Sri Lanka stocks slips from 3-year high on low trade, retail profit-taking

Aug 27 (Reuters) - Sri Lankan stocks slipped on Wednesday, retreating from a three-year high hit on Tuesday, led by illiquid shares in low trade, with retail profit-taking in speculative shares, brokers said.

The bourse hit a three-year high on Tuesday, helped by the low interest rates and analysts said an increase in speculative trading in fundamentally weak shares could dent the healthy growth the index has seen this year.

The main stock index ended down 0.41 percent, or 28.41, at 6,984.91, slipping from its highest close since Aug. 18, 2011 hit on Tuesday.

The index has gained 18.13 percent so far this year.

"The market was brought down by the illiquid shares in low trade while we have seen some retail profit-taking in speculative counters," said Dimantha Mathew manager, research at First Capital Equities (Pvt) Ltd.

The index plummeted more than 20 percent after it hit a record peak in February 2011 mainly due to speculative trading.

Analysts said the market is struggling to hold above 7,000 points its psychological barrier which turned it to a technical barrier now.

Good Hope Plc, which led the overall fall in the index, fell 23.86 percent to 1,500 rupees in one share trade, while Lion Brewery (Ceylon) Plc fell 5.02 percent to 606 rupees.

Wednesday's turnover stood at 742 million rupees ($5.70 million), its highest since July 28 and well below this year's daily average of 1.2 billion rupees.

Foreign investors were net sellers of 2.91 million rupees worth of shares on Wednesday, but they have been net buyers of 8 billion rupees so far this year.

The central bank rejected all 91-day treasury bill bids at an auction for the second straight week, while the yields in the 182-day and 364-day treasury bills held steady at a weekly auction on Wednesday.

($1 = 130.2000 Sri Lankan rupee)

(Reporting by Ranga Sirilal; Editing by Anand Basu)

Packer plan for Sri Lanka Crown casino faces fresh delay on legal hitch - Minister

* Minister cites unspecified 'legal issues' for delay

* $400 mln resort project first won approval in April

* Packer in discussion on the deal since February 2013

By Ranga Sirilal

COLOMBO, Aug 27 (Reuters) - Australian gambling tycoon James Packer's Crown Ltd is facing months of new delays in building a planned $400 million Sri Lanka hotel and casino resort due to unspecified legal issues, a government minister said on Wednesday.

Packer, one of Australia's richest men, first obtained Sri Lanka cabinet approval for the project nearly a year ago. But terms of the approval were altered in the face of strong opposition from some Buddhist leaders and political parties, and construction on the project has yet to start.

"We have something to be sorted out from our legal side," Investment Promotion Minister Lakshman Yapa Abeywardena told Reuters in a telephone interview. He declined to say exactly what the legal matter is.

"There are some legal issues from our side once they paid the necessary fees for the land," Yapa said. "We have informed them to start the construction they have also some issues. It will take another two three months (to start)."

While Sri Lanka's parliament first approved the Crown development in April 25 without a casino, President Mahinda Rajapaksa's government said two weeks later it would not oppose a Crown casino if it is operated using an existing licence held by a local partner.

Packer's Sri Lankan partner, Ravi Wijeratne, who owns two casino licences was not immediately available for comments. Packer has been in discussion with Sri Lankan ministers and officials on hotel and entertainment investment options since February 2013.

Some analysts say the delay could last until the next presidential polls, which could be scheduled in January next year, as Rajapaksa seeks a third six-year term in office.

The government had earlier said casinos will be restricted to D.R. Wijewardena Mawatha, the area of Colombo where Crown has planned its hotel.

However, after strong opposition, the government said it has not designated any gaming zone in the country. The government has yet to clarify which state agency is authorised to issue casino licences and regulate the industry.

Sri Lanka's parliament has separately approved two other casino resort projects planned by local investors.

