      Business Editor : Eriq Dewanarayana
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Business Editor : Eriq Dewanarayana
|
Stock Market Weekly
Consolidation is in the AgendaFed failed in their strategy to induce economic growth in the US and the same with Bank of Japan. Japanese economy shrank 3.5% during the third quarter and for the first time in the history the GDP has declined consecutively for four quarters. The global recession is in progress but not for very long. Within this scenario, the regional markets are likely to consolidate in the next six months. The same is expected in Colombo.
The dull week of trading did not live up to expectation. Marginal fluctuations within a narrow range were witnessed. During the week, the All Share index declined by 9 points to close at 557. While Sensitive Index lost 25 points. Low turnover levels reflected the passive institutional activities. Retailers took profit, wherever possible.
Foreign investors took a back seat with their contribution continued to be below 30% except for Wednesday. The week ended with net outflow of Rs. 21 million while foreign purchases amounted to Rs. 60 million.
International financial flows have become irregular since Fed cut interest rates three times last month. The expected boom in the Asian markets is yet to emerge. Within this context, its unlikely that Colombo could attract foreign investors except for selective investments. The economic indicators too are not in an impressive mode.
Winter appears to be better than expected with tourist arrivals growing at 6% for the month of September. The growth is mainly from Britain, Germany and France. Most of the beach resorts confirm full occupancy till end January.
The proposed increase in container handling charges is likely to add fuel to already high transaction cost of Sri Lankan exports it's a wrong move at the wrong time. Exports growth rate has slowed down during the period Jan.-Sep. 1998.
The upcoming NWPC election on Jan 25 will be a crucial test for state policies. Whatever the outcome, the event is likely to create an uncertain climate for investments. The outcome is unlikely to have a significant impact on the bourse.
The year-end usually welcome bargain hunters which may induce appreciation of fundamentally sound stocks. Our recommendation includes Dockyard, Grain Elevators, Commercial Bank, Sampath, JKH. Tokyo Cement while Asia Capital is envisaged as a long-term investment Vanik is ideal for the speculative investor.
MMBL Group Research
For MMBL Phillip Securities Limited
Mobitel facilities for journalists
A press release from Mobitel says: 'Members of the Western Province Mass Media Forum were granted the facility of purchasing mobibe telephones through a special loan scheme approved by the Bank of Ceylon. Accordingly, about 50 Mobitel mobile telephones were purchased through Mobitel's dealer, Abans Ltd.
In the field of communication, a reliable network is essential. The speed, response and clarity provided by Mobitel will meet this need. Mobitel being a leader in the communication industry, are happy to be associated with these communications and we look forward to making their profession more meaningful and assessable,' said Ms. Cathy Aston, MD/CEO, Mobitel at a ceremony convened to hand over the Mobitel mobile phones to the Western Province Mass Media Forum.
The Bank of Ceylon has provided the journalists with long-term repayment facilities on very concessionary terms for purchasing these mobile telephones. Meanwhile, Mobitel is working out a special arrangement with the Bank of Ceylon, to extend this facility to all journalists islandwide.
