Sri Lankan stocks rise to near 3-1/2 year high on bluechips, foreign funds

Nov 7 (Reuters) - Sri Lankan stocks rose Friday to hit a near three-and-half-year high, led by bluechips such as market heavyweight John Keells Holdings Plc and on buying by foreign investors. Low interest rates and better earnings expectations boosted sentiment.

Sri Lanka's main stock index closed up 0.78 percent, or 57.69 points, at 7,416.15, its highest closing level since May. 31, 2011.

"We expect strong buying interest to continue further on selected counters, driven by projected healthy quarterly earnings," Fist Capital Equities (Pvt) Ltd said in a note to investors.

"We advise investors focus their attention on financials that are being released when picking stocks as there are limited number of counters trading at attractive valuations, mainly in manufacturing, banking and energy sectors."

Shares in Ceylon Tobacco Company Plc, which led the overall gain, rose 1.75 percent to 1,150 rupees.

Top conglomerate John Keells Holdings Plc, which reported on Tuesday a 29 percent year-on-year rise in September quarter net profit, rose 1.18 percent to 258 rupees.

Shares in top mobile phone operator Dialog Axiata Plc , which reported on Wednesday a 15.6 percent jump in its third quarter net profit, rose 2.46 percent to 12.50 rupees.

Foreign investors bought a net 739.6 million rupees ($5.65 million) worth of shares, extending the net foreign inflow so far this year to 15.57 billion rupees, exchange data showed.

Friday's turnover was 2.53 billion rupees, well above this year's daily average of 1.39 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.

($1 = 130.8500 Sri Lankan rupee) 

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

Prominent Sri Lanka investor Senthilverl consolidates stake in Vallibel Power

Prominent investor at the Colombo Stock Exchange, Dr. T. Senthiverl now owns 14.432 per cent shares of Vallibel Power Erathna PLC headed by another prominent Sri Lankan businessman Dhammika Perera.

This increase in shares is following Dr. Senthilverl acquiring 105.8 million shares of Vallibel Power on 04 November. Currently he is in possession of 107.8 million shares on Vallibel Power.

The second largest stakeholder in Vallibe Power Erathna – Asia Energy Management Systems sold its 21 per cent shares on 04 November for nearly Rupees one billion.

Vallibe Power Erathna is the largest public quoted mini hydropower company in Sri Lanka with three mini hydropower plants in Kuruwita, Rathnapura and Norton Bridge.

While speaking to adaderanabiz.lk, a member of the Vallibel Power Erathna directorate, Nimal Perera said 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.
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For first time in history Sri Lanka’s tourist arrivals passes 1.2 million mark

Latest government data shows that for the first time in Sri Lanka’s history, tourist arrivals during the 10 months of this year has passed the 1.2 million mark. The significant feature is the huge increase in the arrival of Chinese tourist to Sri Lanka.

According to this data, 1,228,754 tourists have arrived in Sri Lanka up to October 2014 while the same period last year had recorded an arrival of 1,011,255 tourists. The increase is 21.5 per cent.

A significant feature is the arrival of 106,888 Chinese tourists within the 10 months of this year. There had been only 44,742 Chinese tourist arrivals during the same period last year. This is an increase of 138.9 per cent over last year.

The most number of tourists to Sri Lanka during the 10 months of this year has been from Western Europe, which is 387,215.

The second highest has been from South Asia, the number being 294,075.

The third place is occupied by South East Asia with the number of tourist arrivals being 229,870.
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Sri Lanka stocks close up 0.8-pct

Nov 07, 2014 (LBO) - Sri Lanka's stocks closed 0.78 percent higher with tobacco and diversified stocks gaining amid strong foreign purchases, brokers said.

The Colombo benchmark All Share Price Index closed 57.69 points higher at 7,416.15, up 0.78 percent. The S&P SL20 closed 26.19 points higher at 4,128.30, up 0.64 percent.

Turnover was 2.52 billion rupees, up from 2.10 billion rupees last Wednesday with 113 stocks closed positive against 86 negative.

The aggregate value of all off-the-floor deals represented 16 percent of the daily turnover.

Lanka IOC attracted most number of trades during the day.

Foreign investors bought 1.03 billion rupees worth shares while selling 294.94 million rupees worth shares.

Ceylon Tobacco Company closed 19.80 rupees higher at 1,150.00 rupees and John Keells Holdings closed 3.00 rupees higher at 258.00 rupees, contributing most to the index gain.

JKH’s W0022 warrants closed 50 cents higher at 73.90 rupees and its W0023 warrants closed flat at 79.00 rupees.

Dialog Axiata closed 30 cents higher at 12.50 rupees and Lanka IOC closed 3.90 rupees higher at 63.10 rupees.

People’s Leasing Group ups 2Q net profit by 39% to Rs. 1.1 b

People’s Leasing Group has increased its net profit in the second quarter by an impressive 39% to Es. 1.1 billion.

With this achievement the Group successfully posted Rs. 1.9 billion profit for the first half of the financial year, translating to a YoY growth of 28%.

Effective interest rate management allowed the Group to witness a 21% YoY increase in its top line net interest income. This financial performance portrays a healthy escalation in the Group across the spears of financial services, general insurance, fleet management and property development during the first half of the financial year 2014/15.

Furthermore, People’s Leasing &Finance PLC (PLC) alone posted a YoY profit growth of over 24% amounting to Rs. 1.7 billion whilst five established subsidiaries including People’s Insurance Ltd. positively contributed to the success of the Group.

Commenting on the Group’s achievement, Chief Executive Officer of the company D.P. Kumarage said: “It is commendable to see the PLC Group performing well under challenging environment and we expect this momentum to continue during the rest of the year as well.”

PLC is the highest rated finance company in Sri Lanka with AA- rating from Fitch Ratings Lanka and two international ratings; B+/B from Standard & Poor’s and B+ from Fitch Ratings International while retaining market leadership in the leasing sector for 12 consecutive years.

PLC currently owns a wide branch network of 89 and 109 service centres across the country through which the company reaps around 20% increase in business volumes compared to the corresponding period of 2013/14. The management’s commitment to maintain a quality lending portfolio and the highly motivated marketing staff of the company has collaboratively contributed against odds to record strong results.

Further, to extend the Group’s accolades and kudos, PLC was awarded the ‘SLIM Nielsen People’s Award’ for ‘Financial Service Provider of the Year’ for the second consecutive year by the Sri Lanka Institute of Marketing in association with the Neilsen Company at the beginning of the financial year and bagged the Gold award in the National level Large & Extra Large Service Category along with recognition as one of the Top 10 Companies in Sri Lanka at the Achievers’ Awards 2014 for Industrial & Service Excellence organised by the Ceylon National Chamber of Industries.

The Annual Report 2013/14 of the Company recently secured a Gold award in the Competition Class of Print Annual Reports – Asia Pacific and the Silver award for the Most Creative Communication material at the 2014 Spotlight Awards organised by the League of American Communications Professionals (LACP). The Report was also ranked among the Top 100 Worldwide Top 100 Communication Materials.
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