Sri Lankan shares fall for 7th session on rate hike concerns

Reuters: Sri Lankan shares fell for a seventh straight session on Wednesday to a near one-year closing low as expectations of a possible interest rate hike weighed on sentiment, after the International Monetary Fund urged the central bank to tighten monetary policy.

The Colombo stock index closed 0.2 percent lower at 6,032.16, its lowest close since March 29, 2016.

The index has lost 1.4 percent over the last seven sessions since the IMF urged Sri Lanka's central bank last week to be ready to tighten monetary policy if credit growth or inflation did not abate.

The central bank's second monetary policy review of the year is due on March 24.

"Market is down mainly because of the negative sentiment local investors have," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd. "We are also seeing some margin calls coming in."

Most of the investors stayed on the sidelines, resulting in a thin turnover, which stood at 239.9 million rupees ($1.6 million), about a third of this year's daily average of 674.9 million rupees.

The bourse on Wednesday slipped into oversold territory with the 14-day relative strength index at 28.701 points versus Tuesday's 30.958, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Shares of Sri Lanka Telecom Plc closed down 2 percent. Biggest listed lender Commercial Bank of Ceylon Plc ended 0.7 percent weaker, while Seylan Bank Plc fell 0.2 percent.

Foreign investors net bought shares worth 60.97 million rupees in the 11th straight session of net-buying, raising the year-to-date net foreign inflow to 2.36 billion rupees in equities. 

($1 = 151.6000 Sri Lankan rupees) 

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

Sri Lankan shares hit 5-wk closing low on rate hike fears

Reuters:Sri Lankan shares hit a five-week closing low on Monday on worries the country's central bank would raise interest rates at a meeting next week after the International Monetary Fund urged it to tighten monetary policy, brokers said.

The Colombo stock index closed 0.23 percent down at 6,070.80, its lowest since Feb. 6. The index shed 0.27 percent last week, posting its third straight weekly decline.

The IMF last week urged Sri Lanka's central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

The banking regulator is expected to unveil its second monetary policy of the year on March 24.

"The IMF statement on urging the central bank for a possible rate hike has weighed on sentiment," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Shares of conglomerate John Keells Holding Plc fell 1 percent, while biggest listed lender Commercial Bank of Ceylon Plc ended 1.09 percent weaker.

Foreign investors net bought shares worth 61 million rupees (about $403,041), a ninth straight session of purchases, extending the year-to-date net foreign inflow to 2.18 billion rupees worth of equities.

Turnover stood at 183.3 million rupees, the lowest since Feb.1 and well below this year's daily average turnover of 679.6 million rupees.

Yields on treasury bills have risen to a more-than-four-year high since October despite the central bank keeping key policy rates steady. 

($1 = 151.2500 Sri Lankan rupees) 

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

Sri Lanka’s RIL Property to list in Rs960mn IPO

ECONOMYNEXT - RIL Property Limited (RIL), a developer, owner and operator of commercial office space in the Sri Lankan capital Colombo is to list its shares on the stock exchange at Rs8 a share.

A statement said RIL intends to offer 120 million ordinary voting shares in the Initial Public Offering (IPO), opening on 04th April 2017, to raise Rs. 960 million. The minimum subscription per application is 100 shares.

The funds will be used to expand RIL’s business operations and its fully owned subsidiary, Foodbuzz (Pvt) Ltd, a franchisee of the BreadTalk Group based in Singapore.

“We see significant demand for commercial office space in Colombo and have responded to this demand through the development of Parkland, a Grade ‘A’ commercial office complex,” said Hiroshini Fernando, chief executive of RIL.

Parkland is a 22-floor office complex in the heart of Colombo.

Commercial Bank of Ceylon and NDB Investment Bank (NDBIB) are acting as Lead Managers and Joint Managers to the IPO.

“The RIL IPO in our view provides an investment opportunity in a company specialised in the development and management of commercial office space, at a reasonable valuation,” said Sushara Vidyasagara, Chief Manager of the Investment Banking Unit of Commercial Bank.

Nilendra Weerasinghe, Head-Corporate Advisory of NDBIB, said the RIL IPO is an opportunity for investors to participate in the growth of the commercial office space segment given that direct investments in the sector require very high capital outlays.

Sri Lankan shares close at one-month low; telcoms lead

Reuters: Sri Lankan shares on Friday hit their lowest close in more than a month, dragged down by telecom stocks, while investor sentiment continued to remain low on concerns about rising interest rates.

The Colombo stock index ended down 0.06 percent at 6,084.99, its lowest since Feb. 6. It shed 0.27 percent during the week, posting its third straight weekly decline.

