Ashok Leyland gets order worth $17 mn from Sri Lanka

Hinduja group flagship company Ashok Leyland has received an order worth $17 million (around Rs. 104 crore) to supply 630 buses to Sri Lankan operators.

The company, through its joint venture in Sri Lanka, has received an order for 630 buses worth $17 million from private bus operators, Ashok Leyland said in a filing to the BSE.

Coming on the heels of the order for 2,200 buses, the company further consolidates its position as the market leader in the Sri Lankan market, it added.

“This order is further evidence of the confidence Sri Lankan customers have in our capability to offer the most appropriate products and transport solutions to them through our JV company — Lanka Ashok Leyland,” Ashok Leyland Managing Director Vinod K Dasari said.

The joint venture with the government is a publicly listed company and has been performing very well for its customers as well as shareholders, he added.

Ashok Leyland shares were trading 0.22 per cent up at Rs. 44.70 apiece during afternoon session on the BSE. 

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Sri Lankan stocks slip, led by banks

Oct 16 (Reuters) - Sri Lankan stocks slipped on Thursday, led by profit-taking in banks, though foreign investors bought into risky assets a day after yields on 364-day treasury bills reversed their falling trend.

Stockbrokers said shares would continue to gain though there could be some volatility due to political concerns as the government is planning early presidential polls, and the reversal in the falling trend of interest rates.

Sri Lanka's main stock index fell 0.44 percent, or 31.76 points, to 7,257.07.

Foreign investors bought 572.2 million rupees ($4.38 million) worth of shares on Thursday, extending the year-to-date net foreign inflow to 10.11 billion rupees, exchange data showed.

"Little bit of profit-taking brought the market down, investors are waiting to see whether the interest rates are going to settle at these levels," said a stock broker asking not to be named.

Softlogic Stockbrokers COO Danushka Samarasinghe said the bottoming out of interest rates will not have a negative impact on stocks as the gain in rates may not be significant for investors to make a shift in the short- to medium-term.

President Mahinda Rajapaksa could hold a snap election in January, nearly two years before he has to, a close ally said, amid signs his popularity is fading among people who criticise his party for abusing power.

Yields on 364-day t-bills rose 11 basis points to 6.00 percent, the first rise since Dec 20, 2013.

The Sri Lankan central bank chief on Thursday, a day before the key policy rates decision, said that a rise in the yield at a 364-day treasury bill auction this week was a signal where the authorities want rates to be.

Local investors have been buying stocks as they have no other options in a multi-year low interest rate regime.

DFCC Bank Plc led the fall with a 3.38 percent loss, while leading fixed line telephone operator Sri Lanka Telecom Plc fell 1.17 percent.

The day's turnover was 1.54 billion rupees, more than this year's daily average of over 1.36 billion rupees. 

($1 = 130.7000 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka stocks close down 0.44-pct

Oct 16, 2014 (LBO) - Sri Lanka's indices closed in the red with telco and banking stocks losing ground despite strong foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 31.76 points lower at 7,257.07, down 0.44 percent. The S&P SL20 closed 8.45 points lower at 4,056.39, down 0.21 percent.

Turnover was 1.54 billion rupees, down from 1.59 billion rupees a day earlier with 47 stocks closed positive against 154 negative.

Commercial Bank of Ceylon closed 1.80 rupees higher at 165.00 rupees with four off-market transactions of 258.85 million rupees contributing 17 percent of the turnover.

The aggregate value of all off-the-floor deals represented 29 percent of the daily turnover.

Alufab closed 4.30 rupees higher at 28.00 rupees and Brac Lanka Finance closed 1.80 rupees higher at 11.50 rupees, attracting most number of trades during the day.

Foreign investors bought 821.23 million rupees worth shares while selling 249.03 million rupees worth shares.

DFCC Bank closed 7.60 rupees lower at 217.10 rupees and Sri Lanka Telecom closed 60 cents lower at 50.90 rupees, contributing most to the index drop.

Lanka Orix Leasing Company closed 2.00 rupees lower at 86.00 rupees and People’s Leasing and Finance closed 50 cents lower at 20.50 rupees.

Access Engineering closed 70 cents lower at 31.00 rupees and Ceylon Tobacco Company closed 14.90 rupees higher at 1,160.00 rupees.

