Sri Lankan shares fall after five days of gains

(Reuters) - Sri Lankan shares fell on Wednesday after five days of gains as investors booked profits in large caps despite moderate foreign inflows into the island nation's risky assets.

The main stock index fell 0.31 percent, or 19.06 points, to 6,172.77, slipping from its highest close since Feb. 3 hit in the previous session. The day's loss erased around 8 billion rupees worth market capitalisation of the bourse.

The bourse gained 1.61 percent in the five sessions through Tuesday as lower interest rates helped to attract some retail investors, stockbrokers said.

The benchmark 91-day treasury bill yield dropped 3 basis points to 6.58 percent, the lowest since January 2007 when the central bank made available data.

The central bank on Tuesday kept policy rates steady at multi-year lows, as expected, and expressed confidence that private sector credit growth would rebound in the second quarter and push up the pace of economic expansion.

The day's turnover was 670.8 million rupees ($5.14 million), less than this year's daily average of 963.6 million rupees.

The bourse saw net foreign inflows for a 10th straight session. Offshore investors bought 109.6 million rupees worth of stocks, though they have sold a net 7.59 billion rupees of shares so far this year.

Shares in Ceylon Tobacco Company PLC fell 1.16 percent to 1,105.20 rupees, while Bukit Darah PLC lost 5.34 percent at 541 rupees.

Shares in top conglomerate and market heavyweight John Keells Holdings PLC fell 0.38 percent to 239 rupees.

Stockbrokers expect the nation's $19.79 billion bourse to gain in the short term due to prevailing lower interest rates.

Analysts, however, said foreign investors could shift from the island nation's risky assets if Sri Lanka does not cooperate in an international probe by the Office of the United Nations' High Commissioner for Human Rights into the country's alleged war crimes and human rights abuses.

Sri Lanka's foreign minister had said earlier this month that the country would not cooperate with the inquiry.

($1 = 130.6000 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka Treasuries slightly down

Apr 23, 2014 (LBO) - Sri Lanka's 3 and 12 month Treasuries edged lower at Wednesday's auction, with the 6-month yield flat the state debt office said.

The 3-month yield fell 03 basis points to 6.58 percent, the 6-month yield was flat at 6.79 percent and the 12-month yield fell 01 basis point to 7.02 percent.

The debt office said 500 million rupees in 3-month bills, 2.0 billion in 6-month bills and 12.3 billion in one year bills totaling 14.8 billion rupees were sold after offering 12.0 billion for rollover.

Sri Lanka shares end down 0.3-pct

Apr 23, 2014 (LBO) - Sri Lanka's shares end 0.31 percent lower with tobacco and diversified stocks losing ground, brokers said.

The Colombo benchmark All Share Price Index closed 19.06 points lower at 6,172.77 down 0.31 percent. The S&P SL20 closed 23.87 points lower at 3,373.55, down 0.70 percent.

Turnover was 670.86 million rupees, up from 551.13 million rupees a day earlier with 68 stocks close positive against 95 negative.

Hatton National Bank closed 1.90 rupees lower at 155.10 rupees with an off market transaction of 70.65 million rupees contributing to 11 percent of the daily turnover.

Hatton National Bank non-voting closed 1.00 rupee higher at 125.00 rupees with an off market deal of 37.50 million rupees contributing to 6 percent of the turnover.

All off market transactions accounted for 21 percent of the total turnover.

Orient Garments closed 1.20 rupees higher at 16.00 rupees, trading heavily on the market.

Foreign investors bought 282.34 million rupees worth shares while selling 172.73 million rupees worth shares.

Bukit Darah closed 30.50 rupees lower at 541.00 rupees and Ceylon Tobacco Company closed 13.00 rupees lower at 1,105.20 rupees, contributing most to the index drop.

Lion Brewery Ceylon closed 9.90 rupees lower at 390.10 rupees and John Keells Holdings closed 90 cents lower at 239.00 rupees.

JKH’s W0022 warrants closed 1.20 rupees lower at 69.00 rupees and its W0023 warrants closed 60 cents higher at 75.60 rupees.

Commercial Bank closed 1.10 rupees lower at 126.80 rupees and Hemas Holdings closed 20 cents lower at 41.80 rupees.

SLT closed 1.10 rupees higher at 46.70 rupees and Dialog Axiata closed 10 cents higher at 9.30 rupees.

Carson Cumberbatch closed 8.60 rupees higher at 387.00 rupees and Asian Hotels and Properties closed 1.70 rupees higher at 66.80 rupees.

Distilleries closed flat at 205.50 rupees.

Crown bidding to expand casino empire

By Mario Andree

Ceylon FT: Australian gaming tycoon James Packer, who currently is constructing a US$ 350 million resort in Sri Lanka after the Cabinet approved the project, is bidding to develop several casinos in other countries.

According to a recent media report, Crown Resorts is bidding for a US$ 2 billion casino in the gaming hot spot, Las Vegas, and a US$ 1 billion project in Brisbane, Australia.