Foreign investors were net buyers for the eighth straight session on Friday, purchasing shares worth 174.96 million rupees ($1.16 million), and extending the year-to-date net foreign inflow to 2.12 billion rupees worth of equities.

Turnover was 711 million rupees, more than this year's daily average turnover of 690.1 million rupees.

"Foreigners are the only people active in the market these days as not a lot of activities are taking place," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

"The market is slowly coming down with rising rates and economic uncertainty."

Traders said there were concerns after the International Monetary Fund urged Sri Lanka's central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

Shares of Dialog Axiata Plc dropped 0.89 percent, while Commercial Leasing and Fiance Plc plunged 10.71 percent and conglomerate John Keells Holdings dropped 0.14 percent.

Yields on treasury bills have risen to a more-than-four-year high since October, while the central bank has kept the key policy rates on hold.

($1 = 151.2500 Sri Lankan rupees) 

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

Sri Lankan shares fall for third straight session; John Keells down

Reuters: Sri Lankan shares fell for a third straight session on Thursday, posting their lowest close in a month, dragged down by diversified stocks such as John Keells Holdings Plc as investor sentiment continued to remain low on concerns about rising interest rates.

The Colombo stock index ended down 0.1 percent at 6,088.80, its lowest since Feb. 6. It shed 0.6 percent last week in its second straight weekly decline.

Foreign investors were net buyers for the seventh straight session on Thursday, purchasing shares worth 63.6 million rupees ($420,495.87), and extending the year-to-date net foreign inflow to 1.95 billion rupees worth of equities.

Turnover was 875.6 million rupees, more than this year's daily average turnover of 689.7 million rupees.

"The market is mainly down because of John Keells. It is slowly coming down with rising rates and economic uncertainty," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

"Foreigners seem to be the only buyers at the moment."

Traders said there were concerns after the International Monetary Fund urged Sri Lanka's central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

Shares of John Keells Holdings fell 1.06 percent while Commercial Bank of Ceylon Plc, the country's biggest listed lender, declined 1.29 percent and Carson Cumberbatch Plc dropped 2.91 percent.

Sri Lanka Telecom Plc dropped 1.41 percent and Hatton National Bank Plc ended 1.16 percent weaker.

Yields on treasury bills have risen to a more than four-year high since October, while the central bank has kept key policy rates on hold. 

($1 = 151.2500 Sri Lankan rupees) 

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

Nimal Perera resigns as Royal Ceramic MD; Wants to Re-enter Stock Broking

By Ishara Gamage

Sri Lanka's outgoing Royal Ceramic PLC's (RCL) Managing Director and one-time high net worth investor Nimal Perera, a close confidante of business tycoon Dhammika Perera said that he will re-enter the stock broking business with an acquisition of the struggling existing stock brokerage.

After 13 years of continued services as a CEO/Managing Director of the Royal Ceramic PLC, Nimal Perera has resigned from the company on Tuesday (7th) to build his own business in stock broking, money broking, and manufacturing sector.

He said during his 13 year period, company's assets grew from Rs 500 million to present
Rs 5 billion levels and profitability also grew from Rs 40 million level to Rs 4 billion level.

"Now I'm 58 years old and there will be only a few more years to work before the retirement. So, I decided to build my own businesses with my two sons who were nearing completion of their overseas higher education," he told Ceylon FT.

He said he will soon acquire the existing stock brokerage and money brokerage and plans to enter a suitable manufacturing business.

In 2013 March Perera was first reported as entering the stock broking industry again together with RCL through a deal to buy 51 % control of New World Securities Ltd (NWS). He bought a 32 per cent stake under his personal account whilst RCL purchased a 19 %.

Perera continues to hold the Mercantile Produce Brokers Ltd (MPB) which he bought through his investment arm Don Wilbert Capital for Rs 200 million in 2014.

Nimal Perera last year sold his controlling shareholding of Kalamazoo Systems PLC, a provider of printing solutions for Rs 36 million.

www.ceylontoday.lk

Sri Lanka 03-month Treasury Bill yield reaches 9.47-pct

ECONOMYNEXT – Sri Lankan Treasury Bill yields rose across the board at Wednesday’s auction with the 03-month bill yield rising 09 basis points to 9.47%, the debt office of the central bank said.

The yield on the 06-month bill rose 12 bp to 10.39% at the auction while the 01-year bill yield rose 08 bp 10.74%, a statement said.

The debt office got bids worth Rs49 billion and accepted bids of Rs14.4 billion.