Sri Lankan shares fall for third straight session; John Keells down

Reuters: Sri Lankan shares fell for a third straight session on Thursday, posting their lowest close in a month, dragged down by diversified stocks such as John Keells Holdings Plc as investor sentiment continued to remain low on concerns about rising interest rates.

The Colombo stock index ended down 0.1 percent at 6,088.80, its lowest since Feb. 6. It shed 0.6 percent last week in its second straight weekly decline.

Foreign investors were net buyers for the seventh straight session on Thursday, purchasing shares worth 63.6 million rupees ($420,495.87), and extending the year-to-date net foreign inflow to 1.95 billion rupees worth of equities.

Turnover was 875.6 million rupees, more than this year's daily average turnover of 689.7 million rupees.

"The market is mainly down because of John Keells. It is slowly coming down with rising rates and economic uncertainty," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

"Foreigners seem to be the only buyers at the moment."

Traders said there were concerns after the International Monetary Fund urged Sri Lanka's central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

Shares of John Keells Holdings fell 1.06 percent while Commercial Bank of Ceylon Plc, the country's biggest listed lender, declined 1.29 percent and Carson Cumberbatch Plc dropped 2.91 percent.

Sri Lanka Telecom Plc dropped 1.41 percent and Hatton National Bank Plc ended 1.16 percent weaker.

Yields on treasury bills have risen to a more than four-year high since October, while the central bank has kept key policy rates on hold. 

($1 = 151.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Nimal Perera resigns as Royal Ceramic MD; Wants to Re-enter Stock Broking

By Ishara Gamage

Sri Lanka's outgoing Royal Ceramic PLC's (RCL) Managing Director and one-time high net worth investor Nimal Perera, a close confidante of business tycoon Dhammika Perera said that he will re-enter the stock broking business with an acquisition of the struggling existing stock brokerage.

After 13 years of continued services as a CEO/Managing Director of the Royal Ceramic PLC, Nimal Perera has resigned from the company on Tuesday (7th) to build his own business in stock broking, money broking, and manufacturing sector.

He said during his 13 year period, company's assets grew from Rs 500 million to present
Rs 5 billion levels and profitability also grew from Rs 40 million level to Rs 4 billion level.

"Now I'm 58 years old and there will be only a few more years to work before the retirement. So, I decided to build my own businesses with my two sons who were nearing completion of their overseas higher education," he told Ceylon FT.

He said he will soon acquire the existing stock brokerage and money brokerage and plans to enter a suitable manufacturing business.

In 2013 March Perera was first reported as entering the stock broking industry again together with RCL through a deal to buy 51 % control of New World Securities Ltd (NWS). He bought a 32 per cent stake under his personal account whilst RCL purchased a 19 %.

Perera continues to hold the Mercantile Produce Brokers Ltd (MPB) which he bought through his investment arm Don Wilbert Capital for Rs 200 million in 2014.

Nimal Perera last year sold his controlling shareholding of Kalamazoo Systems PLC, a provider of printing solutions for Rs 36 million.

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Sri Lanka 03-month Treasury Bill yield reaches 9.47-pct

ECONOMYNEXT – Sri Lankan Treasury Bill yields rose across the board at Wednesday’s auction with the 03-month bill yield rising 09 basis points to 9.47%, the debt office of the central bank said.

The yield on the 06-month bill rose 12 bp to 10.39% at the auction while the 01-year bill yield rose 08 bp 10.74%, a statement said.

The debt office got bids worth Rs49 billion and accepted bids of Rs14.4 billion.