Sri Lanka stocks edge up from 2-week low; turnover at 2-month low

May 26 (Reuters) - Sri Lanka stocks edged up in thin trade on Monday from a two-week low hit in the previous session led by Sri Lanka Telecom PLC, but turnover slumped to its lowest in two months.

The main stock index ended 0.20 percent, or 12.71 points, firmer at 6,293.02, edging up from its lowest close since May 8 hit on Friday.

The day's turnover slumped to its lowest since March 24, bourse data showed. It stood at 291.3 million rupees, well below this year's daily average of 1.02 billion.

Stockbrokers said the low turnover was due to sluggish foreign participation owing to holidays in the United States and Britain.

The bourse saw a net foreign inflow of 46.04 million rupees ($353,100) on Monday, extending year-to-date net foreign inflow to 1.83 billion rupees.

Stockbrokers expect the market to gain in the near future due to lower interest rates after the central bank kept key rates at multi-year lows on Tuesday for the fourth straight month, as expected.

Shares of Sri Lanka Telecom PLC rose 1.46 percent to 48.80 rupees, pushing up the overall index.

The market has been on a rising trend since mid-March as many investors were compelled to return to the stock market because low interest rates have made fixed-income assets less attractive, stockbrokers said.

However, analysts have raised concerns over sluggish economic growth due to lower credit growth and consumer spending.

Despite a multi-year low interest rate regime, data showed private sector credit grew 4.3 percent in March from a year earlier, the slowest expansion since May 2010.

The latest trade data, released on Monday, showed imports have gained 8.2 percent in March, while exports hit a record high of $1.07 billion helping to narrow the March trade deficit by 15.5 percent compared to a year ago.

Central bank Governor Ajith Nivard Cabraal on May 19 said Sri Lanka's private sector credit growth would pick up to around 15 percent by the end of this year and continue to improve through 2016.

($1 = 130.4000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks close up 0.2-pct

May 26, 2014 (LBO) - Sri Lanka's stocks closed up with telco and other index heavy stocks gaining despite low foreign participation, brokers said.

The Colombo benchmark All Share Price Index closed 12.71 points higher at 6,293.02 up 0.20 percent. The S&P SL20 closed 3.46 points higher at 3,462.89, up 0.10 percent.

Turnover was 291.32 million rupees, down from 804.00 million rupees last Friday with 84 stocks closed positive against 100 negative.

John Keells Holdings closed flat at 234.00 rupees with an off market transaction of 24.52 million rupees changing hands at the same market price contributing 8 percent of the daily turnover.

JKH’s W0022 warrants closed 70 cents higher at 63.00 rupees and its W0023 warrants closed 10 cents higher at 68.90 rupees.

The Finance Company closed 1.70 rupees higher at 14.00 rupees and its non-voting shares closed 1.00 rupee higher at 7.00 rupees, attracting most number of trades during the day.

Foreign investors bought 56.14 million rupees worth shares while selling 10.10 million rupees worth shares.

Sri Lanka Telecom closed 70 cents higher at 48.80 rupees and Asian Hotels and Properties closed 2.10 rupees higher at 72.10 rupees, contributing most to the index gain.

Lion Brewery Ceylon closed 9.90 rupees higher at 449.90 rupees and Ceylon Tobacco Company closed 10 cents higher at 1,062.00 rupees.

Oil palm firms Selinsing closed 97.50 rupees higher at 1,697.50 rupees and Indo-Malay closed 96.00 rupees higher at 1,796.00 rupees.

HNB closed 90 cents lower at 157.10 rupees and Commercial Bank closed 10 cents lower at 126.40 rupees.

Aitken Spence Hotel Holdings closed 80 cents lower at 77.20 rupees and John Keells Hotels closed 10 cents lower at 14.90 rupees.

Lanka Indian Oil Company closed 60 cents lower at 41.40 rupees.

Sri Lanka commercial vehicle registrations slip in April, motor cycles up

May 26, 2014 (LBO) - Sri Lanka's commercial vehicle registrations continued were sharply down from a year earlier, especially trucks in April 2014, though motor cycle sales were up, an analysis by an equities research unit shows.

JB Securities quoting Sri Lanka's motor vehicle registry data said motor cycle sales rose 18 percent to 17,031 in April 2014 from a year earlier.

Two years ago in April 2012 the financing share of motor cycles was only 45.9 percent. The ratio had climbed to 62.9 percent by April 2014 as prices rose due to rupee depreciation and taxes.

It is not yet clear whether the higher purchases are a leading indicator of confidence returning to purchase decisions following the end of a balance of payments crisis in 2011/2012.

But truck sales were sharply down with mini trucks down 26 percent to 988 units, lite trucks down 26 percent to 226 and heavy trucks plunging 48 percent to 97 units.

Hand tractors were down 56 percent to 248 units and large tracktors were down 39 percent to 93.

There are anecdotal evidence of defaults especially in large trucks amid a slowdown in construction and related activity.

Three wheelers were down 18 percent to 6,772 units in April.

Motor car registrations were flat at 1,917 units, only marginally down from 1977 units a year earlier.

Among small cars (below 1,000cc) were down to 206 from 546 a year earlier. Sri Lanka's rulers tax small cars in the range of 200 percent. Indian made Maruti/Zusuki cars were holding at 209 units down from 264.

But Chinese and assembled Micro cars were down to 103 from 147 a year earlier.

In the pre-owned or reconditioned market, registrations rose to 1,270 units in April up from 1,156 helped by hybrid cars.

Toyota hybrids rose to 989 from 820 led by Aqua 376 units and Honda rose to 334 from 288, led by its Fit model.

CSE and SEC to host Investor Forum in London

The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) is scheduled to host an "Invest Sri Lanka- Investor Forum" in London on 30 May 2014 at the Savoy Hotel, London. The event is organised in association with the London Stock Exchange and Bloomberg.

The forum, has received an unprecedented response from institutional investors with over 120 registrants. The programme will focus on the growth potential and opportunities available in the capital market of Sri Lanka and will include representatives from the SEC, CSE, Stockbrokers, Local Fund Managers and Listed Companies.

The Key Note Address will be delivered by Central Bank Governor Ajith Nivard Cabraal and will feature a special note by Gordon Fraser, Fund Manager of BlackRock, Inc (an international investment management group) and member of the Emerging Markets Specialist Team Fundamental Equity Division.

For an in-depth perspective on the capital markets, Director & Country Head - Sri Lanka, Copal Amba (A Moody's Subsidiary) Chanakya Dissanayake will make a country presentation whilst Director (CSE) Vajira Kulatilaka will conduct a presentation on the Debt Market.

The Chief Executive Officer, London Stock Exchange plc. Alexander Justham and Sri Lankan High Commissioner to the United Kingdom Dr. Chris Nonis will also address the Forum.

A panel discussion will be conducted at the conclusion of the presentations. The panelists will include Governor of the Central Bank Ajith Nivard Cabraal, Sri Lankan High Commissioner to the United Kingdom Dr. Chris Nonis, Chairman (SEC) Dr. Nalaka Godahewa, Chairman (CSE) Krishan Balendra and CEO (CSE) Rajeeva Bandaranaike.

On the conclusion of the main forum, fund managers will meet with listed companies, in pre-scheduled one-on-one or small group meetings. The following listed companies, will participate at the forum; John Keells Holdings PLC, Commercial Bank of Ceylon PLC, Dialog Axiata PLC, Hayleys PLC, Access Engineering PLC, People's Leasing & Finance PLC, Tokyo Cement Company (Lanka) PLC, Laugfs Gas PLC and MTD Walkers PLC.
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