Sri Lankan shares extend declines, foreign buying curbs fall

Reuters: Sri Lankan shares ended down for a sixth consecutive session on Wednesday, hitting their lowest close in more than two weeks, as retail investors sold blue chips, but foreign buying in the island nation’s risky assets capped further decline.

The Colombo Stock Index ended 0.13 percent weaker at 6,439.34, its lowest close since Jan. 2. It has shed 1.6 percent in the past six sessions.

“Things were a bit slower and the trend is continuing,” said Dimantha Mathew, head of research, First Capital Holdings.

“Market is coming towards a correction rather than profit-taking as the latter lasted far more than expected. However, foreigners are still on the buying side.”

Foreign investors bought shares worth net 146.2 million rupees ($949,968) on Wednesday, extending the net foreign inflow so far this year to 3 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

Turnover stood at 491.1 million rupees on Wednesday, less than last year’s daily average of 915.3 million rupees.

Shares in Hemas Holdings Plc ended 1.8 percent lower, Sri Lanka Telecom Plc closed 1.4 percent down, and Overseas Realty Plc closed 2.9 percent lower.

($1 = 153.9000 Sri Lankan rupees)

 

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

Sri Lankan shares extend fall to 2-week closing low

Reuters: Sri Lankan shares fell for a fifth straight session on Tuesday and closed at their lowest in two weeks, as local retail investors booked profits in blue chips ahead of a long-delayed local election next month.

The Colombo Stock Index ended 0.4 percent weaker at 6,447.61, its lowest close since Jan. 2. It has shed 1.4 percent in the past five sessions.

“The market is coming down on profit-taking by local retailers in blue chips before the next rally after the election,” said Dimantha Mathew, head of research, First Capital Holdings.

“The good sign is that foreign buying continues, it looks like foreign investors are returning back to the Sri Lankan market.”

Foreign investors bought shares worth net 539.3 million rupees ($3.51 million) on Tuesday, extending the net foreign inflow so far this year to 2.87 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

Turnover stood at 884.6 million rupees on Tuesday, less than last year’s daily average of 915.3 million rupees.

Shares in Hatton National Bank Plc fell 1.2 percent, Commercial Bank of Ceylon Plc dropped 1.1 percent, and Nestle Lanka Plc slipped 1.1 percent.

Sri Lanka’s stock, bond, and foreign exchange markets were closed on Monday for a holiday. 

($1 = 153.8500 Sri Lankan rupees) 

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

Ashok Leyland Sri Lanka unit December net profit up 81-pct

ECONOMYNEXT – The Sri Lankan unit of Ashok Leyland has reported a sharp rise in net profit for the December 2017 quarter, up 81% to Rs125 million from a year ago, with sales of buses increasing noticeably in recent months.

Interim results filed with the stock exchange showed total sales of the firm, a big supplier to the state-run Sri Lanka Transport Board, rose 59% to Rs4.3 billion during the period.

Earnings per share for the December 2017 quarter were Rs34.54 up from Rs19.03 a year ago.

EPS for the nine months to December 2017 were Rs95.85.

According to JB Securities, Sri Lanka’s new registrations of buses had risen sharply in recent months.

The number of buses registered during November 2017 were 402 units, slightly down from 416 units in October but significantly up from 217 units 12 months ago.

“There is a discernable increase in Lanka Ashok Leyland buses during the past 3 months. Finance share was 91.5% indicative that volumes are NOT being driven by institutional purchases,” the brokerage said in a report on vehicle registrations in November.

Jetwing Symphony, Lanka Energy Fund gives CSE ‘dream start’

By Duruthu Edirimuni Chandrasekera

The Jetwing Symphony Ltd and Lanka Energy Fund (LVL) Initial Public Offering (IPO) issues presented the Colombo Stock Exchange (CSE) with a ‘dream start’ for this year, CSE CEO Rajeeva Bandaranaike says.

He said this at the opening of trading of LVL on Tuesday at the CSE. This company, art of HNB Group with thermal and renewable energy projects in Sri Lanka, Bangladesh and Nepal, saw its trading open on Tuesday.

“Both indices are up, turnover is high, there’s net foreign purchases reaching Rs. 2 billion within the first 5 days and two new listings – all in the first week in this new year. It’s a ‘dream start’ for this year,” Mr. Bandaranaike said.

Explaining the success of their IPO, Sumith Arangala, CEO LVL noted that their sector, strategy, distribution policy, pricing and large free float contributed.

The opening price was Rs. 10.50 (up by Rs.0.5) and was trading at Rs.10 as at 9.35 am, 5 minutes after trading started. A total of 182,561 shares traded between Rs.10 and Rs. 10.50 at this time.

