Monday 20 October 2014
Sri Lankan stocks end lower; budget, earnings awaited
(Reuters) - Sri Lankan stocks fell for the third session on Monday in moderate volume, led by profit-taking in blue-chips as investors awaited cues from the 2015 budget and the September quarter earnings amid speculations over an early election.
Sri Lanka's main stock index fell 0.29 percent, or 21.02 points, to 7,213.45, its lowest since Oct. 14.
"It's profit-taking, but uncertainty is also weighing on the market," a stockbroker said on condition of anonymity.
The day's turnover was 863.1 million rupees ($6.6 million), less than this year's daily average of over 1.36 billion rupees.
Foreign investors bought a net 8.4 million rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 10.14 billion rupees, exchange data showed.
Blue chips such as John Keells Holdings fell 0.32 percent to 247.20 rupees, while large-cap illiquid Nestle Lanka ended 0.94 percent down to 2,080.20 rupees.
Traders said the market was waiting to see the performance in the September quarter earnings before a decision to buy the island nation's risky assets.
Stockbrokers said trading in local shares may be volatile due to chances of an early presidential poll and a possible bottoming out of interest rates. The government is also scheduled to present its 2015 budget on Friday.
President Mahinda Rajapaksa could hold a snap election in January, nearly two years before he has to, a close ally said, amid signs his popularity is fading among people who criticise his party for abusing power.
Sri Lanka's main stock index fell 0.29 percent, or 21.02 points, to 7,213.45, its lowest since Oct. 14.
"It's profit-taking, but uncertainty is also weighing on the market," a stockbroker said on condition of anonymity.
The day's turnover was 863.1 million rupees ($6.6 million), less than this year's daily average of over 1.36 billion rupees.
Foreign investors bought a net 8.4 million rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 10.14 billion rupees, exchange data showed.
Blue chips such as John Keells Holdings fell 0.32 percent to 247.20 rupees, while large-cap illiquid Nestle Lanka ended 0.94 percent down to 2,080.20 rupees.
Traders said the market was waiting to see the performance in the September quarter earnings before a decision to buy the island nation's risky assets.
Stockbrokers said trading in local shares may be volatile due to chances of an early presidential poll and a possible bottoming out of interest rates. The government is also scheduled to present its 2015 budget on Friday.
President Mahinda Rajapaksa could hold a snap election in January, nearly two years before he has to, a close ally said, amid signs his popularity is fading among people who criticise his party for abusing power.
($1 = 130.6000 Sri Lankan rupee)
(Reporting by Shihar Aneez; Editing by Anand Basu)
Sri Lanka shares close down 0.3-pct
Oct 20, 2014 (LBO) - Sri Lanka's shares closed lower starting the week on a negative note with Commercial Bank and Nestle Lanka contributing most to the index drop, brokers said.
The Colombo benchmark All Share Price Index closed 21.02 points lower at 7,213.45, down 0.29 percent. The S&P SL20 closed 21.39 points lower at 4,008.16, down 0.53 percent.
Turnover was 864.49 million rupees, down from 1.02 billion rupees last Friday with 67 stocks closed positive against 127 negative.
Seylan Developments closed 30 cents lower at 14.70 rupees with an off-market transaction of 72.50 million rupees changing hands at 14.50 rupees per share contributing 8 percent of the turnover.
Seylan Bank closed 2.00 rupees higher at 90.00 rupees with market transactions of 90.71 million rupees contributing 10 percent of the turnover.
Capital Alliance Finance closed 2.20 rupees higher at 19.80 rupees and Alufab closed 90 cents lower at 30.10 rupees and First Capital Holdings closed 40 cents lower at 52.90 rupees, attracting most number of trades during the day.
Foreign investors bought 74.14 million rupees worth shares while selling 65.74 million rupees worth shares.
Commercial Bank of Ceylon closed 2.80 rupees lower at 160.90 rupees and Nestle Lanka closed 19.80 rupees lower at 2,080.20 rupees, contributing most to the index drop.
C T Holdings closed 5.00 rupees lower at 155.00 rupees and John Keells Holdings closed 80 cents lower at 247.20 rupees.
