PVC pipe maker to focus on projects after Sri Lanka retail market losses

ECONOMYNEXT - Sierra Industries (Pvt) Ltd, a unit of publicly traded Sierra Cables Plc, which makes water pipes, says it is focusing on larger projects, after making losses in the retail market.

"As a strategic move, the company is now focusing on the institutional and project market instead of the competitive retail market," shareholders were told in the annual report.

"The company is in the process of the initialising the preliminary engagement work for the supply of PVC pipes and fittings to upcoming major projects."

Sierra Industries which manufactures uPVC (unplasticized Poly Vinyl Chloride) pipes, had won a 5.5 million dollar order to supply a foreign contractor in the Attanagalla Water Supply Project.

"While production has commenced, the delivery will take place only during the next financial year," Managing Director Shamindra Panditha told shareholders.

"The directors are of the view that the company would be able to generate sufficient revenue in the ensuing financial years, where by accumulated losses could be reduced gradually,” the annual report said, referring to the Attanagalla project.

Sierra Industries accounts said it is facing serious loss of capital and the auditors KPMG had also raised a going concern a with assets falling below liabilities.

Sierra Industries had accumulated losses of 276.2 million rupees up to end-March 2018. The firm started production in the 2013/2014 financial year.

As part of a restructuring process, a 119.6 million rupees owed to the parent had been converted to equity, while some payables had been converted to a loan term loan.

Sri Lankan shares fall to 2-week low on foreign selling

Reuters: Sri Lankan shares fell for a third straight session on Wednesday and marked a two-week closing low as foreign investors sold blue-chips after a research report said the country was facing risk of an exchange rate crisis.

Analysts said investors were worried after Japanese bank Nomura Holdings ranked Sri Lanka among seven emerging market economies that were at risk of an exchange rate crisis.

However, the Central Bank in a statement said that Nomura Holdings has made a serious computational error with regard to Sri Lanka’s external vulnerability and its short-term external debt is nowhere near the $160 billion figure that Nomura analysts quoted.

Nomura later corrected the figure to $7.5 billion, but said its analysts have used the same figure to calculate the country’s Damocles score for the analysis and thus it is unchanged.

The Colombo stock index ended 0.59 percent weaker at 6,059.00, its lowest close since Aug. 29. It had risen 0.6 percent last week in its third straight weekly gain.

“Investors were worried over the Nomura ranking, but they corrected external debt figure and accepted it was wrong. We expect people to build confidence back,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Analysts also said the increase in fuel prices also weighed on the market.

Sri Lankan fuel retailers raised gasoline and diesel prices for a third time in four months on Tuesday due to higher global oil prices and a weaker rupee, a finance ministry official said.

Turnover stood at 967.8 million rupees ($5.96 million), more than this year’s daily average of 793.9 million rupees.

Meanwhile, investors are also awaiting cues from the national budget which the government is set to unveil in November.

Shares of Ceylon Tobacco Company Plc fell 1.8 percent, while Distilleries Company of Sri Lanka ended 2.2 percent weaker. Conglomerate John Keells Holdings Plc closed 0.8 percent down and Sampath Bank Plc lost 1.8 percent. 

($1 = 162.3500 Sri Lankan rupees) 

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

Sri Lankan shares end flat in lacklustre trade

Reuters: Sri Lankan shares closed flat on Tuesday, near a more than one-week closing low, with beverage and manufacturing shares witnessing mild selling, a day after fuel prices were hiked for the third time in four months.

Sri Lankan fuel retailers raised gasoline and diesel prices for a third time in four months on Tuesday due to higher global oil prices and a weaker rupee, a finance ministry official said.

Turnover was 337.3 million rupees ($2.08 million), less than half of this year’s daily average of 792.8 million rupees.

The Colombo stock index ended 0.02 percent weaker at 6,095.23, its lowest close since Sept. 3. It had risen 0.6 percent last week in its third straight weekly gain.

“The market came down marginally today, but the good sign is we see some net foreign buying,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Analysts said investors also waited for cues from the national budget which the government is set to unveil in November.

