Sri Lankan shares slip in thin volume

COLOMBO, Jan 21 (Reuters) - Sri Lankan shares slipped in thin volume on Tuesday, led by oil palms and beverage companies, though foreign investors bought in risky assets in an overbought market.

The main stock index edged down 0.05 percent, or 3.14 points, to 6,153.54.

Officials from the Colombo Stock Exchange and the Securities and Exchange Commission, along with some top company officials and brokers, were in Singapore for a road show to attract more foreign funds.

The SEC said in a statement that more than 200 institutional investors, investment banks and financial advisors attended the road show.

Shares of Carsons Cumberbat PLC fell 0.38 percent to 368.10 rupees, while Selinsing PLC dropped 17.07 percent to 1,035 rupees.

The market has gained 3.51 percent in the last nine sessions, which analysts attributed to the central bank's interest rate cut on Jan. 2 and the recent fall in T-bill yields.

The index has been in an overbought region since Jan. 7, Thomson Reuters data showed. It has risen 4.07 percent so far this year following a 4.8 percent gain in 2013 after having fallen in the previous two years.

The day's turnover was 414.1 million rupees ($3.17 million), half of last year's daily average of about 828.4 million rupees.

Foreign investors were net buyers of 92.07 million rupees worth of shares, extending the year-to-date net inflow to 684 million rupees. They had bought 22.88 billion rupees of stocks last year.

($1 = 130.7400 Sri Lanka rupees)

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

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Sri Lanka stocks close flat

Jan 21, 2014 (LBO) – Sri Lanka stocks close flat Tuesday with banking and plantation stocks losing ground, brokers said.

The Colombo benchmark All Share Price Index closed 3.14 points lower at 6,153.54, down 0.05 percent. The S&P SL20 closed 1.53 points lower at 3,424.18, down 0.04 percent.

Turnover was 414.14 million rupees, down from 675.77 million rupees a day earlier, with stocks of 89 firms closing in the red against 90 gainers.

Commercial Bank closed 1.20 rupees higher at 127.20 rupees with market transactions of 47.69 million rupees contributing to 12 percent of the turnover.

JKH closed 4.30 rupees higher at 247.00 rupees with an off market transaction of 24.60 million rupees contributing to 6 percent of the turnover today.

The Finance Company closed 10 cents higher at 13.70 rupees, attracting most number of trades during the day.

Foreigners bought 136 million rupees worth shares while selling 44 million rupees of shares.

Oil Palm firm Selinsing closed 213.00 rupees lower at 1,035.00 rupees and DFCC closed 3.40 rupees lower at 146.40 rupees, contributing most to the index drop.

Asian Hotels and Properties closed 1.60 rupees lower at 65.40 rupees and Commercial Leasing and Finance closed 10 cents lower at 4.40 rupees.

JKH’s W0022 warrants closed 20 cents higher at 80.10 rupees and its W0023 warrants closed 40 cents higher at 85.20 rupees.

Carson Cumberbatch ended 1.40 rupees lower at 368.10 rupees and Ceylon Tobacco Company closed 1.70 rupees lower at 1,202.00 rupees.

Nestle Lanka ended 7.10 rupees higher at 2,125.00 rupees and Distilleries closed flat at 200.00 rupees.

Cargills Ceylon closed 90 cents lower at 145.10 rupees and Bukit Darah closed 5.00 rupees lower at 615.00 rupees.

Lion Brewery Ceylon closed 7.50 rupees lower at 371.50 rupees and Aitken Spence closed 90 cents lower at 104.10 rupees.

NDB closed 2.00 rupees lower at 180.00 rupees and HNB closed 40 cents lower at 158.60 rupees.

Lanka Orix Leasing Company closed 60 cents higher at 74.10 rupees and Ceylinco Insurance closed 20.70 rupees higher at 1,397.00 rupees.

Softlogic Finance closed 2.30 rupees lower at 28.50 rupees.
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Sri Lanka Investor forum in Singapore attracts over 200 investors

Sri Lanka Investors Forum held in Singapore this morning to promote the Island’s debt and equity market to global investors have attracted over 200 participants, comprising of institutional investors, investment banks and financial advisers from Singapore and the region.

The forum organized by the Colombo Stock Exchange and the Securities and Exchange Commission in association with Bloomberg Data services was held at the Ritz Carlton, Millenia Singapore.

Senior Minister for International Monetary Corporation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama and Governor of the Central Bank Ajith Nivard Cabraal has delivered the keynote addresses.

“Sri Lanka is quickly emerging as a prominent contender within the region, we have demonstrated exceptional growth figures in the past four years. The political stability within Sri Lanka has attracted internationally reputed hotel chains such as Shangri-La, Hyatt and Mövenpick,” Amunugama has told the gathering.

“Sri Lanka needs both local and foreign investments. There is a clear increase in the number of new entrants amongst foreign funds which shows that the Sri Lankan stock market is on the right path,” Dr. Nalaka Godahewa, SEC Chairman has said.

The forum has also provided the participating investors the opportunity of having one-on-one meetings with listed Sri Lankan companies.

Representatives of John Keells Holdings, NDB, DFCC Bank, Carson Cumberbatch, Distilleries , Dialog Axiata PLC, Ceylinco Insurance, Hayleys, Access Engineering, People’s Leasing & Finance, Hemas Holdings, Softlogic Holdings and Tokyo Cement have also taken part in the forum.
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SEC urges listed companies to appoint compliance officers

Sri Lanka’s capital market watchdog, the Securities and Exchange Commission (SEC), urged all public listed companies to appoint an officer for the purpose of monitoring the particular company’s compliance with the SEC regulations.

Addressing a recent forum, SEC Legal and Enforcement Director Ayanthi Abeywickrama pointed out that it was the duty of a listed entity to ensure, at all times, that its compliance with the specific rules are ensured.

She was specifically referring to the new minimum public free float requirements and related party transaction disclosure rules that came into effect recently.

“You need to appoint an officer who is dedicated towards this task, who will monitor compliance. Having a compliance officer is becoming more and more important on a dayto-day basis in the present context,” she said.

However, questions were raised from the audience as to how practical this would be considering the various cost factors involved, which would have to be borne by the company. “We understand that it is a challenge to monitor thousands of employees. If you’re a listed public company, this is a big responsibility and it is not to be taken lightly,” Abeywickrama noted.

She further pointed out that just one employee for a public listed company is not going to be a costly affair and stressed that when a company makes a decision to become public, it comes with the responsibility for compliance. “We are not asking you to employ a person for the sake of employing. First you must see if you can comply with it without an additional overhead and do so if you can,” she said.

She further emphasized that compliance is very important and should not be compromised. According to Abeywickrama, it will not come as a very high transactional cost if a company has to employ just one more employee.

“I understand there will be difficulties and it won’t be an easy task. But it’s important in having staff dedicated towards compliance because you are a public listed entity,” she noted. (KP)

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