Sri Lanka Melstacorp share trading commences from tomorrow

(LBO) – Sri Lanka’s newly formed Melstacorp, the holding company of Distilleries, said its shares will commence trading on the Colombo Stock Exchange from tomorrow.

In a stock exchange filing, the company said these shares will be classified under the ‘Diversified Holdings’ sector.

A total of 1,165,397,072 ordinary voting shares are to be listed on the main board under the security code of MELS-N-0000 by way of an introduction.

Melstacorp limited further said deposits will be accepted by the CDS with immediate effect.

In September, shareholders of the Distilleries Company approved a special resolution to make Melstacorp the holding company of the group, in a reversal of the structure.

From 1st October Melstacorp became the holding company of Distilleries as well as Lanka Bell, Continental Insurance Lanka, Melsta Regal Finance, Balangoda Plantations and Browns Beach Hotels.

It also owned a significant percentage of shares in Aitken Spence and Madulsima Plantations.

Distilleries earlier announced that Harry Jayawardena is still the Chairman of both DCSL and Melstacorp while Amitha Gooneratne is the Managing Director of Melstacorp Ltd.

Sri Lankan shares hit more than 1-wk closing high; PABC boosts turnover

Reuters: Sri Lankan shares touched a more than one-week closing high on Thursday led by financials, with shares of Pan Asia Banking Corporation Plc accounting for 85 percent of the day's turnover.

The Colombo stock index finished 0.28 percent higher at 6,245.71, moving away from its lowest close since April 6 hit on Tuesday.

Turnover stood at 720.9 million rupees ($4.82 million), less than the daily average of around 740 million rupees for this year.

Foreign investors bought a net 12.3 million rupees worth shares on Thursday, extending the year-to-date net foreign inflows into equities to 639.8 million rupees.

Pan Asia Banking gained 1.5 percent, while shares in Ceylinco Insurance Plc jumped 17.8 percent

($1 = 149.6000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

Colombo Stock Exchange Market Review – 29th Dec 2016

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Colombo Stock Exchange Trade Summary 29-Dec-2016

Colombo equities continued the positive momentum for the second straight-session with benchmark ASI gaining 17.20 index points (+0.3%) to close at 6,245.71. However, the blue-chip S&P SL 20 index closed 2.65 points (-0.1%) lower at 3,503.13.

Out of the 190 shares traded, 64 gained, 46 declined while 80 stocks remained unchanged. Gains in Ceylinco Insurance (LKR 1,471.40, +17.8%), Ceylon Tobacco (LKR 811.30, +1.4%) and C T Holdings (LKR 125.00, +4.2%) pushed the ASI higher. Among the blue-chips Nestle Lanka (LKR 1,979.50, -3.1%) and Hatton National Bank (LKR 225.00, +1.5%) led losers droving the S&P SL 20 index to the negative territory.

Market activity remained lackluster but the turnover reached LKR 721mn supported by the single crossing in Pan Asia Bank which accounted for 85% of the market turnover. The bank recorded the only crossing of the day where 29.1mn shares (9.9% of the issued cap) changed hands at LKR 21.00. Accordingly, Pan Asia Bank (LKR 614mn), Commercial Bank (LKR 24mn) and Sansa Development Bank (LKR 13mn) made the largest contribution to the turnover.

Pan Asia Bank (LKR 19.80, +1.5%) and Sansa Development Bank (LKR 106.20, +3.1%) attracted the retail investor interest today along with Union Bank (LKR 15.20, +1.3%) and Lanka IOC (LKR 31.00, +1.3%).

Foreign investors were net buyers with net inflow of LKR 12mn. Foreign participation was mere 4%. Top net inflows were seen in Commercial Bank –voting (LKR 23mn), Commercial bank – nonvoting (LKR 3mn) and Asiri Hospital Holdings (LKR 2mn) while top net outflow was seen in Dialog Axiata (LKR 7mn).
Source: LSL

Sri Lanka seeks billion dollar 3-year loan

ECONOMYNEXT - Sri Lanka has called proposals from banks to borrow one billion US dollar for up to three years, which lenders can provide on a floating or a fixed rate, the Ministry of National Policies and Economic Affairs said.

Interested international and domestic banks should make offers by January 20, 2017, with rates quoted being valid for the next two months.

Banks investment houses should submit proposals in multiples of 50 million US dollars up to a maximum of 1000 million dollars.

Repayments can be in bullet or in tranches. Interest can be paid half yearly.

Group Lease appoints two directors to Commercial Credit board

Group Lease Holdings, a Singaporean subsidiary of Thai-listed Group Lease Public Company Limited (GL), has appointed two directors to the Colombo Stock Exchange listed Commercial Credit and Finance PLC after purchasing a 29.9 percent stake in the Sri Lankan entity. 

GL Group Chairman and CEO Mitsuji Konoshita, and GL Director and CFO Regis Martin, a Frenchman, were appointed as directors of Commercial Credit and Finance last week, with approval from the Central Bank of Sri Lanka. Konoshita, who graduated from the Osaka University in Japan with a Masters and Bachelors in Law, has been the Chairman of the GL Group since 2007, and had taken on the role of the CEO in 2012 as well. 

In addition to heading GL subsidiaries, he is also the Chairman of the Engine Holdings Asia Pte. Ltd, another subsidiary of GL’s parent Wedge Holdings Co. Ltd, which is based in Osaka. Martin has a Bachelors and Masters of Science in Applied Economics and an MA in International Business from the University of Paris IX Dauphine. He had been employed at the French Ministry of Economy and Finance prior to transitioning to the private sector, where he has since held many portfolios, including but not limited to being the L’Oreal Paris Sales Forecast Controller, Morison Kak & Associes Senior Auditor and Finance and Devenco Investment Portfolio Manager. 

Since joining as the Business Performance Manager at GL Finance Plc, Martin has gone on to become a director at various GL Group companies. 

The GL Group recently bought 29.99 percent of the shares of Commercial Credit and Finance for Rs.10.56 billion, and also purchased a controlling share of Commercial Credit and Finance’s associate company BG Microfinance Myanmar Co. Ltd.
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Sri Lanka’s Abans Finance to raise capital with Rs277mn rights issue

(LBO) – Sri Lanka’s finance sector player, Abans Finance, is to raise 277.34 million rupees by way of a rights issue, the company said in a stock exchange filing.

The company has obtained the Central Bank approval in compliance with Finance Companies (Structural Changes) Direction No. 01 of 2013 by their letter dated 27th December, 2016.

Subject to the exchange and shareholder approval, the company is to issue 11,093,595 ordinary shares at 25 rupees each in the ratio of one new share for every five shares held.

“The proceeds will be utilized to expand the lending and investment activities of the company,” Abans Finance said.

“Proceeds will also be utilized to upgrade the company into a well capitalized status to meet any possible increases in the minimum capital requirements applicable for Finance Companies.”

The current stated capital of the company is 844,073,080 rupees represented by 55,467,978 ordinary shares.

If the rights issue is fully subscribed the stated capital will increase by a further 277,339,875 rupees represented by 11,093,595 ordinary shares.

Sri Lanka 03-month Treasuries yield rises to 8.72-pct

ECONOMYNEXT – Yields on Sri Lankan Treasury Bills rose at Wednesday’s auction with the 03-month bill yield up 07 basis points to 8.72 percent, the debt office of the Central Bank said.

The 06-month t-bill yield rose 02 bp to 9.63 percent at the auction while the yield on one-year bills rose 03 bp to 10.17 percent, a statement said.

The debt office got Rs23 billion worth of bids and accepted bids worth Rs8.5 billion.