Tokyo Cement shares appreciate in the wake of plans to increase production

By Hiran H.Senewiratne 

Tokyo Cement Company (Lanka) PLC said  it expected to sign a Supplementary Agreement with the Board of Investment (BOI) to increase production of ordinary Portland Cement and hydraulic cement by one million tons per year at its existing location at Cod Bay, China Bay, Trincomalee.  

Following the announcement  Tokyo Cement voting and non voting share prices appreciated. Its voting share price moved up by Rs. 1.90 or three percent. Voting shares started trading at Rs. 61 and at the end of the day they moved up to Rs. 62.90. Non voting shares increased by Rs. 2.20 or 4.2 percent. Its shares started trading at Rs. 52 and at the end of the day they moved up to Rs. 54.20. It said, based on preliminary estimates, the project would cost approximately $ 12 million and translated at the current exchange rate it works out to Rs. 2.28 billion. It will be financed mainly by internally-generated funds and bank borrowings. The project is expected to be completed in 24 months.

The company said it would not be entitled to any exemptions from income tax and Customs duties on importation of project-related items required for the expansion unit.

Amid those developments  both CSE indices moved up yesterday. The All Share Price Index was up by 24.11 points and S and P SL20 up by 7.19 points. The turnover stood at Rs. 1.5 billion and no crossings were reported.

In the retail market, top five companies that contributed to the turnover were JKH Rs. 161 million (1.5 million shares traded), Expolanka Rs. 154.5 million (5.9 million shares traded), Distilleries Rs. 89.3 million (4.3 million shares traded), Dipped Products Rs. 88,4 million (277,000 shares traded) and Softlogic Life Rs. 65.8 million (2.1 million shares traded). During the day 51.1 million share volumes changed hands in 14960 transactions.

During the day, index heavy Distilleries share prices appreciated, which contributed more than 12 points to the All Share Price Index. Shares witnessed a Rs. 1.10 or 5.6 percent appreciation yesterday. Shares started trading at Rs. 19.50 and at the end of the day they moved up to Rs. 20.60. The company has also announced a dividend payment for shareholders, which is 42 cents for every share.  

Sri Lanka rupee quoted slightly stronger at 184.90/40 to the US dollar in the spot market on Friday, while gilt yields remained unchanged in dull market trade, dealers said. The rupee closed at 185.10/30 to the US dollar on Thursday.