Ceylon Investment PLC and its associate company Rubber Investment Trust Limited recorded a net profit of Rs.429 million for the six months ended 30 September 2009, a growth of 28% from the corresponding period in 2008.
According to Ceylon Investments interim financial statements, the mainstream investment business of the company showed an increase in profits with a dramatic turnaround at the Colombo Bourse during the period of review. Hence, the company stated that profits from investment activities were Rs.205 million derived from dividend income, interest income and realized gains.
The company said it has recommended a share repurchase of 20% of the issued shares at an attractive price of Rs.189 for shareholders, keeping in line with the underlying net asset value of the share based on the 30 June 2009 interim financials. The total repurchase is valued at Rs.913 million. The company also stated that although the global economy is expected to shrink in 2009 by 0.5% to 1% with most developed economies facing recessions, many global equity markets have slowly and steadily recovered in 2009 since the anticipated fallout has been milder than expected.
Ceylon Investments further stated that in the first quarter of the financial year, activity at the Colombo Bourse too declined with most investors shunning the equity market given the fear of the financial crisis spreading to Asian countries. However, due to a remarkable turn of events in Sri Lanka with the end of the war, the Colombo Bourse is up 106.1% as per market highs recorded in 2009 and is rated the second best performing market in the world.
The company stated that during the period under review, Ceylon Investments built positions in identified companies in selected sectors such as banking and finance, retail, food and beverage and diversified sectors identified to be growth sectors in the future. |
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