Sri Lanka stocks end steady; Telecom leads

(Reuters) - Sri Lankan stocks ended steady on Tuesday after the market surrendered early gains, as investors booked profits mainly in diversified and financial stocks in an overbought market, while some select stocks like Sri Lanka Telecom Plc outperformed the bourse.

The main stock index edged up 0.02 percent, or 1.13 points, to 7,176.10. The bourse hit its highest close since June 10, 2011 of 7,218.68 on Friday.

"Because of the profit-taking during the latter part of the day, the index ended flat. We have seen some profit-taking in overheated counters," said Dimantha Mathew, manager research at First Capital Equities (Pvt) Ltd.

Brokers said the market would continue its bullish run with foreign buying, low interest rates and good earnings expectations, despite profit-taking in some counters.

The index has gained 21.37 percent so far this year.

The bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, rose to 80.121 on Tuesday compared with Monday's 78.972, Thomson Reuters data showed.

Stocks are deemed "overbought" above the 70-mark, signalling a reversal in the near term.

Shares in Sri Lanka's leading fixed line telephone operator Sri Lanka Telecom Plc, which led the overall gain in the index, rose 2.64 percent during the day but ended flat at 53.10 rupees a share.

The day's turnover was 2.06 billion rupees ($15.81 million), more than this year's daily average of 1.25 billion rupees.

Foreign investors were net buyers of 116.4 million rupees worth of shares on Tuesday, extending the year to date net foreign buyers of 10.34 billion rupees. 

($1 = 130.2800 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Adam Investments increases shareholding in Network Communications

Adam Investments Ltd. officially informed the Colombo Stock Exchange (CSE) yesterday that its Board of Directors has resolved to increase its shareholding in Network Communications (Pvt) Ltd.up to 51% at a consideration of Rs. 37.5 million.

Network Communications (Pvt) Ltd is a specialized ICT company, and Adam Investments plc. currently owns 42% of Network Communications (Pvt) Ltd. 

www.island.lk

LOLC Group acquires 60 pct stake in Cambodian Microfinance Company for USD 20.3 Mn

Sep 16, 2014 (LBO) –Sri Lanka’s Lanka Orix Leasing Company acquired a 60 percent stake in Thaneakea Phum Cambodia (TPC) a microfinance company in Cambodia, for 20.3 million US dollars, identifying the immense potential in emerging economies of the South East Asian region the company said in a media release.

“The LOLC Group’s business expansion strategy is aimed at strengthening its core financial services business further,” Ishara Nanayakkara, Deputy Chairman of the LOLC Group said.

“We are pleased that we were able to take our strategies and expertise overseas and to strengthen our position in the regional microfinance sphere,”

“The South East Asian region is a largely untapped market with immense potential for the financial services industry. The LOLC Group has a strong commitment towards financial inclusivity and will continue to pursue opportunities towards crystalizing this vision.”

The acquisition was through LOLC’s fully owned subsidiary, LOLC Micro Investments Ltd (LOMI), which is the microfinance investment arm of LOLC.

TPC is the 5th largest microfinance company in Cambodia with a gross loan book of 100 million US dollars, LOLC said.

The company has 52 branches distributed throughout Cambodia, with a total staff of 1,100 personnel and a customer base of 170,000 microfinance borrowers.

TPC maintains a capital adequacy ratio of 16.8 percent.

TPC is the third overseas acquisition of LOLC in Cambodia.

The company has ventured into Cambodia in 2006 through its investment in PRASAC Micro Finance Institution Ltd (PRASAC).

LOLC Currently holds 22.25 percent of PRASAC.

LOLC has a micro finance company named LOLC Myanmar Micro-Finance Company Ltd which launched in 2013 as a green field operation in Myanmar.

The LOLC Group was the 1st Sri Lankan organization and the 4th international operator to commence operations in the Myanmar financial sector.

“We hope to continue to explore opportunities to expand our overseas presence beyond Myanmar and Cambodia.” Nanayakkara said.

Sri Lanka stocks close higher

Sep 16, 2014 (LBO) - Sri Lanka's stocks closed in the green Tuesday with the price gains of food, beverages and tobacco stocks, brokers said.

The Colombo benchmark All Share Price Index closed 1.13 points higher at 7,176.10, up 0.02 percent. The S&P SL20 closed 2.34 points higher at 3,976.76, up 0.06 percent.

Turnover was 2.06 billion rupees, up from 1.57 billion rupees a day earlier with 87 stocks closed positive against 115 negative.

Commercial Bank of Ceylon closed 50 cents higher at 156.50 rupees with three off-market transactions of 178.29 million rupees changing hands at 157.50 rupees per share contributing 9 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 19 percent of the turnover.

Hayleys Mgt Knitting Mills closed 30 cents higher at 17.90 rupees and Vallibel Power Erathna closed 50 cents higher at 6.60 rupees, attracting most number of trades during the day.

Foreign investors bought 430.58 million rupees worth shares while selling 314.16 million rupees worth shares.

Carson Cumberbatch closed 10.00 rupees higher at 449.90 rupees, contributing most to the index gain.

Nestle Lanka closed 18.50 rupees higher at 2,128.50 rupees and Ceylon Tobacco Company closed 5.00 rupees higher at 1,175.00 rupees.

Cargills Ceylon closed 2.40 rupees higher at 163.20 rupees and Hemas Holdings closed 2.40 rupees higher at 54.00 rupees.