Sri Lanka stocks slip in thin trade; rupee edges up

Reuters: ** Sri Lankan shares fell for the second straight session on Monday in thin trading volume amid worries over economic slowdown and lack of investor appetite for risky assets. 

** Traders said the Easter day bombings and aftermath violence weighed on investor sentiment. Most investors have shied away from the market since the April 21 bombings that killed more than 250 people. 

** Sri Lanka is unlikely to hit its full-year economic growth target of 3-4% following the Easter Sunday bombings, junior finance minister Eran Wickremeratne told Reuters on Tuesday. A Reuters poll has predicted the growth to slump to its lowest in nearly two decades this year. 

** The International Monetary Fund (IMF) on May 14 approved the disbursal of a $164 million tranche of a loan programme, bringing the total disbursed to more than $1.16 billion. 

** The benchmark stock index ended 0.07% weaker on Monday at 5,291.49. It rose 0.67% last week, recording its first weekly gain in three. The bourse has fallen 12.6% so far this year. 

** Turnover was 444.6 million rupees ($2.52 million), less than this year’s daily average of around 548.6 million rupees. Last year’s daily average was 834 million rupees. 

** Foreign investors bought a net 183.1 million rupees worth of shares on Monday, but they have been net sellers of 5.7 billion rupees worth of equities so far this year. 

** The rupee ended slightly firmer at 176.20/30 per dollar, compared with Friday’s close of 176.30/45, market sources said. 

** Analysts, however, expect the currency to weaken as money flows out of stocks and government securities. 

** The rupee fell 0.23% last week but is up 3.6% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. 

** The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. 

** Foreign investors bought a net 2.1 billion rupees worth of government securities in the week ended May 22, but the island nation saw a net foreign outflow of 19.1 billion rupees so far this year, central bank data showed. 

** Investor sentiment was damaged at the end of last year when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move unconstitutional, but the political turmoil led to credit rating downgrades and an outflow of foreign funds. 

($1 = 176.2000 Sri Lankan rupees) 

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

Sri Lanka stocks snap 5 days of gains in light trade; rupee steady

Reuters: ** Sri Lankan shares snapped five straight sessions of gains on Friday in low trade amid worries over economic slowdown and lack of investor appetite for risky assets. 

** Traders said the Easter day bombings and aftermath violence weighed on investor sentiment. Most investors have shied away from the market since the April 21 bombings that killed more than 250 people. 

** Sri Lanka is unlikely to hit its full-year economic growth target of 3-4% following the Easter Sunday bombings, junior finance minister Eran Wickremeratne told Reuters on Tuesday. A Reuters poll has predicted the growth to slump to its lowest in nearly two decades this year. 

** The International Monetary Fund (IMF) on May 14 approved the disbursal of a $164 million tranche of a loan programme, bringing the total disbursed to more than $1.16 billion. 

** The benchmark stock index ended 0.2% weaker on Friday at 5,295.11. But it rose 0.67% for the week, recording its first weekly gain in three. The bourse has fallen 12.5% so far this year. 

** Turnover was 283.6 million rupees ($1.61 million), around half of this year’s daily average of around 549.8 million rupees. Last year’s daily average was 834 million rupees. 

** Foreign investors sold a net 70.2 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 5.9 billion rupees worth of equities. 

** The rupee ended steady at 176.30/45 per dollar, market sources said. 

** Analysts, however, expect the currency to weaken as money flows out of stocks and government securities. 

** The rupee fell 0.23% during the week but is up 3.6% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. 

** The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. 

** Foreign investors sold a net 433.2 million rupees worth of government securities in the week ended May 15, extending net foreign outflow to 21.2 billion rupees so far this year, central bank data showed. 

** Investor sentiment was damaged at the end of last year when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move unconstitutional, but the political turmoil led to credit rating downgrades and an outflow of foreign funds. 

($1 = 176.3000 Sri Lankan rupees) 

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

Sri Lanka stocks edge up in light turnover; rupee up

Reuters: ** Sri Lankan shares closed slightly firmer on Thursday and extended gains into a fifth session, but trading volume slumped to a near five-month low amid worries over economic slowdown and lack of investor appetite for risky assets. 

