Sri Lankan stocks end marginally lower ahead of polls

Reuters: Sri Lankan shares ended lower for a second straight session on Wednesday as investors sold blue-chip stocks such as John Keells Holdings Plc ahead of the local government polls over the weekend.

The Colombo stock index ended 0.08 percent weaker at 6,507.25, slipping further from its highest close since Jan. 9 hit on Friday.

Shares in conglomerate John Keells Holdings Plc slipped 0.6 percent, while Colombo Cold Stores Plc edged down 1.9 percent and Sri Lanka Telecom Plc lost 1.7 percent.

“There is no real direction as investors are on a wait-and-watch mode ahead of the elections,” said Dimantha Mathew, head of research at First Capital Holdings.

“Turnover is boosted by some foreign buying.”

Sri Lanka will hold the long-delayed local government election on Feb. 10 amid worries about the future of the country’s coalition government.

The market turnover was 968.3 million rupees ($6.27 million), more than last year’s daily average of 915.3 million rupees.

Foreign investors bought a net 124.4 million rupees worth of shares on Wednesday, extending the year-to-date net foreign inflow to 4.5 billion rupees worth of equities. 

($1 = 154.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lanka's Hayleys Fabric makes loss in Dec quarter

ECONOMYNEXT –Sri Lanka's Hayleys Fabric made a loss of 10.8 million rupees in the December 2017 quarter compared with a 12.1 million rupee profit a year earlier, accounts filed with the stock exchange showed.

The fabric maker, a unit of Hayleys PLC, reported a loss of five cents a share in the quarter, despite Sri Lanka regaining GSP Plus trade concessions to the EU in May 2017.

In the nine months to December 2017, Hayleys Fabric reported a 10 cents loss per share on a total loss of 21.1 million rupees.

Revenues grew four percent in the quarter from a year ago to 2.1 billion rupees, while cost of sales also grew at four percent to 1.9 billion rupees, leading to a gross profit of 229.7 million rupees, up five percent from a year ago.

Administrative expenses grew 16 percent to 187.9 million rupees and financing costs increased 24 percent to 38.5 million rupees.

In the notes to the accounts, the Hayleys Fabrics said contingent liabilities on bills discounted amounted to 69,271 US dollars (about 10.6 million rupees).

Hayleys' Kingsbury Hotel Dec net falls 54-pct

ECONOMYNEXT – Profits at Sri Lanka's Kingsbury, a Colombo hotel owned and operated by Hayleys, fell 54 percent from a year earlier to 48.8 million rupees in the peak December 2017 quarter with flat revenues and rising costs.

Kingsbury reported earnings of 20 cents per share for the quarter. In the nine months to December the hotel reported earnings of 41 cents per share on total profits of 99.9 million rupees, which fell 62 percent, unaudited interim results filed with Colombo Stock Exchange showed.

The share closed 80 cents lower at 14.10 rupees on Friday.

The company said 250,000 US dollars (38 million rupees) paid to Iconic Entertainment Pte. Ltd for a Japanese restaurant and Sky Lounge in October has not been included in the profit and loss account. It will be brought it after completion. The estimated cost is 50 million rupees

Revenues fell one percent from a year ago to 816 million rupees in the December quarter, while cost of sales grew at 14% to 425.6 million rupees, contracting gross profits by 13 percent to 390 million rupees.

Administrative expenses increased 11 percent to 286.9 million rupees. Finance expenses fell 52 percent to 19 million rupees

Sri Lanka's Asian Hotels profits plunge 45-pct in peak season

ECONOMYNEXT - Profits at Sri Lanka's Asian Hotels and Properties, a unit of John Keells Holdings which runs Colombo's Cinnamon Grand and Cinnamon Lakeside, fell 45 percent from a year earlier to 306 million rupees in the peak December 2017 quarter with revenues also sliding.

The group reported earnings of 60 cents per share for the quarter. In the nine months to December Asian Hotels reported earnings of 2.25 rupees per share on total profits of 996 million rupees, which fell 31 percent.

Revenues fell 9 percent to 2.25 billion rupees in the quarter, cost of sales rose 1.1 percent to 1.03 billion rupees and gross profits contracted 16 percent to 1.22 billion rupees.

Distribution expenses grew 23 percent to 115.5 million rupees and administrative expenses edged up 1 percent to 532 million rupees.

At core company level, which does not include of Cinnamon Lakeside, revenues were down 12 percent to 1.39 billion rupees, and profits fell 42 percent to 294 million rupees.

The group also has some revenues from apartment rentals.

In the nine months to December property revenues were slightly up at 308 million rupees from 307 million and net profits rose to 198 million rupees from 182 million.

For the six months to September group revenues fell only 2 percent to 2.67 billion rupees compared to the 9 percent fall in the peak December season.

Hong Kong based Shangri-La opened in the winter tourist season and has been attracting some of the meeting and banquet business in Colombo, analysts say.

Sri Lanka tourist arrivals up 12.6-pct in Jan 2018, amid China plunge

ECONOMYNEXT - Sri Lanka's tourist arrivals rose 12.6 percent from a year earlier to 246,972 in January 2018 with a surge in Indian visitors while China fell back, data from the state tourism promotion office showed.

Tourists from India, the top generating market, soared 40 percent to 43,643 in January pushing South Asian arrivals up 32 percent to 54,815. Visitors from Pakistan rose 18.2 percent to 2,971 and Maldives was up 9.4 percent to 6,194.

Western European arrivals rose 14.9 percent to 83,324 at the tail-end of the winter season after a weak 5.8 percent growth in December with UK growing 15.1 percent to 22,410. Germany grew 20.2 percent to 14,982, France was up 14.5 percent to 12,209.

Sweden grew 15.5 percent to 5,524, Italy 20.7 percent to 5,360 and Netherlands was up 13.3 percent to 5,048.

Eastern Europe grew 15 percent to 30,550 with Russia up 12.5 percent to 11,634 and Ukraine up 12 percent to 6,544.

Chinese visitors plunged 22 percent to 24,819 dragging total East Asian tourists down 15 percent to 41,462. Japanese visitors grew 18.2 percent to 4,758, Indonesia fell 21 percent to 2,284 and South Korea grew 36 percent to 2,523.

Middle East grew 25 percent to 11,199 with Saudi Arabia up 44 percent to 4,574 and Israel up 19.8 percent to 1,323.