Sri Lanka stocks close at highest in nearly 7 weeks

Sri Lankan stocks closed at a near seven-week high on Friday led by select shares in heavy trade as hopes of political stability after the Aug.17 parliamentary polls lifted sentiment.

Foreign investors however cut holdings in blue chips, with net outflow of 906.9 million rupees ($6.78 million) on Friday reversing year-to-date net inflow for the first time since Feb.2.

Foreign investors have sold a net 762.9 million rupees worth of shares so far this year, with outflows for the past 37 sessions alone reaching 6.7 billion rupees.

Sri Lanka's main stock index ended up 0.53 percent, or 37.82 points, at 7,161.96, its highest close since June 1.

"Lot of buying interest was seen; especially after the president's speech, some confidence level has been building up on the expectation of a stable government," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.

Sri Lankan President Maithripala Sirisena on Tuesday criticised a comeback bid by Mahinda Rajapaksa, the rival he beat in elections last January, and his own allies for backing him to become prime minister.

Analysts see Sirisena's statement as a step towards strengthening his grip and one that is likely to help the ruling coalition win.

The day's turnover stood at 1.95 billion rupees ($14.57 million), the highest since July 3 and well above this year's daily average of 1.06 billion rupees.

Shares in mobile phone operator Dialog Axiata Plc rose 3.67 percent, while Lanka ORIX Leasing Company Plc rose 4.29 percent, pushing up the index. 

($1 = 133.8000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

Chilaw Finance PLC to delist

By Ishara Gamage

To be amalgamated with Arpico Finance Ltd

Ceylon Finance Today: Richard Pieris Group's Arpico Finance Ltd's stake in Chilaw Finance PLC reached over 90 percent at the end of trading yesterday, allowing the company to delist it from the Colombo Stock Exchange, a company official said. Yesterday, Richard Pieris owned Arpico Finance Ltd has further bought over one million shares of Chilaw Finance PLC via the stock market. Price paid was between Rs. 25.40 to 26.60 per share.

We will delist soon & amalgamation with Richard Pieris Arpico Finance Ltd, the Chilaw Finance PLC official said.

Last August, Richard Pieris Group has bought 51% control of Chilaw Finance PLC, via subsidiary Richard Pieris Arpico Finance Ltd., as part of the Central Bank-initiated financial sector consolidation. Price paid was around Rs. 25.50 per share.

Chilaw Finance PLC Net Asset Per share is Rs. 15.43. Chilaw Finance is a relatively small finance company with assets worth Rs. 1.3 billion and liabilities of Rs. 796 million.

Richard Pieris Arpico Finance recently reached the milestone of Rs. 1 billion in deposits and said it is planning at least five branches within the next four to five months with the first one in Matara.
www.ceylontoday.lk

Union Assurance current valuation exceeds Rs. 2.39b

Union Assurance currently valued at Rs. 2.39 b. has managed to maintain nett earnings from insurance premiums in 2014, valued at Rs. 5.9b.

Additionally, financial records from the varied Union Assurance verticals support this strong growth.

Marketing and Distributions,Assistant General Manager, Dharshana Amarasinghe said the promise of 'trust are more than just words to the Union Assurance family.

"It is the cornerstone of all company undertakings, and that is the reason for the company's success. The Insurance business is extremely complex. In order to be successful, all stakeholders need build and maintain trust among each other. We ensure that all our dealings are transparent, and we provide our customers with superior service, ease and respect - this is how we ensure that our promise of 'trust' is being delivered."

Union Assurance is constantly taking steps to introduce product and service innovations to their customers, such as the recently re-introduced 'Union Challenger' plan.

The Union Challenger Plan is an investment plan with a life insurance policy, and is a stable foundation from which to build a future.

"However, we are not satisfied with merely introducing new solutions. We are taking steps to educate the nation about the importance of insurance and investment. To this aim we are using electronic and print media, as well as external publicity campaigns. Social media is also playing a pivotal role in this regard. The fact that at this time, our Facebook page has the second largest following in the Insurance sector, is evidence of this fact," Amarasinghe said. Union Assurance is constantly updating the skills and potential of their staff through various training programmes.

At the same time, the company prides itself in being able to create an environment that is conducive to growth and learning. This is a key reason behind the success of Union Assurance.

In recognition of this fact, we were recognized recently, for the third consecutive time, by the prestigious Great Places to Work organization.

"We are constantly striving to recruit talented members to our staff carder. Union Assurance recently launched the 'Month of Victory' programme is a key example," Amarasinghe added.

All these factors considered, Union Assurance has managed to claim 14% of the insurance market in Sri Lanka.

The company has managed to surpass its competitors and earn an AA- rating, valued at Rs. 2.39b. This is evidence for the fact that Union Assurance will continue to go from strength to strength in the future.
www.dailynews.lk

Hikkaduwa Beach to borrow Rs 480 m from Sampath Bank

Hikkaduwa Beach Resort will borrow Rs 480 million from Samapth Bank.

The company will be calling for a shareholder meeting to seek approval for the said borrowing and the mortgage of the property under the Companies Act No 7 of 2007 since the entirety of land and building which is valued more than half the value of assets is being mortgaged for such borrowing.
www.dailynews.lk