Sri Lankan shares rise on blue chips; foreign outflow hits 7-mth high

Reuters: Sri Lankan stocks hit a one-week closing high on Thursday, led by blue chips as investors picked up beaten down counters, even as foreign investor outflow touched a seven-month high, mainly due to selling in shares of National Development Bank.

The benchmark index of the Colombo Stock Exchange ended 0.21 percent higher at 6,464.94, its highest close since Sept.15.

"Index turned green today with sudden buying interest in blue chip counters," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Buying interest is there mainly in diversified shares."

Foreign investors sold a net 6.38 million shares in National Development Bank, ahead of a change in its top management, Mathew said. NDB ended 1 percent higher.

Foreign outflow hit its highest since Feb. 19 as offshore investors sold a net 867.8 million rupees ($5.95 million) worth of equities on Thursday, extending the year to date net foreign outflow to 2.94 billion rupees worth shares.

Turnover stood at 2.09 billion rupees, more than twice this year's daily average of 752.3 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 0.9 percent, while Ceylon Tobacco Company Plc gained 1.3 percent, driving the overall index higher.

The bourse hit a more than seven-week low on Tuesday as selling pressure on stocks that were expected to take a hit from a proposed tax increase weighed on sentiment. 

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Infrastructure: Port city to transform Colombo, boost facilities

(LBO) – Sri Lanka’s planned Port City project says its vision is to offer a modern and sustainable lifestyle without comprising services delivered to attract high net-worth individuals in the region.

Several hectares of public parks will increase facilities available to the public and the amount of commercial office space in Colombo will quadruple, officials said.

“We want to create a South Asian hub attractive to high net-worth individuals to set up a second home to live, work and play while also incorporating into the hub a world class business and financial centre, luxury residences, entertainment and lifestyle destinations,” Liang Thow Ming, chief sales and marketing officer, CHEC Port City Colombo (Pvt) Ltd said.

“Our city will be a blue and green city with a high quality environment founded on latest sustainable concepts and practices.”

He was speaking at the LBR LBO Infrastructure Summit 2016 themed “Realizing The Transformative Power of The Western Region Development: Opportunities and Challenges.”

Sri Lanka’s government officially informed the Chinese investors of resuming the construction of the Port City project in capital Colombo, in March 2016, one year after its suspension.

The project was under water for a long period of time as the new administration questioned project approvals by the last regime.

The Port City is to be constructed between the Southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of sea to be reclaimed is 252 hectares.

The Port City is expected to boost the local economy by generating millions of dollars upon its completion and generate over 80,000 jobs and includes a marina and yacht club, a central boulevard, a sea view apartment complex and a five-star hotel, shopping and entertainment center, office space, a mini golf course, and many other modern facilities.

Thow Ming says the projects challenge is to have reliable and integrated infrastructure solutions where you connect water, energy and waste loops to reduce losses, increase recycling and recovery.

“We need to create the best balance between management on a central and a local level.”

“Use the eco cycle model as a tool to integrate infrastructure solutions and gain synergies integrate centralized systems for Port City i.e. waste handling of recyclables and water reservoirs.”

It will also use local solutions on a building level when optimal like energy solutions users’ awareness concerning their actions and the consequences they have are achieved through education and information on all levels, he added.

Textured Jersey changes its name to Teejay Lanka

(LBO) – Sri Lanka’s Textured Jersey, a leading knitted fabric company, has officially changed its name to Teejay Lanka with effect from 15th September 2016.

The company said in a stock exchange filing that the name change had the shareholder approval through a special resolution at the Annual General Meeting.

Sri Lanka nationwide inflation slows to 4.5-pct in August

ECONOMYNEXT – Nationwide inflation in Sri Lanka in August 2016 fell to 4.5% from 5.8% in July 2016, on a year-on-year basis, the Department of Census and Statistics said.

The National Consumer Price Index (NCPI) fell by 1.6% to 113.3 index points in August 2016 from 115.2 index points in July 2016 mainly due to the decrease in prices of items in the Food category.

Prices of vegetables, green chillies, sugar, coconut, sprats, rice, dhal and red onions decreased during the month, a statement said.

Within the Non-food category prices in Health; Communication; and Recreation and Culture subcategories decreased during August 2016.

Prices in the Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance, Transport, Restaurants and Hotels and Miscellaneous Goods and Services sub-categories increased during August 2016.

Prices of Alcoholic Beverages and Tobacco increased in August 2016 while prices in the Education sub-category remained unchanged during the month.

“The NCPI Core inflation, which reflects the underlying inflation in the economy decreased to 6.0% in August 2016 from 6.8% in July 2016, on year-on-year basis,” the statement said.

Sri Lanka Treasury Bill yields ease at auction

ECONOMYNEXT – Sri Lankan Treasury Bill yields eased at Wednesday’s auction with the 03-month bill falling to 8.71% from 8.75% at the auction of 7 September when they were last sold, data from the debt office showed.

The six-month yield fell to 9.69% from 9.71% and the one-year yield fell 10.38% from 10.39%.

The debt office, a unit of the Central Bank, got bids worth Rs51 billion and accepted Rs15.9 billion worth of bids.

Fitch rates Nations Trust Subordinated Debt ‘A-(lka)(EXP)’

Fitch Ratings has assigned Nations Trust Bank’s proposed Basel II-compliant subordinated debentures of up to Rs 5 bn an expected National Long-Term Rating of ‘A-(lka)(EXP)’.

The proposed debentures will mature in five years and carry fixed and floating coupons. The debentures are to be listed on the Colombo Stock Exchange. NTB plans to use the proceeds to support its Tier 2 capital base, diversify its funding mix and reduce structural maturity mismatches.

The final rating is subject to the receipt of final documentation conforming to information already received.The proposed subordinated debentures are rated one notch below NTB’s National Long-Term Rating to reflect the subordination to senior unsecured creditors.

NTB’s ratings reflect its expanding franchise, improved efficiency and its high and increasing exposure to products and customer segments that are more susceptible to economic cycles. The Outlook is Stable.
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