Sri Lanka stocks fall on profit-taking; seen gaining

(Reuters) - Sri Lankan stocks fell for the second straight session on Thursday as investors booked profits, but stockbrokers expect the market to continue its gaining streak due to persistent foreign buying, lower interest rates, and positive economic outlook.

The main stock index ended down 0.3 percent, or 21.45 points, at 7,232.98, further slipping from its over three-year high close hit on Tuesday. It has gained in six of the last eight sessions till Thursday.

"Market is down on correction as it has been going up for the last few months. A correction is warranted," said Reshan Kurukulasuriya, COO of Richard Pieris Securities.

"Market will start moving up with all the positive factors," he said referring to lower interest rates, positive economic outlook, and continued foreign buying.

Shares of Sri Lanka Telecom Plc, which led the overall fall, ended 2.44 percent weaker at 51.9 rupees, while Heyleys Plc lost 3.53 percent at 352.10 rupees.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 1.07 percent to 157.20 rupees.

The day's turnover was 1.19 billion rupees ($9.13 million), less than this year's daily average of over 1.28 billion rupees.

Foreign investors were net buyers of 125.3 million rupees worth of shares on Thursday, extending the year-to-date net foreign inflows in stocks to 11.36 billion rupees. 

($1 = 130.3000 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez)

Sri Lanka stocks close down 0.3-pct

Sep 25, 2014 (LBO) - Sri Lanka's stocks closed in red owing to negative price movements on counters such as Sri Lanka Telecom and Commercial Bank, brokers said.

The Colombo benchmark All Share Price Index closed 21.45 points lower at 7,232.98, down 0.30 percent. The S&P SL20 closed 9.61 points lower at 4,013.02, down 0.24 percent.

Turnover was 1.19 billion rupees, down from 1.53 billion rupees a day earlier with 83 stocks closed positive against 112 negative.

The aggregate value of all off-the-floor deals represented 18 percent of the daily turnover.

Dunamis Capital closed 3.30 rupees higher at 29.80 rupees and George Steuart Finance closed flat at 30.40 rupees, attracting most number of trades during the day.

Foreign investors bought 187.16 million rupees worth shares while selling 61.82 million rupees worth shares.

Sri Lanka Telecom closed 1.30 rupees lower at 51.90 rupees and Commercial Bank of Ceylon closed 1.70 rupees lower at 157.20 rupees, contributing most to the index drop.

Nestle Lanka closed 17.00 rupees lower at 2,112.50 rupees and John Keells Holdings closed 1.30 rupees lower at 253.50 rupees.

JKH’s W0022 warrants closed 70 cents higher at 75.00 rupees and its W0023 warrants closed 10 cents higher at 78.10 rupees.

Sri Lanka stocks slip from 3-yr highs; more losses seen

(Reuters) - Sri Lankan stocks slipped on Wednesday from their highest in more than three years hit in the previous session as investors took profits in recent gainers such as Bukit Darah Plc, brokers said.

The main stock index ended down 0.09 percent, or 6.21 points, at 7,254.43, slipping from its highest closing level since June 9, 2011 hit on Tuesday. The index fell for the first time in seven sessions.

"Illiquid shares led the index to end marginally down," said Dimantha Mathew, manager, research at First Capital Equities (Pvt) Ltd. "The index might struggle a bit on profit-taking and correction as we feel big-cap counters are over valued."

Shares of Commercial Leasing and Finance Plc, which led the overall losses, fell 4.17 percent to 4.60 rupees, while Bukit Darah lost 1.37 percent to 725 rupees.

Conglomerate John Keells Holdings Plc, which fell 1.54 percent during the day, ended 0.35 percent firmer at 254.80 rupees.

The day's turnover was 1.53 billion rupees ($11.7 million), surpassing this year's daily average of over 1.27 billion rupees.

Foreign investors were net buyers of 156.94 million rupees worth of shares on Wednesday, extending the year-to-date net foreign inflows in stocks to 11.23 billion rupees. 

($1 = 130.2800 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Sri Lanka stocks close down 0.1-pct

Sep 24, 2014 (LBO) - Sri Lanka's stocks closed 0.09 percent lower with the losses in counters such as Commercial Leasing and Finance and Bukit Darah, brokers said.

The Colombo benchmark All Share Price Index closed 6.21 points lower at 7,254.43, down 0.09 percent. The S&P SL20 closed 7.46 points lower at 4,022.63, down 0.19 percent.

Turnover was 1.53 billion rupees, down from 2.18 billion rupees a day earlier with 90 stocks closed positive against 108 negative.

The aggregate value of all off-the-floor deals represented 10 percent of the daily turnover.

George Steuart Finance closed 30 cents higher at 30.40 rupees, attracting most number of trades during the day.

Commercial Leasing and Finance closed 20 cents lower at 4.60 rupees and Bukit Darah closed 10.10 rupees lower at 725.00 rupees, contributing most to the index drop.

Ceylon Cold Stores closed 6.90 rupees lower at 238.10 rupees and Nestle Lanka closed 19.40 rupees higher at 2,129.50 rupees.

Ceylon Tobacco Company closed 5.00 rupees higher at 1,160.00 rupees and John Keells Holdings closed 90 cents higher at 254.80 rupees.

Cargills Ceylon closed 2.80 rupees higher at 168.00 rupees.

Deshodaya Development Finance Company has purchased 15,806,250 voting ordinary shares, acquiring 70.25 percent of the issued share capital of George Steuart Finance, a stock exchange filing said.

