Thursday 30 October 2014
Sri Lankan stocks close at near 3-wk high on blue-chips, foreign buying
(Reuters) - Sri Lankan stocks extended their gains for a sixth straight session on Thursday, ending near a three-week closing high, helped by blue-chips and foreign buying.
Sri Lanka's main stock index ended up 0.39 percent, or 28.51 points, at 7,294.41, its highest close since Oct. 10.
Net foreign inflows on Thursday were at 761 million rupees ($5.8 million), extending the year-to-date foreign inflows to 13.09 billion rupees worth of shares, exchange data showed.
Analysts said retail participation was still poor due to the lower-than-expected stimulus in the budget, while the market awaited further clarity.
Stockbrokers said trading may be volatile in the near-term due to the revised presidential poll schedule and a possible bottoming out of interest rates.
Rajapaksa, also the country's finance minister, unveiled a budget last week that sought to trim value-added tax and cut the deficit while providing a range of handouts, mainly for rural communities.
The 68-year-old leader will seek early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.
The day's turnover was 2.2 billion rupees, well above this year's daily average of 1.36 billion rupees.
Top conglomerate John Keells Holdings led the day's gains with a rise of 2.1 percent, while Sri Lanka Telecom Plc added 2.2 percent.
($1 = 130.8000 Sri Lankan rupee)
Sri Lanka's main stock index ended up 0.39 percent, or 28.51 points, at 7,294.41, its highest close since Oct. 10.
Net foreign inflows on Thursday were at 761 million rupees ($5.8 million), extending the year-to-date foreign inflows to 13.09 billion rupees worth of shares, exchange data showed.
Analysts said retail participation was still poor due to the lower-than-expected stimulus in the budget, while the market awaited further clarity.
Stockbrokers said trading may be volatile in the near-term due to the revised presidential poll schedule and a possible bottoming out of interest rates.
Rajapaksa, also the country's finance minister, unveiled a budget last week that sought to trim value-added tax and cut the deficit while providing a range of handouts, mainly for rural communities.
The 68-year-old leader will seek early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.
The day's turnover was 2.2 billion rupees, well above this year's daily average of 1.36 billion rupees.
Top conglomerate John Keells Holdings led the day's gains with a rise of 2.1 percent, while Sri Lanka Telecom Plc added 2.2 percent.
($1 = 130.8000 Sri Lankan rupee)
(Reporting by Shihar Aneez; Editing by Prateek Chatterjee)
Sri Lanka stocks close up 0.4-pct
Oct 30, 2014 (LBO) - Sri Lanka's stocks closed 0.39 percent higher with index heavy John Keells Holdings gaining amid continued foreign buying, brokers said.
The Colombo benchmark All Share Price Index closed 28.51 points higher at 7,294.41, up 0.39 percent. The S&P SL20 closed 21.99 points higher at 4,051.42, up 0.55 percent.
Turnover was 2.20 billion rupees with 95 stocks closed positive against 103 negative.
People’s Leasing and Finance closed 40 cents higher at 21.70 rupees with four off market transactions of 376.25 million rupees changing hands at 21.50 rupees per share contributing 17 percent of the turnover.
Dialog Axiata closed 10 cents higher at 12.50 rupees with two off market transactions of 144.88 million rupees changing hands at 12.50 rupees per share contributing 7 percent of the turnover.
The aggregate value of all off-the-floor deals represented 34 percent of the daily turnover.
Vallibel Power Erathna closed 60 cents higher at 7.70 rupees, attracting most number of trades during the day.
Foreign investors bought 971.65 billion rupees worth shares while selling 210.61 million rupees worth shares.
The Colombo benchmark All Share Price Index closed 28.51 points higher at 7,294.41, up 0.39 percent. The S&P SL20 closed 21.99 points higher at 4,051.42, up 0.55 percent.
Turnover was 2.20 billion rupees with 95 stocks closed positive against 103 negative.
People’s Leasing and Finance closed 40 cents higher at 21.70 rupees with four off market transactions of 376.25 million rupees changing hands at 21.50 rupees per share contributing 17 percent of the turnover.
Dialog Axiata closed 10 cents higher at 12.50 rupees with two off market transactions of 144.88 million rupees changing hands at 12.50 rupees per share contributing 7 percent of the turnover.