The company, which operates five hydropower plants through joint ventures with a combined capacity of 17 Mega Watt (MW) and two wind power projects with a combined capacity of 15.6 MW offered 120 million shares valued at Rs.10 per share, raising Rs. 1.2 billion in the IPO last month. It received bids for 142.1 million shares and was closed on opening day of 14 December 2017 itself.

Bangladesh will be their destination for thermal power and Nepal and East Africa for hydro, Mr. Arangala said. He told the Business Times that they are excited about Nepal as it has 40,000 MW capacity. “The potential is immense in Nepal.” He said that they own two 50 MW thermal power plants in Bangladesh and is to set up another 100 MW thermal power plant within this year.

The company’s 2Q18 net profit (NP) was down by 12 per cent year on year (YoY) to Rs. 153 million. Its 2Q18 profit after tax was flat YoY (amid higher interest costs), but bottomline was affected by higher minority interest.

www.sundaytimes.lk

Sri Lankan shares hit over 1-week closing low; blue chips see selling

Reuters: Sri Lankan shares fell for a fourth straight session on Friday to hit a more than one-week closing low on profit-booking in blue chip stocks.

The Colombo Stock Index ended 0.35 percent weaker at 6,473.62, its lowest close since Jan. 4.

Turnover stood at 968.3 million rupees ($6.29 million) on Friday, more than last year’s daily average of 915.3 million rupees.

Foreign investors net bought shares worth 77.4 million rupees on Friday, extending the net foreign inflow in this year to 2.33 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

“Market is consolidating with some profit-taking in blue chip shares. Continued foreign buying is a positive sign,” said Hussain Gani, Deputy CEO at Softlogic Stockbrokers.

Shares in conglomerate John Keells Holdings Plc ended 2.7 percent down, while biggest listed lender Commercial Bank of Ceylon Plc dropped 0.5 percent and Hatton National Bank Plc ended 0.8 percent weaker.

“Investors will wait and see how the local elections will be.”

Sri Lanka will hold a long-delayed local government election on Feb. 10.

The bourse hit a near two-month high on Monday as declining interest rates and expectations of higher economic growth boosted investor appetite for risky assets.

Treasury bill rates fell between March and December last year, mainly driven by foreign buying in treasury bonds, resulting in a decline in interest rates.

Sri Lanka’s economic growth in 2018 is forecast at 5-5.5 percent, against an anticipated four-year low of less than 4 percent last year, central bank governor Indrajit Coomaraswamy said last week.

Sri Lanka’s stock, bond, and foreign exchange markets are closed on Monday for a holiday and normal trading will resume on Tuesday. 

($1 = 153.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lankan shares fall on profit-taking; foreign buying continues

Reuters: Sri Lankan shares ended marginally weaker on Thursday as recent gainers witnessed profit-booking, while foreign buying in the island nation’s risky assets curbed losses.

The Colombo Stock Index ended 0.1 percent lower at 6,495.02.

Turnover stood at 531.9 million rupees ($3.46 million) on Thursday, less than last year’s daily average of 915.3 million rupees.

Foreign investors net bought shares worth 23.9 million rupees on Thursday, extending the net foreign inflow in this year to 2.24 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

“There was bit of profit-taking in stocks which gained last few days. Activity has come down as investors are waiting to see the direction,” said Dimantha Mathew, head of research, First Capital Holdings.

The bourse hit a near two-month high on Monday as declining interest rates and expectations of higher economic growth boosted investor appetite for risky assets.

Shares in Sri Lanka Telecom Plc ended 2.4 percent weaker while conglomerate John Keells Holdings Plc ended 0.9 percent down.

Access Engineering Company Plc, which on Wednesday said its net profit for financial year 2017/18 will see a rise of more than 10 percent, ended 0.9 percent higher.

Treasury bill rates fell between March and December last year, mainly driven by foreign buying in treasury bonds, resulting in a decline in interest rates.

The country’s 2018 economic growth trajectory is likely to help boost market sentiment, analysts said.

Sri Lanka’s economic growth in 2018 is forecast at 5-5.5 percent, against an anticipated four-year low of less than 4 percent last year, central bank governor Indrajit Coomaraswamy said last week. 

($1 = 153.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lanka's Capital Alliance group exits tea broking firm

ECONOMYNEXT - An 81 percent stake of listed Ceylon Tea Brokers Plc was sold on the Colombo Stock Exchange with its parent Capital Alliance Holdings, exiting, brokers said.

On Monday 92.7 million shares traded at 4.30 rupees.

Market sources said the stock was bought by existing directors of the firm.

Capital Alliance is a financial group which has interests in stock and bond trading and wealth management.