Sri Lanka stocks edge up after policy rate decision

(Reuters) - Sri Lankan stocks rose for the sixth straight session on Tuesday to touch their highest in more than three years after the central bank effectively reduced its standing deposit facility rate to boost credit and economic growth.

Before the market opened, the central bank announced moves to make commercial banks lower their interest rates and increase lending to support an economy expected to grow 7.8 percent this year, while keeping its own policy lending rate unchanged.

The main stock index ended up 0.06 percent, or 4.23 points, at 7,260.64, its highest closing level since June 9, 2011.

"We expect a surge in activity due to declining interest rates," said Hussain Gani, deputy CEO at Softlogic Stockbrokers said. "I think there will be demand for fundamentally sound shares and we see an increase in buying using margin credit."

Stockbrokers said they expect the index to gain further, fuelled by the indirect rate cut.

The central bank also cut its year-end inflation projection to 3-4 percent from 4-5 percent due to a cut in energy prices on Sept. 16.

Sri Lanka is aiming for a higher economic growth of 8.2 percent and a lower fiscal deficit target of 4.4 percent of gross domestic product next year, a government document showed last week.

The stock index has gained 22.8 percent so far this year.

The bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, rose to 85.616 on Tuesday compared with Monday's 84.729, Thomson Reuters data showed.

Shares of Commercial Leasing and Finance Plc, which led the overall gains, rose 4.35 percent to 4.80 rupees, while Bukit Darah Plc gained 3.54 percent to 735.1 rupees.

Sri Lanka Telecom Plc added 1.92 percent to close at 53.20 rupees.

The day's turnover was 2.18 billion rupees ($16.7 million), well above this year's daily average of over 1.28 billion rupees.

Foreign investors were net sellers for the fist time in six sessions. They sold 305.33 million rupees worth of shares on Tuesday, but have been net buyers of 11.24 billion rupees in shares so far this year. 

($1 = 130.2800 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Sri Lanka stocks close higher

Sep 23, 2014 (LBO) - Sri Lanka's stocks closed 0.06 percent higher with telco and palm oil stocks gaining amid net foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 4.23 points higher at 7,260.64, up 0.06 percent. The S&P SL20 closed 0.78 points lower at 4,030.09, down 0.02 percent.

Turnover was 2.18 billion rupees, up from 1.94 billion rupees a day earlier with 102 stocks closed positive against 102 negative.

John Keells Holdings closed 20 cents lower at 253.90 rupees with three off-market transactions of 440.09 million rupees contributing 20 percent of the turnover.

JKH’s W0022 warrants closed 70 cents lower at 74.30 rupees and its W0023 warrants closed 1.90 rupees higher at 79.00 rupees.

The aggregate value of all off-the-floor deals represented 34 percent of the daily turnover.

First Capital Holdings closed 1.20 rupees higher at 46.60 rupees and Softlogic Holdings closed 40 cents higher at 16.50 rupees, attracting most number of trades during the day.

Foreign investors bought 561.09 million rupees worth shares while selling 866.41 million rupees worth shares.

Bukit Darah closed 25.10 rupees higher at 735.10 rupees and Sri Lanka Telecom closed 1.00 rupee higher at 53.20 rupees, contributing most to the index gain.

Commercial Leasing and Finance closed 20 cents higher at 4.80 rupees and Ceylon Tobacco Company closed 15.00 rupees lower at 1,155.00 rupees.

The SEC has decided to lift the price constraints imposed on the crossings board for share transactions falling within the ambit of the Central Bank’s Financial Sector Consolidation Plan.

This will be effective from 22 September 2014.

‘Multi Finance continues to make profits in first quarter’

Multi Finance PLC recorded a 120% increase in its bottom line in the first quarter ended June 30, 2014 recording a net profit of Rs. 8.6 Mn, against Rs. 39.2 Mn loss in the preceding quarter 2013, as per published accounts.

A press release says: ‘During the quarter under review, net income from operations reached Rs. 56.2 Mn, 236% growth compared to the quarter ended June 2013 which was recorded as Rs. 16.7 Mn. The net interest income for the quarter ended 06/14 also increased with 215% reaching Rs. 50.5 Mn, compared to Rs. 16.0 Mn QonQ owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 32.3 Mn as against Rs. 40.3 Mn QonQ which is a 19.8% improvement owning to strict cost control mechanisms adopted.

‘During the period company’s net impairment has remained in the same range despite the significant increase in its lending portfolio and increase in impairment of pawning which stands at Rs. 16.5Mn. Further NPLs on leasing, HP and loans have come down to 4.42% quarter on quarter due to aggressive recovery techniques and strict monitoring process adopted by the company. Earnings per Share of the company have improved from -6.98% to 1.53% within the quarter while improving the company’s quality of the asset portfolio. Return on equity has improved to 2.6% from -12.34% and Return on Assets is up by 121% from -2.84% to 0.60% QonQ in line with the profits.

‘The company’s total assets grew by 3.5% to stand in excess of Rs 1.38 Bn as of 30thJune 2014 and the deposit base grew by 9.8% over the same quarter of the previous year displaying the investor confidence placed on the company.

‘Commenting on company’s improvement, Multi Finance Chief Executive Officer Pushpike Jayasundera said the introduction of prudent credit policies, risk management tools and stringent recovery processes were the key factors contributed for this significant results in the quarter. These results were achieved in the midst of interest rate pressures and slowdown in credit growth which was common to the industry during the period concerned.
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