Sri Lanka stocks up on foreign buying in Keells

(Reuters) - Sri Lankan stocks closed at six-week highs on Wednesday, led by foreign buying in conglomerate John Keells Holdings Plc, brokers said.

The main stock index ended 0.05 percent, or 2.95 points, firmer at 6,004.78, its highest since Feb. 18.

The days turnover was boosted by the foreign buying in John Keells. Turnover was at 1.95 billion rupees ($14.9 million), more than double of this year's daily average of 915.5 million rupees.

Shares in John Keells, which saw foreign buying of 3.4 million shares, gained 0.73 percent to 234.00 rupees, while Sri Lanka Telecom Plc rose 1.76 percent to 46.20 rupees.

On Wednesday, the bourse saw a net foreign inflow of 852.9 million rupees worth of shares, but foreign investors have been net sellers of 5.81 billion rupees so far this year.

Analysts said investor sentiment was hit following the United Nations announced it would probe alleged war crimes by the island nation.

The UN last week launched an inquiry into war crimes allegedly committed by both Sri Lankan state forces and Tamil rebels during the conflict that ended in 2009, saying the government had failed to investigate properly.

Analysts said the outcome of the resolution was expected, but investors sentiment has been dented over concerns it could hurt the country's economy. Several potential buyers of risky assets are awaiting a clear direction.

The bourse suffered 2.77 billion rupees of foreign outflow on Friday, a day after the resolution was passed. But brokers said the foreign selling was not due to the resolution and the relevant foreign fund has been on the selling side since February. 

($1 = 130.7000 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka stocks close flat

Apr 02, 2014 (LBO) - Sri Lanka's stocks close flat Wednesday with strong foreign buying on the board, brokers said.

The Colombo benchmark All Share Price Index closed 2.95 points higher at 6,004.78 up 0.05 percent. The S&P SL20 closed 17.96 points lower at 3,281.94, down 0.54 percent.

Turnover was 1.95 billion rupees, up from 341.54 million rupees a day earlier with 93 stocks close positive against 76 negative.

All off market transactions accounted for 27 percent of the daily turnover. Foreign investors bought 1.03 billion rupees worth shares while selling 179.94 million rupees worth shares.

Softlogic Holdings closed 1.20 rupees higher at 12.00 rupees, attracting most number of trades.

John Keells Holdings closed 1.70 rupees higher at 234.00 rupees with market transactions of 841.82 million rupees contributing to 43 percent of the daily turnover and contributing index gain.

JKH’s W0022 warrants closed 50 cents lower at 69.00 rupees and its W0023 warrants closed 20 cents lower at 72.80 rupees.

Sri Lanka Telecom closed 80 cents higher at 46.20 rupees.

Ceylon Tea Services closed 39.90 rupees higher at 700.00 rupees and Oil palm firm shalimar closed 94.00 rupees higher at 1,494.00 rupees.

Bukit Darah closed 37.80 rupees lower at 562.00 rupees and Lion Brewery Ceylon closed 18.90 rupees lower at 372.10 rupees.

Ceylon Tobacco Company closed 7.90 rupees lower at 1,067.10 rupees and Aitken Spence closed 2.20 rupees lower at 95.70 rupees.

LOLC closed 1.30 rupees lower at 75.00 rupees and Nestle Lanka closed 1.70 rupees higher at 1,995.00 rupees.

Maximum rates for savings at finance companies made public

By Charumini De Silva

Ceylon FT: The Central Bank yesterday (1) revised and made public, maximum interest rates finance companies could offer for savings and fixed deposits.

The maximum interest rate for savings deposits is 7.58%. For fixed deposits up to one year 11.01%, up to three years 12.01 and over three years 13.51%.

The Central Bank said senior citizens above 55 years may receive 1% more than the above rates.

These maximum rates came into effect on 1 April.

Central Bank Governor, Ajith Nivard Cabraal, said the maximum deposit rate directive had been in force for many years. "We have now decided to inform the public in addition to giving the direction to the finance companies, in order that the process is more transparent," he said.

Central Bank Deputy Governor Dr. Nandalal Weerasinghe, said the directive was placed in order to prevent finance companies offering unnecessarily high interest rates.
www.ceylontoday.lk

CEAT to open new Rs 600 mn radial plant in Sri Lanka

CEAT Kelani Holdings, the company that manufactures half of Sri Lanka’s tyre requirements, has announced a further commitment to the country in the form of an investment of Rs 600 million on a new tyre plant to produce high-end radial tyres.

The new plant is integrated with the sprawling CEAT Kelani manufacturing complex at Kelaniya, enabling it to seamlessly augment production of CEAT branded tyres for the domestic and export markets, the company said.When the new tyre building machines and presses start production in April 2014, CEAT Kelani will increase its radial tyre building and curing capacity by 70 per cent, from 23,000 tyres per month to 39,000.www.island.lk