A $300 million resort called Queensbury being developed by Sri Lanka's Vallibel One Plc is expected to include a casino near Packer's planned complex. Meanwhile Sri Lanka's biggest conglomerate, John Keells Holdings Plc, has committed up to $850 million for a project with a casino in another part of Colombo called the Water Front. 

(Writing and additional reporting by Shihar Aneez; Editing by Kenneth Maxwell)

Sri Lanka Treasuries yields flat

Aug 27, 2014 (LBO) - Sri Lanka's Treasuries yields were flat at Wednesday's auction without accepting any bid for three months for the second straight session, data from the state debt office showed.

The 6-month yield was unchanged at 6.28 percent and the 12-month yield unchanged at 6.30 percent.

The debt office said 1,335 million in 6-month bills and 7,424 million in one year bills totaling 8,759 million rupees were sold after offering 12.00 billion for rollover.

Sri Lanka shares close down 0.4-pct

Aug 27, 2014 (LBO) - Sri Lanka's shares close 0.41 percent lower Wednesday with oil palm and beverage stocks losing ground amid low foreign participation, brokers said.

The Colombo benchmark All Share Price Index closed 28.41 points lower at 6,984.91, down 0.41percent. The S&P SL20 closed 9.02 points lower at 3,842.83, down 0.23 percent.

Turnover was 742.11 million rupees, down from 1.73 billion rupees a day earlier with 84 stocks closed positive against 120 negative.

Seylan Developments closed 10 cents higher at 14.10 rupees with an off-market transaction of 28.00 million rupees changing hands at 14.00 rupees per share contributing 4 percent of the daily turnover.

Lanka Century Investments W0006 warrants closed 40 cents lower at 2.10 rupees, attracting most number of trades during the day.

Foreign investors bought 55.49 million rupees worth shares while selling 58.40 million rupees worth shares.

Good Hope closed 470.00 rupees lower at 1,500.00 rupees, contributing most to the index drop.

Lion Brewery Ceylon closed 32.00 rupees lower at 606.00 rupees and Nestle Lanka closed 31.70 rupees lower at 2,118.30 rupees.

CT Holdings closed 6.70 rupees lower at 152.30 rupees and John Keells Holdings closed 3.00 rupees higher at 245.00 rupees.

JKH’s W0022 warrants closed 60 cents higher at 69.10 rupees and its W0023 warrants closed 80 cents higher at 79.10 rupees.

CTC ranked 'Most Respected Entities' in Sri Lanka

Ceylon Tobacco Company (CTC), has been ranked amongst the top 10 most respected entities in Sri Lanka in the annual LMD rankings 2014. CTC was up by 14 positions from last year, ranking as the 9th most respected entity in the country.

Companies were evaluated based on financial performance, quality consciousness, management profile, honesty, innovation, dynamism, corporate culture, CSR, vision and nation - mindedness. Based on the evaluation criteria, CTC was placed within top 3 in financial performance, corporate culture and CSR.

While CTC had been ranked within the top 20 positions on three previous occasions, this is the first time the company has moved into the top 10, a reflection on the company's performance, dynamism and focus on good governance. Felicio Ferraz - CEO, CTC said, "Business best practice and good governance have been the cornerstone of CTC's success over the years and being ranked among the top 10 most respected companies in Sri Lanka is testament to how we have carried out our business even in challenging times" Felicio further went onto say, "Our people are the backbone of our entire business.

They are clearly the advantage that makes CTC a winning organisation. The right people and the right working environment set the stage to achieve our vision to be the inspiration for corporate excellence in Sri Lanka." The annual ranking is conceptualised by LMD and conducted by Nielsen on an opinion based survey expressed by respondents to ascertain who they perceive as being the 'most respected entities.'
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Richard Pieris Arpico Finance deposit base tops Rs 1 billion

The deposit base of Richard Pieris Arpico Finance Company has reached Rs. one billion just one year since its inception. Richard Pieris Arpico Finance CEO M. M. Jabir said this achievement has shown the confidence that clients have placed on the company, since the mother company Richard Pieris has been in existence for over 80 years. “The commitment of our staff members contributed immensely to achieve these goals and the other factor is the trust people have kept with the Richard Pieris Group and the new finance company,”Jabir said. “Our performance was tremendous.

