Janashakthi completes merger with AIA Sri Lanka unit

ECONOMYNEXT – Janashakthi Insurance PLC said it has completed the amalgamation of Janashakthi General Insurance Limited and AIA General Insurance Lanka Limited it had acquired for 3.2 billion rupees in October 2015.

Janashakthi Insurance now has a market share of about 17.5 percent with an estimated Gross Written Premium (GWP) of 11 billion rupees, a statement said.

“The acquisition of AIA General Insurance Lanka Limited marked a significant step in our long term growth strategy,” it said.

“We look forward to leveraging the strengths of the combined business to deliver greater value to all stakeholders,” said Prakash Schaffter, Managing Director, Janashakthi Insurance PLC.

“With the completion of the amalgamation, we are realigning the company to boost operational efficiencies and effectively utilize the growth in employee numbers to serve a wider customer base,” said Jude Fernando, Chief Executive Officer, Janashakthi Insurance PLC.

General Insurance operations of the 40 AIA branch offices have been relocated to the nearest Janashakthi branches, enabling all customers to now have access to the 110 Janashakthi branches located island-wide.

Sri Lanka's Piramal Glass net up; Norges Bank among top shareholders

ECONOMYNEXT – Sri Lankan glass bottle manufacturer Piramal Glass said net profit shot up 172 percent to 166 million rupees in the December 2015 quarter from a year ago, driven by strong domestic sales during the festive period.

Norway's sovereign wealth fund, Norges Bank had become the third largest shareholder of Ceylon Glass during the quarter with a 2.47 percent stake, behind Sri Lanka's Employees Provident Fund which owns 9.51 percent.

Earnings per share rose to 12 cents in the quarter from six cents the year before, according to unaudited results filed with the stock exchange filing.

December 2015 quarter sales grew 12 percent to 1,778 million rupees from the previous year.

“The sales growth for the quarter was mainly contributed by the domestic market,” a statement said.

“The positive sentiments that was experienced throughout the year remained during this festive season quarter as well.”

The company said exports were restricted and mainly focused towards niche segment bottles thus ensuring consistent margins as capacity had to be released for the domestic market.

Piramal Glass, a unit of India’s Piramal group, said all sectors contributed positively while the food and beverage segment continued to dominate sales.

In the nine months to December 2015, EPS doubled to 48 cents from a year ago with sales up 16 percent to 4,817 million rupees.

Domestic sales grew 24 percent to 3,888 million rupees from the previous year while exports fell to 929 million rupees from 1,003 million rupees the previous year.

Sri Lankan shares end higher on large caps; volume slumps

Reuters: Sri Lankan shares rose for a third straight session on Monday to end at their highest in more than a week led by large-caps, but trading volume slumped to a more-than-one-month low.

The main stock index ended 0.36 percent higher at 6,363.18, the highest close since Jan. 22.

The index has fallen 7.7 percent so far this year as foreign investors, unnerved by global concerns over China's economy, cut their exposure.

"Market is moving up slowly in low volumes. I think market can move up a bit with the earnings," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

Turnover was 273.3 million rupees, the lowest since Dec. 30, and well below this year's daily average of 724.5 million rupees.

The 14-day relative strength index (RSI) returned to the neutral zone from oversold territory after three successive sessions of gains, Thomson Reuters data showed.

Foreign investors sold a net 27.9 million rupees ($193,817) worth of shares on Monday, extending the year-to-date net foreign outflow to 2.77 billion rupees worth of equities.

The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more-than-two-year high of 7.80 percent last week.

The move could help investors return to the market, analysts said.

Shares of market heavyweight John Keells Holdings Plc rose 2.13 percent and biggest listed lender Commercial Bank Ceylon Plc gained 2.28 percent, while Hemas Holdings Plc advanced 2.13 percent. 

($1 = 143.9500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)