GDP grows to 6.7% in second quarter

Lanka’s economy has grown 6.7% in the second quarter of 2015 against the 6.4% growth rate recorded in the first quarter, the Census and Statistics Department said.

The highest contribution to the GDP in the second quarter of 2015, was once again the Services sector which was at 61.2%. Agriculture sector grew 5% and industry grew 2.0%. Industry and Agriculture, forestry and fishing activities has shared the GDP by 23.5 percent and 7.5 percent respectively.

After a re-basing exercise in July this year the department said the new growth rate for the first quarter of 2015 was 5.1 percent.

The Department said GDP for the second quarter 2015 is based on production approach following the re-basing exercise. Sri Lanka’s GDP is now compiled by using the production approach, within 75 days.
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First Capital Holdings posts Rs 730 m profit this year

Vishmi Wijeratne

First Capital Holdings has recorded revenue of Rs. 1.9 billion this financial year. Chairperson, Manjula Mathews stated that this was 36% increase when compared to the previous financial year.

This achievement according to the company is due to the capitalisation of trading opportunities that arose in the secondary market as a result of reduction in interest rates.

In terms of trading grain on the sale of government securities the company recorded Rs. 900 million as opposed to the Rs. 227 million recorded in the previous year. Furthermore the profit after tax increased by 41% to Rs. 730 million which is a significant raise when compared to the Rs. 518 recorded in the financial year 2013/14.

First Capital Holdings provide investment in commercial paper, promissory notes, asset backed paper and debentures.
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Sri Lanka leasing stocks slide after limits on car loans

ECONOMYNEXT – Sri Lankan stocks closed slightly weaker in thin trade with share prices of finance and leasing firms falling after the central bank restricted lending for car imports, brokers said.

The All Share Price Index lost 15 points or 0.2 percent to close at 7,137.40 while the S&P SL 20 index, which tracks the top 20 largest and most liquid stocks, lost 15.5 points (0.4 percent) to close at 3,899.63.

Turnover was a low 771 million rupees compared with the 12-months average daily turnover of 1.4 billion rupees.

The Central Bank decision to limit the loan-to-value ratio of motor vehicle leases to 70 percent coupled with rise in vehicle prices dampened the interest in finance companies and most of the stocks closed with negative returns,” Lanka Securities said.

Peoples Leasing slumped 4.7 percent to 22.50 rupees, Commercial Leasing fell 2.3 percent to 4.20 rupees, Lanka Orix Leasing ended at 100.00, down 5.5 percent, LB Finance lost 1.5 percent to end at 121.10, and Vallibel Finance closed 4.5 percent lower at 64.00.

Sampath Securities said foreigners were net buyers with a net inflow of 47 million rupees. Foreign investors bought 300,000 shares of Textured Jersey and 200,000 shares of Vallibel One.

There were crossings or off-the-floor negotiated deals in Hatton National Bank (non-voting) and Citizens Development Business Finance.

Asia Securities said Kelani Tyres was the largest contributor to the day’s total turnover helped by a crossing and block trades on the normal board and it also became the day’s most actively traded stock.

Sri Lanka’s Dialog increases stake in wow.lk

(LBO) – Sri Lanka’s Dialog Axiata has increased its stake from 46 percent to one hundred percent in e-commerce website, wow.lk, brokers said.

“Dialog Axiata have increased its shareholding in Digital Commerce Lanka (Pvt) Ltd from 46 percent to 100 percent, through its subsidiary, Digital Holdings Lanka (Pvt) Ltd.,” Lanka Securities said.

“Digital Commerce Lanka (Pvt) Ltd is the operating company of e-commerce website, “wow.lk”.”

Sri Lanka Treasury bill yields flat

(LBO) – Sri Lanka’s treasury bill yields were flat at Wednesday’s auction, data from the state debt office showed.

The 3-month yield was flat 6.79 percent with bids amounting to 17.5 billion rupees being received and it was decided to accept 5.0 billion rupees from the auction.

The 12-month yield was also flat 7.17 percent with bids amounting to 16.5 billion rupees being received and accepting only 598 million rupees.

All bids received for the 6-month Treasury bill has been rejected.

The Central Bank sold 5.6 billion rupees of bills after offering 24.0 billion rupees for the auction.

Sri Lanka sells Rs28.7bn in bonds; longer end auction yields higher

ECONOMYNEXT - Sri Lanka sold 28.7 billion rupees of bonds in an auction Tuesday after offering 16 billion rupees, data from the state debt office showed, after printing over 20 billion rupees to repay maturing short term bills last week.

Sri Lanka sold 3.1 billion rupees of 5 year bonds maturing on 10.05.2022 at an average yield of 9.58 percent, 07 basis points lower than the last auction at 9.65 percent on September 08.

A 9.559 billion rupee tranche of 7 year bonds maturing on 01.10.2022 was sold at an average yield of 9.95 percent. Similar maturity was last auctioned on July 09 for 9.14 percent.

A 5.241 billion rupee tranche 10 year bonds maturing on 01.08.2025 was sold at an average yield of 10.38 percent. A similar maturity was last auctioned on August 25 for 9.97 percent.

A 10.884 billion rupee tranche of 13 year bonds maturing on 01.09.2028 was sold at 10.88 percent, which is a new maturity.

In the secondary market bond yield were slightly up from yesterday, dealers said. Bond yields after the massive bout of money printing last week to repay maturity bills. 

Entrust Group to list Standard Credit Finance

By Ishara Gamage

Ceylon Finance Today: Entrust Group led by Chanuka Ratwatte and team is planning to diversify its financial business in to investment banking and Unit Trust industry while planning to list its third subsidiary in the Colombo Stock Exchange, a Group official told Ceylon FT.

We are about to acquire an existing Unit Trust, he said.

According to the Official, they have already commenced their investment banking business by recruiting two industry veterans into the group. Former Securities and Exchange Commission market development consultant Rohan Seneviratne is heading the Investment banking unit.

"We have already involving several corporate restructuring, Initial Public Offering ((IPO) and securitization projects," he remarked.

The Entrust Group has recently injected Rs 2.5 billion in troubled Standard Credit Finance Ltd which was formerly known as Ceylinco Investments & Realty Ltd. (CIRL). CIRL was one of the distressed regulated finance companies under the management of the Ceylinco Group.

There is a Central bank plan for restructure this distressed company. Hopefully we will plan to list this entity with some additional funding and convert old CIRL deposits in to shares, the official said.

Entrust group, is a cluster of Companies consisting of two listed and regulated subsidiaries namely Entrust Securities PLC, a licensed Primary dealer and Multi Finance PLC, a licensed finance Company with the Central Bank of Sri Lanka.

Entrust Securities PLC has been in the forefront since year 2000 as a leading market player in promoting Sri Lanka's sovereign, gilt edged investments of Treasury bills and bonds and the other subsidiary; Multi Finance PLC has been in business for the past forty one year's offering a diversified portfolio of products ranging from leasing, hire purchases, pawning, fixed deposits, saving accounts and other types of loans.

The group expanded its business activities in the capital markets with a strategic acquisition in a stock broking firm and is actively involved in the equity markets through, its subsidiary Entrust Capital markets (Private) Limited.
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