People had great confidence in our commitment and also trust in the company, whose mother company Richard Pieris has been operating superbly for 83 long years. All this contributed to reach our goals within a short span of one year,” the CEO said. Commenting on the branches, “Opening plans are made by Richard Pieris Arpico Finance for this year”.

Jabir said this year is very challenging, especially as the Central Bank expects finance companies to be stable, bigger and stronger, with a wider presentation all over the country.

Richard Pieris Arpico Finance plans to open five branches within the next four to five months. The first one will be in Matara. On the consolidation process of finance company mergers, Jabir said they will be coming out with a very positive announcement soon.

The deadline for mergers to be completed is at the end of the year. He further added that the process is excellent as it is very good for the country, economy, financial sector and the investors and customers at large.
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Ceylon Leather Products earns Rs 80.8 m PAT

Ceylon Leather Products has increased the company's gross turnover by 38.9% compared to last year inspite of the uncertain marketing environment. Overall the current financial year under review earned a net profit of Rs 80.8 m after providing a provision of Rs 50.5 m for impairment of investment as compared to Rs 133.2 m previous year,Ceylon Leather Products Chairman Neville Peiris, said in the company's annual report for 2013-2014 .

"It was very encouraging to note that South Asia Textile Industries Lanka of which 51.5% is owned by Ceylon Leather Products has turned around favourably and making good progress in the current year. South Asia Textile Industries Lanka completed a Rights Issue to the existing Shareholders of the Company offering Eight Ordinary Shares for every One Ordinary Share at a price of 0.10 cts a Share.

Ceylon Leather Products subscribed in full for their Rights entitlement by investing Rs. 306.4 million. Consequent to the Rights issue Ceylon Leather Products now owns 80.39% of the Issued Share Capital of South Asia Textile Industries Lanka.

Funds raised from the Rights Issue will be used to modernize the machinery at the factory. www.dailynews.lk

Dankotuwa Porcelain posts Rs 23.8 m net profit

Dankotuwa Porcelain PLC (DPL) made an after tax net profit of Rs 23.8 million for the year which is a decline from the Rs 31.3 million posted in the previous financial year.

At a Group level with the consolidation of Royal Fernwood Porcelain (RFPL), which was acquired on 31 December 2013, the Group posted a loss of Rs 28.2 million due to the significant losses at RFPL.

Chairman Rajan Asirwatham said the losses at RFPL have now been significantly reduced. However much effort is still required in restructuring the operations of RFPL in the coming year, he said in the company's Annual Report and Audited Financial Statements for the Financial Year ended March 31,2014.

"The acquisition of RFPL was done in a bid to complement and significantly enhance your company's competitive presence in the local and international tableware market,''he said .

RFPL has a largely complementary product line to Dankotuwa Porcelain (DPL) with a strength in coloured and hand painted tableware whereas DPL is more strongly positioned in the higher end of the market in the formal tableware segment.

These combined entities now have a much stronger product offering and economies of scale in marketing and distribution both locally and overseas.

In addition to strengthening the Group's product line and marketing efforts both locally and globally, the Company will also embark on many initiatives in the coming year to significantly enhance the level of innovation in the Group that will lead to better product offerings in the market along with enhanced efficiencies and margins.

Chief Executive Officer Sarath Mallawa Arachchi said the export turnover continued to show a growth in this year, too. It grew from Rs 953.8 million to Rs 1,028.6 million, showing a 7.8% increase.

The company's export turnover passed the Rs one billion mark. The exports to USA increased by 74%. We could achieve 97.2% of budgeted export sales revenue.

The local sales also continued to show a steady growth. The sales figure went up from Rs 574.9 million to Rs 640.2 million, an increase of 11%. This is a remarkable achievement against the budgeted figure. We could hit 102.4% of the local sales budget.
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