Sri Lankan stocks hit 1-year high on rate-cut hopes

(Reuters) - Sri Lankan shares rose to one-year closing highs on Friday, led by gains in banking shares on expectations of a further 50 basis points rate cut in the next week's central bank policy rates announcement, dealers said.

The main stock index rose 0.70 percent, or 43.86 points, to 6,337.22, its highest close since June 10, 2013.

"The market is broadly expecting a 50 basis point rate cut next week," a stockbroker said on condition on anonymity. "There has been a lot of expectations that there could be another rate cut. We see some debenture issues have been scheduled in the near future at a rate below the current market rates."

The central bank has reduced its key policy rates to multi-year lows, but has not yet seen any improvement in credit and import growth. March credit growth slowed to a four-year low of 4.3 percent year-on-year.

Central bank governor Ajith Nivard Cabraal told Reuters on May 30 that the central bank was creating room to cut interest rates further.

The central bank will announce its June monetary policy rates on June 18.

Continued foreign buying and expectations of interest rate cuts have boosted sentiment and the market has been on a rising trend since late February.

The bourse saw a net foreign inflow for the 11th straight session.

Foreign investors bought 176.9 million rupees ($1.36 million) worth of shares on Friday, extending the net inflow for the past 11 days to 3.71 billion rupees worth of shares. They have been net buyers of 5.55 billion rupees so far this year.

Turnover was 809.3 million rupees, below this year's daily average of 1.01 billion rupees.

Shares in fixed line telephone operator Sri Lanka Telecom Plc rose 2.35 percent to 48 rupees, leading the gains in the overall index.

Palm oil firm Bukit Darah Plc advanced 2.9 percent to 650 rupees.

Financial firm Orix Leasing Co Plc rose 4.01 percent to 90.80 rupees, while Commercial bank of Ceylon Plc rose 1.36 percent to 133.80 rupees. 

($1 = 130.2400 Sri Lankan Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka shares close up 0.7-pct

June 13, 2014 (LBO) - Sri Lanka's shares closed 0.70 percent higher on Friday ending the week on a strong note, brokers said.

The Colombo benchmark All Share Price Index closed 43.86 points higher at 6,337.22 up 0.70 percent. The S&P SL20 closed 28.45 points lower at 3,476.58, down 0.22 percent.

Turnover was 809.41 million rupees, down from 1.40 billion rupees last Wednesday with 142 stocks closed positive against 56 negative.

John Keells Holdings closed 50 cents lower at 234.00 rupees with an off-market transaction of 109.51 million rupees changing hands at 234.50 rupees per share contributing 14 percent of the turnover.

JKH’s W0022 warrants closed 1.00 rupee lower at 62.00 rupees and its W0023 warrants closed 10 cents lower at 72.00 rupees.

Hayleys Mgt Knitting Mills closed 2.20 rupees lower at 11.10 rupees, attracting most number of trades during the day.

Foreign investors bought 345.39 million rupees worth shares while selling 168.52 million rupees worth shares.

Nestle Lanka closed 47.10 rupees higher at 1,997.00 rupees and Sri Lanka Telecom closed 1.10 rupees higher at 48.00 rupees, contributing most to the index gain.

Lanka Orix Leasing Company closed 3.50 rupees higher at 90.80 rupees and Commercial Bank of Ceylon closed 1.80 rupees higher at 133.80 rupees.

Oil palm firm Bukit Darah closed 18.30 rupees higher at 650.00 rupees and CT Holdings closed 5.30 rupees lower at 135.20 rupees.

Dhammika takes Co-Chairman role at Hayleys, three other firms

Business leader and major shareholder Dhammika Perera has assumed a new role as Co-Chairman in Hayleys Plc, in addition to three other firms under his control.

Previously Dhammika was Deputy Chairman at Hayleys Plc., with Mohan Pandithage as Chairman and Chief Executive. The new designation of Co-Chairman will be non-executive. Dhammika directly controls a 46% stake in Hayleys Plc.

Dhammika will also be Co-Chairman at Lanka Tiles Plc and Lanka Ceramics Plc, in both of which Nimal Perera is the Chairman, as well as The Kingsbury Plc., in which Pandithage is the Chairman. In these three companies Dhammika already serves on the respective Boards.
www.ft.lk