Sri Lanka index ends 7-day rising streak; slips on profit-taking

(Reuters) - Sri Lankan stocks fell on Friday from the previous session's 33-month closing high, snapping a seven session winning streak, as local investors booked profits in an overbought market, stockbrokers said.

The bourse had gained 4.5 percent in seven straight sessions through Thursday and is in the overbought region since July 3, fuelled by lower interest rates and continued foreign buying.

The main stock index fell 0.11 percent, or 7.46 points, to 6,661.40, slipping from its highest close since Oct. 10, 2011.

"There was a bit of profit-taking. The market is little overbought but it will recover next week," a stockbroker said on condition of anonymity.

Foreign investors, however, were net buyers of 100.9 million rupees worth of shares on Friday, extending the foreign inflows to 9.39 billion rupees worth of shares so far this year.

Analysts see room for gain with a P/E ratio of around 14.5 and resistance level at 7,000.

The fall was led by Commercial Bank of Ceylon PLC, which was down 1.48 percent to 146.30 rupees a share. Carsons Cumberbatch PLC fell 2.33 percent to 420 rupees.

Lower interest rates have prompted local investors to buy shares and shift their savings from unattractive fixed assets, analysts said, as yields on treasury bills edged down further at a weekly auction on Wednesday.

Turnover was 1.67 billion rupees ($12.83 million), well above this year's daily average of around 1.09 billion rupees.

Analysts said foreigners have been buying risky assets because they see value in them, while falling yields in fixed assets gradually prompt local investors to shift to equities.

The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. ($1 = 130.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka shares close down 0.1-pct

July 11, 2014 (LBO) - Sri Lanka's shares closed 0.11 percent lower ending a seven day winning streak with banking stocks losing ground, brokers said.

The Colombo benchmark All Share Price Index closed 7.46 points lower at 6,661.40, down 0.11 percent. The S&P SL20 closed 26.98 points lower at 3,708.16, down 0.72 percent.

Turnover was 1.67 billion rupees, down from 2.36 billion rupees a day earlier with 79 stocks closed positive against 128 negative.

DFCC Bank closed 3.40 rupees lower at 166.60 rupees with an off-market transaction of 162.50 million rupees changing hands at 162.50 rupees per share contributing 10 percent of the turnover.

The aggregate value of all off-the-floor deals represented 17 percent of the turnover.

George Steuart Finance closed 1.60 rupees lower at 52.40 rupees, attracting most number of trades during the day.

Foreign investors bought 331.41 million rupees worth shares while selling 230.47 million rupees worth shares.

Carson Cumberbatch closed 10.00 rupees lower at 420.00 rupees and Commercial Bank closed 2.20 rupees lower at 146.30 rupees, contributing most to the index drop.

HNB closed 3.00 rupees lower at 166.80 rupees and Sampath Bank closed 3.70 rupees lower at 214.20 rupees.

Dialog Axiata closed 10 cents lower at 10.90 rupees and Sri Lanka Telecom closed 4.00 rupees higher at 56.00 rupees.

Record Rs 119 b raised from primary market in 2013

A record Rs 119.4 billion was raised in the Primary market in 2013, while 28 Debt Initial Public Offerings (IPOs) also raised a record amount of Rs 68.2 billion. In addition secondary market activity a total turnover of Rs 2.2 billion was recorded in debt trading in 2013 as against Rs 75.1 million recorded in 2012.This was a significant increase.

According to the annual report review of 2013 the Deputy Director General and Officer in Charge, Securities and Exchange Commission (SEC) Dhammika Perera said, the CSE came fifth in the performance metrics in the greater Asian region. "Only Karachi at 56%, Vietnam at 22%, Bursa Malaysia at12.4% and Taiwan at 11.8% were placed ahead of the CSE in 2013. On the other hand, CSE's performance was tangibly ahead of India's National Stock Exchange at 3.6%, Bombay Stock Exchange at 3.3% and Hong Kong Stock Exchange at 2.9 %."

