Sri Lankan shares end flat amid foreign outflows

Reuters: Sri Lankan stocks ended steady on Monday, as gains in financial shares were offset by losses in consumer staples, amid foreign outflows and tax hike concerns.

Foreign investors sold a net 183 million rupees worth of shares on Monday extending the year-to-date net forging outflow to 3.01 billion rupees worth of equities.

The International Monetary Fund (IMF) on Friday said Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without further delay.

The reform package will include raising taxes to increase the government revenue and reduce fiscal deficit.

The benchmark index of the Colombo Stock Exchange ended flat, dropping 0.2 points to 6,4789.94.

After four straight weekly losses, the index posted a weekly gain of 0.10 percent last week.

"Nothing much happened today. But the good thing was that the buying interest was there," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd, adding that the liquidity shortage in the market was "temporary".

Turnover stood at 614.1 million rupees, less than this year's daily average of 752.2 million rupees.

Consumer stocks such as Ceylon Tobacco Company Plc slid 1 percent, while Ceylon Cold Stores Plc fell 2.33 percent, bringing down the overall index. Overseas Realty Plc dived 8.30 percent.

Meanwhile, shares in Commercial Leasing and Finance Plc jumped 8.11 percent while Commercial Bank of Ceylon Plc rose 0.71 percent.

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

Sri Lanka’s CIFL awaits response from German investor for bailout

(LBO) – Sri Lanka’s troubled Central Investment and Finance Company says they are awaiting a response from a prospective German investor indicating their future plan of action to revive CIFL.

In a stock exchange filing, the company said they submitted all clarifications to the investor delegation who visited the island recently.

A high level delegation from Vandell Financial Services arrived in Sri Lanka last week to discuss opportunities of investing in the troubled finance company.

The delegation also met President and Finance Minister in addition to other fact finding missions to regulatory authorities.

“The investors have expressed their desire to acquire 100% of the ownership of the company,” the company said.

“We have now submitted all the clarifications to the Investor delegation and awaiting their response from them in the form of a MOU indicating the future plan of action setting the milestones in reaching the final objective of reviving CIFL and handing over the management to the new investors.”

The German investors would infuse 5 billion rupees to revive CIFL, according to the President of CIFL Depositors Association, media reports said.

The delegation has also shown interest in investing in the Northern and Eastern Provinces.

Lanka IOC eyes Indonesia lubricant market

(LBO) -Lanka IOC says they are exploring the option of exporting lubricants to some of the regional countries and hope to enter the Indonesian market soon.

“As of now we are already exporting to the Maldives and are thinking of a few other countries,” Shyam Bohra, managing director Lanka IOC said at the introduction of its “Global Container” packaging for SERVO Lubricants, Thursday.

“We are looking to enter Indonesia by the end of the year.”

Currently there are 13 players in the Sri Lankan market and the total consumption is 49,000 tonne per year.

“We are pleased to introduce the Global Container concept to Sri Lanka. With this we expect a sales growth of 2-3 percent,” Bohra said.

“Our market share is 17 percent at the moment and we are looking at increasing it to 20-25 percent in the next five years.

Lanka IOC blends Servo brand of lubricants at lube blending plant, Trincomalee and is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 199 retail petrol/diesel stations in Sri Lanka.

Sri Lankan shares up for third straight session on blue chips

Reuters: Sri Lankan stocks edged up for a third straight session on Friday posting a more than one week closing high, led by gains in large cap shares amid investor appetite for stocks that took a hit earlier in the week due to a proposed tax increase.

The International Monetary Fund (IMF) said on Friday that Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without delay.

The IMF also said that central Bank should be ready to tighten monetary policy further if inflation or credit growth continue to rise.

The benchmark index of the Colombo Stock Exchange ended 0.22 percent or 14.27 points higher at 6,479.21, its highest close since Sept. 14.

The index gained 0.10 percent this week, after four straight weeks of losses.

"Interest in blue chips is continuing," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Investors are no longer on wait-and-see and are starting to buy in to the stocks."

Foreign investors bought a net 112.6 million rupees worth of shares on Friday. But they have been net sellers of 2.83 billion rupees worth of equities so far this year.

