NOLIMIT among top 100 unlisted brands

Sri Lanka’s biggest fashion retail chain NOLIMIT was recently ranked among the Top 100 unlisted brands in Sri Lanka by Brand Finance in their annual analysis of the top brands in Sri Lanka.

The brand was also ranked second in customer service among retail stores by Living Magazine in a survey conducted this year.

The Unlisted Brands rating was compiled on the basis of an independent market research study and presents a complete view of the brand’s landscape in Sri Lanka. The survey seeks to clearly establish the brand’s quality, reliability, distinctiveness, reputation and trustworthiness.

Speaking about this achievement Raneez Sheriff, the Marketing Manager of NOLIMIT said, “We are extremely proud to have been ranked among the top 100 unlisted companies in Sri Lanka by Brand Finance and to be ranked second in customer service among all retail stores in the country by Living Magazine".

"We have constantly been looking at ways of delivering on our brand promise while improving our customer service levels and we are very pleased that our efforts have been noticed and recognized.”

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Dunamis Capital’s Rs 1b debenture issue opens Monday

The Rs 1 billion debenture issue of Dunamis Capital PLC opens for subscription on Monday July 28 and will be kept open till August 15 unless oversubscribed before the closing date,the company said.

Rated ‘BBB’ by RAM Ratings Lanka Limited, the issue of 10 million rated, senior, unsecured redeemable debentures of Rs 100 each, is to raise capital to increase the long term funding base of Dunamis Capital PLC, the holding company of First Capital, Kelsey Homes and Premier Synthetic Leather.

The five-year debentures which will be listed on the Colombo Stock Exchange (CSE), offer a fixed interest rate of 12.5 % per annum, payable annually until the maturity of the debenture at the end of five years.

The minimum subscription per application is 100 debentures (Rs 10,000). Applications exceeding the minimum subscription should be in multiples of Rs 10,000, the company said in the Prospectus for the issue. In the event of oversubscription, the basis of allotment will be decided by the Board of Directors of Dunamis Capital PLC within seven market days from the closing date. Dunamis Capital PLC reported profit after tax of Rs 121.5 million for the year ending March 31, 2014, with its Financial Services business recording net profit of Rs 340 million and Property Development converting a net loss of Rs 55 million in 2012-13 into net profit of Rs 148.6 million.

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Sri Lanka stocks hit 34-month closing high; banks lead

(Reuters) - Sri Lankan stocks hit a 34-month closing high on Tuesday, led by banking shares as local investors shifted funds from fixed income to riskier assets in view of the low interest rates, brokers said.

The main stock index ended up 0.59 percent, or 39.85 points, at 6,796.37, its highest close since Sept. 20, 2011.

"The market looks positive. If it continues to go up beyond 6,900 points, we may see a correction with profit-taking," said a stockbroker asking not to be named.

The share index has gained 6.55 percent so far this month.

Turnover was 1.42 billion rupees ($10.90 million), more than this year's daily average of about 1.09 billion rupees.

Foreign investors were net buyers of 213.1 million rupees worth of shares on Tuesday, extending the year-to-date net foreign inflow to 10 billion rupees in shares.

Biggest listed lender Commercial Bank of Ceylon Plc rose 2 percent to 144.90 rupees.

The market is on the rise because investors have few options in other instruments as yields of treasury bills and the central bank's key monetary policy rates have fallen to multi-year lows amid continued foreign buying.

Yields on treasury bills edged down further at a weekly auction on Wednesday.

The index is in the overbought region since July 3. It has risen 14.94 percent so far this year.

Lower interest rates have prompted local investors to buy shares and move away from unattractive fixed assets, analysts said.

Analysts said foreigners have been buying risky assets because they see value in them. 

($1 = 130.2500 Sri Lankan Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

Sri Lanka stocks close up 0.6-pct

July 22, 2014 (LBO) - Sri Lanka's stocks closed 0.59 percent higher with diversified stocks gaining amid net foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 39.85 points higher at 6,796.37, up 0.59 percent. The S&P SL20 closed 21.00 points higher at 3,789.15, up 0.56 percent.

Turnover was 1.42 billion rupees, up from 904.71 million rupees a day earlier with 136 stocks closed positive against 79 negative.

John Keells Holdings closed 2.20 rupees lower at 244.50 rupees with an off-market transaction of 111.27 million rupees changing hands at 245.00 rupees per share contributing 8 percent of the daily turnover.

