‘Multi Finance continues to make profits in first quarter’

Multi Finance PLC recorded a 120% increase in its bottom line in the first quarter ended June 30, 2014 recording a net profit of Rs. 8.6 Mn, against Rs. 39.2 Mn loss in the preceding quarter 2013, as per published accounts.

A press release says: ‘During the quarter under review, net income from operations reached Rs. 56.2 Mn, 236% growth compared to the quarter ended June 2013 which was recorded as Rs. 16.7 Mn. The net interest income for the quarter ended 06/14 also increased with 215% reaching Rs. 50.5 Mn, compared to Rs. 16.0 Mn QonQ owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 32.3 Mn as against Rs. 40.3 Mn QonQ which is a 19.8% improvement owning to strict cost control mechanisms adopted.

‘During the period company’s net impairment has remained in the same range despite the significant increase in its lending portfolio and increase in impairment of pawning which stands at Rs. 16.5Mn. Further NPLs on leasing, HP and loans have come down to 4.42% quarter on quarter due to aggressive recovery techniques and strict monitoring process adopted by the company. Earnings per Share of the company have improved from -6.98% to 1.53% within the quarter while improving the company’s quality of the asset portfolio. Return on equity has improved to 2.6% from -12.34% and Return on Assets is up by 121% from -2.84% to 0.60% QonQ in line with the profits.

‘The company’s total assets grew by 3.5% to stand in excess of Rs 1.38 Bn as of 30thJune 2014 and the deposit base grew by 9.8% over the same quarter of the previous year displaying the investor confidence placed on the company.

‘Commenting on company’s improvement, Multi Finance Chief Executive Officer Pushpike Jayasundera said the introduction of prudent credit policies, risk management tools and stringent recovery processes were the key factors contributed for this significant results in the quarter. These results were achieved in the midst of interest rate pressures and slowdown in credit growth which was common to the industry during the period concerned.
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Sri Lanka stocks up for fifth session on foreign buying, low rates

(Reuters) - Sri Lankan stocks gained for the fifth session on Monday to touch their highest in more than three years, led by banking and diversified stocks on bullish sentiment due to lower interest rates, higher foreign fund buying and positive economic outlook.

Stockbrokers said they expect the index to gain further as the market sees a possible rate cut during the central bank's monetary policy rate meeting next week. The announcement is scheduled for 0200 GMT on Tuesday.

The main stock index ended up 0.3 percent, or 21.49 points, at 7,256.41, its highest closing level since June 9, 2011.

"Market is on a bullish trend on diversified and banking sector counters with a lot of foreign and institutional buying," said Dimantha Mathew, manager research at First Capital Equities (Pvt) Ltd.

"There is a possibility of a rate cut while the recent fuel price cut will ease inflation further and the government is also expecting improvement in the credit growth."

Yields on treasury bills fell 3-4 basis points at a weekly auction on Wednesday and are below the central bank's standing deposit facility rate or the rate at which the central bank mops up liquidity from commercial banks.

The cut in energy prices on Tuesday has also enthused the market.

Sri Lanka is aiming for a higher economic growth of 8.2 percent and a lower fiscal deficit target of 4.4 percent of gross domestic product next year, a government document showed on Thursday.

The index has gained 22.72 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 85.259 on Monday compared with Friday's 83.442, Thomson Reuters data showed.

Shares in Hemas Holdings Plc, which led the overall gain in the index, rose 6.10 percent to 62.6 rupees, while Ceylon Theatres Plc jumped 6.19 percent to 169.90 rupees.

Shares in Dialog Axiata Plc rose 1.8 percent to 11.30 rupees and Hatton National Bank Plc added 2.27 percent to 180 rupees.

The day's turnover was 1.95 billion rupees ($15 million), more than this year's daily average of over 1.27 billion rupees.

Foreign investors were net buyers of 458 million rupees worth of shares on Monday, extending their year-to-date net purchases of 11.56 billion rupees. 

($1 = 130.3000 Sri Lankan rupee) 

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

Sri Lanka stocks close up 0.3-pct

Sep 22, 2014 (LBO) - Sri Lanka's stocks closed in green with the price gains witnessed in Hemas Holdings and CT Holdings amid strong foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 21.49 points higher at 7,256.41, up 0.30 percent. The S&P SL20 closed 11.89 points higher at 4,030.87, up 0.30 percent.

Turnover was 1.94 billion rupees, down from 2.52 billion rupees last Friday with 102 stocks closed positive against 104 negative.

Asiri Hospital Holdings closed 1.10 rupees higher at 22.60 rupees with two off-market transactions of 110.00 million rupees changing hands at 22.00 rupees per share contributing 6 percent of the turnover.

The aggregate value of all off-the-floor deals represented 20 percent of the daily turnover.

Access Engineering closed flat at 29.00 rupees with market transactions of 115.63 million rupees contributing 6 percent of the daily turnover.

Hayleys Mgt Knitting Mills closed 1.10 rupees higher at 19.80 rupees and First Capital Holdings closed 3.10 rupees higher at 45.40 rupees, attracting most number of trades during the day.

Foreign investors bought 780.03 million rupees worth shares while selling 322.05 million rupees worth shares.

Hemas Holdings closed 3.60 rupees higher at 62.60 rupees and CT Holdings closed 9.90 rupees higher at 169.90 rupees, contributing most to the index gain.

Dialog Axiata closed 20 cents higher at 11.30 rupees and Sri Lanka Telecom closed 1.30 rupees lower at 52.20 rupees.

John Keells Holdings closed 2.60 rupees lower at 254.10 rupees.