The stock market recorded a steady growth during 2013 with the benchmark All Share Price Index (ASPI) recording a growth of 4.8% and the Blue chip S&P SL 20 index recording an increase of 5.8%. The ASPI closed the year at 5,912.8 points while the S&P 20 closed at 3,263.9 points. This is as against 7.1% negative growth recorded by the ASPI in 2012. S&P 20 Index was launched in 2012.

The total Market Capitalisation of the Colombo Stock Exchange (CSE) stood at Rs 2,459.9 billion (US$18.8 billion) at the end of the year 2013, an increase of 13.4% as against the previous year end of Rs 2,167.6 billion.

A total turnover of Rs 200.4 billion was recorded in 2013 with an average daily turnover of Rs 828.4 million. Foreign investors accounted for 36.1% of the total market turnover while the domestic investors accounted for the balance 63.9%. In 2012 foreign and domestic investors accounted for 24.9% and 75.1% of the total market turnover respectively. The initiatives taken by the SEC together with other market participants to attract foreign investors have no doubt contributed to the growth of the foreign investor contribution in 2013.

Foreign investors were the net buyers in the market with net purchases of Rs 33.9 billion in 2013. (Rs 22.7 billion recorded from the Secondary market and Rs 11.1 billion recorded from the Primary Market). This excludes the net foreign flow for corporate debt.

In market mechanics the market fundamental valuations also stayed within the emerging-frontier domain. The P/E multiple was 15.9 x earnings reflecting no change in the P/E valuation from 2012.

(SS) www.dailynews.lk

Lucky Lanka IPO crosses Rs. 300 m mark

* Demand for non-voting shares as voting shares lag

The Initial Public Offering of Lucky Lanka Milk Processing Company has crossed the Rs. 300 million mark with high demand for non-voting shares but poor response for voting stock.

The IPO is for 38.0 million ordinary voting shares at Rs. 6 per share (Rs. 228 million) and 24 million ordinary non-voting shares at Rs. 3 per share (Rs. 72 million).

As of close of business on 9 July, the voting shares offer had raised only Rs. 91.3 million worth of shares from 1,090 applications. However the non-voting had drawn Rs. 211.3 million worth of shares via 1,500 applications. The IPO officially opened on 7 July.

The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange.

Out of the proceeds, Rs. 200 million will settle high cost borrowings, and Rs. 75 million will fund the expansion of the existing production plant with new cold room complex including an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems.

The remaining Rs. 25 million will be utilised for new projects such as ‘Gedarata Kiri’ milk bar outlets and school canteens. 
www.ft.lk

Investrust Money Fund exceeds Rs. 300 m target but offer remains open

Investrust Wealth Management Ltd., a member of Investrust Holdings Ltd., announced that its ‘Investrust Money’ open-ended money market fund licensed by the Securities Exchange Commission of Sri Lanka (SEC) has substantially exceeded its initial target amount of Rs. 300 million but the initial offer will be kept open till 15 July according to SEC guidelines.

“We are extremely pleased with the confidence and the support shown by the investors for the new fund and also happy that it has influenced many first timers to invest in unit trust industry,” said Nadeesha Pahalavithana, CEO of Investrust Wealth Management Ltd.

Investrust Wealth Management is a SEC-regulated unit trust management company, which currently manages Orient Gilt Edged Fund, Orient Corporate Debt Fund and Orient Equity Fund and is an accredited investment manager approved by the SEC.

Investrust Money Fund is a diverse cash strategy consisting of a portfolio of short-term, high-quality fixed income securities (Government Securities and rated A and above short-term corporate debt). The fund is actively managed to provide a competitive yield, maximise current income and preserve capital, while maintaining daily liquidity in a risk-controlled framework.

The fund’s objective is to consistently outperform the benchmark of monthly weighted average three-month Treasury bill yield. The assets of the Fund are held by the custodian, Deutsche Bank AG. The rights and interests of the unit holders are protected by the Trustee. Unit trusts are duly regulated by the SEC under the SEC Act and the Unit Trust Code.

Investrust Holdings Ltd. (IHL) is a full-service investment banking company that provides investment banking advisory services, wealth management and securities trading facilities. 

Investrust is led by Niranjan Mendis, Chaminda Ranatunga, Sudath Perera, Dilip Kodikara and Ranil Pathirana, who serve on its Board of Directors.
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