While many other investors were eyeing other lucrative destinations moving on, the Australian gaming kingpin has shown interest on a three year old casino and hotel complex in Las Vegas owned by Deutsche Bank. Further, the firm after winning the right to operate a VIP gaming facility in Sydney was also bidding for a US$ 1 billion casino project in Brisbane, Australia to expand its casino empire.

The company is building new casinos in Sri Lanka and the Philippines, and has expressed an interest in building a US$5 billion-plus casino and resort in Japan, Australian Financial Review said.

James Packer, controlling shareholder of Crown Resorts, entered Sri Lanka last year to develop a casino resort in Colombo with an investment of US$ 350 million tied up with Sri Lanka's Rank Holdings.

The Ministry of Investment Promotion and the Board of Investment approved the project and gave the green light to commence construction of its hotel without the casino facility.

However, the opposition has alleged that the Ministry of Investment Promotions and the Board of Investment had covered the inclusion of casino facilities in the project after revising the original Gazette notification and renaming it as associated facilities.
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Sri Lanka vehicle registrations up 4-pct in March, commercial vehicles weak

Apr 22, 2014 (LBO) - Sri Lanka's vehicle registrations rose 4 percent to 26,921 in March 2014 from a year earlier picking up from lull in February with commercial vehicles showing weakness, a research report showed.

Total registrations fell to 23,199 in February from 27,913 in January with a shorter month and less working days, an analysis of vehicle registry data by J B Securities, a Colombo based brokerage shows.

Motor car registrations were slightly down from a year earlier, with hybrids continuing to lead, and motor cycle sales were up, but many commercial vehicle categories were weak.

Three wheeler sales were down 12 percent to 6,014 in March from a year earlier, though recovering from a slump of 5,264 in February.

JB Securities said financing companies were requiring lower loan to value ratios amid stress in the segment.

Mini trucks (less than one tonne payload) were down 14 percent to 1,000 units from a year earlier, though recovering from 731 units in Febraury, with Indian made products dominating.

There were 527 of Tata Ace units and 416 Mahindra units.

Heavy trucks were down 31 percent to 121. The financing share was down to 67 percent from 80 percent a year earlier. JB Securities said the segment was distressed with a lot of repossessed units in the market dampening sales.

Motor car registrations to 7 percent to 1,694 in March from a year earlier with more than half (894) made up of hybrids. Hybrids were up 88 percent from a year earlier.

Of the total 559 units were Toyota (Aqua and Prius) and 327 units were Honda (Fit).

More people were buying cars on financing arrangements with the share going up to 57.6 percent from 42.2 percent a year earlier, JB Securities said.

Motor cycle sales were up 19 percent to 15,965 in March from a year earlier. Financing share of motor cycles were also up to 62.3 percent from 56.7 percent a year ealier.

Lease finance rates have eased over the past year with Sri Lanka recovering from a balance of payments crisis, triggered by credit taken by state enterprises from state banks to subsidize energy.

87.5% shareholders agree to de-list Asiri Central Hospital

By Mario Andree

Ceylon FT: Majority of shareholders of Asiri Central Hospital PLC., Asiri Hospital Holdings is the major shareholder, have agreed to de-list from the Colombo Stock Exchange and accepted the offer price of Rs 275 per share.

Asiri Central Hospital was one of the first three de-listing announcements since the Colombo Stock Exchange introduced the minimum public float requirement.

Ceylon FT in January (20) reported that many corporates queried how to de-list from the stock exchange when the securities market's watchdog introduced the minimum public float requirement to be listed.

At an Extraordinary General Meeting held recently By Asiri Central Hospital PLC., 87.5% of shareholders have agreed to de-list the company and authorized and empowered the directors and the company secretaries to practise necessary requirements to delist, with modifications deemed fit in the best interest of the company.

The shareholders resolved as a special resolution granted the approval for Asiri Hospital Holdings to purchase shares at Rs 275 per share from stakeholders who wish to divest holdings.

Further, it was also resolved, that the company be re-registered as a public company under the Companies Act of 2007 by the name of Asiri Hospital Central Hospital Limited, through a special resolution.
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Nimal buys 2% stake of Royal Ceramics

High net worth investor and Managing Director Nimal Perera this week picked up a 2% stake of Royal Ceramics Plc (RCL) for over Rs. 200 million, propelling the share price.

The bulk of the buying had been on Monday including a block of two million shares at Rs. 95 each, seller of which was RCL Chairman and longstanding shareholder A.M. Weerasinghe.

Overall 2.6 million RCL shares changed hands, hitting a high of Rs. 97 before closing at Rs. 95.20, up by Rs. 6.40.

Nimal had also picked up available quantities yesterday as the RCL share price gained to a high of Rs. 97 before closing at Rs. 95.70, up 50 cents. Last week RCL gained by Rs. 6.10 to close at Rs. 88.80 though only 0.67 million shares traded.

RCL’s net asset per share is around Rs. 60. Weerasinghe as at end 2013 held 7.14 million shares or 6.45%.

RCL’s bottom line in the first nine months of FY14 was down by 68% to Rs. 333 million whilst after tax profit was down by 31% to Rs. 816.8 million. The Group’s post-tax profit in the third quarter saw a rebound, improving to Rs. 576 million from Rs. 496 million in the corresponding quarter of the last financial year.
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