Sri Lanka shares up on Keells, local buying on low interest rates

COLOMBO, Jan 29 (Reuters) - Sri Lankan shares rose on Wednesday, led by conglomerate John Keells Holdings, and as local institutions bought stocks after interest rates dropped though foreign investors sold risky assets ahead of a U.S. Federal Reserve decision on trimming stimulus. 

The main stock index gained 0.54 percent, or 33.31 points, to 6,252.14, near its highest close since June 12 hit on Friday. Interest rates in treasury bills eased at a weekly auction on Wednesday to multi-year lows, making fixed-income assets unattractive for investors. 

"Now we see some local institutions buying shares when foreigners are selling. We didn't see that up to now. Gradually local (investor) confidence is building up," said a stockbroker on condition of anonymity. 

Shares in John Keells Holdings rose 2.03 percent. The company said after market close that its December-quarter net profit rose 17 percent year-on-year to 3.39 billion rupees. 

Sri Lanka's only specialised Islamic bank, Amana, which started trading for the first time on Wednesday, ended at 5.90 rupees, 15.7 percent lower than its IPO price of 7 rupees. 

Foreign investors were net sellers of 18.77 million rupees ($143,500) worth of shares, but have been net buyers of 1.04 billion rupees so far this year. 

They had bought 22.88 billion rupees of stocks last year. 

The index has gained 5.2 percent in the last 15 sessions, including last week's 2 percent gain, which analysts attributed to the central bank's 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 shows. 

It has risen 5.7 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 808 million rupees, less than last year's daily average of about 828.4 million rupees. 

($1 = 130.8250 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

Sri Lanka's John Keells' Q3 net up 17 pct y/y

COLOMBO, Jan 29 (Reuters) - Group results for top Sri Lankan conglomerate John Keells Holdings PLC for the three months ended Dec. 31, released on Wednesday. 

John Keells Holdings is a heavyweight on the Colombo Stock Exchange and is among the most liquid stocks on the bourse, making it a favourite of offshore investors. 

 Foreign investors hold 55.6 percent of the total issued shares in the company, which has a market cap of 238,3 billion Sri Lanka rupees ($1.82 billion) and accounts for 9.62 percent of the total market capitalisation of the Stock Exchange, latest bourse data showed. 

 ($1 = 130.8250 Sri Lanka rupees) 

 (Reporting by Shihar Aneez and Ranga Sirilal; Editing by Mark Potter)

Sri Lanka stocks close up 0.5-pct

Jan 29, 2014 (LBO) – Sri Lanka stocks close 0.54 percent higher Wednesday ending a two day negative rally with diversified stocks gaining, brokers said.

The Colombo benchmark All Share Price Index closed 33.31 points higher at 6,252.14, up 0.54 percent. The S&P SL20 closed 30.09 points higher at 3,465.96, up 0.88 percent.

Turnover was 809.31 million rupees, down from 1.45 billion rupees a day earlier, with stocks of 87 firms closing in the red against 104 gainers.

HNB non-voting closed 90 cents higher at 127.90 rupees with two off market transactions of 104.94 million rupees contributing to 13 percent of the turnover.

The aggregate value of all off market deals accounted for 25 percent of the daily market turnover.

Union Bank closed 1.10 rupees higher at 19.90 rupees, attracting most number of trades during the day.

Foreigners bought 142 million rupees worth shares while selling 160 million rupees of shares.

JKH closed 4.80 rupees higher at 240.70 rupees and Ceylon Tobacco Company closed 24.60 rupees higher at 1,325.60 rupees, contributing most to the index gain.

JKH’s W0022 warrants closed 2.20 rupees higher at 77.70 rupees and its W0023 warrants closed 1.00 rupee higher at 81.00 rupees.

Asiri Hospital Holdings closed 1.00 rupee higher at 18.30 rupees and Cargills Ceylon closed 4.50 rupees higher at 155.00 rupees.

Dialog ended 10 cents higher at 9.50 rupees and SLT closed 60 cents lower at 36.00 rupees.

Carson Cumberbatch ended 5.20 rupees lower at 345.80 rupees and Bukit Darah ended 2.80 rupees lower at 612.00 rupees.

Ceylinco Insurance ended 18.20 rupees higher at 1,340.00 rupees and Commercial Bank closed 50 cents higher at 127.60 rupees.

Distilleries closed 2.40 rupees higher at 210.10 rupees and Nestle Lanka ended 13.80 rupees higher at 2,139.00 rupees.

Touchwood Investments ended flat at 3.10 rupees.

Asia Capital announces Directors’ exit after 4 months

Asia Capital Plc yesterday announced that two Directors, F.X.R. Pereira and D. Muthukumarana, have ceased to be Directors of the Board as of 25 September 2013.

The announcement of the cessation however comes four months late.

Following the changes, the Board of Directors of Asia Capital Plc comprises of Paul Ratnayeke (Chairman), A.D. Ross, V. Siva Jr, R.J. Wickramasinghe, D.A.S. Abeysesinhe (alternate to V. Siva Jr), S.A. Abeyesinhe (alternate to Paul Ratnayeke), S.A. Abeyesinhe, Z. Merchant, T. Tanaka, D.P. Pieris.

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Amana Bank debuts today as 290th on the Bourse

Following the successful first IPO in the banking sector for nearly two years, Amana Bank Ltd. will go up on the Colombo Bourse today.

Classified under the Banks, Finance and Insurance Sector with ABL-N-0000 as the security code, 1.25 billion shares of Amana Bank will be listed on the Diri Savi Board for trading. It will be the 290th listed company on CSE.

In late December, the company successfully raised Rs 1. 5 billion with 3,781 applications received.

The bank made available 214,300,000 new ordinary shares at Rs. 7 each (worth Rs. 1.5 b) with an option of issuing a further 71,500,000 new ordinary shares (worth Rs. 500 m). 

The total value of the IPO including the option was Rs. 2 billion. The Rs. 500 million option wasn't exercised.

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