Unilever sells over 4-acre Grandpass property for billion rupees

Unilever Sri Lanka Ltd., (previously Lever Brothers Ceylon Ltd.) has sold its extensive Grandpass property of over four acres, three roods and 8.6 perches for a consideration of over rupees one billion to Ceylon and Foreign Trades Plc. (CFT).

CFT has called an extraordinary general meeting of its shareholders on Jan 16 for the purpose of passing special resolutions authorizing the purchase an also for borrowing the purchase consideration from Sampath Bank to finance the transaction.

The company will mortgage the property it has bought to Sampath as security against the borrowing and shareholder authorization is also being sought authorizing the CFT board, to dispose at their discretion current investments held by the company including its stores and office complex at K. Cyril. C. Perera Mawatha (Bloemendhal Road) to partially settle the borrowings at prices and terms to be determined by the board.

Given that CFT’s assets as at Sept. 30, 2014, stood at Rs. 919.8 million, and the deal to acquire the Unilever property is greater than half the company’s assets, the Companies Act stipulates that shareholder consent by way of a special resolution is necessary.

However, due to the limited time given by the seller, the CFT board authorized the purchase with the concurrence to shareholders with over 80 percent voting rights and made an announcement on the trading floor of the CSE informing shareholders of the purchase.

The EGM is now being called to obtain covering shareholder approval for the required special resolutions for these transactions.
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Sri Lankan stocks at near 4-year high on hopes of economic reforms

COLOMBO, Jan 9 (Reuters): The Sri Lankan index closed at a near four-year high on Friday, after pro-business opposition candidate Maithripala Sirisena defeated President Mahinda Rajapaksa, raising hopes that the new government will push through economic reforms.

The main stock index ended 1.44 per cent, or 108.19, higher at 7,605.79, its highest since March 2011.

"The market is optimistic after the election results. It is mainly because of possible economic policies by the main opposition United National Party, which backed the opposition candidate," a stockbroker said.

Rajapaksa lost his bid for a third term on Friday, ending a decade of rule that critics say had become increasingly authoritarian and marred by nepotism and corruption.

The central bank last week said the economy would grow annually at 8 per cent between 2015 and 2020 after achieving an estimated growth of 7.8 per cent in 2014.

Turnover was 3.74 billion rupees ($28.48 million), boosted by local buying and well above last year's daily average of 1.42 billion rupees, stock exchange data showed.

The index gained 23.4 per cent in 2014 after rising 4.8 per cent in the previous year. It has lost 3.5 per cent since Nov. 19 when Rajapaksa announced his decision to hold a snap presidential election on Jan. 8.

The rupee forwards traded slightly higher in dull trade on Friday, while exporters stayed away awaiting clear policy direction after the election, dealers said.

Four-day forwards, which were actively traded, ended at 132.75/85 per dollar compared with Thursday's close of at 132.80/90, dealers said.

Sri Lanka First Capital Treasuries to issue Rs. 5bn debenture issue

Jan 09, 2015 (LBO) – Sri Lanka, First Capital Treasuries Limited’s debenture issue of 5,000,000 debenture has been approved by Colombo Stock Exchange, the company said in a stock exchange filling.

First Capital Treasuries Limited is a subsidiary of First Capital Holdings.

The company offers 5,000,000 rated, subordinated, unsecured, redeemable debenture at an issue price of 100 rupees each.

The subscription will open on 27th January 2015.

Sri Lanka chooses Maithripala Sirisena as the new executive president, stocks jump

By Gayan Chandrasekara
Jan 09, 2015 (LBO) – Sri Lanka’s elections commissioner Mahinda Deshapriya on Friday officially announced that Maithripala Sirisena has been elected as the new president of Sri Lanka.

Maithripala Sirisena has obtained 6,217,162 votes or 51.28 percent of the total votes while his main opponent Mahinda Rajapaksa has bagged 5,768,090 votes or 47.58 percent of the total valid votes.

“Do not try to break the law; I urge all of you to abide by the law”, Deshapriya said.

Speaking at the occasion, newly elected President Maithripala Sirisena appealed his supporters to celebrate the victory peacefully and commended everyone for facilitating to conduct a free and fair election.

“I specially thank former president Mahinda Rajapaksa for accepting me as the new president. I also request everyone to act with Maithri”, Sirisena said.


Earlier in the day President Mahinda Rajapaksa left his official residence letting the new president and prime minister to experience a smooth transition of power.

Maithripala Sirisena will swear in as the new president before the incumbent chief justice by today afternoon, deputy general secretary of the UNP Akila Viraj Kariyawasam told LBO.

“The function scheduled to be held at the independence squire”, he added.

US state secretary John Kerry and Indian Prime Minister Narendra Modi have extended their wishes to the new president.

Modi has also invited President-elect Sirisena to visit India as he looks forward to receiving him in India, his official twitter account said.

Sri Lanka's stocks jumped 108.19 basis points to close at 7,605.79 recording a 1.44 percent growth reflecting investor sentiments over the election of a new country chief.

The S&P SL20 closed 101.96 points higher at 4,287.93, up 2.44 percent.

The index closed higher with the gains of Commercial Bank, Distilleries Company, Aitken Spence, Nestle Lanka and Ceylon Tobacco Company.

Turnover was 3.74 billion rupees with 158 stocks closed positive against 46 negative.