** Traders said the Easter day bombings and aftermath violence weighed on investor sentiment. Most investors have shied away from the market since the April 21 bombings that killed more than 250 people. 

** Sri Lanka is unlikely to hit its full-year economic growth target of 3-4% following the Easter Sunday bombings, junior finance minister Eran Wickremeratne told Reuters on Tuesday. A Reuters poll has predicted the growth to slump to its lowest in nearly two decades this year. 

** The International Monetary Fund (IMF) on May 14 approved the disbursal of a $164 million tranche of a loan programme, bringing the total disbursed to more than $1.16 billion. 

** The benchmark stock index ended 0.19% firmer on Thursday at 5,305.80. It fell 1.28% last week. 

** Turnover was 83.5 million rupees ($473,490), the lowest since Jan. 4 and well below this year’s daily average of around 552.6 million rupees. Last year’s daily average was 834 million rupees. 

** Foreign investors sold a net 8.4 million rupees worth of shares on Thursday, extending the year-to-date net foreign outflow to 5.8 billion rupees worth of equities. 

** The rupee ended 0.2% firmer at 176.30/45 per dollar, compared with Wednesday’s close of 176.65/80, on exporter dollar sales, market sources said. 

** Analysts, however, expect the currency to weaken as money flows out of stocks and government securities. 

** The rupee gained 0.1% last week and is up 3.4% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. 

** The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. 

** Foreign investors sold a net 433.2 million rupees worth of government securities in the week ended May 15, extending net foreign outflow to 21.2 billion rupees so far this year, central bank data showed. 

** Investor sentiment was damaged at the end of last year when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move unconstitutional, but the political turmoil led to credit rating downgrades and an outflow of foreign funds. 

($1 = 176.3500 Sri Lankan rupees) 

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

Sri Lanka stocks inch higher in thin trade; rupee weaker

Reuters: ** Sri Lankan shares closed slightly higher on Wednesday, extending gains into a fourth session, but trading volume slumped to a near three-week low. 

** Traders said the Easter day bombings and aftermath violence weighed on investor sentiment. Most investors have shied away from the market since the April 21 bombings that killed more than 250 people. 

** Sri Lanka is unlikely to hit its full-year economic growth target of 3-4% following the Easter Sunday bombings, junior finance minister Eran Wickremeratne told Reuters on Tuesday. A Reuters poll has predicted the growth to slump to its lowest in nearly two decades this year. 

** The International Monetary Fund (IMF) on May 14 approved the disbursal of a $164 million tranche of a loan programme, bringing the total disbursed to more than $1.16 billion. 

** Sri Lanka’s economy should still grow 3.5% this year and there has not been a revision yet, the IMF added on Thursday. 

** The benchmark stock index ended 0.08% firmer on Wednesday at 5,295.68. It fell 1.28% last week. 

** Turnover was 127.4 million rupees ($721,404), the lowest since May 3 and well below this year’s daily average of around 557.8 million rupees. Last year’s daily average was 834 million rupees. 

** Foreign investors sold a net 30 million rupees worth of shares on Wednesday, extending the year-to-date net foreign outflow to 5.8 billion rupees worth of equities. 

** The rupee ended 0.23% weaker at 176.65/80 per dollar, compared with Tuesday’s close of 176.25/40, market sources said. 

** Analysts expect the currency to weaken as money flows out of stocks and government securities. 

** The rupee gained 0.1% last week and is up 3.4% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. 

** The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. 

** Foreign investors sold a net 433.2 million rupees worth of government securities in the week ended May 15, extending net foreign outflow to 21.2 billion rupees so far this year, central bank data showed. 

** Investor sentiment was damaged at the end of last year when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move unconstitutional, but the political turmoil led to credit rating downgrades and an outflow of foreign funds. 

($1 = 176.6000 Sri Lankan rupees) 

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

Sri Lanka Bank of Ceylon net down 12-pct in March; balance sheet shrinks

ECONOMYNEXT - Profits at Sri Lanka's state-run Bank of Ceylon, the country's largest commercial bank fell 12 percent in the March 2019 quarter to 4,179 million rupees as credit losses picked up and loans contracted, interim accounts showed.

