Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» Daily Stock Market Update
by Insights Equity Today at 6:37 pm

by sikka89 Today at 5:54 pm

» Financial Reports Q-4 2018
by sikka89 Today at 5:50 pm

by sikka89 Today at 5:41 pm

» Sleeping giants-
by Chanaka303 Today at 4:56 pm

» MGT - Collect n keep
by Chanaka303 Today at 3:38 pm

» Any news on TKYO.N0000
by Thushara Ayya Today at 3:35 pm

» SFL deal price
by investo Today at 2:23 pm

» Can anyone recommend me a stock broker in Kandy
by Chanaka303 Today at 2:21 pm

» SFL, where will it end by March
by investo Today at 1:53 pm

» CTCE ලාභාංශ පුරොකතනය.
by dmtmadusanka Today at 10:22 am

by dmtmadusanka Today at 10:20 am

» "Don't ask the barber whether you need a haircut,"
by Asoka Samarakone Yesterday at 1:54 pm

» CSE halts trading of MTD Walkers’ shares
by Miss-Sangeetha Yesterday at 7:52 am

» Amibroker database
by Sonny Bill Sat Feb 16, 2019 10:18 am

by Miss-Sangeetha Sat Feb 16, 2019 9:42 am

» Weekly Stock Market Roundup
by Insights Equity Sat Feb 16, 2019 6:07 am

» SFL.P Going to hit 10 Dr.Sentavil Also Bought above 12
by NP Sat Feb 16, 2019 12:51 am

» Collect AAIC to win within six months
by wisdom79 Fri Feb 15, 2019 9:27 pm

by wisdom79 Fri Feb 15, 2019 9:21 pm

» Four more banks obtain enjoining orders against KAPI (MTD Walkers)
by Miss-Sangeetha Fri Feb 15, 2019 8:00 pm

» MTD Walkers (KAPI) face liquidation as Hayleys Group firm files winding up petition
by Miss-Sangeetha Fri Feb 15, 2019 7:57 pm

» INSURANCE bubble finally bursting!
by nosf766 Fri Feb 15, 2019 12:46 pm

by nishjaya Fri Feb 15, 2019 9:57 am

» Deal Waligama Property to be sell EAST Interesting
by soileconomy Fri Feb 15, 2019 8:13 am

by Yahapalanaya Fri Feb 15, 2019 7:42 am

by Yahapalanaya Fri Feb 15, 2019 7:29 am

by dmtmadusanka Fri Feb 15, 2019 6:22 am

by sikka89 Thu Feb 14, 2019 11:15 pm

» Daily Foreign Transactions
by sikka89 Thu Feb 14, 2019 10:31 pm

» Exit KAPI today
by karuna2 Thu Feb 14, 2019 11:17 am

» HEXP hidden gem share
by anges Wed Feb 13, 2019 11:49 pm

by NCC Wed Feb 13, 2019 12:30 pm

» why MFL is collecting ?
by suku502 Wed Feb 13, 2019 12:24 pm

» Whats going on with KAPI
by NP Wed Feb 13, 2019 9:43 am

» __________Bank Instrument & Investment Lease And Sales for Global Investments & Financing____
by sakchai Wed Feb 13, 2019 2:27 am

» DIAL is it best to buy
by TuTanKaman Tue Feb 12, 2019 2:34 pm

» Brokers බොරු කියන්නේ
by karuna2 Tue Feb 12, 2019 9:20 am

» BFN 15.60 - 16 - 16.5 මිලට වැටෙන්නේ ඇයි
by karuna2 Tue Feb 12, 2019 9:19 am

by sanjulanka Tue Feb 12, 2019 7:17 am

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka's EPF loses most from Laugfs, Dockyard, Carsons; gains from banks

Sri Lanka's EPF loses most from Laugfs, Dockyard, Carsons; gains from banks

Go down  Message [Page 1 of 1]


Senior Equity Analytic
Senior Equity Analytic
ECONOMYNEXT - Sri Lanka's Employees Provident Fund, managed by the central bank has lost 9.2 billion rupees on its stock portfolio up to June 2018 despite investments in banks gaining it about 9 billion rupees led by Sampath Bank, a report from the agency said.

The stocks have been bought at different times, but among the most controversial were those made at the height of a stock market bubble which ended around 2011.

The Employees' Provident Fund (EPF) Department on January 16 said the 2 trillion rupee fund made up of private sector employee retirement savings has lost 8.4 billion rupees in the value of stocks held for investment, since it first purchased each stock, up to June 2018.

This was a fall of 10.9 percent to 68.88 billion rupees.

Stocks held for trading lost 24.9 percent of their value, or 742.7 million rupees, with the biggest hit coming from Aitken Spence and its hotel subsidiary.

The EF had lost about 2.0 billion rupees on Colombo Dockyard shares which It had bought for 2,791 million rupees and was in its books at 765 million rupees, losing about three fourths of the value.

Market value of Laugfs Gas Plc voting and non-voting stocks fell 56.9 percent or 1.9 billion rupees. Voting stock the EFP bought for 2.68 billion rupees was worth 1.15 billion rupees, by June 2018.

A 1.7 billion rupee fall in value came through Carsons Cumberbatch Plc, which is currently attempting to delist most of its companies from the stock exchange, with the initial investment value down 64.5 percent compared to the market value in June 2018.

The EPF had bought Carsons Cumberbatch, which owned several Malaysian oil palm firm, for 2.59 billion rupees, but it was now worth 919 million rupees.

Another 1.7 billion hit came from Carsons oil palm unit Bukit Darah Plc. Bukit stock had been bought for 2.3 billion rupees and was now worth 577 million rupees.

Over a billion rupees each were also slashed from market values of Browns & Co Plc, the troubled The Finance Company Plc and the John Keells hotel subsidiary Asian Hotels & Properties Plc.

In total 43 stocks lost value for EPF shareholders after being bought, out of 66 stocks held in the investment portfolio.

Five of the six bank stocks, adding 9 billion rupees to market value of the investment equity portfolio.

Sampath Bank, Hatton National Bank and Commercial Bank, three of the country's systemically important banks, contributed 88.8 percent to the gain.

Sampath stock bought for 4.8 billion rupees were worth 8.4 billion rupees.

DFCC was the sole bank to lose market value after being purchased by the EPF, devaluing by 842.1 million rupees or 24.8 percent.

The central bank has been criticized for buying bank shares through the EPF, as the central bank then becomes both a controlling shareholder and the regulator, but had bought the most gains.

The EPF had invested 10.8 billion rupees in companies not listed publicly, most of which had generated had not paid dividends up to end-2017, the central bank said in a disclosure under the right to information law in 2018.

Sri Lanka's stock market is now at lower price to earnings multiples, unlike the 2011 bubble, leading to some making a cases for it to enter the market.

Current governor Indrajit Coomaraswamy had said that corporate Sri Lanka was going at 'fire sale' prices.

Coomaraswamy had said he was setting up a more transparent framework for stock market investments.
He had said stock investments make up around 2.5 percent of EPF assets,  and the central bank plans to increase this to around 5 percent. 

The EPF dealers had earlier made controversial 'pump and dump' deals with some market participants in the run up to 2011, earning it the sobriquet 'buyer of last resort.'

Some critics suspect that the relationships made at the time made the so-called 'bondscam' possible.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum