tag:blogger.com,1999:blog-19713069089086677352024-03-13T23:00:01.974+05:30SriLanka Business NewsNews related to Sri Lanka Economics, Colombo Stock Exchange, Sri Lanka Tourism and Central Bank of Sri Lanka.Atchuthan Sriranganhttp://www.blogger.com/profile/14778926987063809857noreply@blogger.comBlogger6691125tag:blogger.com,1999:blog-1971306908908667735.post-4312555980218172352020-05-15T18:51:00.002+05:302020-05-15T18:51:11.679+05:30Fitch affirms Hemas Holdings at ‘AA-(lka)’; Outlook Stable<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Fitch Ratings has affirmed Sri Lanka-based consumer and healthcare company Hemas Holdings PLC’s National Long-Term Rating at ‘AA-(lka)’ with a Stable Outlook.<br /><br />The affirmation reflects the limited vulnerability of the company’s largely defensive operating cash flows to disruptions from the coronavirus pandemic and the resultant economic downturn. Pharmaceutical trading and manufacturing as well as fast-moving consumer goods (FMCG) in home and personal care, and stationery account for over 80% of the group’s EBIT.<br /><br />The rating also benefits from the company’s exceptionally strong balance sheet and high rating headroom before the economic downturn, and we estimate steady leverage of around 0.4x-0.5x in the year ended March 2020 (FY20) and FY21 compared with the 3.0x leverage threshold for the current rating.<br /><br />Hemas also disposed of two of its smaller non- core businesses in FY20, which will improve the group’s profitability starting FY21, even as its exposure to the hotel sector weighs on its financial profile.<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-26965109216377356612020-05-15T18:42:00.001+05:302020-05-15T18:42:11.463+05:30 Union Bank reports subdued growth in 1Q20<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Despite its strong-footed entry into the first quarter of 2020, Union Bank’s core banking growth compressed since mid-March up until the end of the first quarter, owing to unprecedented economic impacts of the ongoing global pandemic.<br /><br />Net Interest Income (NII) of the Bank was affected by low credit growth and the pressure on lending rate caps introduced by the Central Bank of Sri Lanka (CBSL). As a result, the Bank’s NII increased only by 2% YoY to Rs.1,031 Mn. The effective fund management strategies coupled with timely re-pricing of assets and liabilities contributed towards sustaining NII amidst challenges.<br /><br />The Bank’s fee and commission income declined by 8% YoY to Rs. 201 Mn due to the drop in demand for fee based activities across credit related product lines and mainly due to the reduction in the import and export business.<br /><br />The Bank’s Treasury recorded a notable performance with a significant YoY increase of Rs.119 Mn in capital gains mainly due to the favourable movements of interest rates. Other Operating Income of the Bank increased significantly on the back of exchange rate deflation by 5% YTD. Operating Income of the Bank for the period was Rs. 1,498 Mn.<br /><br />As a result of focused efforts on enhancing operational efficiency, the Operating Expenses of the Bank increased only by 5% YoY to Rs. 1,001 Mn during the period under review. Pre-impairment profits of the Bank were Rs. 498 Mn for the period and indicated a growth of 20% YoY. Weighed down by the challenges of the operating environment, Union Bank recorded a subdued profit before all taxes of Rs. 405 Mn. Profit after Tax (PAT) of the Bank was Rs. 180 Mn.<br /><br />Total assets of the Bank stood at Rs. 131,195 Mn as at 31st March 2020. The Bank’s loans and receivables stood at Rs. 78,266 Mn and the deposits base was Rs. 83,924 Mn by quarter-end.<br /><br />The Group comprising the Bank and its two subsidiaries, National Asset Management Limited and UB Finance Company Limited, reported a Profit after Tax of Rs. 195 Mn for the period. Total assets of the Group were Rs. 139,206 Mn of which 94% was represented by the Bank.<br /><br />Director/CEO Indrajit Wickramasinghe said, “We are currently operating in unprecedented conditions and are making every effort to provide our customers optimum solutions and financial support during these difficult times. The Bank has withstood a challenging first quarter, and the results have been impacted by the economic trials of the health crisis which began its effects from mid-March and is expected to bear a ripple effect on the banking sector as well as the business community in the coming months.”<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-61062878631042799062020-05-15T18:40:00.002+05:302020-05-15T18:40:27.141+05:30Pan Asia Bank records best ever Q1 results<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;">Profit before tax up by 53% to Rs. 652 Mn</span><br /><br />Pan Asia Banking Corporation PLC concluded 2020 Q1 with the best ever financial results in a first quarter of an year in its 25 year history to report a Profit before tax of Rs.652 Mn and Profit after tax of Rs.416 million, recording an impressive growth of 53% in both, demonstrating resilience amidst challenging conditions.<br /><br />The Bank’s operating profit before taxes on financial services for the quarter increased by 22% reflecting solid overall core banking performance, effective assets and liabilities management and excellence in NPL management, although prudential impairment provisioning undermined the bank’s operating profits to an extent. The Bank consciously increased impairment provision buffers during Q1 to deal with probable general deterioration in asset quality due to the impact of COVID 19 pandemic.<br /><br />The Bank’s growth in both profit before income tax and profit for the quarter was also supported by the low financial services taxes regime prevailed throughout the current quarter.<br /><br />The Bank’s net interest margins improved from 4.36% to 4.78% during past 3 months which is a commendable feat given the industry wide deterioration in credit quality and steps taken by the government to bring down market interest rates despite the increased credit risk of borrowers. Meanwhile, the Bank’s pre tax Return on Assets improved from 1.52% to 1.63%.<br /><br />The Bank’s total asset base stood at Rs.168 Bn at the end of the quarter after posting a growth of 10%. Meanwhile, the Bank’s gross loans and advances book recorded a strong growth of 6% during the quarter to reach Rs. 124 Bn which surpassed the previous full year’s growth.<br /><br />The Customer deposits recorded a commendable growth of 6% or Rs. 7 Bn during the quarter to touch Rs.130 Bn mark.<br /><br />The Bank’s Retail and Corporate segments collectively contributed towards improving the deposit base including CASA base, whilst an outflow of a large foreign currency time deposit was experienced on the latter part of the quarter.<br /><br />The Bank’s gross non-performing loan ratio improved from 6.31% to 6.03% whilst net non-performing loan ratio improved from 2.82% to 2.27% within a short period of 3 months due to prudential provisioning policies. Bank’s Director/CEO, Nimal Tillekeratne said, “This is the best ever post tax profits in a first quarter the Bank had in its history of 25 years. We have achieved this feat while building additional provision buffers to deal with possible general deterioration in credit quality due to impact of COVID-19 pandemic,” Tillekeratne added. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;">www.dailynews.lk</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-6437069407182199142020-05-15T18:37:00.001+05:302020-05-15T18:37:24.136+05:30Fitch affirms Richard Pieris at ‘A(lka)’/Stable<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Fitch Ratings has affirmed Richard Pieris & Company PLC’s (RICH) National Long-Term Rating at ‘A(lka)’. The outlook is stable. At the same time, Fitch has withdrawn RICH’s rating because the rating has been taken private.<br /><br />The affirmation reflects RICH’s ability to maintain net leverage commensurate with its ‘A(lka)’ rating in the next 12-18 months despite the vulnerability of some of its businesses to the coronavirus pandemic and the resultant economic downturn. We expect operating cash flows from RICH’s supermarket retail business, which accounts for around 45% of group EBIT, and its protected domestic palm-oil plantations to remain resilient in the current environment, offsetting challenges in the export and plastic segment, which are exposed to more volatile end-markets.<br /><br />RICH had modest rating headroom before the economic downturn, and we expect this, together with its flexibility to cut capex and shareholder returns, to help the company maintain leverage at around 3.0x in the year ending March 2021 (FY21) - the threshold for the current rating - before improving in FY22. However, a deeper or more prolonged impact from the pandemic may pose risks to our expectations.<br /><br />Fitch is withdrawing the rating of RICH because the rating has been taken private. “We expect supermarket revenue to decline by 15%-20% in FY21, mainly due to weaknesses in 1HFY21.<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-57468695187322101102020-05-15T18:35:00.003+05:302020-05-15T18:35:52.447+05:30Sampath Bank posts Rs 3 bn quarterly PBT<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Sampath Bank recorded a Profit before tax (PBT) of Rs 3 billion for the quarter ending March 31, 2020.<br /><br />Operating profit before all taxes, which is the real return generated by utilizing the assets and liabilities of the Bank, declined by 10.8%. This decline was due to the reasons mentioned above.<br /><br />The challenges brought by COVID – 19 pandemic and the recession brought on by the terrorist attack in April 2019 has lead the period under review to be pressurized by some unique challenges that were not seen in Q1 2019.<br /><br />The Bank reported Profit after tax (PAT) of Rs 2.5 billion for the three months ended 31st March 2020, reflecting a growth of 15.7% over the corresponding period in 2019. PAT growth was attributed to two factors; (1) the higher exchange income due to depreciation of the Sri Lankan rupee against the US dollar by Rs 7.90 during the quarter and (2) tax concessions received owing to the abolition of Debt Repayment Levy and NBT on financial services.<br /><br />Meanwhile, the Sampath Group achieved a PBT of Rs 3.3 billion and a PAT of Rs 2.7 billion for the period under review compared to Rs 2.8 billion and Rs 2.1 billion reported in the corresponding period of 2019.<br /><br />Owing to the prevailing challenges, average weighted prime lending rate in the Country dropped by approximately 3%. A similar drop was observed in Treasury Bill interest rates.<br /><br />Consequently, Sampath Bank’s Net Interest Income (NII) decreased by Rs 0.2 billion to Rs 9.98 billion as at March 31, 2020, a decline of 2.4% compared to the figure reported in Q1 2019. It should however be noted that despite the challenging conditions, effective fund management strategies helped to restrict the decline in NII to 2.4%.<br /><br />Overall, interest income for the period under review decreased by Rs 1.1 billion and stood at Rs 24.5 billion compared to Rs 25.6 billion recorded in the corresponding period in 2019, a decline of 4.3%. Interest expenses for the period under review decreased by 5.5%. For the three months ended March 31, 2020, Sampath Bank registered interest expenses of Rs 14.5 billion compared to Rs 15.4 billion recorded in 2019.<br /><br />Net fee and commission income, which largely comprises credit, trade, card, and electronic channel related fees, was Rs 2.2 billion for the quarter under review, a marginal decline of 1.4% over the figure reported in Q1 2019.<br /><br />Net other operating income recorded a YoY increase of 321.6% in Q1 2020, led mainly by an increase in realized exchange income due to a 4.4% depreciation of the Sri Lankan Rupee against the US Dollar.<br /><br />Consequently, net other operating income increased to Rs 2.3 billion, from the loss of Rs 1 billion reported during the corresponding period in 2019.<br /><br />On the other hand, the Bank incurred a net trading loss of Rs 664 Mn as a result of mark to the market losses on forward exchange contracts owing to the aforementioned currency depreciation.<br /><br />The Bank’s total operating expenses, which amounted to Rs 5.14 Bn in 1Q 2019, increased marginally by 0.2% during the period under review to Rs 5.15 Bn in 1Q 2020. The increase in operating expenses was kept to a minimum, thanks to comprehensive cost containment strategies implemented throughout the period under review.<br /><br />The total impairment charge for the first three months ended 31st March 2020 was Rs 4.9 Bn compared to Rs 3.5 Bn recorded in 1Q 2019 denoting an increase of 39.7%. The gross non-performing loans increased to 6.72% at end of 31st March 2020 from 6.37% reported at the end of 2019.<br /><br />Sampath Bank’s total asset base grew by 2.2% (annualized 8.7%) during the period under review to reach Rs 983 Bn as at 31st March 2020. In comparison, the total asset position as at 31st December 2019 stood at Rs 962 Bn. Gross loans & advances grew by 3.4% (annualized 13.9%) to reach Rs 744 Bn as at 31st March 2020, recording a growth of Rs 24.8 Bn for the period under review. The total deposit base increased by Rs 31.1 Bn for the same period, to reach Rs 749 Bn as at the reporting date, a growth of 4.3% (annualized 17.4%).<br /><br />The Bank’s Common Equity Tier (CET) I Capital, Tier I Capital and Total Capital Adequacy ratios as at 31st March 2020 stood at 13.65%, 13.65% and 17.16% respectively, all well above the corresponding minimum regulatory requirement.<br /><br />Sampath Bank continued to demonstrate its commitment to offer the best possible service to its customers across the Country by maintaining all essential banking services without interruption amidst curfew restrictions imposed during the COVID-19 lockdown.<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-37407798346566929402020-05-15T18:34:00.001+05:302020-05-15T18:34:20.473+05:30Dialog posts Rs 29.2 bn revenue for Q1 2020<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif; font-size: large;">Direct and Indirect taxes, fees, levies to Govt, Rs 4.5 bn</span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<span style="font-family: Trebuchet MS, sans-serif;">Dialog Axiata PLC all key business segments, Mobile, International, Tele-infrastructure, Digital Pay Television and Fixed Line contributed to record a consolidated revenue of Rs 29.2 billion for Q1 ended 31st March 2020, demonstrating a marginal decline of 1% Quarter-on-Quarter (“QoQ”), resulting from challenges to core revenue growth, albeit growing 1% Year-on-Year (“YoY”).<br /><br />derpinned by strong cost optimization initiatives, Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) grew 4% and 1% YoY to record at Rs12.2Bn for Q1 2020. The EBITDA margin was accordingly recorded at 41.6%, a 2.3pp QoQ improvement for Q1 2020.<br /><br />The Group NPAT declined 39% QoQ and 69% YoY to reach Rs1.5Bn for Q1 2020, mainly resulting from the non-cash translational forex losses. The Rupee (“LKR”) depreciated against the Dollar (“USD”) by 4.6% in Q1 2020 versus an appreciation of 3.6% and 0.1% in Q1 2019 and Q4 2019 respectively. Normalised for the non-cash translational forex losses/gains NPAT was recorded at Rs3.1Bn, up 31% QoQ albeit declining 13% YoY due to increase in depreciation and transactional forex impact.<br /><br />Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs 4.5 Bn to the Government (“GoSL”) during Q1 2020. Total remittances included Direct Taxes and Levies amounting to Rs1.4Bn as well as Rs3.1Bn in Consumption Taxes collected on behalf of the GoSL.<br /><br />The Group capital expenditure was prioritised in Q1 2020, amid Covid-19 outbreak and associated challenges, which recorded at Rs2.0Bn representing a capex to revenue ratio of 7%.<br /><br />The Group continued to exhibit a low geared balance sheet with the Net Debt to EBITDA ratio being maintained at 0.81x as at end of March 2020.<br /><br />At an entity level, Dialog Axiata continued to contribute a major share of Group Revenue (70%) and Group EBITDA (75%). The Company further consolidated its market leadership position in the Sri Lanka to reach 15.0 Mn subscribers during the quarter.<br /><br />Company Revenue was impacted by slowdown in core revenues and reached Rs20.5Bn for Q1 2020.<br /><br />Company NPAT was recorded at Rs1.6Bn for Q1 2020 declining 45% QoQ and 65% YoY due to the impact from non-cash translational forex losses. Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television space with a subscriber growth of 25% YoY to reach 1.5Mn as at end of March 2020. DTV Revenue remained stable QoQ and was up 8% YoY, amid growing subscription revenue, to reach Rs 2.2Bn.<br /><br />Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications and Broadband Business recorded revenue of Rs7.4Bn for Q1 2020, down 2% QoQ and up 10% YoY. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;">www.dailynews.lk</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-25466885297998164362020-05-15T18:29:00.002+05:302020-05-15T18:29:47.475+05:30Teejay ends 2019-20 with net profit up 28%<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Sri Lanka’s only multinational textile producer Teejay Lanka PLC has ended 2019-20 on an encouragingly strong note,<br /><br />reported profit before tax of Rs 2.9 billion at Group level for the 12 months ending 31st March 2020, reflecting impressive growth of 29% over the preceding year, a remarkable achievement considering that pre-tax profit for the final quarter was down 24% over the corresponding three months of 2019-20, to Rs 542.1 million.