JKH’s W0022 warrants closed 1.90 rupees lower at 65.00 rupees and its W0023 warrants closed 1.00 rupee lower at 73.50 rupees.

The aggregate value of all off-the-floor deals represented 14 percent of the turnover.

Bukit Darah closed 14.90 rupees higher at 705.00 rupees with market transactions of 289.72 million rupees contributing 20 percent of the turnover.

George Steuart Finance closed 6.80 rupees lower at 39.10 rupees and Richard Pieris Exports closed 12.70 rupees higher at 93.80 rupees, attracting most number of trades during the day.

Foreign investors bought 412.96 million rupees worth shares while selling 199.87 million rupees worth shares.

Carson Cumberbatch closed 22.00 rupees higher at 490.00 rupees, contributing most to the index gain.

Sri Lanka Telecom closed 1.10 rupees higher at 56.40 rupees and Ceylinco Insurance closed 80.00 rupees higher at 1,425.00 rupees.

DSI embarks on new project, buys factory at Baddegama

The DSI Group embarks on a new project of manufacturing PVC pipes for its first time after buying the PVC products factory and assets of Okta PVC Lanka (Pvt) Ltd at Baddegama in Galle.

While commenting on this to adaderanabiz.lk, DSI Group Managing Director Kulathunga Rajapaksha said that the DSI Group had bought all assets belonging to Okta PVC Lanka (Pvt) Ltd for Rs. 137 million.

This manufacturing plant would be refurbished and plans are afoot to produve PVC pipes under the DSI brand name in the near future, Rajapaksha added.

While DSI has finalized this deal through Samson International Limited, over 51 percent shares of Samson International Limited is owned by the DSI Group and its stakeholders and 29 percent of the shares are owned by a prominent personality in the Colombo Stock Exchange, Dr. T. Senthilverl.

Okta PVC Lanka (PVT) Ltd is a company that is manufacturing and selling PVC pipes and allied products and possesses the SLS and ISO certifications for its products.
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Sri Lanka's DDFC to acquire George Steuart Finance

July 22, 2014 (LBO) - George Steuart Finance Deshodaya Development Finance Limited (DDFC), has inked a deal to acquire George Steuart Finance Plc, which valued the licensed finance company at 500 million rupees.

DDFC is a finance company coming under Sri Lanka's Sarvodaya, a charity. It started as a micro-finance firm before becoming licensed finance company.

George Steuart Finance said in a stock exchange filing that a memorandum of understanding had been signed with DDFC, George Steuart & Company Ltd, and Capital Trust Holding Limited.

The company said the acquisition was subject to approval by the Central Bank, the sector regulator and its plan to consolidate finance companies.

According to the firm's March accounts, Capital Trust Holding had a 24.9 percent stake in George Steuart Finance. In April, George Steuart and Company Ltd bought a 50.8 percent stake in the firm for 329 million rupees or 28.80 rupees a share.

The stock closed at 45.90, down 1.80 rupees on Monday.

With the company valued at 500 million rupees for acquisition a share is valued at a little under 23 rupees.

In the year to March, George Steuart Finance reported profits of 4.6 million rupees (45 cents per share) on interest income of 279 million rupees.

But in the standalone March quarter results the firm reported a surge in interest income and profits of 29 million rupees or 1.29 rupees per share.

Shoe maker ups stake in textile maker

Ceylon FT: Ceylon Leather Products PLC yesterday said it increased its stake in South Asia Textile Industries Lanka (Pvt.) Ltd to over 80% with a Rs 306 million deal. In a stock exchange filing, the company said it purchased 3.06 billion shares in South Asia Textile for Rs 306.45 million through a rights issue.

Lanak Century Investments PLC, the controlling shareholder of Ceylon Leather, also bought 480.7 million shares of South Asia Textile for Rs 48.07 million, increasing its stake to 12.61%.

South Asia Textile produces weft knitted fabric and specializes in knitting, dyeing, finishing, printing, brushing, sueding and anti pill micro/polar fleece fabric.
Its factory is located in Pugoda with a 700,000Kg monthly capacity.

Its buyers include global heavy weights, Puma, PC Penney, Old Navy, Wal-Mart, Victoria's Secret, Next, Reebok, Mother Care, Gap, Marks and Spencer and Levi's.

Operating an industrial tannery, Ceylon Leather manufactures bags, accessories and shoes and operates several outlets branded DI Leather Boutique.

It reported an Rs 135.68 million net profit for the year ended 31 March 2014, up 40% from a year ago.
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