Sri Lankan stocks hit 1-year high on rate-cut hopes

(Reuters) - Sri Lankan shares rose to one-year closing highs on Friday, led by gains in banking shares on expectations of a further 50 basis points rate cut in the next week's central bank policy rates announcement, dealers said.

The main stock index rose 0.70 percent, or 43.86 points, to 6,337.22, its highest close since June 10, 2013.

"The market is broadly expecting a 50 basis point rate cut next week," a stockbroker said on condition on anonymity. "There has been a lot of expectations that there could be another rate cut. We see some debenture issues have been scheduled in the near future at a rate below the current market rates."

The central bank has reduced its key policy rates to multi-year lows, but has not yet seen any improvement in credit and import growth. March credit growth slowed to a four-year low of 4.3 percent year-on-year.

Central bank governor Ajith Nivard Cabraal told Reuters on May 30 that the central bank was creating room to cut interest rates further.

The central bank will announce its June monetary policy rates on June 18.

Continued foreign buying and expectations of interest rate cuts have boosted sentiment and the market has been on a rising trend since late February.

The bourse saw a net foreign inflow for the 11th straight session.

Foreign investors bought 176.9 million rupees ($1.36 million) worth of shares on Friday, extending the net inflow for the past 11 days to 3.71 billion rupees worth of shares. They have been net buyers of 5.55 billion rupees so far this year.

Turnover was 809.3 million rupees, below this year's daily average of 1.01 billion rupees.

Shares in fixed line telephone operator Sri Lanka Telecom Plc rose 2.35 percent to 48 rupees, leading the gains in the overall index.

Palm oil firm Bukit Darah Plc advanced 2.9 percent to 650 rupees.

Financial firm Orix Leasing Co Plc rose 4.01 percent to 90.80 rupees, while Commercial bank of Ceylon Plc rose 1.36 percent to 133.80 rupees. 

($1 = 130.2400 Sri Lankan Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka shares close up 0.7-pct

June 13, 2014 (LBO) - Sri Lanka's shares closed 0.70 percent higher on Friday ending the week on a strong note, brokers said.

The Colombo benchmark All Share Price Index closed 43.86 points higher at 6,337.22 up 0.70 percent. The S&P SL20 closed 28.45 points lower at 3,476.58, down 0.22 percent.

Turnover was 809.41 million rupees, down from 1.40 billion rupees last Wednesday with 142 stocks closed positive against 56 negative.

John Keells Holdings closed 50 cents lower at 234.00 rupees with an off-market transaction of 109.51 million rupees changing hands at 234.50 rupees per share contributing 14 percent of the turnover.

JKH’s W0022 warrants closed 1.00 rupee lower at 62.00 rupees and its W0023 warrants closed 10 cents lower at 72.00 rupees.

Hayleys Mgt Knitting Mills closed 2.20 rupees lower at 11.10 rupees, attracting most number of trades during the day.

Foreign investors bought 345.39 million rupees worth shares while selling 168.52 million rupees worth shares.

Nestle Lanka closed 47.10 rupees higher at 1,997.00 rupees and Sri Lanka Telecom closed 1.10 rupees higher at 48.00 rupees, contributing most to the index gain.

Lanka Orix Leasing Company closed 3.50 rupees higher at 90.80 rupees and Commercial Bank of Ceylon closed 1.80 rupees higher at 133.80 rupees.

Oil palm firm Bukit Darah closed 18.30 rupees higher at 650.00 rupees and CT Holdings closed 5.30 rupees lower at 135.20 rupees.

Dhammika takes Co-Chairman role at Hayleys, three other firms

Business leader and major shareholder Dhammika Perera has assumed a new role as Co-Chairman in Hayleys Plc, in addition to three other firms under his control.

Previously Dhammika was Deputy Chairman at Hayleys Plc., with Mohan Pandithage as Chairman and Chief Executive. The new designation of Co-Chairman will be non-executive. Dhammika directly controls a 46% stake in Hayleys Plc.

Dhammika will also be Co-Chairman at Lanka Tiles Plc and Lanka Ceramics Plc, in both of which Nimal Perera is the Chairman, as well as The Kingsbury Plc., in which Pandithage is the Chairman. In these three companies Dhammika already serves on the respective Boards.
www.ft.lk

CEAT Kelani commissions state-of-the-art radial plant

A milestone was achieved today in the manufacture of tyres in Sri Lanka with the official inauguration of a new hi-tech production facility for radial tyres for passenger cars and Sports Utility Vehicles (SUVs) at CEAT Kelani Holdings, the country’s leading tyre maker.