Interest income grew 17 percent to 54.9 billion rupees and interest expenses grew at a slower 12.6 percent to 35.7 billion rupees, helping net interest income grow 26.3 percent to 19.1 billion rupees.

Loans contracted 2.1 percent to 1,429 billion rupees from December to March.

Credit losses grew 60 percent from a year earlier to 3,916 million rupees.

From December to March gross non-performing loans grew to 4.66 percent from 3.62 percent.

Fee income grew 24.6 percent to 2,249 million rupees.

Group gross assets fell 2.5 percent to 2,254 billion rupees. At bank level gross assets fell 2.7 percent to 2,207 billion rupees.

But net assets grew 3 percent to 125 billion rupees. Capital adequacy fell to 14.21 percent from 14.58 percent over the three months.

Sri Lanka’s Teejay Lanka March quarter profit up, cotton yarn prices stabilise

ECONOMYNEXT – Teejay Lanka’s net profit rose three percent to 3.4 million US dollars in the March 2019 quarter from a year ago as the cost of its main raw material, cotton yarn, stabilised and product prices were raised.

The Sri Lankan fabric supplier’s sales in the quarter were up 15 percent to 49 million dollars, interim accounts filed with the stock exchange showed.

Growth in profits and sales were higher in Sri Lankan rupee terms, owing to currency effects. The rupee fell sharply against the dollar in 2018 but recovered somewhat this year.

March quarterly earnings per share were 86 Sri Lankan cents. Teejay Lanka’s share closed at 29.90 rupees Thursday, down 20 cents or 0.7 percent.

In rupee terms, Teejay Lanka’s net profit rose 19 percent to 606 million rupees in the March 2019 quarter from a year ago with sales up 35 percent to 8.8 billion rupees.

Stock brokers Bartleet Religare Securities said strong performance in Teejay Lanka’s Indian unit aided the top line growth which is mainly owing to the expanded capacity resulting in volume growth and on improved utilization rates.

“USD top line too witnessed an increase of 15 percent year-on-year to USD 49 million, however a three percent appreciation in the Sri Lanka rupee would have limited further growth in the group’s top line, we believe.”

In the financial year to March 2019, Teejay Lanka said EPS was 2.65 rupees with sales up 29 percent to 31.8 billion rupees and net profit up 17 percent to 1.9 billion rupees.

Teejay Lanka Chairman Bill Lam said in a statement described the year as “a very successful” one for Teejay, in which the group overcame challenging global market conditions through capacity expansion and internal measures.

“Prices of our main raw material, cotton yarn, increased in the beginning of the year and stabilised during Q4. Dyes and chemical costs increased significantly due to the challenges faced by the suppliers,” he said.

“We also saw utility prices increase during the year which was directly attributable to the global movement of fuel prices. Through process improvements and price revisions on finished goods, we were able to mitigate part of the cost escalation.”

Sri Lanka and London Stock Exchange in MOU to promote bond trading

ECONOMYNEXT - London Stock Exchange Group and Colombo Stock Exchange has signed a memorandum of understanding to help develop an offshore market for rupee and dollar bonds.

LSEG said it will help CSE with developing a debt market and an offshore market in rupee bonds and FTSE Russell guidance in capital market classification and index inclusion.

Sri Lanka this year sold 2.4 billion US dollars of sovereign bond which are also traded in London.

Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG the memorandum of understanding will pave the way to work with the CSE and bring greater investments to the country.

Ray Abeywardena, the Chairman of CSE said: “Our two institutions share an excellent working relationship built on trust and mutual respect, which has paved the way for successful engagements in multiple initiatives over the years. The foray that we are jointly forging today is an extension of that relationship.

"The scope of the MoU paves the way for a number of new avenues of cooperation between the CSE and LSEG along with our respective depositories and will immensely advance CSE’s visibility and connectivity to international markets," CSE chairman Ray Abeywardena said.

Mark Field UK Minister of State for Asia and the Pacific, Sri Lanka's High Commissoner in London Manisha Gunasekara, Central Bank Governor Indrajit Coomaraswamy, Governor, Ranel T. Wijesinha, Chairman, Securities and Exchange Commission of Sri Lanka and Rajiva Rajeeva Bandaranaike, CEO, Colombo Stock Exchange were at the signing.