<br /><br />The Group posted net profit of Rs 2.4 billion for the full year, an improvement of 28%, after paying income tax of Rs 528.7 million, which was up 33% over that of the previous year. Net profit for the quarter ending 31st March 2020, at Rs 421.7 million, reflected a decline of 30%.<br /><br />Group revenue increased by a consistent 5% to Rs 33.3 billion for the 12 months reviewed, but was down by 21% to Rs 6.9 billion for the fourth quarter of 2019-20.<br /><br />Teejay Lanka Chairman Bill Lam commented that the unexpected decline in numbers in the fourth quarter was unfortunate as the Teejay Group was well in line to achieve its 10th consecutive quarter of growth in revenue and net profit had it not faced the unforeseen circumstance of the pandemic. “However, the Group had a very successful financial year achieving remarkable milestones, which included its highest revenue, highest gross profit and highest net profit for a financial year,” he said.<br /><br />In a note to shareholders, Lam also said the Group had donated fabric with its existing capabilities for the production of 2 million face masks to protect medical staff and armed forces in Sri Lanka that are engaged in the battle against the spread of COVID-19.<br /><br />Looking ahead, he said the pandemic will challenge the business in the coming months as most of the brands Teejay produces fabric for have had to shut their retail stores in the US and EU. Adapting to the changing environments, Teejay has ventured into a new endeavour of producing Personal Protection Equipment (PPE) to cater to international markets to supply the unprecedented current demand for these products.<br /><br />“As the manufacture of fabric is a mechanised process and the Teejay facilities extend to nearly 1.1 million square feet, the Group’s three production facilities are capable of manufacturing with their full work force amidst a COVID-19 environment”, Lam said.<br /><br />Teejay Lanka CEO Pubudu de Silva added: “With the team’s ability to innovate and create products, the Group’s new venture into the PPE market exploiting the years of experience in creating sophisticated fabric and its strength in the South Asian region together with its strong balance<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-35125822976461727922020-05-15T18:27:00.001+05:302020-05-15T18:27:20.359+05:30David Peiris buys 30 mn ComBank shares for Rs. 1.5 billion<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">A total of Rs. 60 Million Commercial Bank shares were sold yesterday where David Peiris bought half of that stock, market sources told the Daily News Finance.<br /><br />David Peiris had bought Rs. 30 Million shares of Com Bank at Rs. 50 each for Rs. 1.5 Billion while the rest of the shares were bought by other institutional investors, they said.<br /><br />They also said that David Peiris was a cash rich company which had Rs. 26 Billion available for portfolio investments as they were rich on trishaw sales.<br /><br />Meanwhile, yesterday’s trading was also positive as Wednesday where there was a turnover of Rs. 3684294.10 while 85,087,859 were traded. The All Share Price Index was 4393.54 , an increase of 26.29% over Wednesday. However, the S&P SL20 Index was down 22.13% to 1707.02.<br />www.dailynews.lk</span></div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-7301867570401699642020-05-15T18:25:00.003+05:302020-05-15T18:25:30.692+05:30ComBank posts income of Rs 39.4 bn, a growth of 12.87%<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;">Makes steady start to 2020 with pre-COVID-19 gains</span><br /><br />The bank has reported a gross income of Rs 39.444 billion for the three months ending 31st March 31, 2020, recording a growth of 12.87%. Interest income growth remained predictably flat, up just 0.83% to Rs 31.892 billion, but the Bank’s interest expenses, at Rs 19.466 billion, reflected an achievement of a 1.43% reduction during the quarter reviewed, attributable to timely re-pricing of liabilities as well as an improvement in its CASA ratio. This enabled the Bank to generate net interest income of Rs 12.426 billion, an improvement of 4.59%.<br /><br />A 4.34% depreciation of the Sri Lanka Rupee against the US Dollar in the three months reviewed as against an appreciation of 4.27% recorded in the first quarter of 2019, coupled with a revaluation of the Bank’s foreign currency assets and liabilities, resulted in the Bank posting an exchange profit of Rs 6.514 billion, which helped convert a net loss of Rs 389.309 million in other operating income in Q1 2019 to net income of Rs 6.587 billion in the three months under review.<br /><br />At the same time, a loss of Rs 2.348 billion was recorded from trading in the quarter reviewed due to unrealised losses on forward foreign exchange contracts entered into by the Bank.<br /><br />As a result of the higher impairment charges, the Bank’s net operating income declined by a marginal 0.38% to Rs 12.775 billion, despite the fact that total operating income had grown by a robust 31.64% to Rs 19.320 billion.<br /><br />Operating profit before taxes at Rs 6.239 billion reflected a decline of 4.63%, but with taxes on financial services reducing by 42.83% to Rs 1.010 billion for the quarter under review due to the abolition of Nation Building Tax (NBT) from December 2019 and Debt Repayment Levy (DRL) from January 2020, the Bank posted a profit before income tax of Rs 5.229 billion for the three months, an increase of 9.51%. Profit after tax grew by 22.62% to Rs 3.707 billion, with the increase in the tax-exempt component of income being higher in the reviewed quarter in comparison with Q1 of 2019.<br /><br />Commercial Bank Chairman Dharma Dheerasinghe said: “Although the impact of the shutdown of businesses necessitated by the COVID-19 pandemic is not yet reflected in the top line performance of the Bank because we had relatively normal volumes up to the middle of March, we did witness a continuing worsening in the prospects for certain business sectors.”<br /><br />Managing Director S. Renganathan disclosed that the Bank had increased its CASA ratio to 39.81% from 37.10% at the end of last year, even as it recorded extremely healthy deposit mobilisation in the reviewed three months.<br /><br />“The Bank was able to adapt very quickly to provide customers safe and convenient access to services during the crisis through multiple channels,” he said.<br /><br /><br /><br />Total assets of the Bank increased by Rs 63.919 billion or 4.61% at a monthly average of Rs 21.3 billion to Rs 1.451 Trillion.<br /><br />Gross loans and advances grew by Rs 28.744 billion or 3.12% since end 2019 to Rs 949.201 billion at the end of the three months under review.<br /><br />Total deposits recorded a growth of 4.87% or Rs 51.326 billion over the three months to reach Rs 1.105 Trillion as at 31st March 2020, reflecting average monthly growth of over Rs 17 billion.<br /><br />In other key indicators, the Bank’s gross NPL ratio increased to 5.27% from 4.95% at end 2019 and 4.14% at end of first quarter 2019, while its net NPL ratio increased similarly to 3.24% from 3.0% at the start of the quarter.<br /><br />The Bank’s Total Tier 1 capital ratio stood at 11.495%, comfortably above the revised minimum requirement of 9% imposed by the regulator.<br /><br />As a group, Commercial Bank, its subsidiaries and associates reported profit before tax of Rs 5.438 billion, an improvement of 8.35% and profit after tax of Rs 3.814 billion, reflecting growth of 19.54%.</span><div>