Foreign investors bought a net 74.7 million rupees of shares on Tuesday, but they have been net sellers of 4.4 billion rupees worth of shares so far this year.

Shares of conglomerate John Keells Holdings Plc fell 0.2 percent while Lanka ORIX leasing Plc lost 2.2 percent.

($1 = 162.2500 Sri Lankan rupees) 

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

Sri Lankan shares slip to 1-week closing low on foreign selling

Reuters: Sri Lankan shares fell to one-week closing low on Monday as foreign investors sold blue chips such as conglomerate John Keells Holdings Plc.

The Colombo stock index ended 0.35 percent weaker at 6,096.54, its lowest close since Sept. 3. It rose 0.6 percent last week in its third straight weekly gain.

Turnover was 615.9 million rupees ($3.79 million), less than this year’s daily average of 795.6 million rupees.

“Today also, foreign selling was there and it impacted the market. Foreigners are exiting with the dollar strengthening,” said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc.

“Local investors are worried over continued foreign selling on the back of dollar strengthening globally and they are on the sidelines.”

Analysts said investors also waited for cues from the national budget which the government is set to unveil in November.

Foreign investors sold a net 112.1 million rupees of shares on Monday, extending the year-to-date net foreign outflow to 4.4 billion rupees worth of shares.

Shares of Distillers Company of Sri Lanka Plc fell 3.1 percent, while conglomerate John Keells Holdings ended 0.7 percent down and AIA Insurance Lanka Plc lost 4.4 percent. 

($1 = 162.3000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan shares climb on foreign buying, post 3rd week of gains

Reuters: Sri Lankan shares ended slightly firmer on Friday, boosted by foreign buying, and posted their third straight week of gains.

The Colombo stock index ended 0.09 percent firmer at 6,117.89. The bourse rose 0.6 percent during the week.

The day’s turnover was 274 million rupees ($1.69 million), about a third of this year’s daily average of 796.7 million rupees.

“Investors are awaiting the national budget,” said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc.

The government is set to unveil its 2019 national budget in November.

Foreign investors bought a net 29.4 million rupees of shares on Friday, recording the first session of net foreign buying in nine. But they have been net sellers of 4.3 billion rupees worth of shares so far this year.

Shares of AIA Insurance Lanka Plc rose 4.8 percent, Sri Lanka Telecom Plc climbed 3.2 percent and Asiri Hospitals Plc closed 3.9 percent higher.

($1 = 161.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan shares end weaker; turnover slumps to near 5-month low

Reuters: Sri Lankan shares ended weaker on Thursday and turnover slumped to a near five-month low as investors stayed on the sidelines in the absence of fresh triggers.

The day’s turnover was 119.5 million rupees ($740,397), the lowest since April 16 and about an eighth of this year’s daily average of 800 million rupees.

The Colombo stock index ended 0.13 percent weaker at 6,112.32.

“It’s a dull day. We saw some retail activities and it was a quiet day,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Foreign investors sold a net 10.1 million rupees of shares on Thursday, extending the net outflow so far this year to 4.3 billion rupees worth of shares.

Ceylon Cold Stores Plc shares fell 3.6 percent, while Dialog Axiata Plc ended 0.8 percent lower. 

($1 = 161.4000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan shares slip from over 3-wk high on foreign selling

Reuters: Sri Lankan shares ended slightly weaker on Wednesday, snapping a five-session winning streak, on foreign selling.

However, the day’s turnover was 365.5 million rupees ($2.25 million), much lower than this year’s daily average of 804.1 million rupees.

The Colombo stock index ended 0.13 percent weaker at 6,120.29, slipping from its highest close since Aug.13.

“Foreign selling in Keells brought the index down. But we see some positive signs of local buying,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Foreign investors sold a net 46.9 million rupees of shares on Wednesday, extending the net outflow so far this year to 4.3 billion rupees worth of shares.

John Keells Holdings fell 0.4 percent, while large cap Ceylon Tobacco Co ended 1.8 percent weaker. 

($1 = 162.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)