Sri Lankan shares recover from over 8-mth low; political woes weigh

(Reuters) - Sri Lankan shares rose on Tuesday, recovering from a more than eight-month closing low hit in the previous session and snapping a six-session losing streak, due to window dressing ahead of the quarter-end, though political uncertainty weighed on sentiment, brokers said.

The main stock index ended 0.56 percent, or 37.91 points, firmer at 6,820.34, after closing at its lowest level since July 24 on Monday. It lost 7.31 percent in the 21 sessions through Monday.

"Being the last day of the quarter, there was a bit of window dressing," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

Analysts expect the market to continue its negative trend with low activities through mid-April ahead of a long traditional Sinhala-Tamil New year holiday and amid political uncertainty.

Shares in Carson Cumberbatch Plc rose 0.38 percent, while Ceylinco Insurance Plc rose 9.07 percent in thin volume.

Market heavyweight John Keells Holdings Plc, which hit a 32-month low on Monday, rose 1.63 percent on Tuesday.

The day's turnover was 665.8 million rupees ($3.44 million), more than half of this year's daily average of 1.19 billion rupees.

Foreign investors were net sellers for the seventh straight session. They sold a net 72.1 million rupees worth of shares on Tuesday, extending the net foreign selling in the past seven sessions to 445.8 million rupees worth shares. But they have been net buyers of 2.91 billion rupees so far this year.

Analysts said concerns that the government's decision-making process would slow down weighed on sentiment after President Maithripala Sirisena formed a national government incorporating the main opposition party in a bid to push through reforms and preserve political stability. 

($1 = 132.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka Inflation declined further in March 2015

Inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics, decreased to 0.1 per cent on an year-on-year basis in March 2015, from 0.6 per cent recorded in February 2015. Annual average inflation also declined from 2.9 per cent in February 2015 to 2.5 per cent in March 2015. 

                         

CCPI declined by 0.4 per cent from February to March 2015. The main contributor for this decline was the moderation of food prices during the month. Prices of many vegetable varieties, rice, wheat flour, some varieties of dried fish and bakery products declined in March 2015, compared to the prices prevailed in February 2015. However, prices of meat, some varieties of fresh fish, some varieties of fruits, coconuts and some prepared foods recorded increases during the month.

Within the Non-food category, sub groups of Housing, Water, Electricity, Gas and other Fuels; and Transport declined as a result of the full impact realised from the downward revision of LP gas prices and bus fares as per the interim Budget in February 2015. However, prices in the sub categories of Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Health; Recreation and Culture; and Miscellaneous Goods and Services recorded increases. Average prices in Education and Communication sub categories remained unchanged during the month. 

Core inflation, which reflects the underlying inflation in the economy, increased to 1.4 per cent in March 2015, from 0.8 per cent in February 2015 on an year-on-year basis. Annual average core inflation declined to 3.0 per cent in March 2015, from 3.2 per cent in February 2015.

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Sri Lanka Treasuries yields fall

COLOMBO (EconomyNext) - Sri Lanka's Treasuries yields fell across maturities at Tuesday's auction with the 3-month yield falling 05 basis points to 6.55 percent, data from the state debt office showed.

The 6-month yield fell 02 basis points to 6.68 percent and the 12-month yield fell 04 basis points to 6.76 percent.

The weekly primary auction for the week ending 02 April 2015 for the rollover of 19 billion maturing Treasury bills was oversubscribed with bids received amounting to 58.6 billion.

The debt office said it accepted 19.6 billion rupees from the auction.

Sri Lanka's E B Creasy & Co. buys wire maker for Rs433mn

COLOMBO (EconomyNext) - Sri Lanka's E B Creasy & Company said it has bought Lanka Special Steels Ltd. from Tata Steel Ltd. for 433 million rupees.

The firm, a subsidiary of The Colombo Fort Land and Building PLC, bought 2.5 million shares representing 100 percent of the issued shares of Lanka Special Steels in a deal on Tuesday, a stock exchange filing said.

Lanka Special Steels Ltd. makes hot dip galvanised steel wires and has an installed capacity of 14,400 metric tonnes a year and annual turnover of 1.4 billion rupees.

Singhe Hospitals IPO full

The Initial Public Offer of 100,000,000 ordinary voting shares of Singhe Hospitals Ltd at Rs 2.50 per ordinary voting shares has been oversubscribed.

The company has received applications for subscription of more than 100,000,000 ordinary voting shares of Rs 250 million by 8.30 a.m on 30 March 2015 and that in terms of the prospectus the subscription was closed yesterday at 4.30 p.m.
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Ceylinco Life market leader for 11th year with income of Rs. 18.54 b

Life Fund exceeds Rs.60 b; assets grow to Rs. 71.07 b

Ceylinco Life has reported total income of Rs. 18.54 billion for the 12 months ending 31December 2014 with premium income of Rs. 12 billion, emphatically retaining its position as the country’s largest life insurer for the 11th consecutive year.

Gross written premium income recorded an increase of 7.9% over the previous year, while investment income improved by 1.78% in the review period to Rs. 6.83 billion, the company said in a filing with the Colombo Stock Exchange.

The value of Ceylinco Life’s investment portfolio appreciated by 12.72% to Rs. 57.2 billion, a noteworthy growth in the context of the generally lower rates of return on interest bearing assets during the year.

Total assets grew by Rs. 7.12 billion or 11.14% to Rs. 71.07 billion.

The company’s Life Fund recorded a net growth of Rs. 7.26 billion or 13.75% over the 12 months to Rs. 60.02 billion at the end of the year in a strong indication of the financial strength of Ceylinco Life, the company said.

“It was a tough year, but our unwavering focus on business fundamentals and prudent investment enabled the company to post an impressive performance without being distracted by challenges or extraneous matters,” Ceylinco Life’s Managing Director and CEO R. Renganathan said. “These results are also an irrefutable indication that Ceylinco Life continues to enjoy the trust and confidence of policyholders and prospective customers.”

He disclosed that Ceylinco Life sold 139,777 new policies in 2014 at an average of 11,648 per month, with improved sales of retirement plans contributing to the growth in premium income in the year under review.

The company’s policyholders received more than Rs. 4.8 billion in benefits in 2014. This included maturity and other survival benefits, claims, and annual bonuses.

At the end of the year under review, Ceylinco Life’s investment portfolio comprised of Government securities (50%); licensed private banks (15%); State banks (9%); real estate (9%); corporate debt (14%) and others (3%). These investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No. 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

One of the highlights of 2014 for Ceylinco Life was the international recognition the company received when World Finance adjudged the company the ‘Best Life Insurance Company in Sri Lanka.’ The prestigious UK-based bi-monthly magazine gave Ceylinco Life high markets in several areas of assessment including efficiency in processing new business, focus on customer retention, employee and agent training, ensuring best practices within the company, financial performance, market research and measuring customer satisfaction.

Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. 

The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.
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