JKH’s W0022 warrants closed 80 cents lower at 73.00 rupees and its W0023 warrants closed 60 cents lower at 76.10 rupees.
Oil palm firms Shalimar (Malay) closed 110.00 rupees lower at 1,690.00 rupees and Good Hope closed 149.80 rupees higher at 1,750.00 rupees.
Commercial Leasing and Finance closed 30 cents higher at 4.80 rupees.
The Colombo benchmark All Share Price Index closed 21.02 points lower at 7,213.45, down 0.29 percent. The S&P SL20 closed 21.39 points lower at 4,008.16, down 0.53 percent.
Turnover was 864.49 million rupees, down from 1.02 billion rupees last Friday with 67 stocks closed positive against 127 negative.
Seylan Developments closed 30 cents lower at 14.70 rupees with an off-market transaction of 72.50 million rupees changing hands at 14.50 rupees per share contributing 8 percent of the turnover.
Seylan Bank closed 2.00 rupees higher at 90.00 rupees with market transactions of 90.71 million rupees contributing 10 percent of the turnover.
Capital Alliance Finance closed 2.20 rupees higher at 19.80 rupees and Alufab closed 90 cents lower at 30.10 rupees and First Capital Holdings closed 40 cents lower at 52.90 rupees, attracting most number of trades during the day.
Foreign investors bought 74.14 million rupees worth shares while selling 65.74 million rupees worth shares.
Commercial Bank of Ceylon closed 2.80 rupees lower at 160.90 rupees and Nestle Lanka closed 19.80 rupees lower at 2,080.20 rupees, contributing most to the index drop.
C T Holdings closed 5.00 rupees lower at 155.00 rupees and John Keells Holdings closed 80 cents lower at 247.20 rupees.
JKH’s W0022 warrants closed 80 cents lower at 73.00 rupees and its W0023 warrants closed 60 cents lower at 76.10 rupees.
Oil palm firms Shalimar (Malay) closed 110.00 rupees lower at 1,690.00 rupees and Good Hope closed 149.80 rupees higher at 1,750.00 rupees.
Commercial Leasing and Finance closed 30 cents higher at 4.80 rupees.
Sri Lanka to establish a regulatory council to monitor issues in finance sector
Oct 20, 2014 (LBO) Sri Lanka's cabinet of ministers had given approval to establish an Inter Regulatory Institutions Council with a view of identifying issues that require collective action by financial sector regulators.
Establishment of the council plans to promote financial system stability and the development of the financial sector.
Financial institutions include licensed banks, licensed finance companies and leasing companies, money brokers, primary dealers, insurance companies, insurance brokers, insurance agents, loss adjusters, institutional agents, stock exchanges and stock brokers/dealers.
The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to enact legislation for the purpose through an Act of Parliament and to instruct the Legal Draftsman to draft legislation for the purpose.
Establishment of the council plans to promote financial system stability and the development of the financial sector.
Financial institutions include licensed banks, licensed finance companies and leasing companies, money brokers, primary dealers, insurance companies, insurance brokers, insurance agents, loss adjusters, institutional agents, stock exchanges and stock brokers/dealers.
The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to enact legislation for the purpose through an Act of Parliament and to instruct the Legal Draftsman to draft legislation for the purpose.
Sri Lanka’s Jetwing Hotels to manage Bansei Royal Resort
Oct 20, 2014 (LBO) – Sri Lanka’s Bansei Royal Resorts has entered into a new management agreement with Jetwing Hotels to manage the hotels operationally, the company said in a stock exchange filing.
New agreement will come into force from December this year as the previous agreement with Amaya Leisure was terminated from 01st October 2014, the company further said.
Bansei Royal Resorts Hikkaduwa, a hotels and travel sector player listed in the stock exchange from March 2014.
New agreement will come into force from December this year as the previous agreement with Amaya Leisure was terminated from 01st October 2014, the company further said.
Bansei Royal Resorts Hikkaduwa, a hotels and travel sector player listed in the stock exchange from March 2014.
