Financial Sector Consolidation Update - September 2014

During September 2014, the Monetary Board approved, in-principle, another 8 consolidation proposals submitted by banks and Non-Bank Financial Institutions (NBFIs), thus bringing the total number of proposals approved so far to 37. At the same time, consolidation plans of another 4 banks and 4 NBFIs are also being finalized, and are due to be announced in the near future.

The work relating to the mergers/acquisitions that have already commenced continued to progress, with the respective banks and NBFIs working towards the timelines set at the beginning of the year.

The Central Bank held a further round of discussions with selected NBFIs with a view to resolving pending issues on their respective consolidation processes, and at these meetings, necessary guidance was provided for the facilitation of the implementation of the respective merger plans.

In the meantime, the Central Bank’s Internal Committees also reviewed the current regulatory framework for banks and NBFIs with a view to further strengthening financial system stability in the post-consolidation period.
http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20140930eb.pdf

Sri Lanka stocks close up 0.2-pct

Sep 30, 2014 (LBO) - Sri Lanka's stocks closed 0.19 percent higher with conglomerate John Keells Holdings gaining despite continued strong foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 13.98 points higher at 7,252.14, up 0.19 percent. The S&P SL20 closed 19.30 points higher at 4,038.30, up 0.48 percent.

Turnover was 4.29 billion rupees, up from 3.46 billion rupees a day earlier with 91 stocks closed positive against 98 negative.

John Keells Holdings closed 2.70 rupees higher at 253.70 rupees with seventeen off-market transactions of 211.18 million rupees contributing 5 percent of the turnover.

JKH also had market transactions of 1.77 billion rupees contributing 41 percent of the daily turnover.

Commercial Bank of Ceylon closed 1.10 rupees lower at 155.90 rupees with an off-market transaction of 204.16 million rupees changing hands at 156.00 rupees per share contributing 5 percent of the turnover.

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

Dunamis Capital closed 1.40 rupees lower at 37.50 rupees and Janashakthi Insurance closed 40 cents lower at 23.70 rupees, attracting most number of trades during the day.

Foreign investors bought 1.23 billion rupees worth shares while selling 3.01 billion rupees worth shares.

Index heavy John Keells Holdings contributed most to the index gain.

Dialog Axiata closed 20 cents higher at 11.50 rupees and HNB closed 4.40 rupees higher at 190.40 rupees.