Sri Lanka’s Blue Diamonds to raise Rs249 Mn through a rights issue

Oct 16, 2014 (LBO) – Sri Lanka’s Blue Diamonds Jewellery Worldwide, the largest diamond jewellery manufacturer & exporter in the island is to raise 249 million rupees by way of a rights issue, the company said in a stock exchange filing.

Subjected to the necessary approvals, the company would issue 103,300,891 ordinary voting shares at 1.30 rupees each and 153,369,800 ordinary non-voting shares at 0.75 rupees each in the ratio of one for one.

Part of the funds will be utilized to establish a global design center and a research & development unit while the rest will be invested in machinery and inventory.

The proceeds will also be used for an international trade fair participation, the company said.

SDB gathers momentum

SANASA Development Bank PLC (SDB) recorded a healthy performance during the first half of 2014, with a profit after tax of Rs. 227 million as against Rs. 210 million in the corresponding period in 2013. Despite lackluster demand for credit amidst relatively low interest rate regime prevailed across the banking industry, performance for the quarter was up by 134% in terms of post-tax profit. Interest income for the first six months of 2014 grew by 7% to reach Rs. 2.33 billion while maintaining the interest expense at the same level as recorded over the corresponding period of the previous year. Consequently, net interest income for the period reached to Rs. 1 billion mark, reflecting an improvement of 17% over the first half of 2013.

Net fees and commission income recorded a growth of 8% mainly attributable to the improved performance demonstrated by fee based income services. Predominantly fee income generating products and services have been added to bank’s portfolio in the recent past.

The impairment provision for the period recorded a significant improvement over the corresponding period of the previous year, driven by the aggressive recovery efforts of the bank. Retail loan book have shown a significant improvement in portfolio quality whilst leasing book impairment has remained at levels reported in the previous period. The trend in impairment of pawning portfolio has also shown improvement during the period under review and it is expected to improve further during the second half of 2014.

Operating expenses recorded an increase of 22% over the previous period mainly on account of revision of personal cost. Head count increase of 93 during the year has been mostly deployed at branches and recoveries areas whilst the increase in support functions has been minimal.

The Bank’s total assets reached Rs. 32.7 billion as at 30 June 2014, a 10% growth since 31 December 2013. Loans and receivables stood at Rs. 23.5 billion, a growth of 7% since 31 December 2013. Total deposits grew by Rs. 3.23 billion over six month period to reach Rs. 26.83 billion as at 30 June 2014.

The core capital remaining at Rs. 3.0 billion with tier 1 ratio of 12.66% and total capital adequacy ratio of 12.77% at 30 June 2014, despite a drop over December 2013, levels were maintained above specified minimum levels. The drop is mainly attributable to the dividend pay-out impacting retained earnings. The liquidity ratio of the bank stood at 27.81% at 30 June 2014, which is well above the regulatory limit of 20%.

Sanasa Development Bank’s General Manager/CEO Nimal C. Hapuarachchi said that, “The strong foundation laid during the first quarter of 2014 led SDB’s success in first half of 2014 and the same strength will undoubtedly enable SDB to reach greater heights during the second half of 2014.”
Extracted from www.ft.lk
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All-time record price for Hingalgoda Tea Factory

Hingalgoda Tea Factory situated in Hiniduma, Galle, established an all-time record price at the weekly tea auctions held on 15 October by securing an attractive price of Rs. 745 per kg for a PF 1 grade in the Low Grown CTC category. Hingalgoda CTC teas are renowned for their colour, strength and bright liquoring characteristics, which are keenly sought-after by a range of reputed tea exporters. This line of tea was purchased by Union Commodities Ltd. Hingalgoda Tea Factory is managed by Tea Small Holder Factories PLC and the sole broker for the factory is John Keells PLC.

All-time record price for New Peacock Estate

New Peacock Tea Factory situated in Pussellawa established an all-time record price for a Medium Grown CTC PF1 grade with three of its invoices selling at Rs. 550 per kg at the weekly tea auctions of 15 October. All three invoices were purchased by Uniworld Teas Ltd. New Peacock Tea Factory is managed by Elpitiya Plantations PLC and the sale was conducted by tea broker John Keells PLC. www.ft.lk