Sri Lankan stocks at over six-week high on better policy hopes after vote

Jan 8 (Reuters) - The Sri Lankan index ended at a more than six-week high on Thursday, led by financials on hopes of new investor-friendly policies after the presidential election.

The main stock index rose 0.79 percent, or 59.08 points, to end at 7,497.60, its highest since Nov. 20.

"People are optimistic over new investor-friendly policies after the election," said a stockbroker asking not to be named. "Whether it is going to be the current president or the opposition candidate, investors see opportunities."

President Mahinda Rajapaksa's bid for a third term hung in the balance as Sri Lanka went to the polls on Thursday, with voters split between the "devil they know" and an upstart who has promised to root out corruption and political decay.

There were no reliable opinion polls ahead of the vote, but many believe opposition candidate Mithripala Sirisena will benefit from a popular yearning for change after a decade under Rajapaksa.

The economy has flourished in recent years, and many voters, especially ethnic Sinhalese Buddhists who represent 70 percent of the population - believe that sticking with Rajapaksa will keep living standards on an upward path.

The central bank said last week the economy would grow annually at 8 percent between 2015 and 2020 after achieving an estimated growth of 7.8 percent in 2014.

Thursday's turnover was 1.45 billion rupees ($11 million), more than last year's daily average of 1.42 billion rupees, stock exchange data showed.

Rupee forwards traded weaker on Thursday on importer dollar demand, while exporters stayed away hoping for further weakening of the currency, dealers said.

Four-day forwards, which were actively traded, closed slightly weaker at 132.80/90 per dollar compared with Wednesday's close of 132.75/85, dealers said.

"There was slight importer dollar demand, but the market was dull," a currency dealer said.

Dealers expect the fixed and controlled exchange rate regime to continue amid more foreign borrowing if Rajapaksa gets re-elected, while hoping for a flexible exchange rate with more foreign grants if Sirisena wins.

Rupee forwards were maintained around 132.00 in December as the central bank defended the currency through moral suasion.

The spot currency was not traded on Thursday.

Dealers said unusually high imports towards the end of 2014, amid lower interest rates and a stable exchange rate pressured the rupee.

($1 = 131.5000 Sri Lankan rupees) 

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

Sri Lankan stocks edge up to over 6-wk closing high before polls

Jan 7 (Reuters) - Sri Lankan stocks rose to a more than six-week closing high on Wednesday, as investors picked up beaten-down shares a day ahead of a tight presidential election.

The main stock index closed 0.25 percent, or 18.38 points, firmer at 7,438.52, its highest close since Nov. 20.

"The market took a cautious approach towards elections, though there won't be a major shift in policies whoever wins," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.

President Mahinda Rajapaksa called early elections to be held on Jan. 8. Twenty-six lawmakers have quit his ruling United People's Freedom Alliance since the announcement, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term. Two opposition legislators have joined the ruling party.

The gain in stocks was boosted by a 5.13 percent rise in Hemas Holdings Plc and a 0.78 percent gain in Sri Lanka Telecom Plc.

The day's turnover was 1.39 billion rupees ($10.6 million), slightly less than last year's daily average of 1.42 billion rupees, stock exchange data showed.

Foreign investors were net buyers of 81.3 million rupees worth of shares on Wednesday, but have been net sellers of 216.9 million so far this year, the data showed. They bought a net 22.07 billion rupees worth of stocks last year.

The index rose 23.4 percent in 2014, but has lost 3.5 percent since Nov. 19 when Rajapaksa announced the snap poll. 

($1 = 131.7500 Sri Lankan rupees) 

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

MBSL Midcap Index Year 2015 – Proven stock market index brand for 15 years

In a pioneering move, MBSL constructed a stock market index: the ‘MBSL Midcap Index’, which measures the aggregate price level and price movements of medium size companies listed on the Colombo Stock Exchange (CSE). The index which came into operation in the year 1999 is revised annually and looks at the middle range market capitalisation, liquidity and the profitability of the firms to be included in the MBSL Midcap Index. The MBSL Midcap Index has the base as 1,000 as at 31 December 1998 (which is the same base year for Milanka Index) whilst it has rose to 11,058.93 by 31 December 2014.  

Benefits of the MBSL Midcap Index
MBSL Midcap Index can be used as the benchmark index by individual and institutional investors who prefer growth but are prepared to with stand only conservative levels of volatility in their equity investments.It can be used as the benchmark index for the introduction of MBSL Midcap linked index funds.MBSL Midcap Index generate valuable signals for portfolio managers for switching from larger-cap more sensitive stocks to midcap less sensitive stocks with more growth potential in response to changing capital market conditions. The MBSL Midcap Index focus in profitability helps to screen stocks with better future prospects that will cross to higher market capitalisation in the coming year.


MBSL Midcap Index which is in effect from 1 January 2014 and the criteria for selecting the 25 stocks of the index remained unchanged. They are:
Middle Range Market Capitalisation as at 30 November 2014.
Liquidity based on number of trades during the year.
Profitability within the last two years.
The range for market capitalisation for the year 2014 was Rs. 2.15 billion – Rs. 21.49 billion. With the stock market movements, this range has been adjusted for the change in the ASPI annually. Accordingly the range of market capitalisation for the year 2015 is Rs. 2.76 billion – Rs. 27.26 billion.Based on the above criteria the MBSL Midcap index 2015 includes the following stocks representing eight sectors.

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