<span style="font-family: Trebuchet MS, sans-serif;">www.dailynews.lk</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-1961800468860968332020-03-27T12:54:00.002+05:302020-03-27T12:54:45.024+05:30Trends Shaping Sri Lanka's Bond Market <div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">LOW BORROWING RATES AND TAX CUTS HAVE POTENTIALLY TRANSFORMED THE ECONOMY. WHAT DOES IT MEAN FOR THE GOVERNMENT SECURITIES MARKET AND FOR INVESTMENT STRATEGY?<br /><br />Sweeping tax cuts and a moratorium on small business loans capital repayments will potentially drag Sri Lanka’s economy out of the doldrums. Apart from the government’s fiscal stimulus, the economy will potentially transform with the Central Bank reducing monetary policy rates; lower lending rates will lift credit growth and consumption. General elections slated for April 2020 will likely enhance political stability which is also growth positive.<br /><br />“The heavy tax cuts and the lower interest rate regime are expected to boost consumption and investments, improving GDP growth. However, the acceleration is likely to take place towards the second half of 2020. Thereby, we expect growth to reach 4.1% during the year,” First Capital Research said in its flagship ‘Strategy Report 2020: Fiscal loosening weakens 2H2020 outlook’ released in February at a well-attended business forum in Colombo.</span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /><img height="359" src="https://echelon.lk/wp-content/uploads/2020/03/Trends-shaping-Sri-Lankas-bond-market-_930x523.jpg" width="640" /><br /><br />The First Capital Research Team, from left: Hiruni Perera, Senior Research Analyst, Nisansala Kuruppumudali, Research Analyst, Atchuthan Srirangan, Assistant Manager Research, and Dimantha Mathew, Head of Research.<br /><br />First Capital is a listed investment bank in Sri Lanka. The economy will continue to pick up steam heading into 2021 but will slow down during the second half.<br /><br />However, economic growth for 2021 will be an improved 4.3%, a five-year high, the investment house said. What does all this mean for an investment strategy? With the economy improving and interest rates trending downwards, equities are looking more attractive than in recent years. The heavy tax cuts and the policy rate cut are likely to be an added boost for company earnings. With attractive multiples, First Capital has upgraded its equities outlook and is bullish that the Colombo stock exchange’s All Share Index will reach 6,500 points by June 2020 and increase to 7,500 points by end December 2020, significantly higher than its earlier forecast of 7,000 points.<br /><br />Equities, however, are risky and cannot match the security offered by government treasury bills and bonds.<br /><br />First Capital recommends an investment strategy of holding government securities with shorter tenures because yields will likely pick up towards the second half of 2020. Pressure on bond yields to rise will mainly come from the government’s increased domestic borrowing requirement, pushing the yield curve higher by 50-100 basis points. Market borrowing rates will also trend slightly upward. Bank prime lending rates usually lag the five-year bond yields by six months. The Central Bank recently imposed lending caps on banks to force interest rates down. The average weighted prime lending rate (AWPR) for the banking sector has bottomed out at around 9.5% and will slightly increase in the second half of the year. The fiscal stimulus will make it difficult for the government to manage the budget deficit as tax revenues decline.<br /><br />Although rupee debt repayments remain low in 2020, a potentially high budget deficit is likely to be created with the hefty tax cuts. The high budget deficit is likely to push the rupee debt borrowing requirement also higher. The trade deficit may also grow wider towards the second half of 2020 amidst the possible rise in consumer demand possibly leading to a high level of consumer imports, pressuring the foreign reserve and the rupee,” First Capital says. There are higher external debt repayments due including a $1 billion sovereign bond maturing in September 2020. First Capital expects the rupee to depreciate by 4.6% against the US dollar in 2020 despite a stable run in the first half of the year. Sri Lanka’s total debt repayment for 2020 is Rs2.4 trillion. Debt to GDP is expected to increase to 85% in 2019 but dip marginally to 84% in 2020 due to higher GDP growth, lower debt repayments and foreign direct investments mainly into the Colombo Port City. While overall bond repayments will dip in 2020, foreign debt repayments remain high in the second and third quarters.<br /><br />“The Year 2020 illustrates a notable reduction in repayments especially in the first and fourth quarters, however, we expect foreign payments in the range of $300-350 million to exist monthly in the form of project loan repayments with relatively high repayments in the second and third quarters,” First Capital notes. The policy rate cut on top of the fiscal stimulus prompted foreign selling of government securities which impacted market liquidity. However, due to restrictive foreign holdings, the market impact was low. Private sector credit improving to 14% in 2020 will further tighten liquidity. Sovereign rating risk is another concern. The government’s fiscal stimulus has been criticized by sovereign rating agencies. Fitch downgraded the outlook on Sri Lanka to ‘Negative’ indicating a possible rating downgrade in the future.<br /><br />This will likely make capital raising in international markets more expensive. The rating downgrade risk is offset by the South Asian region’s economic growth prospects. With the US Fed expected to hold rates, foreign investors could find the region’s bond markets attractive, particularly in Sri Lanka with improved political stability and growth. However, ensuring fiscal discipline will be critical to ensure the tax cuts and monetary easing have their desired effect on the economy.</span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">Source:</span>https://echelon.lk/trends-shaping-sri-lankas-bond-market/</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-2105326959550727652020-02-19T00:17:00.000+05:302020-02-19T00:17:06.935+05:30 Sri Lanka banks trading at 10-yr low valuations: First Capital<div dir="ltr" style="text-align: left;" trbidi="on">
ECONOMYNEXT- Sri Lankan banks are trading at a ten year low valuation, with upward pressure on performance after a challenging 2019, a research firm said.<br /><br />“Compared to frontier and emerging markets, Sri Lankan banks have the lowest price to earnings ratios,” First Capital Senior Research Analyst Hiruni Perera said.<br /><br />“Banks are still undervalued in Sri Lanka. Banking stocks are at a ten year low,” she said, speaking at the First Capital Investment Strategy 2020 Second Research Conference held on Tuesday.<br /><br />Sri Lankan banks had ended 2019 at a price to earnings multiple of 5.4 and a price to book value multiple of 0.7.<br /><br />The price to earnings multiple of India-based Axis Bank Ltd was 17.3 at end-December, while Bank of the Philippine was 12.3 and Malayan Banking Berhad was 11.5.<br /><br />The Colombo Stock Exchange had ended the year with a price to earnings multiple of 11.6.<br /><br />FC Research Assistant Manager Atchuthan Srirangan said with the government removing the Nation Building Tax and the Debt Repayment Levy, net profits at banks will rise 9 percent.<br /><br />The government has also announced bank income tax will fall to 24 percent from 28 percent.<br /><br />With a bullish view on banking stock Srirangan said banks with high capital and a digitization edge will outperform the sector, as digital banking growth has outpaced traditional transactions at brick and mortar branches.<br /><br />Profits at banks which fell 4 percent in 2019 with constrained capital and rising bad loans, will grow at a compounded 19 percent up to 2021, he said.<br /><br />Return on equity is expected to rise to 12 percent in 2021, First Capital has estimated, from 10 percent in 2019.<br /><br />Credit growth is expected to pick up in the latter half of 2020 and early 2021, while bad loans will moderate with higher economic growth and the breathing room borrowers receive from loan moratoriums, he said.<br /><br />Meanwhile, the capital constraints on banks will ease, as many have raised equity during the year, while larger banks such as Sampath, HNB, Seylan and NDB will face lower capital requirements due to the D-SIB rule change, which will give them room to expand, Perera said.<br /><br />Annual private credit growth, which had fallen to 4.5 percent in 2019, would rise to 14 percent in 2020 and 2021 amid a low interest environment, Srirangan said. </div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-19651321296227211192019-10-31T22:04:00.003+05:302019-10-31T22:04:25.181+05:30Sri Lankan shares post over 13-week closing high; rupee firmer<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: </span><span style="font-family: "Trebuchet MS", sans-serif;">** </span><span style="font-family: Trebuchet MS, sans-serif;">Sri Lankan shares rose on Thursday to close at their highest in more than 13 weeks as investors took positions two weeks ahead of presidential polls, analysts said.<br /><br />** Sajith Premadasa, the housing minister and one of the two presidential front-runners, announced his election manifesto, which is seen by analysts as a “broader policy framework”. His close rival Gotabaya Rajapaksa has pledged a tax overhaul that would reduce tax to 8% from the current 15% and abolish many taxes. