Sri Lankan shares fall on profit-taking; cues from new finmin awaited

COLOMBO May 23 Sri Lankan shares fell for a second straight session and hit a near one-week low on Tuesday on profit-taking, while investors cautiously awaited policy direction from the country's new finance minister.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration's handling of the economy.

The Colombo stock index ended 0.55 percent weaker at 6,689.96, its lowest close since May 15.

The bourse recorded its highest close since Jan. 7, 2016 on Friday.

The index rose 0.83 percent last week and has climbed 11 percent since March 31 through Friday.

Turnover stood at 807.7 million Sri Lankan rupees ($5.29 million), less than this year's daily average of 886.5 million rupees.

"Market took a breather as there was a bit of a retail selling while local participation was low," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

"The turnover levels are still good and we see continued foreign buying, a good sign."

Foreign investors net bought shares worth 527.6 million rupees worth of equities on Tuesday, extending their year-to-date net inflows to 18.5 billion rupees.

Shares in Lion Brewery Plc fell 9.89 percent while Nanda Investment Plc fell 13.17 percent.

Ceylon Cold Stores Plc ended 2.59 percent weaker while the biggest listed lender, Commercial Bank of Ceylon Plc , fell 1.09 percent.

($1 = 152.6500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Sri Lanka's Alumex March quarter net up 25-pct

ECONOMYNEXT – Alumex, the aluminium extrusions subsidiary of Sri Lanka's Hayleys group, said net profit rose 25 percent to 263 million rupees in the March 2017 quarter from a year ago.

Sales increased 27 percent to 1.5 billion rupees, according interim accounts filed with the stock exchange, which also showed much higher tax costs.

Quarterly earnings per share were 88 cents. Alumex shares last traded at 24.10 rupees.

Alumex Group has a dominant market share and has increased capacity to meet growing demand from the booming construction sector.

EPS for the financial year ending 31 March 2017 were 2.52 rupees, with annual net profit up 28 percent to 753 million rupees and sales growing 18 percent to 4.7 billion rupees.

Islamic Development Bank to buy more stock in Sri Lanka's Amana

ECONOMYNEXT - Islamic Development Bank will invest more cash in Sri Lanka's Amana Bank Plc through an investment vehicle.

Amana Bank said in a stock exchange filing that approval had been given for the investment group to go up to 29.9 percent of the stock by subscribing to a cash call.

IB Growth Fund (Labuan) LLP, which is a subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD), will buy stock in in an upcoming rights issue. ICD is owned by Islamic Development Bank.

The investment deal was inked on May 18 in Jeddah, Saudi Arabia, the firm said.

Sri Lanka's Janashakthi Insurance net down in March quarter

ECONOMYNEXT - Sri Lanka's Janashakthi Insurance Plc said profits fell 39 percent in the March 2017 quarter from a year earlier amid a spike in claims, but the firm has posted double-digit growth in gross written premium.

Janashakthi Insurance reported earnings of 40 cents per share for the quarter. The firm said life premiums grew 16 percent and non-life rose 14 percent.

After re-insurance costs, net written premiums also grew 9.6 percent to 3.0 billion rupees.

Investment income increased 39 percent from a year earlier to 600 million rupees in the quarter.

Claims payments rose 15 percent to 1.77 billion rupees.

“I am happy to report that both our Life and Non-Life businesses continue to register double-digit growth through the first quarter of 2017, allowing us to kick off financial year 2017 on a positive note despite a rise in claims payments," Managing Director Prakash Schaffter said in a statement.

Total assets grew to 32.7 billion rupees from 32.1 billion rupees. Equity was 8.59 billion rupees, from 9.0 billion rupees a year earlier.

Sri Lankas' First Capital Holdings return to profit in March quarter

ECONOMYNEXT - Sri Lanka's First Capital Holdings Plc, which has interests in investment banking and securities trading, reported profits of 94 million rupees in the March 2017 quarter, against a loss of 86 million rupees, a year earlier.

The firm reported earnings of 94 cents per share.

