Sri Lanka shares end at over 1-yr high on lower rates, foreign inflows

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

The main stock index rose 0.24 percent, or 15.13 points, to close at 6,378.62, its highest since June 5, 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.

Analysts said foreign buying could continue due to lower inflation after the government data showed annual inflation eased to 2.8 percent in June, its lowest since February 2012, edging down from 3.2 percent a month ago

"With low interest rates and low inflation, investors are looking at taking positions in the market due to continued foreign buying," said a stockbroker, asking not to be named.

The bourse saw net foreign inflows for the fifth straight session. Foreign investors were net buyers of 184.7 million rupees ($1.42 million) of stocks on Monday, extending foreign inflows so far this year to 6.25 billion rupees.

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 Company rose 1.34 percent to 1,063.90 rupees a share.

Turnover was 1.45 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 Sunil Nair)

Sri Lanka shares close up 0.2-pct

June 30, 2014 (LBO) - Sri Lanka's shares closed 0.24 percent higher on Monday boosting turnover to a six-week high amid strong foreign participation, brokers said.

The Colombo benchmark All Share Price Index closed 15.13 points higher at 6,378.62, up 0.24 percent. The S&P SL20 closed 13.58 points higher at 3,534.43, up 0.39 percent.

Turnover was 1.45 billion rupees, up from 1.13 billion rupees last friday with 98 stocks closed positive against 88 negative.

John Keells Holdings closed 20 cents lower at 219.90 rupees with seven off-market transactions of 266.77 million rupees changing hands at the same price per share contributing 18 percent of the daily turnover.

The diversified conglomerate also had market transactions of 223.37 million rupees contributing 15 percent of the turnover.

JKH’s W0022 warrants closed 10 cents lower at 59.90 rupees and its W0023 warrants closed 1.10 rupees higher at 71.10 rupees.

The aggregate value of all off-the-floor deals represented 23 percent of the turnover.

Adam Investments closed 90 cents higher at 5.90 rupees, attracting most number of trades during the day.

Foreign investors bought 677.96 million rupees worth shares while selling 493.31 million rupees worth shares.

Ceylon Tobacco Company closed 14.10 rupees higher at 1,063.90 rupees and oil palm firm Shalimar (Malay) closed 284.60 rupees higher at 2,444.60 rupees, contributing most to the index gain.

Commercial Bank closed 1.10 rupees higher at 140.60 rupees and People’s Leasing and Finance closed 40 cents lower at 16.00 rupees.

Nestle Lanka closed 12.70 rupees higher at 1,980.10 rupees and Cargills Ceylon closed 50 cents lower at 149.20 rupees.

Sri Lanka's Cargills Bank opens doors

Starting Up June 30, 2014 (LBO) - Cargills Bank Plc, Sri Lanka's newest commercial bank promoted by listed Cargills (Ceylon) Plc and CT Holdings opened for business Monday.

Central Bank Governor Nivard Cabraal said as Sri Lanka emerged from a 30-year war and already the changes were beginning to be seen and the new bank could grow with the country.

Chairman Louis Page said the bank will cater to all social and income groups.

Managing Director Haris Premaratne said key Sri Lankan business groups and entrepreneurs including Merril J Fernando, Mahesh Amalean, Ashok Pathirage, Melwa group, Hydramani group, Phoenix Ventures, Ishara Traders and Lalan Rubbers had invested in the bank.

The bank was issued a provisional license shortly before the Central Bank started a process to consolidate the banking sector.

Lanka Aluminium awarded contract for Mövenpick Hotel

Lanka Aluminium Industries PLC recently announced that it has been awarded a contract by M/s Softlogic City Hotels [Pvt] Ltd - the franchise holder of Mövenpick Hotels Corporation - to design, supply and install the Façade and Window systems for the new Mövenpick Hotel which is currently under construction in Colombo 3.

The Mövenpick Hotel Colombo is a 200 room business hotel spread over 24 storeys.

The unique framing structure for the Front Facade which ranges from the 6th to the 22nd floor is being developed by Lanka Aluminium in collaboration with an overseas Systems Design House to bring to life the vision of well-known Architect Murad Ismail of MICD, and will probably be the first such intricately detailed glazed façade to be installed on a building in Sri Lanka.

Installation of the window systems will begin in June and end in mid-2015 in time for the scheduled launch. "We always offer high quality products at competitive prices to our customers. Our extrusion systems are modern designs manufactured to international standards, easy to fit and are of great value," said Dinal Peiris.
Source: www.dailynews.lk