First Capital Holdings reports major growth for first half of FY 2014/2015
First Capital Holdings Plc reported a consolidated turnover of Rs. 1.7 b for the first half of the financial year 2014/2015, while consolidated profit after tax of the group has increased to Rs. 868 m, compared to Rs. 95 m reported in the corresponding period of the previous year.
The consolidated turnover for the same period was Rs. 910 m last year. The group’s primary dealer arm, First Capital Treasuries Ltd., was a notable contributor towards the financial results for the period under review.
“Favourable macro-economic factors such as a decline in secondary market interest rates, high market liquidity and low inflation created significant opportunities for growth in the market. First Capital Treasuries, which is currently the leading non-bank Primary Dealer appointed by the Central Bank, was able to analyse yield curve movements and earn exceptional returns through an incisive combination of trading expertise and extensive research,” elaborated First Capital Holdings Plc CEO Dilshan Wirasekara.
First Capital Ltd., which specialises in structuring and placement of corporate debt securities, successfully raised funds over Rs. 7 b through listed debentures, asset-backed securitisations and other corporate debt securities. Meanwhile, during the first half of the 2014/15 financial year, the group’s Wealth Management and Unit Trust, First Capital Asset Management Ltd., displayed a 200% increase over the previous year-end.
The division’s total assets under management surpassed Rs. 3.2 b during the period. With a return of 25.23% p.a. over the 12 months ended September 2014, First Capital Wealth Fund continued to steadily outperform the market during the six months under review, maintaining its position as the best performing fixed income unit trust.
Consistent with a surge in the performance of the Colombo Stock Market, First Capital Equities Ltd., the stock broking arm of the group also contributed positively to the group’s results.
“We are pleased with our performance to date but expect profits from the primary dealer arm to be more modest during the second half of the financial year. With interest rates currently at historical lows, the opportunities for exceptional gains are limited and our focus will be on managing risk and maintaining acceptable income levels. The group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far.
During the period under review, First Capital Asset Management also extended its range of products by launching three new funds – the First Capital Fixed Income Fund, First Capital Gilt Edged Fund and First Capital Money Market Fund. With renewed interest in the Unit Trust industry, First Capital Asset Management also conducted multiple investor awareness programs around the island in order to facilitate knowledge-sharing and support the development of the industry.
First Capital Holdings Plc comprises First Capital Treasuries Ltd., First Capital Asset Management Ltd., First Capital Equities Ltd., First Capital Markets Ltd. and First Capital Ltd. The company’s Board of Directors comprises Executive Chairperson Manjula Mathews, Managing Director Dinesh Schaffter and Nihara E. Rodrigo, Eardley Perera, Minette Perera, Nishan Fernando and Chandana de Silva as independent directors.
www.ft.lk
The consolidated turnover for the same period was Rs. 910 m last year. The group’s primary dealer arm, First Capital Treasuries Ltd., was a notable contributor towards the financial results for the period under review.
“Favourable macro-economic factors such as a decline in secondary market interest rates, high market liquidity and low inflation created significant opportunities for growth in the market. First Capital Treasuries, which is currently the leading non-bank Primary Dealer appointed by the Central Bank, was able to analyse yield curve movements and earn exceptional returns through an incisive combination of trading expertise and extensive research,” elaborated First Capital Holdings Plc CEO Dilshan Wirasekara.
First Capital Ltd., which specialises in structuring and placement of corporate debt securities, successfully raised funds over Rs. 7 b through listed debentures, asset-backed securitisations and other corporate debt securities. Meanwhile, during the first half of the 2014/15 financial year, the group’s Wealth Management and Unit Trust, First Capital Asset Management Ltd., displayed a 200% increase over the previous year-end.
The division’s total assets under management surpassed Rs. 3.2 b during the period. With a return of 25.23% p.a. over the 12 months ended September 2014, First Capital Wealth Fund continued to steadily outperform the market during the six months under review, maintaining its position as the best performing fixed income unit trust.
Consistent with a surge in the performance of the Colombo Stock Market, First Capital Equities Ltd., the stock broking arm of the group also contributed positively to the group’s results.
“We are pleased with our performance to date but expect profits from the primary dealer arm to be more modest during the second half of the financial year. With interest rates currently at historical lows, the opportunities for exceptional gains are limited and our focus will be on managing risk and maintaining acceptable income levels. The group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far.
