion and a deficit of approximately Rs. 100 billion, the economy requires tough measures.
The week ahead may be ideal for speculators with a focus on stocks such as Asian Hotels, Asia Capital, Aitken Spence, Lion, Vanik, Maskeliya while fundamentals may drive JKH, NDB, Commercial Bank, Grain Elevators, Dockyard and Tokyo Cement.
MMBL Group Research
Allied Phillip Securities