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Many political analysts Reuters spoke to said the tight race between the two presidential candidate was still on.<br /><br />** The benchmark stock index ended 0.55% firmer at 5,990.24, its highest close since July 29. The index rose 1.2% last week, but is down 1% for the year.<br /><br />** Financial and telecom stocks were among the top gainers, with Hatton National Bank Plc rising 2.9%, Sri Lanka Telecom Plc ending 2.2% firmer and Dialog Axiata Plc adding 0.8%.<br /><br />** The rupee ended 0.25% firmer at 181.05/30 per dollar, compared with Wednesday’s close of 181.50/60. The currency is up 0.86% so far this year.<br /><br />** Foreign investors were net sellers of riskier assets for the seventh straight session on Thursday.<br /><br />** They sold net 102 million rupees ($563,380) worth of shares, extending the year-to-date net foreign selling to 4.32 billion rupees of equities, according to index data.<br /><br />** Equity market turnover was 1.28 million rupees ($7,069.87), well above this year’s daily average of about 667.6 million rupees. Last year’s daily average was 834.0 million rupees.<br /><br />** Meanwhile, foreign investors bought government securities on a net basis for the first time in three weeks, buying a net 1.97 billion rupees worth of government securities in the week ended Oct. 23.<br /><br />** Total foreign outflows from government securities through Oct. 23 stood at 53.63 billion rupees, according to central bank data.<br /><br />** Sri Lanka’s central bank left its key rates unchanged on Oct. 11 after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.<br /><br />($1 = 181.0500 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-23479022838330740352019-10-21T23:15:00.001+05:302019-10-21T23:15:14.936+05:30Sri Lankan stocks end flat; rupee strengthens<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan shares closed flat on Monday, as gains in consumer staples were offset by losses in telecommunications shares, while investors also waited for policy manifestos of key presidential candidates. The rupee ended firmer. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index closed 0.01% higher at 5,863.99. The index has fallen 3.11% so far this year. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee ended 0.14% firmer at 181.70/80 per dollar compared with Friday’s close of 181.95/182.10. The currency is up 0.49% so far this year. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors bought riskier assets for the second time in 14 sessions as campaigning got underway for the country’s presidential election scheduled on Nov. 16. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** They purchased a net 216.2 million rupees ($1.19 million) worth of shares on Monday, but they have been net sellers of 3.78 billion rupees of equities so far this year, according to index data. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa and housing minister Sajith Premadasa, are yet to announce their policy framework. Analysts said investors are waiting to see policies on tax, subsidies, and private businesses. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 1.17 billion rupees ($6.44 million), well above this year’s daily average of about 664.9 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, foreign investors sold government securities on a net basis for the eighth time in nine weeks, selling a net 724.9 million rupees worth of government securities in the week ended Oct. 16. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Total foreign outflows from government securities through Oct. 16 stood at 55.6 billion rupees, as per central bank data. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka’s central bank left its key rates unchanged last week after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.7000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; editing by Uttaresh.V)</span></div>
</div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-35346706111151946522019-10-18T21:51:00.005+05:302019-10-18T21:51:56.744+05:30Sri Lankan stocks end higher; rupee strengthens<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan shares closed slightly higher on Friday, buoyed by telecom and diversified stocks. The rupee ended firmer. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index closed 0.06% higher at 5,863.48. The index gained 0.49% for the week, but has fallen 3.12% so far this year. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee ended 0.03% firmer at 181.95/182.10 per dollar compared with Thursday’s close of 182.00/10. The currency is up 0.36% so far this year.<br /><br />** Foreign investors bought riskier assets for the first time in 13 sessions as campaigning got underway for the country’s presidential election.<br /><br />** They bought a net 145.4 million rupees worth of shares on Friday, but they have been net sellers of 3.99 billion rupees of equities so far this year, according to index data.<br /><br />** One of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, has won the backing of President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP), in the election scheduled for Nov. 16.<br /><br />** Rajapaksa and the other strong candidate Sajith Premadasa, the housing minister who has strong backing among the rural poor, started their campaigns last week.<br /><br />** Equity market turnover was 1.05 billion Sri Lankan rupees ($5.77 million), well above this year’s daily average of about 662.3 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities on a net basis for the seventh time in eight weeks, selling a net 102.8 million rupees worth of government securities in the week ended Oct. 9. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Total foreign outflows from government securities through Oct. 9 stood at 54.9 billion rupees, as per central bank data.<br /><br />** Sri Lanka’s central bank left its key rates unchanged last week after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.<br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.9000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; editing by Uttaresh.V)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-41498521433505792702019-10-17T22:28:00.006+05:302019-10-17T22:28:52.249+05:30Sri Lankan stocks end higher on bargain hunting; rupee weaker<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan shares snapped two sessions of losses to end higher on Thursday as investors picked up beaten down stocks. The rupee closed weaker. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index closed 0.40% higher at 5,860.09. The index has dropped 3.18% so far this year. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee ended 0.08% weaker at 182.00/10 per dollar compared with Wednesday’s close of 181.85/95. The currency is up 0.33% so far this year.<br /><br />** Foreign investors were net sellers of riskier assets for 12th straight session as campaigning got underway for the country’s presidential election.<br /><br />** They sold a net 10.7 million rupees worth of shares on Thursday, extending the year-to-date net foreign outflow to 4.14 billion rupees of equities, according to index data.<br /><br />** One of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, has won the backing of President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP), in the election scheduled for Nov. 16.<br /><br />** Rajapaksa and the other strong candidate Sajith Premadasa, the housing minister who has strong backing among the rural poor, started their campaigns last week.<br /><br />** Equity market turnover was 526.4 million Sri Lankan rupees ($2.89 million), less than this year’s daily average of about 660.2 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities on a net basis for the seventh time in eight weeks, selling a net 102.8 million rupees worth of government securities in the week ended Oct. 9. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Total foreign outflows from government securities through Oct. 9 stood at 54.9 billion rupees, as per central bank data.<br /><br />** Sri Lanka’s central bank left its key rates unchanged last week after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.</span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.9000 Sri Lankan rupees) (Reporting by Ranga Sirilal; editing by Uttaresh.V)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-1666218516487615462019-10-16T23:07:00.001+05:302019-10-16T23:07:12.183+05:30Sri Lankan stocks close lower for second day; rupee ends flat<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks slipped for a second straight session on Wednesday, amid weakness in hotels and manufacturing shares, while the rupee ended flat. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index ended 0.07% lower at 5,836.62. The index has dropped 3.56% so far this year. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee ended steady at 181.85/95 per dollar compared with Tuesday’s close. The currency is up 0.41% so far this year.<br /><br />** Foreign investors were net sellers of riskier assets for 11th straight session as campaigning got underway for the country’s presidential election.<br /><br />** They sold a net 95.6 million rupees worth of shares, extending the year-to-date net foreign outflow to 4.13 billion rupees of equities, according to index data.<br /><br />** One of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, has won the backing of President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP), in the election scheduled for Nov. 16.<br /><br />** Rajapaksa and the other strong candidate Sajith Premadasa, the housing minister who has strong backing among the rural poor, started their campaigns last week.<br /><br />** Equity market turnover was 540.2 million Sri Lankan rupees ($2.97 million), less than this year’s daily average of about 660.9 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities on a net basis for the seventh time in eight weeks, selling a net 102.8 million rupees worth of government securities in the week ended Oct. 9. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Total foreign outflows from government securities through Oct. 9 stood at 54.9 billion rupees, as per central bank data.<br /><br />** Sri Lanka’s central bank left its key rates unchanged last week after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.</span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.7500 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal; editing by Uttaresh.V)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-27228472467171516392019-10-15T23:40:00.001+05:302019-10-15T23:40:10.054+05:30Sri Lanka stocks slip from near 6-week high on profit-taking; rupee weakens<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks ended weaker on Tuesday, snapping a run of seven straight gaining sessions to slip from a near six-week high hit in the previous session as investors booked profits. The rupee currency ended weaker. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index ended down 0.5% at 5,840.48, slipping from its highest close since Sept. 3. So far this year, the index has dropped 3.50%. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee was 0.49% weaker at 181.85/95 per dollar, compared with Monday’s close of 180.90/181.10. The currency is up 0.41% so far this year.<br /><br />** Foreign investors were net sellers of riskier assets as campaigning got under war in the country’s presidential election.<br /><br />** Foreign investors continued selling for the 10th straight session. They sold a net 79.9 million rupees worth of shares, extending the year-to-date net foreign outflow to 4.03 billion rupees of equities, according to index data.<br /><br />** One of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, has won the backing of President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP), in the election scheduled for Nov. 16.<br /><br />** Rajapaksa started his campaign last week, while the other strong candidate Sajith Premadasa, the housing minister who has strong backing among the rural poor, also kicked off his campaign in the previous week.<br /><br />** Sri Lanka’s central bank left its key rates unchanged on Friday after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.<br /><br />** Equity market turnover was 583.4 million Sri Lankan rupees ($3.21 million), well above this year’s daily average of about 661.6 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities on a net basis for the seventh time in eight weeks, selling a net 102.8 million rupees worth of government securities in the week ended Oct. 9.</span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"> ** Foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts had said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past six weeks through Sept. 25 has shown a steady outflow. ** Sri Lanka has seen a net foreign outflow of 54.9 billion rupees through Oct. 9, according to central bank data. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.6500 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal; Editing by Alex Richardson)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-9141156986144670712019-10-14T21:59:00.006+05:302019-10-14T21:59:59.120+05:30Sri Lanka stocks hit near 6-week high; rupee weakens<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks rose for the seventh straight session on Monday to hit a near six-week high as beverage and banking shares rallied. However, the rupee ended weaker. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index ended 0.61% firmer at 5,870.09, its highest close since Sept. 3. So far this year, the index has dropped 3.01%. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Meanwhile, the rupee was 0.14% weaker at 180.90/181.10 per dollar compared with Friday’s close of 180.65/75. The currency is up 0.93% so far this year.<br /><br />** Foreign investors were net sellers of risky assets as presidential poll campaigning began in the nation.<br /><br />** Foreign investors continued selling for the ninth straight session. They sold a net 204 million rupees worth of shares, extending the year-to-date net foreign outflow to 3.95 billion rupees of equities, according to index data.<br /><br />** One of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, is possibly getting the broader support of other smaller parties after President Maithripala Sirisena’s center-left Sri Lanka Freedom Party (SLFP) pledged its backing for his candidature in the election scheduled for Nov. 16.<br /><br />** Rajapaksa started his campaign last week, while the other strong candidate Sajith Premadasa, the housing minister who has the backing of most of the rural poor, also kicked off his campaign in the previous week.<br /><br />** Sri Lanka’s central bank left its key rates unchanged on Friday after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.<br /><br />** Equity market turnover was 1.1 billion Sri Lankan rupees ($6.08 million), well above this year’s daily average of about 662 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities on a net basis for the seventh time in eight weeks, they sold a net 102.8 million rupees worth of government securities in the week ended Oct. 9. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts had said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past six weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.9 billion rupees through Oct. 9, according to central bank data. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 180.9000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Ranga Sirilal; editing by Uttaresh.V)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-43933848774199211182019-10-11T23:27:00.001+05:302019-10-11T23:27:13.594+05:30Sri Lanka stocks hit five-week high; foreigners exit<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks rose for the sixth straight session on Friday to hit their five-week high led by banking and beverage shares, but foreign investors exited from risky assets with the start of presidential poll campaigning. The rupee currency ended weaker.<br /><br />** Sri Lanka’s central bank left its key rates unchanged on Friday after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.<br /><br />** Local investors picked up select shares, with one of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, possibly getting the broader support of other smaller parties after President Maithripala Sirisena’s center-left Sri Lanka Freedom Party (SLFP) pledged its backing for his candidature in the election scheduled for Nov. 16.<br /><br />** Rajapaksa started his campaign on Wednesday, while the other strong candidate Sajith Premadasa, the housing minister who has the backing of most of the rural poor, kicked off his campaign on Thursday.<br /><br />** The benchmark stock index ended 0.35% firmer at 5,834.66, rising for the sixth straight session to its highest close since Sept. 5. The bourse rose 2.54% for the week. So far this year, the index has dropped 3.6%. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 1.13 billion Sri Lankan rupees ($6.26 million), nearly double of this year’s daily average of about 659 million rupees. Last year’s daily average was 834.0 million rupees. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers for the eight straight session. They sold a net 46.4 million rupees worth of shares, extending the year-to-date net foreign outflow to 3.7 billion rupees of equities, according to index data.