Turnover stood at 886.3 million rupees, more than this year's daily average of 753 million rupees.

Shares in Distillers Company of Sri Lanka Plc rose 4.69 percent while Asian Hotel Properties Plc jumped 7.14 percent, driving the overall index higher.

The bourse had hit a more than seven-week low on Tuesday as selling pressure on stocks that were expected to take a hit from a proposed tax increase weighed on sentiment.

($1 = 146.0000 Sri Lankan rupees) 

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

Sri Lankan shares rise on blue chips; foreign outflow hits 7-mth high

Reuters: Sri Lankan stocks hit a one-week closing high on Thursday, led by blue chips as investors picked up beaten down counters, even as foreign investor outflow touched a seven-month high, mainly due to selling in shares of National Development Bank.

The benchmark index of the Colombo Stock Exchange ended 0.21 percent higher at 6,464.94, its highest close since Sept.15.

"Index turned green today with sudden buying interest in blue chip counters," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Buying interest is there mainly in diversified shares."

Foreign investors sold a net 6.38 million shares in National Development Bank, ahead of a change in its top management, Mathew said. NDB ended 1 percent higher.

Foreign outflow hit its highest since Feb. 19 as offshore investors sold a net 867.8 million rupees ($5.95 million) worth of equities on Thursday, extending the year to date net foreign outflow to 2.94 billion rupees worth shares.

Turnover stood at 2.09 billion rupees, more than twice this year's daily average of 752.3 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 0.9 percent, while Ceylon Tobacco Company Plc gained 1.3 percent, driving the overall index higher.

The bourse hit a more than seven-week low on Tuesday as selling pressure on stocks that were expected to take a hit from a proposed tax increase weighed on sentiment. 

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Infrastructure: Port city to transform Colombo, boost facilities

(LBO) – Sri Lanka’s planned Port City project says its vision is to offer a modern and sustainable lifestyle without comprising services delivered to attract high net-worth individuals in the region.

Several hectares of public parks will increase facilities available to the public and the amount of commercial office space in Colombo will quadruple, officials said.

“We want to create a South Asian hub attractive to high net-worth individuals to set up a second home to live, work and play while also incorporating into the hub a world class business and financial centre, luxury residences, entertainment and lifestyle destinations,” Liang Thow Ming, chief sales and marketing officer, CHEC Port City Colombo (Pvt) Ltd said.

“Our city will be a blue and green city with a high quality environment founded on latest sustainable concepts and practices.”

He was speaking at the LBR LBO Infrastructure Summit 2016 themed “Realizing The Transformative Power of The Western Region Development: Opportunities and Challenges.”

Sri Lanka’s government officially informed the Chinese investors of resuming the construction of the Port City project in capital Colombo, in March 2016, one year after its suspension.

The project was under water for a long period of time as the new administration questioned project approvals by the last regime.

The Port City is to be constructed between the Southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of sea to be reclaimed is 252 hectares.

The Port City is expected to boost the local economy by generating millions of dollars upon its completion and generate over 80,000 jobs and includes a marina and yacht club, a central boulevard, a sea view apartment complex and a five-star hotel, shopping and entertainment center, office space, a mini golf course, and many other modern facilities.

Thow Ming says the projects challenge is to have reliable and integrated infrastructure solutions where you connect water, energy and waste loops to reduce losses, increase recycling and recovery.

“We need to create the best balance between management on a central and a local level.”

“Use the eco cycle model as a tool to integrate infrastructure solutions and gain synergies integrate centralized systems for Port City i.e. waste handling of recyclables and water reservoirs.”

It will also use local solutions on a building level when optimal like energy solutions users’ awareness concerning their actions and the consequences they have are achieved through education and information on all levels, he added.

Textured Jersey changes its name to Teejay Lanka

(LBO) – Sri Lanka’s Textured Jersey, a leading knitted fabric company, has officially changed its name to Teejay Lanka with effect from 15th September 2016.

The company said in a stock exchange filing that the name change had the shareholder approval through a special resolution at the Annual General Meeting.