Sri Lankan shares down on profit-taking

Reuters: Sri Lankan shares ended lower on profit-taking on Thursday, snapping five days of gains and slipping from their highest level in more than seven weeks hit in the previous session, analysts said.

The bourse has been on a gaining trend on hopes that economic fundamentals would improve after the central bank's rate hike last week.

The benchmark Colombo stock index ended down 0.51 percent at 6,478.25, slipping from its highest close since June 14 hit on Wednesday.

The central bank last week raised its main interest rates by 50 basis points each in a surprise move aimed at curbing stubbornly high credit growth that is adding to concerns about inflationary pressures.

"Today there was a bit of slowdown with lower interest from foreigners," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.

"The market started to consolidate today. Market cannot go up continuously, either it should stabilise or should go up again after some kind of consolidation."

Overseas investors were net buyers of 34.6 million rupees ($237,800.7) worth of shares on Thursday, extending the net foreign inflow during the last seven sessions to 784.3 million rupees worth of equities.

However, they have been net sellers of 4.02 billion rupees worth of shares so far this year.

Stockbrokers said the market is awaiting an economic policy announcement from Prime Minister Ranil Wickremesinghe, scheduled later this month.

Turnover stood at 504.7 million rupees ($3.47 million), less than this year's daily average of around 733.4 million rupees.

Shares in Ceylon Tobacco Company Plc fell 1.51 percent, while biggest-listed lender Commercial bank of Ceylon Plc fell 1.79 percent, dragging the overall index down. 

($1 = 145.5000 Sri Lankan rupees) 

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

Haycarb records turnover of Rs. 2.9 billion and profit before tax of Rs. 245 million for Q1 2016/17

Sri Lankan multinational Haycarb Plc reported revenue of Rs. 2.9 billion and profit before tax of Rs. 245 million for the first quarter of 2016/17. The profit after tax stood at Rs. 203 million.

The turnover increased marginally, while the profit before tax and after tax recorded a growth of 12% and 7% respectively compared to the previous year.

Haycarb Plc Managing Director Rajitha Kariyawasan said that while the company’s initiatives to strengthen raw material supply chain networks in Sri Lanka and Thailand showed progress, the raw material situation in Indonesia had setbacks resulting in increasing prices due to low supply availability caused by bad weather cycles and increased exports. He further said: “The adverse market conditions due to the downturn in gold mining which continues to impact international markets was exacerbated by low cost competition from countries such as the Philippines and India, resulting in the under-utilisation of Haycarb’s installed capacity during the first quarter of 2016/17.” He noted however that success in business development and new product development initiatives that increased marketing reach to new geographies and product applications, together with the upturn in the value added product portfolio, helped the bottom line in spite of less than expected growth in sales revenue.

He added that growth in the environmental engineering arm Puritas Ltd. was expected to contribute positively to the profitability of the Group.

In the background of an increasing emphasis on environmental sustainability worldwide, Haycarb remains positive in its medium to long-term outlook in its activated carbon and water treatment systems businesses.

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the US, UK and Australia. The company contributes net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment. The Board of Directors of Haycarb Plc comprises Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana, Sujeewa Rajapakse, M.S.P. Udaya Kumara, Brahman Balaratnarajah, Ali Asgar Caderbhoy, Sharmila Ragunathan and James Naylor. 

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