The aggregate value of all off-the-floor deals represented 34 percent of the daily turnover.
Vallibel Power Erathna closed 60 cents higher at 7.70 rupees, attracting most number of trades during the day.
Foreign investors bought 971.65 billion rupees worth shares while selling 210.61 million rupees worth shares.
John Keells Holdings closed 5.20 rupees higher at 255.00 rupees, contributing most to the index gain.
JKH’s W0022 warrants closed 60 cents higher at 74.50 rupees and its W0023 warrants closed 3.00 rupees higher at 80.00 rupees.
Commercial Bank of Ceylon closed 1.80 rupees higher at 162.00 rupees.
JKH’s W0022 warrants closed 60 cents higher at 74.50 rupees and its W0023 warrants closed 3.00 rupees higher at 80.00 rupees.
Commercial Bank of Ceylon closed 1.80 rupees higher at 162.00 rupees.
Second largest Gulf investment giant starts scouting Sri Lanka projects
The second largest sovereign investment giant in the Gulf region has announced on 27 October that it is scouting Sri Lanka for implementation ready projects-and more importantly, the world's richest country is vying for Sri Lanka's surging Stock Market. "In Sri Lanka, we do not want to start any new development or construction, projects but are looking for outright purchase of completed and implementation ready assets as our entry strategy. We are also looking to invest in Colombo's Share Market," said Mohammad Saif Al Suwaidi (Head of Industrials & TMT Investments-Qatar Holding) on 27 October.
QH's Al Suwaidi, who is in Colombo with his three-member investment team, was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 27 October during his courtesy call on Minister Bathiudeen in Colombo. Also present on the occasion were RDS Kumararatne (DG-Department of Commerce) and other DoC officials.
Qatar Holding LLC (QH) is the powerful global investment arm of the Qatar Investment Authority (QIA) which is well-known and also called as the Qatar Fund. QIA is the second largest sovereign wealth fund in the Gulf Cooperation Council region after Saudi Arabian General Investment Authority (SAGIA). QIA's QH was established in 2006. QH invests internationally and locally in strategic private and public equity as well as in other direct investments, and is considered to have a high profile global outreach. Among QH's diverse international holdings are the UK retailer Sainsbury, Deutsche Bank, Credit Suisse, Bank of America and Agricultural Bank of China. Its Credit Suisse stake is reportedly 6%.
"We started to work closely with Sri Lanka in the aftermath of the end of war in 2009-2010. We are under a sovereign wealth fund but very much of a commercial operation, looking for the best RoI for our investors. Around 85% of our portfolio consists of overseas investments while the rest is concentrated on Qatar.
We have investments in 30 countries. Our equity is from Qatari citizens' savings and therefore we are responsible to report back best returns for them" said QH's Al Suwaidi, and added: "In Sri Lanka, we do not want to start any new development or construction projects, but are looking at outright purchase of completed and implementation ready assets as our entry strategy to the country.
We are also ready to invest in Colombo's Share Market, and mostly prefer to deal with Sri Lanka's large corporates, rather than medium or small scale firms.
We are interested in buying completed real estates and properties-for example, a completed resort hotel here or some such finished real estate projects. Specially, we are keen on shopping malls and shopping arcades ready for implementation. Our minimum overseas investments rounds are US$ 100 - US$ 150 million per project, and not less. We are even ready for higher values. When it comes to investment projects, QIA has lots of interest in Sri Lanka's tourism infrastructure, as well as government/public owned institutions such as State Owned Business Enterprises put up for sale to the private investors."
"Qatar–Sri Lanka bilateral relations have advanced to new levels when I led a 10 member strong high level delegation to this September's Joint Economic Cooperation session in Doha. We are pleased of the successful outcomes from the sessions" said Minister Bathiudeen responding to QH's Al Suwaidi, and added: "We welcome QH's investment attention on Sri Lanka and I together with my Ministry are ready to extend our fullest support to QH's FDI efforts here. Thanks to the vision of HE the President Mahinda Rajapaksa, FDI to Sri Lanka in the first half of 2014 exceeded $210 Mn increasing by 51%.