During the period under review, First Capital Asset Management also extended its range of products by launching three new funds – the First Capital Fixed Income Fund, First Capital Gilt Edged Fund and First Capital Money Market Fund. With renewed interest in the Unit Trust industry, First Capital Asset Management also conducted multiple investor awareness programs around the island in order to facilitate knowledge-sharing and support the development of the industry.
First Capital Holdings Plc comprises First Capital Treasuries Ltd., First Capital Asset Management Ltd., First Capital Equities Ltd., First Capital Markets Ltd. and First Capital Ltd. The company’s Board of Directors comprises Executive Chairperson Manjula Mathews, Managing Director Dinesh Schaffter and Nihara E. Rodrigo, Eardley Perera, Minette Perera, Nishan Fernando and Chandana de Silva as independent directors.
www.ft.lk
Alufab share price soars on Hayleys takeover
Alufab Plc last week became the biggest gainer percentagewise, with investors toasting the takeover by Hayleys Plc.
On Wednesday Hayleys acquired 62.48% stake or 7.534 million shares in Alufab for Rs. 170 million or Rs. 23 per share (a smaller quantity was done at Rs. 23.50). That day Alufab share price rose by 25% or Rs. 4.70 to close at Rs. 23.70.
Swedish-based shareholders Chairman Johan Claesson and Director Victor Press were the main sellers in the deal structured by Adl Cpaital Ltd.
Hayleys also has 51% stake in aluminium market leader Alumex Plc whilst former’s controlling shareholder business leader and ace acquirer Dhammika Perera holds 29% stake in other dominant player Lanka Aluminium Plc.
Alufab gained by 63% or Rs. 12 to close the week at Rs. 31 with 14.46 million traded via 3,198 transactions for Rs. 355.5 million. Intra-week highest was Rs. 33.40.
On Wednesday Hayleys acquired 62.48% stake or 7.534 million shares in Alufab for Rs. 170 million or Rs. 23 per share (a smaller quantity was done at Rs. 23.50). That day Alufab share price rose by 25% or Rs. 4.70 to close at Rs. 23.70.
Swedish-based shareholders Chairman Johan Claesson and Director Victor Press were the main sellers in the deal structured by Adl Cpaital Ltd.
Hayleys also has 51% stake in aluminium market leader Alumex Plc whilst former’s controlling shareholder business leader and ace acquirer Dhammika Perera holds 29% stake in other dominant player Lanka Aluminium Plc.
www.ft.lk
Plumbago signs largest graphite exploration drilling deal worth Rs. 56 m with GSMB
Plumbago Lanka recently announced that it has signed a landmark contract with the Geological Survey and Mines Bureau (GSMB) to the value of Rs. 56 million, the largest graphite exploration drilling contract signed to date with the GSMB.
Under the terms of the contract the GSMB will provide Plumbago Lanka with the necessary drilling equipment and labour required to drill designated land areas in the Dambulla and Kurunegala region.
The contract in this regard was signed by Plumbago Lanka Chairman Chris Cowan and GSMB Chairman Senarath Jayasundara and will permit Plumbago Lanka to drill for graphite on land identified by a versatile time domain electromagnetic survey recently conducted by Plumbago Lanka in Central Sri Lanka.
Speaking about the signing of this contract, Cowan expressed his thanks to Susil Premajayantha, the Minister of Environment and Renewable Energy and his Ministry Secretary B.M.U.D. Basnayake, the Chairman of the GSMB Senarath Jayasundara, and the retiring Director General of the GSMB Mr. Peiris and his team for their support and foresight in realising the importance of such a project and facilitating Plumbago Lanka to bring cutting edge technology and world class mining techniques into Sri Lanka.
“We want to take Sri Lanka back to its dominant position in the world graphite market by introducing high tech exploration methods and bringing the latest in skills and expertise to the local graphite industry,” he added.
Plumbago Lanka will be drilling a minimum of 10 holes of 300 metres depth to test for the presence of graphite. This is the second major stage of exploration following on from the initial airborne helicopter survey, which identified follow up drilling targets for Plumbago Lanka, the first time such a survey of this kind has been flown in Sri Lanka.