<br /><br />** Meanwhile, the rupee fell 0.1% weaker at 180.65/75 per dollar compared with Thursday’s close of 180.50/65. The currency is up 0.4% for the week and 1.1% so far this year.<br /><br />** Foreign investors bought government securities on a net basis for the first time in seven weeks, buying 522 million rupees worth of government securities in the week ended Oct. 2. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past five weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.8 billion rupees through Oct. 2, according to central bank data. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 180.5000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Shailesh Kuber)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-4977335663554461022019-10-10T21:56:00.004+05:302019-10-10T21:56:33.209+05:30Sri Lanka stocks end tad firmer near four-week high; foreigners exit<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks rose for the fifth straight session on Thursday to hit their near four-week high led by beverage shares, but foreign investors exited from the risky assets with the start of presidential poll campaigning. The rupee currency ended steady.<br /><br />** Local investors picked up select shares, with one of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, possibly getting the broader support of other smaller parties after President Maithripala Sirisena’s center-left Sri Lanka Freedom Party (SLFP) pledged its backing for his candidature in the election scheduled for Nov. 16.<br /><br />** Rajapaksa started his campaign on Wednesday, while the other strong candidate Sajith Premadasa, the housing minister who has the backing of most of the rural poor, kicked off his campaign on Thursday.<br /><br />** The benchmark stock index ended 0.08% firmer at 5,814.44, rising for the fifth straight session to its highest close since Sept. 19. The bourse fell 1.42% last week. So far this year, the index has dropped 3.9%. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 1.12 billion rupees ($6.20 million), nearly double of this year’s daily average of about 657 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers for the seventh straight session. They sold a net 276.8 million rupees worth of shares, extending the year-to-date net foreign outflow to 3.7 billion rupees of equities, according to index data.<br /><br />** Meanwhile, the rupee ended steady at 180.50/65 per dollar compared with Wednesday’s close of 180.50/60. The currency is up 1.2% so far this year.<br /><br />** Foreign investors bought government securities on a net basis for the first time in seven weeks, buying 522 million rupees worth of government securities in the week ended Oct. 2. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past five weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.8 billion rupees through Oct. 2, according to central bank data. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 180.5000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Shailesh Kuber)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-24096988814684855092019-10-09T22:20:00.005+05:302019-10-09T22:20:49.116+05:30Sri Lanka stocks end at three-week high; foreigners exit<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks closed at a near three-week high on Wednesday, led by blue-chips, but foreign investors exited from the Indian Ocean island’s risky assets with the start of presidential poll campaigning. The rupee currency ended weaker.<br /><br />** Local investors picked up select shares, with one of the two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa, possibly getting the broader support of other smaller parties after President Maithripala Sirisena’s center-left Sri Lanka Freedom Party (SLFP) pledged its backing for his candidature in the election scheduled for Nov. 16.<br /><br />** Analysts said some company shares gained on Wednesday on speculation that those companies may do better if Rajapaksa wins the presidency.<br /><br />** Rajapaksa started his campaign on Wednesday, while the other strong candidate Sajith Premadasa, the housing minister who has the backing of most of the rural poor, will kick off his campaign on Thursday.<br /><br />** The benchmark stock index ended 1.23% firmer at 5,809.59, rising for the fourth straight session to its highest close since Sept. 19. The bourse fell 1.42% last week. So far this year, the index has dropped 4%. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 951.3 million rupees ($5.27 million), well above this year’s daily average of about 655 million rupees. Last year’s daily average was 834.0 million rupees. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers for the sixth straight session. They sold a net 212.1 million rupees worth of shares, extending the year-to-date net foreign outflow to 3.43 billion rupees of equities, according to index data.<br /><br />** Meanwhile, the rupee ended 0.1% weaker at 180.50/60 per dollar compared with Tuesday’s close of 180.25/40. The currency is up 1.2% so far this year.<br /><br />** Foreign investors bought government securities on a net basis for the first time in seven weeks, buying 522 million rupees worth of government securities in the week ended Oct. 2. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past five weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.8 billion rupees through Oct. 2, according to central bank data. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 180.4500 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Maju Samuel)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-58770748769769796552019-10-08T22:39:00.003+05:302019-10-08T22:39:32.319+05:30Sri Lanka stocks, rupee firmer ahead of presidential race<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks closed firmer on Tuesday led by blue chips while local investors picked up retail shares, amid foreign selling from the Indian Ocean island’s risky assets before the start of presidential poll campaign. The rupee currency also ended firmer.<br /><br />** Local investors picked up select shares after the former wartime defence chief Gotabaya Rajapaksa, who is seen as a strong leader among the 35 candidates, on Monday filed nominations to contest in Sri Lanka’s presidential election scheduled for Nov. 16. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Analysts said some shares gained on Tuesday on speculation that those companies may do better if Rajapaksa wins the presidency. However, overall investors were cautious as they waited for policies of the political parties.<br /><br />** Rajapaksa faced a legal case challenging his Sri Lankan citizenship, but Sri Lanka’s Appeal Court on Friday dismissed the petition, removing a major barrier he faced in contesting the poll.<br /><br />** Rajapaksa will start his campaign on Wednesday, while another strong candidate Sajith Premadasa, the housing minister who has the backing of most of the rural poor, will kick off his campaign on Thursday.<br /><br />** The benchmark stock index ended 0.53% firmer at 5,738.90, rising for the third straight session to further move away from its lowest level since July 22 hit on Thursday. The bourse fell 1.42% last week. So far this year, the index has dropped 5.2%. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 300.9 million rupees ($1.67 million), less than half of this year’s daily average of about 653.3 million rupees. Last year’s daily average was 834.0 million rupees. ** Foreign investors were net sellers of 92 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 3.2 billion rupees of equities, according to index data.<br /><br />** Meanwhile, the rupee ended 0.9% firmer at 180.25/40 per dollar compared with Monday’s close of 180.85/95. The currency is up 1.3% so far this year.<br /><br />** Foreign investors bought government securities on a net basis for the first time in seven weeks, buying 522 million rupees worth of government securities on week ended Oct 2. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past five weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.8 billion rupees through Oct. 2, according to central bank data. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 180.3000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Shailesh Kuber)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-16725514781562073992019-10-07T23:13:00.002+05:302019-10-07T23:13:28.021+05:30Sri Lanka stocks, rupee firmer as presidential frontrunner files nomination<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lankan stocks and rupee closed firmer on Monday after presidential frontrunner Gotabaya Rajapaksa, who faced uncertainty over his candidature, filed a nomination early in the day.