Sri Lankan bourse edges down to over 1-wk low on financials, foreign outflows

(Reuters) - Sri Lankan stocks slipped on Monday for a fourth straight session to hit a more than one-week closing low led by financials, while foreign investors offloaded shares of market heavyweight John Keells Holdings.

Analysts said the market will move sideways in the short-term with lower risk, due to lower interest rates.

The main stock index lost 0.05 percent, or 3.10 points, to close at 6,299.35, its lowest since June 11. It hit a more than one-year high on Tuesday.

There was a layer of selling due to the recent ethnic violence and possible implications after a government spokesman said Sri Lanka bought Iran crude via third parties, said a stockbroker on condition of anonymity.

"We have seen foreign selling of Keells in the last few days. That is not a good sign for the overall market sentiment," the broker said.

Bourse data showed foreign investors have been selling Keells for six straight sessions.

Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.

Sri Lanka's government spokesman said on Thursday the island nation has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.

The bourse saw net foreign outflows for the second straight session. Foreign investors net sold 180.1 million rupees ($1.38 million) of stocks, but they have been net buyers of 5.5 billion rupees so far this year.

Turnover was 867.3 million rupees, less than this year's daily average of 1 billion rupees.

National Development Bank PLC fell 2.01 percent to 195 rupees, while John Keells Holdings Plc, which accounted for 21.5 percent of the days turnover, fell 0.32 percent to 220 rupees.

The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It fell on Wednesday after the central bank held the key policy rates steady, though some had expected a rate cut. 

($1 = 130.2000 Sri Lankan Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Sri Lanka shares close lower

June 23, 2014 (LBO) - Sri Lanka's shares closed 0.05 percent lower for the forth straight day amid strong foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 3.10 points lower at 6,299.35, down 0.05 percent. The S&P SL20 closed 3.93 points lower at 3,474.93, down 0.11 percent.

Turnover was 867.34 million rupees, down from 1.21 billion rupees last Friday with 67 stocks closed positive against 110 negative.

Commercial Bank closed 40 cents higher at 133.40 rupees with four off-market transactions of 135.37 million rupees changing hands at 133.90 rupees per share contributing 16 percent of the turnover.

The aggregate value of all off-the-floor deals represented 30 percent of the daily turnover.

PC Pharma closed 20 cents higher at 1.40 rupees and Ceylon Leather Products W0014 warrants closed 60 cents higher at 2.40 rupees, attracting most number of trades during the day.

Foreign investors bought 266.34 million rupees worth shares while selling 446.45 million rupees worth shares.

Nestle Lanka closed 12.60 rupees lower at 1,937.00 rupees and John Keells Holdings closed 70 cents lower at 220.00 rupees.

JKH’s W0022 warrants closed 1.70 rupees lower at 58.80 rupees and its W0023 warrants closed 50 cents lower at 70.10 rupees.

NDB closed 4.00 rupees lower at 195.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 4.00 rupees.

Sri Lanka Telecom closed 1.30 rupees higher at 47.90 rupees and Dialog Axiata closed flat at 10.40 rupees.

Cargills Ceylon closed 6.20 rupees higher at 152.50 rupees and Ceylon Tobacco Company closed 5.50 rupees higher at 995.00 rupees.

Lion Brewery Ceylon closed 10.40 rupees higher at 454.30 rupees.

In a stock exchange filing, NDB capital Holdings said, the company is initiating a process to de-list its ordinary shares from the CSE subject to shareholder and regulatory approvals.

Issue of Sri Lanka Development Bonds (SLDBs)

The Central Bank of Sri Lanka, on behalf of the Government of Sri Lanka, offered to issue Sri Lanka Development Bonds (SLDBs) of US Dollars 50 million in 3 year tenor to eligible investors for subscription at a rate of US Dollar 6 month LIBOR plus a margin to be determined through competitive bidding.

The offer was opened from June 16 – 23, 2014 for bidding with the settlement on June 30, 2014. Foreign and local commercial banks operating in Sri Lanka subscribed at the auction.

The offer was oversubscribed by 4.8 times with total bids received amounting to USD 239.5 million. Considering the high demand at a highly competitive margin for SLDBs and providing an opportunity for investors to invest their funds for a longer period, it was decided to accept the entirety of US Dollars 239.5 million in 3 year maturity at the market determined rate of USD 6 month LIBOR plus a weighted average margin of 375 bps. The US Dollar 6 month LIBOR rate as of June 23, 2014 is quoted at 0.3234 per cent.

The SLDB issue was executed in terms of Section 2 (a) and 2 (c) of the Foreign Loans Act No. 29 of 1957 as amended.

The SLDBs are transferable by endorsement, delivery and registration with the Superintendent of Public Debt of the Central Bank of Sri Lanka. Eligible investors may purchase SLDBs in the secondary market through Designated Agents appointed by the
Central Bank of Sri Lanka.
http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20140623eb.pdf

SriLankan Airlines on track to raise US$175mn at 5.3-pct: report

June 23, 2014 (LBO) - State-run Sri Lankan Airlines is on track to raise US$175 mn from 5-year bonds at around 5.3 percent, a media report said.

Bloomberg newswires citing un-named sources said the bond was launched at 5.625 percent earlier Monday and price guidance was later narrowed to 5.30 to 5.35 percent.

The government guaranteed bonds have been given expected rating of BB- stable by Fitch and B+ stable by S&P.

The sale is managed by Standard Chartered.

Parent buys 9% more of Amana Takaful for Rs. 180.2 m; Dr. Senthilverl sells

Parent, Amana Holdings Ltd., on Friday bought a further 9% stake in Amana Takaful PLC for Rs. 180.25 million, with the seller being high net worth investor and Director Dr. T. Senthilverl.

The stake amounting to 90.12 million shares was done at Rs. 2 each.

Prior to Friday’s purchase Amana Holdings held 48.34%. Related party Amana Bank Ltd., held a further 15%.

Despite the sale Dr. Senthilverl has been requested to remain on the Board of Amana Takaful. He also bought a fresh stake of 1.95 million shares at Rs. 1.80 each.

The major shareholder’s decision to up its stake in Amana Takaful was said to be arising out of confidence and seeing future value. The Net Asset Value of Amana Takaful is Rs. 1.17 per share (Group) and Rs. 1.01 (at Company level).
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