Economic Development Minister Basil Rajapaksa led a team of government ministers to this milestone event. Since 2009, theCEAT Kelani joint venture has invested Rs. 2.5 billion in enhancing capacity, modernising its factory and setting up this new radial plant.

Seamlessly integrated with the existing CEAT Kelani manufacturing complex at Kelaniya, the new radial tyre production facility enables the company to augment its radial tyre building and curing capacity by 70 per cent to 450,000 tyres a year, thereby substituting more than 60 per cent of the country’s imports in this category.

Besides contributing to a substantial saving of foreign exchange, the new plant would also cater to CEAT Kelani’s exports of radial tyres from Sri Lanka. More than a third of current radial tyre production fromthe company’s production facility is exported.

The formal opening of the new plant saw Minister Basil Rajapaksa, accompanied by Kumara Welgama, Minister of Transport, Johnston Fernando, Minister of Co-operatives & Internal Trade, Dr Mervyn Silva, Minister of Public Relations & Public Affairs and other dignitaries, cut the traditional ribbon, unveil a commemorative plaque, start up a tyre building machine and witness a tyre coming out of a curing press.
www.island.lk

Sri Lankan stocks end steady at near 2-week high; Keells boost turnover

(Reuters) - Sri Lankan shares ended little changed on Wednesday at a near two-week closing high as gains in banking shares offset losses in palm oil producers, while buying in conglomerate John Keells Holdings Plc boosted the turnover.

Analysts said the market could undergo a technical correction as retail investors are waiting for profit-taking.

The main stock index ended 0.28 points weaker at 6,293.36, edging down from its highest close since May 29 hit on Tuesday.

Continued foreign buying and expectations of interest rates coming further down will boost sentiment and the market has been on a rising trend since late February, analysts said.

The bourse saw a net foreign inflow for the 10th straight session. Foreign investors bought 262.9 million rupees ($2.02 million) worth of shares on Wednesday, extending the net inflow for the past 10 days to 3.53 billion rupees worth of shares.

They have been net buyers of 5.37 billion rupees so far this year.

Turnover was 1.41 billion rupees, its highest since May 16 and more than this year's daily average of 1.01 billion rupees.

Analysts also said they expect retail profit-taking in the coming days as the market has been on the rise for a long time and retail investors have been waiting for better price to sell. We see some selling pressure on certain shares.

Analysts said the market expects a further fall in interest rates after central bank governor Ajith Nivard Cabraal told Reuters on May 30 that the central bank was creating room to cut interest rates further.

The central bank will announce its June monetary policy rates on June 18.

Shares in palm oil investor Bukit Darah Plc, which dragged the overall index, fell 2.82 percent to 631.70 rupees, while financial service provider Lanka Orix Leasing Co Plc rose 2.71 percent to 87.30 rupees a share.

Market heavyweight John Keells Holdings, which accounted for 54.7 percent of the days turnover, ended flat at 234.50 rupees after Capital Alliance in a note recommended investors to sell the conglomerate's shares, citing lower-than-expected earnings. 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Aitken Spence buys 5 Star hotel in Chennai

Aitken Spence Hotel Management (South India) Private Limited has a brand new 143 roomed 5 Star hotel property in Chennai at a cost of USD 25 million.

Aitken Spence Hotel Management (South India) Private Limited is owned by Aitken Spence PLC in the ratio of 49:51.

Aitken Spence PLC owns 74 percent of the equity shares of Aitken Spence Hotel Holdings PLC.

www.adaderana.lk

Dr. Senthilverl buys more Swisstek shares

Dr. T. Senthilverl has bought 1,870,400 which is 6.83 percent shares of Swisstek (Ceylon) PLC. Thus, Dr. Senthilverl has acquired approximately 16.33 percent of the issued share capital of the company.

Swisstek (Ceylon) PLC formerly known as Parquet (Ceylon) PLC was established in 1967 and is a member of Lanka Walltiles Group of Companies since 2003. The Company’s main line of business shifted from manufacture and sale of wooden flooring under the “SWISSPARKETT” brand name to the manufacture and sale of Tile Grout and Tile Mortar. 

The Company also manufactures Decorative Pebbles and continues to import and supply wooden flooring for the local market. All products are manufactured and distributed under the new brand name “SWISSTEK”.

The Company has been awarded the prestigious Presidential Export Award for excellence in the export of wooden flooring on 5 occasions.

The subsidiary of the Company Swisstek Aluminim Ltd is in the manufacture of Aluminium extrusions in Mill, Anodized and Powder Coated finishes and also supply Pre-fabricated windows all under the “Swisstek” brand.

www.adaderana.lk