Sri Lankan stocks snap 8-session gaining streak on foreign fund outflow

Nov 4 (Reuters) - Sri Lankan stocks slid on Tuesday from the over three-week high touched in the previous session, ending an eight-day gaining streak on anticipated results of market heavyweight John Keells Holdings and selling by foreign investors.

Top conglomerate John Keells Holdings Plc, which reported after market hours a 29 percent year-on-year rise in September quarter net profit, led the fall with a 1.57 percent decline to 253.10 rupees.

Foreign investors turned net sellers for the first time in six sessions, offloading a net 969.7 million rupees ($7.41 million), the highest outflow since Sept. 30. Foreign funds have been net buyers of shares worth 14.28 billion rupees so far this year, exchange data showed.

Sri Lanka's main stock index closed up 0.44 percent, or 32.26 points, at 7,320.89, slipping from its highest closing level since Oct. 9 that it reached on Monday. Leading mobile phone operator Dialog Axiata fell 2.42 percent to 12.10 rupees.

"Market has slowed down. But I don't think the market will come off too much as the earnings are looking good and interest rates remain low," said a stockbroker who did not wish to be named.

Tuesday's turnover touched 1.99 billion Sri Lankan rupees ($15.21 million), more than this year's daily average of 1.38 billion rupees.

Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.

The country's central bank has kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.

The yields on the 364-day t-bill were steady at 6.00 percent at a weekly auction, while the 182-day t-bills yielded 5.84 percent, 39 basis points below the rate at which it was last accepted.

($1 = 130.8500 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Foreign investor leaves Dhammika Perera’s Vallibel Power in Sri Lanka

Asia Energy Management Systems, the second largest investor in Vallibel Power Erathna, the minor hydro power project under prominent Sri Lankan businessman Dhammika Perera, has sold its 21 per cent shares this morning (04 November) for nearly a billion rupees.

A member of the Vallibel Power Erathna directorate, Nimal Perera told adaderanabiz.lk that each share in this transaction had been sold at between Rs. 6.60 to Rs. 5.50.

Asia Energy Management Systems had held 160 million shares in Vallibel Power Erathna and this entire lot had been sold.

Accordingly, 175.77 million shares of Vallibel Power Erathna has been sold at Rs. 1.16 billion.
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Sri Lanka stocks close down 0.44-pct

Nov 04, 2014 (LBO) - Sri Lanka's stocks closed lower with diversified, beverages and telco stocks losing ground amid strong foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 32.26 points lower at 7,320.89, down 0.44 percent. The S&P SL20 closed 18.44 points lower at 4,086.25, down 0.45 percent.

Turnover was 1.99 billion rupees, up from 1.69 billion rupees a day earlier with 60 stocks closed positive against 128 negative.

The aggregate value of all off-the-floor deals represented 4 percent of the daily turnover.

Vallibel Power Erathna closed 50 cents lower at 6.80 rupees, attracting most number of trades during the day.

Foreign investors bought 212.91 million rupees worth shares while selling 1.18 billion rupees worth shares.

John Keells Holdings closed 3.90 rupees lower at 253.10 rupees with the company announcing an interim dividend of 1.00 rupee per share, contributing most to the index drop.

JKH’s W0022 warrants closed 30 cents lower at 73.20 rupees and its W0023 warrants closed flat at 78.50 rupees.

Distilleries closed 3.50 rupees lower at 210.00 rupees and Nestle Lanka closed 13.30 rupees lower at 2,085.10 rupees.

Dialog Axiata closed 30 cents lower at 12.10 rupees.

Seylan Bank PAT surges to Rs 2.2 billion, a 47% growth over last year

Seylan Bank recorded an impressive performance with Profit before Income Tax reaching Rs 3,490 Million for the 9 months ended 30th September 2014. Profits after Tax reached a record Rs 2,253 Million a 47% increase compared to the Rs 1,536 Million reported in the corresponding 9 month period.

The quarterly PAT figure (Q-3) of Rs. 1,041 Million was an improvement of 95% compared with Rs 534 Million reported in corresponding 3 months of last year.

Net Interest income increased from Rs 6.79 Billion to Rs 8.22 Billion a 21% increase for the 9 months ended 30th September 2014. Net fee and commission income increased by 7% from Rs 1,542 Million to Rs 1,648 Million with the bank showing a continuation of the solid growth trend recorded in the past few years.

During 2014, the Bank grew its deposit base from Rs 167.4 Billion to Rs 174.8 Billion. The growth was predominately achieved through the mobilisation of current and savings deposits, which enabled the Bank's low cost deposit base to be increased from 33% in December 2013 to over 36% as at end September 2014. The Bank's Net Advance portfolio increased from Rs 136.5 Billion to Rs 139.4 Billion during the 9 months under review.

Despite the decline in gold prices and its impact on the pawning base, the Bank was able to improve its asset quality with a significant reduction in its Gross NPA (net of IIS) from 10.58% in December 2013 to a single digit of 9.85%as at end September 2014.
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