Sri Lankan stocks fall to over 6-wk low; foreigners exit

Feb 20 (Reuters) - Sri Lankan shares fell for a sixth straight session on Thursday to a more-than six-week low, led by market heavyweight Ceylon Tobacco Company PLC and foreign selling in the island nation's risky assets.

The main stock index ended down 0.5 percent, or 30.08 points, at 5,956.16, its lowest close since Jan. 6. It has dropped 4.67 percent in the last 12 sessions.

Foreign investors sold a net 158.2 million rupees ($1.21 million) worth of shares on Thursday, extending the outflow to 4.83 billion rupees in the past 10 sessions as some offshore funds exited the market.

The bourse has seen 3.44 billion rupees of foreign outflows so far in 2014, after enjoying net inflows of 22.88 billion rupees last year.

Analysts said investors were concerned over possible further foreign outflows, though local investors are still optimistic about risky assets due to falling interest rates.

On Monday, Sri Lanka's central bank kept its policy rates steady at multi-year lows while analysts said local investors were active in the market after interest rates on treasury bills eased to multi-year lows, making fixed-income assets unattractive.

Shares of market heavyweight Ceylon Tobacco Co Plc fell 2.4 percent, pulling the overall index down.

The index is still 0.73 percent up so far this year, following a 4.8 percent gain in 2013.

The day's turnover was 851.6 million rupees, less than this year's daily average of about 1.15 billion rupees. 

($1 = 130.8700 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks close down 0.5-pct

Feb 20, 2014 (LBO) – Sri Lanka stocks close down 0.50 percent retreating for the sixth straight day with losses in the tobacco and banking stocks, brokers said.

The Colombo benchmark All Share Price Index closed 30.08 points lower at 5,956.16, down 0.50 percent. The S&P SL20 closed 24.24 points lower at 3,257.53, down 0.74 percent.

Turnover was 851.92 million rupees, up from 714.64 million rupees a day earlier, with stocks of 123 firms closing in the red against 53 gainers.

Dialog closed flat at 9.10 rupees with 138.00 million rupees of off market transactions contributing to 16 percent of the daily turnover.

The aggregate value of all off market deals accounted for 48 percent of the daily market turnover.

JKH’s W0022 warrants closed 3.00 rupees lower at 56.00 rupees and its W0023 warrants closed 1.00 rupee lower at 59.00 rupees, attracting most number of trades during the day.

Foreigners bought 311.21 million rupees worth shares while selling 469.42 million rupees of shares.

Ceylon Tobacco Company closed 29.00 rupees lower at 1,169.80 rupees and Commercial Bank closed 2.00 rupees lower at 116.00 rupees, contributing most to the index drop.

NDB Capital Holdings closed 34.90 rupees lower at 500.00 rupees and Bukit Darah ended 6.20 rupees lower at 584.30 rupees.

Nestle Lanka ended 19.60 rupees lower at 2,100.00 rupees and JKH closed 60 cents lower at 214.40 rupees.

Aitken Spence closed 1.00 rupee higher at 101.00 rupees and Distilleries closed 90 cents higher at 208.30 rupees.

SLT closed 20 cents higher at 41.90 rupees.

Kandy Hotels profits dip

Kandy Hotels Co (1938) PLC, a member of the Galle Face Hotels Group and owners and Operators of 'Queens Hotel' and 'Hotel Suisse' in Kandy, have reported a 25% fall in group profits to Rs 86 million for the nine months to 31December 2013, despite revenue remaining largely unchanged at Rs 352 million.

The group incurred a joint venture loss of Rs 5 million during the period. The group has invested Rs 132 million in joint venture projects. The company had reduced its investments from 32 million to Rs 913,000 since the last audited balance sheet date on 31March.

The stated capital of the company is Rs 16,750,000. The number of shares representing the stated capital 577,500,000 ordinary shares and 50,000 fully paid 15% preference shares.

The land, buildings, plant & machinery, motor vehicles, equipment, swimming pool and furniture and fittings of Queen's Hotel and Hotel Suisse were revalued on 30 July 2008, giving a revaluation surplus of Rs 1,656 million. In 2011 the shares were sub divided with one share divided into 35 shares.

In 2013 a major refurbishment was undertaken, with 120 rooms to be built behind Hotel Suisse at an estimated cost of US$ 12 million in addition to Rs 1.5 billion on Queens Hotel and Hotel Suisse.

The main shareholder is the Ceylon Hotels Corporation which has a 76% stake. Ceylon Hotel Holdings hold 9.7%. The public holdings as at 31 December 2013 is 9.05%. Cyril Gardiner Ltd., holds 1.4%, while Director S. Gardiner has 87,500 shares. The shares traded between Rs 8.50 and Rs 7 during the last quarter.
www.ceylontoday.lk

Brown’s revenue and profits fall

By J. Kurukulasuriya

Ceylon FT: Brown and Co PLC the diversified conglomerate in business since 1892, released its interim accounts for the quarter to 31 December 2013, showing a 153% fall in profit to Rs 281 million and a 20% fall in group revenue over the nine-month period.

Group revenues fell 20% to Rs 9,071 million, segment wise, trading activity contributed 66% to the group revenue, followed by plantations which contributed 24%. Investments, which had previously contributed 2% to revenue, fell to around one fifth of 1%. Trading activity was also the most profitable sector. Tourism income was virtually unchanged.

"Other income" showed a 461% increase due to disposal of Brown's shares in Hatton National Bank.

The net gain from this transaction was Rs 1,097 million. Net finance costs showed a marked rise of 54% to Rs 740 million.

A Rs 652 million gain was recognized during the period due to the acquisition of shares by Brown and Co PLC, in SFLS Services Private Ltd., a subsidiary, and this also contributed to 'other income'.

The group disposed its entire shareholding in Royal Fernwood Porcelain Ltd., for Rs 300 million, a gain of Rs 34.1 million.

After the balance sheet date of 31 December, Browns Investments PLC a subsidiary company acquired a holding in Tabrobane Holdings PLC for Rs 190 million on 23 January 2014, bringing its total stake to 20%.

The conglomerate is engaged in several business activities ranging from manufacturing, trading and services, to distribution and is a major supplier of farm machinery and equipment, a distributor of automotive batteries, importer and distributor of hardware, office equipment and veterinary products, plantations, travel and tours and is one of the oldest companies on the Colombo Stock Exchange. The stated capital of the group is Rs 2,005 million, consisting of 70, 875,000 ordinary shares, with the public holding 52%. The share price fluctuated between a high of Rs 99.80 and low of Rs 78.20 during the quarter.

Major shareholders of the company are Engineering Services Pvt Ltd., with 23%, Mason's Mixtures Ltd., with 19%, the Employees' Provident Fund with 10% and Director Shanker V. Somasunderam with 4.4%. The National Savings bank holds 1 million shares.
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