<br /><br />** Investor confidence returned after the former wartime defence chief, who is seen as a strong leader among the 35 candidates, filed nominations to contest in Sri Lanka’s presidential election scheduled for Nov. 16.<br /><br />** However, investors were cautious as they waited for policies of the political parties.<br /><br />** Rajapaksa faced a legal case challenging his Sri Lankan citizenship, but Sri Lanka’s Appeal Court on Friday dismissed the petition, removing a major barrier he faced in contesting the poll.<br /><br />** The benchmark stock index ended 0.33% firmer at 5,708.92, further moving away from its lowest level since July 22 hit on Thursday. The bourse fell 1.42% last week. So far this year, the index has dropped 6%. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 277.5 million rupees ($1.54 million), less than half of this year’s daily average of about 655.2 million rupees. Last year’s daily average was 834.0 million rupees. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers of 17 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 3.1 billion rupees of equities, according to index data.<br /><br />** Meanwhile, the rupee ended 0.3% firmer at 180.85/95 per dollar compared with Friday’s close of 181.35/50. The currency is up 0.97% this year.<br /><br />** The International Monetary Fund cut its forecast for Sri Lanka’s 2019 economic growth to 2.7% from 3.5%, as the Easter Sunday attacks on hotels and churches earlier this year dented tourism and broader business activity. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">** Foreign investors bought government securities on a net basis for the first time in seven weeks, buying 522 million rupees worth of government securities on week ended Oct 2. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">** The foreign outflows, which are one of the major reasons behind the rupee’s recent weakness, may not abate until after a parliamentary election in 2020, some analysts said. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past five weeks through Sept. 25 has shown a steady outflow. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">** Sri Lanka has seen a net foreign outflow of 54.8 billion rupees through Oct. 2, according to central bank data.</span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 180.7500 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bernard Orr)</span></div>
</div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-86408581719604055402019-10-03T20:41:00.001+05:302019-10-03T20:41:23.270+05:30Sri Lanka stocks down for 5th session amid foreign outflows; political woes weigh<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lanka’s stocks fell for the fifth straight session on Thursday to a more than 10-week closing low, as foreign investors sold the island nation’s risky assets, while the rupee closed lower.<br /><br />** Investors were worried of political uncertainty after a Sri Lankan court set up a three-judge panel on Monday to hear a petition challenging the citizenship of presidential nominee Gotabaya Rajapaksa, which could disqualify the former defence chief from the Nov. 16 elections, stock brokers said.<br /><br />** Dealers said fears of a possible court decision that could disqualify Rajapaksa’s nomination weighed on the market. The Supreme Court heard the petition for the second day on Thursday. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index ended 0.36% lower at 5,677.50, its lowest since July 22. The bourse fell 0.38% last week. So far this year, the index has dropped 5.9%. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The index rose in a couple of sessions last week, after the central bank said on Tuesday that the Monetary Board had ordered banks to reduce interest rates on all loans and advances by at least 200 basis points by Oct. 15. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 696.4 million rupees ($3.84 million), less than this year’s daily average of about 657.8 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers of 257.3 million rupees worth of shares on Thursday, extending the year-to-date net foreign outflow to 2.88 billion rupees of equities, according to index data.<br /><br />** Meanwhile the rupee ended 0.1% weaker at 181.30/70 per dollar compared to Wednesday’s close of 181.00/182.10. The rupee fell 0.41% last week. However, the currency is up 0.38% this year. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The International Monetary Fund cut its forecast for Sri Lanka’s 2019 economic growth to 2.7% from 3.5%, as the Easter Sunday attacks on hotels and churches earlier this year dented tourism and broader business activity. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign outflows from government securities, one of the major reasons behind the rupee’s recent weakness, may not abate till the end of parliament elections in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past four weeks has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities worth 439 million rupees in the week ended Sept. 25, extending the net foreign outflow so far this year to 55.3 billion rupees through Sept. 25, according to central bank data.<br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">($1 = 181.3000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">(Reporting by Shihar Aneez; Editing by Shounak Dasgupta)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0tag:blogger.com,1999:blog-1971306908908667735.post-6466120113074839562019-10-02T22:43:00.004+05:302019-10-02T22:43:36.475+05:30Sri Lankan stocks hit 10-week low on political woes; rupee firms<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Reuters: ** Sri Lanka’s stocks fell for the fourth straight session on Wednesday to a 10-week closing low, while the rupee closed higher.<br /><br />** Stock brokers said investors were worried of political uncertainty after a Sri Lankan court set up a three-judge panel on Monday to hear a petition challenging the citizenship of presidential nominee Gotabaya Rajapaksa, which could disqualify the former defence chief from the Nov. 16 elections. </span><div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The benchmark stock index ended 0.62% lower at 5,697.93. The bourse fell 0.38% last week. So far this year, the index has dropped 5.9%. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The index rose in a couple of sessions last week, after the central bank said on Tuesday that the Monetary Board had ordered banks to reduce interest rates on all loans and advances by at least 200 basis points by Oct. 15. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Equity market turnover was 500.2 million Sri Lankan rupees ($2.75 million), less than this year’s daily average of about 658.5 million rupees. Last year’s daily average was 834.0 million rupees. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors were net sellers of 53.6 million rupees worth of shares on Wednesday, extending the year-to-date net foreign outflow to 2.62 billion rupees of equities, according to index data.<br /><br />** Meanwhile the rupee ended 0.16% firmer at 181.00/182.10 per dollar compared to Tuesday’s close of 182.20/40. The rupee fell 0.41% last week. However, the currency is up 0.38% this year. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The International Monetary Fund cut its forecast for Sri Lanka’s 2019 economic growth to 2.7% from 3.5%, as the Easter Sunday attacks on hotels and churches earlier this year dented tourism and broader business activity. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign outflows from government securities, one of the major reasons behind the rupee’s recent weakness, may not abate till the end of parliament elections in 2020, some analysts said. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** The central bank does not release foreign trade numbers on a daily basis, but weekly data in the past four weeks has shown a steady outflow. </span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">** Foreign investors sold government securities worth 439 million rupees in the week ended Sept. 25, extending the net foreign outflow so far this year to 55.3 billion rupees through Sept. 25, according to central bank data. </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">($1 = 181.9000 Sri Lankan rupees) </span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;"><br /></span></div>
<div>
<span style="font-family: "Trebuchet MS", sans-serif;">(Reporting by Ranga Sirilal; Editing by Shounak Dasgupta)</span></div>
</div>
Srirangan Kathiraveluhttp://www.blogger.com/profile/05582587451681053792noreply@blogger.com0