The exploration drilling will be done post the renewal of Plumbago Lanka’s exploration licenses in this area which were recently extended by the GSMB with the consent of the Ministry of Environment and Renewable Energy.
Plumbago Lanka will employ world’s best practice techniques leveraging off the international mining experience in the Group including environmental assessment and monitoring, initiated prior to drilling. The company will bring local employment, training, CRS and support service opportunities to a historically important region of Sri Lanka.
Plumbago Lanka is a BOI approved company incorporated in 2012 for the purpose of exploring, mining and adding value to graphite. Sri Lanka is highly renowned for its crystalline vein graphite, with purity levels ranging from 90-99% carbon.
Under the terms of the contract the GSMB will provide Plumbago Lanka with the necessary drilling equipment and labour required to drill designated land areas in the Dambulla and Kurunegala region.
The contract in this regard was signed by Plumbago Lanka Chairman Chris Cowan and GSMB Chairman Senarath Jayasundara and will permit Plumbago Lanka to drill for graphite on land identified by a versatile time domain electromagnetic survey recently conducted by Plumbago Lanka in Central Sri Lanka.
Speaking about the signing of this contract, Cowan expressed his thanks to Susil Premajayantha, the Minister of Environment and Renewable Energy and his Ministry Secretary B.M.U.D. Basnayake, the Chairman of the GSMB Senarath Jayasundara, and the retiring Director General of the GSMB Mr. Peiris and his team for their support and foresight in realising the importance of such a project and facilitating Plumbago Lanka to bring cutting edge technology and world class mining techniques into Sri Lanka.
“We want to take Sri Lanka back to its dominant position in the world graphite market by introducing high tech exploration methods and bringing the latest in skills and expertise to the local graphite industry,” he added.
“We will also do the value additions locally, continue to employ a local workforce and provide specialist training to these workers. We also hope to carry out more technology transfers to Sri Lanka in the future along with some CSR activities for worthy local causes.”
Plumbago Lanka will be drilling a minimum of 10 holes of 300 metres depth to test for the presence of graphite. This is the second major stage of exploration following on from the initial airborne helicopter survey, which identified follow up drilling targets for Plumbago Lanka, the first time such a survey of this kind has been flown in Sri Lanka.
The exploration drilling will be done post the renewal of Plumbago Lanka’s exploration licenses in this area which were recently extended by the GSMB with the consent of the Ministry of Environment and Renewable Energy.
Plumbago Lanka will employ world’s best practice techniques leveraging off the international mining experience in the Group including environmental assessment and monitoring, initiated prior to drilling. The company will bring local employment, training, CRS and support service opportunities to a historically important region of Sri Lanka.
Plumbago Lanka is a BOI approved company incorporated in 2012 for the purpose of exploring, mining and adding value to graphite. Sri Lanka is highly renowned for its crystalline vein graphite, with purity levels ranging from 90-99% carbon.
www.ft.lk
Trinco Port to become industrial harbour
Sara Pathirana (spsara85@gmail.com)
The Sri Lanka Ports Authority (SLPA) is now planning to transform the Trincomalee Port, which is one of the biggest natural harbours in the world, into an industrial port.
“As the port is not seeing much exploitation as of current, we have decided to bring into existence a strategy that will see future benefits to the country’s economical status,” SLPA Chairman Dr. Priyath B. Wickrama said recently.
SLPA records that the Hambantota Port has shown optimistic signs in terms of transshipment and the amount of fuel supply to foreign vessels. As of current, this year, the number of vessels that had come in to the port down south has increased from 137 vessels last year to 184 as of last week.
Vehicles transshipment has also shown a vast increase when compared to 2013, from 38,649 in 2013 to 101,883 in October 2014. The local import of vehicles though, has shown signs of a slight decrease when compared to last year but, an overall boost from the initial stages.
In 2012, imports were initially recorded at 6406 units, in 2013 25,875 units were imported and this year, by mid week of October, 25,551 units were recorded.
