Colombo Stock Exchange delists Orient Finance

The Colombo Stock Exchange has delisted Orient Finance PLC from its official listing with effect from end of trading on 30 July 2015.

The debentures issued by Orient Finance PLC before its amalgamation with Bartleets Finance PLC will remain listed until maturity under the same code ‘ORIN’ under the name of ‘Bartleets Finance PLC’.

Sri Lanka sells Rs25.7bn in 06 and 10 year treasury bonds

(LBO) – The issue of treasury bonds amounting to 20.00 billion rupees have been oversubscribed with 105.9 billion rupees of bids received from investors.

The Central Bank has accepted 11.4 billion rupees of 06 year bonds maturing on 01 August 2021 at a weighted average yield rate of 9.07 percent.

The bond auction held on Tuesday also accepted 14.3 billion rupees of 10 year bonds maturing on 01 August 2025 at a rate of 9.63 percent.

The Central Bank rejected 20.4 billion rupees of bids received for the 03 year bond.

Sri Lanka’s Haycarb profit grows slowly in June quarter

ECONOMYNEXT – Sri Lankan coconut shell-based activated carbon manufacturer Haycarb reported slow growth in profit in the June 2015 quarter owing to the continued slump in gold mining, currency depreciation and stiff lower cost competition.

The Hayleys group unit said June 2015 quarter net profit rose four percent to 135 million rupees from a year ago although sales rose 20 percent to 2.9 billion rupees.

Earnings per share for the June 2015 quarter were 4.55 compared with 4.40 rupees the year before, interim accounts filed with the stock exchange showed.

Haycarb Managing Director Rajitha Kariyawasan said margins were squeezed by the downturn in the gold mining industry coupled with significant depreciation of currencies in key markets of Europe, Japan and Australia.

“The low cost competition from smaller manufacturers in Philippines, Indonesia and India and continued difficulties in charcoal procurement especially in Sri Lanka has resulted in a very challenging period in the near term,” a statement said.

“Haycarb Group will focus on lean initiatives to achieve cost savings and pursue its strategy of increasing its market share in the value added carbon segment.”

At the same time Haycarb was trying to increase direct marketing in the USA, through its new structure at Haycarb USA.

Kariyawasan said growth in its environmental engineering arm Puritas (Pvt.) Ltd. is expected to contribute more to the profitability of the group.

Sri Lankan shares slip from near six-month high on profit-taking

Reuters: Sri Lankan shares fell on Tuesday from their highest in nearly six months as investors took profits after a four-day rally on hopes of political stability after the Aug. 17 parliamentary elections, brokers said.

The index had gained 6 percent in nearly a month through Monday as investors picked up risky assets, also on expectations of strong corporate earnings.

The main stock index ended 0.36 percent or 26.54 points weaker at 7,310.05, slipping from its highest close since Feb. 13 hit on Monday.

Turnover stood at 1.55 billion rupees ($11.6 million), well above this year's daily average of 1.09 billion rupees.

"The market came off with an expected profit-taking session," Danushka Samarasinghe, research head at Softlogic Stockbrokers, told Reuters.

"The slide might continue for one or two days before it stabilises and then rallies again."

Analysts said investors are expecting a strong government after the election, which has helped sentiment. The also expect local companies to post strong results for the April-June quarter.

Losses were led by large-caps, with Ceylon Tobacco Co Plc falling 1.97 percent and conglomerate John Keells Holdings Plc losing 1.24 percent.

Foreign investors, who have bought a net 700.9 million rupees worth of shares so far this year, net sold 157.6 million rupees in equities on Tuesday.

($1 = 133.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)