At present, we are on a drive to enhance tourism infrastructure and QH could find opportunities in it as well as our surging stock market. Even dairy farming is a prospective sector. New highways, wind-power and hydro power projects in the country would be other opportunities for QH here. As for Share market, this is a good time since after three years, our stock market crossed to 7000 points mark this August."
Qatar is the world's richest country. The wide availability of oil and gas reserves have made Qatar the world's highest per-capita income country. In 2013, the State of Qatar topped World Bank's GDP per capita (on purchasing power parity-PPP) list, with a per capita value of US$ 131,758. In 2013, Qatar-Sri Lanka bilateral trade stood at US$ 66 million.
www.ceylontoday.lk
QH's Al Suwaidi, who is in Colombo with his three-member investment team, was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 27 October during his courtesy call on Minister Bathiudeen in Colombo. Also present on the occasion were RDS Kumararatne (DG-Department of Commerce) and other DoC officials.
Qatar Holding LLC (QH) is the powerful global investment arm of the Qatar Investment Authority (QIA) which is well-known and also called as the Qatar Fund. QIA is the second largest sovereign wealth fund in the Gulf Cooperation Council region after Saudi Arabian General Investment Authority (SAGIA). QIA's QH was established in 2006. QH invests internationally and locally in strategic private and public equity as well as in other direct investments, and is considered to have a high profile global outreach. Among QH's diverse international holdings are the UK retailer Sainsbury, Deutsche Bank, Credit Suisse, Bank of America and Agricultural Bank of China. Its Credit Suisse stake is reportedly 6%.
"We started to work closely with Sri Lanka in the aftermath of the end of war in 2009-2010. We are under a sovereign wealth fund but very much of a commercial operation, looking for the best RoI for our investors. Around 85% of our portfolio consists of overseas investments while the rest is concentrated on Qatar.
We have investments in 30 countries. Our equity is from Qatari citizens' savings and therefore we are responsible to report back best returns for them" said QH's Al Suwaidi, and added: "In Sri Lanka, we do not want to start any new development or construction projects, but are looking at outright purchase of completed and implementation ready assets as our entry strategy to the country.
We are also ready to invest in Colombo's Share Market, and mostly prefer to deal with Sri Lanka's large corporates, rather than medium or small scale firms.
We are interested in buying completed real estates and properties-for example, a completed resort hotel here or some such finished real estate projects. Specially, we are keen on shopping malls and shopping arcades ready for implementation. Our minimum overseas investments rounds are US$ 100 - US$ 150 million per project, and not less. We are even ready for higher values. When it comes to investment projects, QIA has lots of interest in Sri Lanka's tourism infrastructure, as well as government/public owned institutions such as State Owned Business Enterprises put up for sale to the private investors."
"Qatar–Sri Lanka bilateral relations have advanced to new levels when I led a 10 member strong high level delegation to this September's Joint Economic Cooperation session in Doha. We are pleased of the successful outcomes from the sessions" said Minister Bathiudeen responding to QH's Al Suwaidi, and added: "We welcome QH's investment attention on Sri Lanka and I together with my Ministry are ready to extend our fullest support to QH's FDI efforts here. Thanks to the vision of HE the President Mahinda Rajapaksa, FDI to Sri Lanka in the first half of 2014 exceeded $210 Mn increasing by 51%.
At present, we are on a drive to enhance tourism infrastructure and QH could find opportunities in it as well as our surging stock market. Even dairy farming is a prospective sector. New highways, wind-power and hydro power projects in the country would be other opportunities for QH here. As for Share market, this is a good time since after three years, our stock market crossed to 7000 points mark this August."
Qatar is the world's richest country. The wide availability of oil and gas reserves have made Qatar the world's highest per-capita income country. In 2013, the State of Qatar topped World Bank's GDP per capita (on purchasing power parity-PPP) list, with a per capita value of US$ 131,758. In 2013, Qatar-Sri Lanka bilateral trade stood at US$ 66 million.
www.ceylontoday.lk
Calamander Group mulls listing in the CSE
By Charumini de Silva
Ceylon Finance Today: Singapore based Calamander Group Incorporated (CGI) yesterday confirmed that the group was considering listing in the Colombo Stock Exchange (CSE), a senior official said.
Speaking to Ceylon FT Calamander Group Incorporated (CGI) Founder and Chairman Roman Scott said, "We are considering entering the CSE, but we will list when the time is right. I do not believe in making a company public when it is too small and not ready for the rigours of the market.