The number of vehicles that were handled totally from the year 2012 to October 2014, was documented as 202,707 units out of which 29% were local and 71% were imported vehicles. The total number of vehicles that was being handled as of current, this year, was 446.
The month of October this year, as of current had recorded 5416 metric tones of fuel that was sold, with the month of September seeing the largest output of fuel being sold. With regard to the number of foreign vessel arrivals this month, a decrease has been recorded in comparison to the previous four months.
The Galle harbour is set to be a tourist port specially for yachts.
www.dailynews.lk
The Sri Lanka Ports Authority (SLPA) is now planning to transform the Trincomalee Port, which is one of the biggest natural harbours in the world, into an industrial port.
“As the port is not seeing much exploitation as of current, we have decided to bring into existence a strategy that will see future benefits to the country’s economical status,” SLPA Chairman Dr. Priyath B. Wickrama said recently.
SLPA records that the Hambantota Port has shown optimistic signs in terms of transshipment and the amount of fuel supply to foreign vessels. As of current, this year, the number of vessels that had come in to the port down south has increased from 137 vessels last year to 184 as of last week.
Vehicles transshipment has also shown a vast increase when compared to 2013, from 38,649 in 2013 to 101,883 in October 2014. The local import of vehicles though, has shown signs of a slight decrease when compared to last year but, an overall boost from the initial stages.
In 2012, imports were initially recorded at 6406 units, in 2013 25,875 units were imported and this year, by mid week of October, 25,551 units were recorded.
The number of vehicles that were handled totally from the year 2012 to October 2014, was documented as 202,707 units out of which 29% were local and 71% were imported vehicles. The total number of vehicles that was being handled as of current, this year, was 446.
The month of October this year, as of current had recorded 5416 metric tones of fuel that was sold, with the month of September seeing the largest output of fuel being sold. With regard to the number of foreign vessel arrivals this month, a decrease has been recorded in comparison to the previous four months.
The Galle harbour is set to be a tourist port specially for yachts.
www.dailynews.lk
Blue Diamonds Worldwide goes for Rights Issue
The Board of Directors of Blue Diamonds Jewellery Worldwide has resolved to issue 103,300,891 Ordinary Voting Shares and 153,369,800 Ordinary Non-Voting Shares by way of Rights.
The proportion in which Shares are to be issued is set to be in the ratio of One Ordinary Voting Shares for every One Ordinary Voting Shares and One Ordinary Non-Voting Share for every exiting One Ordinary Non Voting Share. The consideration for which the shares are to be issued will be Rs. 1.30 per Ordinary Voting Share and Rs. 0.75 per Ordinary Non-Voting Share.
The current stated capital of the Company of Rs. 208,40l,543 is divided into 103,300,891 Ordinary Voting Shares and 153,369,800 Ordinary Non-Voting Shares. The proceeds of this issue will be utilized towards the establishment of a research and development unit, the establishment of a global design centre, investing in new machinery, for marketing and international trade fair participation.
Blue Diamonds is the largest diamond jewellery manufacturer and exporter from Sri Lanka. BDJW was established in 1991 as a Board of Investment (BOI) approved project and is situated at the Katunayake Export Processing Zone (KEPZ).
www.dailynews.lk
The proportion in which Shares are to be issued is set to be in the ratio of One Ordinary Voting Shares for every One Ordinary Voting Shares and One Ordinary Non-Voting Share for every exiting One Ordinary Non Voting Share. The consideration for which the shares are to be issued will be Rs. 1.30 per Ordinary Voting Share and Rs. 0.75 per Ordinary Non-Voting Share.
The current stated capital of the Company of Rs. 208,40l,543 is divided into 103,300,891 Ordinary Voting Shares and 153,369,800 Ordinary Non-Voting Shares. The proceeds of this issue will be utilized towards the establishment of a research and development unit, the establishment of a global design centre, investing in new machinery, for marketing and international trade fair participation.
Blue Diamonds is the largest diamond jewellery manufacturer and exporter from Sri Lanka. BDJW was established in 1991 as a Board of Investment (BOI) approved project and is situated at the Katunayake Export Processing Zone (KEPZ).
www.dailynews.lk
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