Group revenues rose to 842 million rupees from 394 million rupees a year ealier, while costs rose to 725 million rupees from 278 million rupees.

Capital gains on trading rose to 67 million rupees from a loss of 109 million rupees a year earlier.

The group said First Capital Treasuries Plc, its primary dealer unit, was the key contributor to profits, making gains on its securities portfolio.

First Capital Limited, which deals in corporate debt, mobilized 12.4 billion rupees from corporate debt. But it was hit by higher funding costs and losses on trading securities, the firm said.

"Despite the setback experienced in the preceding quarters, the Group is optimistic in its outlook and has planned several calculated improvements to its operations," Group Chief Executive Dilshan Wirasekara said.

Sri Lanka Hayleys March net down 8-pct to Rs1.3bn

ECONOMYNEXT – Sri Lanka’s Hayleys group said net profit fell 8% to Rs1.3 billion in the March 2017 quarter from a year ago.

Sales of the group, whose core businesses span transportation, purification, agriculture, construction materials and power rose19% to Rs29.2 billion, a stock exchange filing said.

The accounts showed finance costs rose 74% to just over a billion rupees in the March 2017 quarter.

Quarterly earnings per share were Rs17.63. The company’s share was last traded at Rs293.90.

“Over the final quarter of the year, the group’s performance received a strong boost, particularly from its agriculture, construction and transport segments, to finally register turnover growth of 19% year-on-year, up to Rs. 29.2 billion,” a statement said.

“Results from operating activities rose to Rs. 3.52 billion, reflecting 24% YoY growth. Similarly, profit before tax (PBT) for the final quarter rose by 9% YoY to Rs. 2.96 billion.”

The accounts showed EPS fell to Rs37.12 in the financial year ending 31 March 2017 from the year before with annual net profit down 11% to Rs2.8 billion while sales rose 21% to Rs111.4 billion.

The Hayleys statement said sales were supported by strong performances across the group’s core businesses.

“This led to a substantial 14% YoY improvement on the group’s results from operating activities, which closed the year at Rs. 9.67 billion,” it said.

“Moving forward we will continue to consolidate our operations with a view to further strengthening overall profitability while also exploring opportunities to expand growth within our current business segments.” Hayleys chairman and chief executive, Mohan Pandithage said.

All of the group’s top five performing sectors posted pre-tax profits in excess of Rs. 1 billion.

Transportation and Logistics recorded a PBT of Rs. 1.79 billion, Purification Products posted a PBT of Rs. 1.18 billion, and the Group’s Agriculture segment achieved a PBT of Rs. 1.1 billion.

The group’s Power and Energy sector achieved a PBT of Rs. 1.02 billion whilst commissioning one of Sri Lanka’s largest Solar Power plant of 10MW during the year, Hayleys said.

The Construction Materials segment posted a PBT of Rs. 1.02 billion during the period under review.

Sri Lankan shares fall on profit-taking in blue chips

Reuters: Sri Lankan shares edged down on Monday as investors booked profits in blue chips such as John Keells Holdings Plc, with analysts saying the market was waiting for policy direction from newly-appointed finance minister Mangala Samaraweera.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration's handling of the economy.

The Colombo stock index ended 0.04 percent weaker at 6,726.90, slipping from its highest close since Jan. 7, 2016 hit on Friday.

The index rose 0.83 percent last week, and has climbed 11 percent since March 31 through Friday.

Turnover stood at 335.6 million rupees ($2.20 million), well below this year's daily average of 887.3 million rupees.

"The market is struggling to break the current psychological level. The market need a bit of a breather before it kickstarts again. We are seeing a bit of profit-taking," said Dimantha Mathew, head of research, First Capital Holdings PLC.

Foreign investors net sold shares worth 30.6 million rupees on Monday, but they have net bought 17.98 billion rupees worth of shares so far this year.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 3.41 percent, while conglomerate John Keells Holdings Plc ended 0.30 percent weaker. 

($1 = 152.5000 Sri Lankan rupees) 

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