Sri Lankan shares edge up on diversified companies

(Reuters) - Sri Lankan shares ended a tad firmer in dull trade on Monday, led by diversified companies like Vallibel One, after the nation's parliament approved three mega mixed development projects last week.

But the government's refusal to allow casinos at these projects hurt the momentum, dealers said.

The country's main stock index edged up 0.07 percent, or 4.13 points, to 6,171.94.

The Sri Lankan parliament on Friday approved two projects for luxury resorts, worth up to $1250 million, by John Keells Holdings PLC, that will include hotels and shopping malls, and by Australian gaming tycoon James Packer's Crown Ltd.

Shares in Keells rose 0.04 percent to 235.00 rupees. Vallibel One, which rose 2.25 percent to 18.20 rupees, got parliamentary approval on Thursday to invest $300 million in an integrated luxury tourist resort in the island nation's proposed exclusive gaming zone.

The market has gained 3.41 percent so far this month as some retail investors started buying risky assets in the face of low interest rates.

Lower interest rates have helped the market gain in the past few weeks, stockbrokers said.

The benchmark 91-day treasury bill yield dropped to its lowest since January 2007 on Wednesday, data showed, a day after the central bank kept policy rates steady at multi-year lows.

The day's turnover was 423.8 million rupees ($3.24 million), well below this year's daily average of 957.9 million rupees.

Offshore investors were net buyers of 52.2 million rupees worth of stocks on Monday in dull foreign activity. But they have been net sellers of 7.19 billion rupees so far this year.

($1 = 130.6150 Sri Lanka Rupees)

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

Sri Lanka stocks end higher

Apr 28, 2014 (LBO) - Sri Lanka's stocks end 0.07 percent higher amid net foreign buying on the board, brokers said.

The Colombo benchmark All Share Price Index closed 4.13 points higher at 6,171.94 up 0.07 percent. The S&P SL20 closed 6.37 points higher at 3,394.34, up 0.19 percent.

Turnover was 423.81 million rupees, down from 906.28 million rupees last Friday with 83 stocks close positive against 84 negative.

George Steuart Finance closed 15.10 rupees lower at 65.00 rupees, trading heavily on the market.

Foreign investors bought 128.46 million rupees worth shares while selling 76.23 million rupees worth shares.

Asiri Hospital Holdings closed 50 cents higher at 22.00 rupees and C T Holdings closed 3.00 rupees higher at 140.00 rupees.

Asian Hotels and Properties closed 1.00 rupee higher at 64.50 rupees and Vallibel One closed 40 cents higher at 18.20 rupees.

DFCC Bank closed 1.60 rupees higher at 159.30 rupees and NDB Capital Holdings closed 75.80 rupees lower at 461.20 rupees.

Ceylon Tobacco Company closed 50 cents lower at 1,065.00 rupees and John Keells Holdings closed 10 cents higher at 235.00 rupees.

JKH’s W0022 warrants closed 80 cents lower at 67.10 rupees and its W0023 warrants closed 1.00 rupee lower at 72.00 rupees.

Bukit Darah closed flat at 580.00 rupees.

Vajira Kulatilaka New Chairman at CSE

Mr. Vajira Kulatilaka will take office as the Chairman of the Board of Directors of the Colombo Stock Exchange (CSE), with effect from 5th June 2014. Mr. Kulatilaka has served on the CSE Board of Directors since October 2009.

Mr. Kulatilaka, is designated as Director/Chief Executive Officer - NDB Capital Holdings PLC and overlooks the operations of the Investment Banking Cluster of the NDB Group, which comprises of NDB Investment Bank Limited, NDB Securities Pvt Limited, NDB Wealth Management Limited and NDB Capital Limited, Bangladesh. He carries over 29 years of experience in the Finance Sector and Capital Market of Sri Lanka. Prior to joining NDB Investment Bank Limited, he functioned as the Chief Executive Officer at CKN Fund Management (Pvt) Limited. Mr. Kulatilaka has been instrumental in managing some of the largest IPO’s in Sri Lanka.

He is a Chartered Financial Analyst and has obtained a B.Sc Degree in Civil Engineering with First Class Honours from the University of Moratuwa, and MEng in Industrial Engineering and Management from the Asian Institute of Technology. He also obtained qualifications as a Fellow Member of the Chartered Institute of Management Accountants UK.

Mr. Kulatilaka currently holds Directorships at NDB Capital Holdings PLC, NDB Investment Bank Limited, NDB Securities Pvt. Limited, NDB Wealth Management Limited and NDB Capital Limited – Bangladesh.

He succeeds Mr. Krishan Balendra, who will step down as the Chairman of the CSE on 5th June 2014, at the Annual General Meeting, on the conclusion of the customary three year term.
http://www.cse.lk/cmt/upload_cse_announcements/2391398663784_.pdf

Sri Lanka's Chevron Lubricants unit revenues down, profits flat

Apr 28, 2014 (LBO) - Sri Lanka's Chevron Lubricants Plc said revenues fell 5.6 percent to 2.98 billion rupees in the March 2014 quarter from a year earlier, but profits fell at a lower 0.8 percent to 1.24 billion rupees, helped by a price hike.

The firm reported earnings of 6.36 rupees for the quarter. The stock closed at 269.90 up 1.90 rupees Friday.

"The marginal reduction in earnings is due to a variety of macro and micro challenges," chief executive Kishu Gomes told shareholders.

"Lubricants consumption has remained sluggish in the local market while there has been an increase in export volumes."

While revenues fell 5.6 percent, costs fell at a faster 11.1 percent to 1.74 billion rupees allowing gross profits to go up 3.4 percent to 1.24 billion rupees.

Gomes said a price increase in January 2014 was expected to improve margins.

Interest income fell 31 percent to 44.9 million rupees as cash reserves halved to 1.2 billion rupees and inventories rose to 3.3 billion rupees from 1.9 billion rupees.

Gomes said inventories were built up to meet the demand during a plant relocation.

Packer says if no casino no investment

Ceylon FT: Australian billionaire and gaming tycoon James Packer according to news reports has informed the Sri Lankan government that he would abandon the planned US$ 400 million integrated resort project in Colombo if operation of casinos were not allowed and not mentioned in the gazettes.

James Packer last year signed an agreement with the Board of Investment to set up an integrated resort in Colombo, the planned project was estimated to be US$ 350 million and the Australian gaming tycoon was expected to partner with local gaming operator Ravi Wijerathne.

The project came under heavy criticism, the Ministry of Investment Promotion, which submitted gazette notification including casinos in the integrated resort later removed and replaced it claiming no casino would be included. However transfer of existing casinos were permitted and according to reports James Packer was expected to transfer his partner's casino to the new property. President Mahinda Rajapaksa and Minister of Economic Development... ...last week said that government was not approving any casinos but only permitting the construction of hotels, and the Cabinet had taken a policy decision not to include casinos or provide tax concessions to such activity.

The Parliament last week approved all three projects excluding casinos by, Australian gaming tycoon James Packer, local blue chip John Keells Holdings and local gaming mogul Dhammika Perera.
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