Further explaining he said, "I believe a company should first be run as if it is a public company for several years, and secondly it should have scale. This means having public company accounting standards, governance, controls, and management quality to at least top 50 company standards.
It also means having a good tax record. I actually like paying taxes, it demonstrates that size and profits are there, and I am committed to good corporate citizenship. We have to be a respected employer.
"For scale requirements, I think each company listing should have a decent balance sheet and revenue size; a minimum of Rs 1 billion or half a billion rupees respectively. This is the level I would like to see before listing on CSE," he added.
The balance sheet of the company at group level grew by 31%, a strong result driven, equally good growth, and further investments in the UK, Singapore, and Sri Lankan businesses and completely new investments in Singapore and Bangladesh. Revenue growth was limited to 5.5% globally, with only +5% in Singapore, reflecting a soft commercial office rental market, and the same in the UK.
In Sri Lanka, revenue growth was -6.7% on the hotel side, reflecting a year of low room availability as we rebuilt the hotel, and +14% in retail F&B, with the Coffee Bean growing SSS (same stores sales) consistently. Bangladesh does not yet contribute to revenue.
EBITDA growth for financial year 2014 was -7.3%, based on negative growth for the hotel from the refurbishment of -11.6%, and positive growth for the coffee bean of +17.7 %.
Commenting on the growth targets for this year Scott said, "I usually aim to grow 20-25% compound annual growth rate a year, which the company has done since its founding eight years ago. Since the company is so young we need to grow aggressively. I am a great believer in scale. And I recognize that I remain a small player in Sri Lanka and all our other markets, competing against bigger, well capitalized local companies that have a 50-year or more advantage over me. Note our growth target of 20% is for the balance sheet, such as assets, like a bank, and not on revenue or profits. This reflects my banking background. Since everything is reinvested at this stage of growth, profits are secondary to asset growth and scale."
www.ceylontoday.lk
Ceylon Finance Today: Singapore based Calamander Group Incorporated (CGI) yesterday confirmed that the group was considering listing in the Colombo Stock Exchange (CSE), a senior official said.
Speaking to Ceylon FT Calamander Group Incorporated (CGI) Founder and Chairman Roman Scott said, "We are considering entering the CSE, but we will list when the time is right. I do not believe in making a company public when it is too small and not ready for the rigours of the market.
Further explaining he said, "I believe a company should first be run as if it is a public company for several years, and secondly it should have scale. This means having public company accounting standards, governance, controls, and management quality to at least top 50 company standards.
It also means having a good tax record. I actually like paying taxes, it demonstrates that size and profits are there, and I am committed to good corporate citizenship. We have to be a respected employer.
"For scale requirements, I think each company listing should have a decent balance sheet and revenue size; a minimum of Rs 1 billion or half a billion rupees respectively. This is the level I would like to see before listing on CSE," he added.
The balance sheet of the company at group level grew by 31%, a strong result driven, equally good growth, and further investments in the UK, Singapore, and Sri Lankan businesses and completely new investments in Singapore and Bangladesh. Revenue growth was limited to 5.5% globally, with only +5% in Singapore, reflecting a soft commercial office rental market, and the same in the UK.
In Sri Lanka, revenue growth was -6.7% on the hotel side, reflecting a year of low room availability as we rebuilt the hotel, and +14% in retail F&B, with the Coffee Bean growing SSS (same stores sales) consistently. Bangladesh does not yet contribute to revenue.
EBITDA growth for financial year 2014 was -7.3%, based on negative growth for the hotel from the refurbishment of -11.6%, and positive growth for the coffee bean of +17.7 %.
Commenting on the growth targets for this year Scott said, "I usually aim to grow 20-25% compound annual growth rate a year, which the company has done since its founding eight years ago. Since the company is so young we need to grow aggressively. I am a great believer in scale. And I recognize that I remain a small player in Sri Lanka and all our other markets, competing against bigger, well capitalized local companies that have a 50-year or more advantage over me. Note our growth target of 20% is for the balance sheet, such as assets, like a bank, and not on revenue or profits. This reflects my banking background. Since everything is reinvested at this stage of growth, profits are secondary to asset growth and scale."
www.ceylontoday.lk
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