Merchant Bank amalgamation confirmed

The amalgamation of Sri Lanka Merchant Bank (MBSL), MBSL Savings Bank (MSB) and MCSL Financial Services has received the approval of the respective boards of directors.

While announcing this, MBSL chairman M.R. Shah said only the Sri Lanka Merchant Bank (MBSL) would remain as an institution after the amalgamation.

This amalgamation would be effective from the date specified by the Registrar General of Companies.

Under the amalgamation, every 280.25 MSB ordinary voting share would receive one ordinary voting share of MBSL and every 389.10 ordinary non-voting share would receive one ordinary voting share of MBSL.

Apart from this, every 2.35 of MCSL Financial Services ordinary voting share would receive one ordinary voting share of MBSL.

Fitch Affirms and Withdraws Sri Lanka's HDFC Bank Rating

Fitch Ratings Lanka has affirmed the Housing Development Finance Corporation Bank of Sri Lanka's (HDFC Bank) National Long-Term Rating at 'BBB(lka)' with a Stable Outlook and has simultaneously withdrawn the rating.

The rating has been withdrawn as it is no longer considered by Fitch to be relevant to the agency's rating coverage. Fitch will no longer provide ratings and analytical coverage of HDFC Bank.

KEY RATING DRIVERS
HDFC Bank's rating reflects Fitch's expectation that the bank would receive extraordinary support from the state, if needed, given that the state effectively holds 51% of the bank. It also reflects Fitch's view of the bank's quasi-policy role in supporting the state's initiatives to develop more housing for low and middle-income families. However, the potential for state support is lower than for larger state-owned banks in Sri Lanka due to HDFC Bank's lower systemic importance.

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Sri Lanka shares close at over 1-yr high on large-caps, lower rates

(Reuters) - Sri Lankan stocks rose for a fourth straight session on Friday to close at their highest in more than one year, led by large-caps such as Ceylon Tobacco Co Plc amid lower interest rates and continued foreign buying boosting investor sentiment.

The main stock index rose 0.56 percent, or 35.33 points, to close at 6,363.49, its highest since June 11, 2013.

Analysts said the market would move sideways in the short term with lesser risk due to lower interest rates, with yields on treasury bills edging down further on Wednesday at a weekly auction.

However, analysts said investors are concerned over the recent ethnic violence and possible implications of a government spokesman saying Sri Lanka bought Iran crude via third parties.

Ceylon Tobacco Co rose 5.09 percent to 1,049.80 rupees, while Sri Lanka Telecom Plc rose 2.78 percent to 48 rupees.

The bourse saw net foreign inflows of 47.8 million rupees ($366,800) into stocks on Friday, extending foreign inflows so far this year to 6.06 billion rupees.

Turnover was 1.13 billion rupees, higher than this year's daily average of 993.8 million rupees.

The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. 

($1 = 130.3000 Sri Lankan Rupees) 

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

Sri Lanka shares close up 0.6-pct

June 27, 2014 (LBO) - Sri Lanka's shares closed 0.56 percent higher for the forth consecutive day with tobacco stocks gaining amid net foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 35.33 points higher at 6,363.49, up 0.56 percent. The S&P SL20 closed 13.31 points higher at 3,520.85, up 0.38 percent.

Turnover was 1.13 billion rupees, up from 484.95 million rupees a day earlier with 90 stocks closed positive against 87 negative.

Access Engineering closed 1.00 rupee higher at 25.00 rupees with an off-market transaction of 125.00 million rupees changing hands at the same price per share contributing 11 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 32 percent of the daily turnover.

John Keells Holdings closed 2.70 rupees lower at 220.10 rupees with market transactions of 361.02 million rupees contributing 32 percent of the daily turnover while attracting most number of trades during the day.

JKH’s W0022 warrants closed flat at 60.00 rupees and its W0023 warrants closed 50 cents lower at 70.00 rupees.

Foreign investors bought 207.25 million rupees worth shares while selling 159.48 million rupees worth shares.

Ceylon Tobacco Company closed 50.80 rupees higher at 1,049.80 rupees, contributing most to the index gain.

Commercial Bank closed 2.30 rupees higher at 139.50 rupees and Lanka Orix Finance closed 10 cents lower at 3.70 rupees.

Bukit Darah closed 6.00 rupees lower at 648.00 rupees.

Sri Lanka's Vidullanka constructs 4 MW mini-hydro plant in Kothmale

June 26, Colombo: Sri Lanka's private mini power generator Viddullanka PLC has completed the construction of a 4 MW Lower Kothmale Mini-Hydro Power Plant (MHPP) in Kothmale in the Nuwara Eliya district.

The plan was connected to the national grid Wednesday (June 25), the company said in a stock market disclosure Thursday.

The Lower Kothmale Mini-Hydro Power Plant is owned by the Lower Kothmale Oya Hydro Power (pvt) Limited which is a joint venture between Viddullanka PLC and Jaywise Construction Limited.

Vidullanka, a BOI approved company founded in 1997, constructs and operates hydroelectric power projects.

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