Sri Lankan shares rise as foreign investors buy blue chips

Reuters: Sri Lankan shares edged up from a one-week low on Wednesday as foreign investors bought shares in blue chips such as John Keells Holdings PLC, with turnover hitting a 5-week high.

The Colombo stock index ended 0.32 percent firmer at 6,711.67, from its lowest close since May 15 hit on Tuesday.

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

Turnover stood at 3.56 billion rupees ($23.33 million), its highest since April 19 and well above this year's daily average of 886.5 million rupees.

Foreign investors net bought shares worth 879.4 million rupees, extending their year-to-date net inflows to 19.4 billion rupees.

"Continuous foreign participation improved market sentiment and we see that local participation is also improving which is a good sign," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Shares in Hemas Holdings Plc jumped 5.40 percent, while the biggest listed lender, Commercial Bank of Ceylon Plc , climbed 1.47 percent and conglomerate John Keells Holdings Plc was up 1.19 percent. 

($1 = 152.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

CIC embarks on 2020 re-strategising, retains MTI

• Dedicates 2017/18 for business rationalisation and strategic re-alignment

The diversified conglomerate CIC Holdings has embarked on a major strategic change initiative titled ‘2020 Re-strategising’, which will see the group undertaking an intensive business rationalisation exercise, followed by strategic and organisational re-alignment. MTI Consulting has been retained for this 12-month assignment – covering CIC Holdings, CIC Agri and Chemanex.“In 2013/14 we undertook the first phase of our re-strategising exercise, post which the Group had three successive years of healthy growth. We now embark on the final phase of this strategic change initiative aimed at ensuring a future proof business to meet both the challenges and opportunities in the multiple domains we operate in. This year (2017/18) we plan to go through an intense round of business and organisational rationalisation, so that we are ready for a more profitable 2018/19, with a highly focused business portfolio and a much leaner and agile organisation. In order to facilitate this process, in 2017/18 we need to take a step-back, rationalise and re-focus – with the strategic intent of a much stronger business model and operating performance in 2018/19,” stated Group Managing Director/CEO Samantha Ranatunga, who is spearheading this initiative.Led by their International CEO Hilmy Cader, MTI has assigned a multi-disciplinary team of international and local consultants, analysts and project managers for this CIC assignment.

Commenting on this assignment, Cader said: “Astute organisations recognise the need to challenge and critique its own performance even when the going is good, so as to further strengthen its strategic and operational agility. CIC is well positioned in its three main operating domains i.e. agri, healthcare and industrial solutions. This exercise, while making some conscious rationalisation in 2017/18, will strengthen the business fundamentals and gear up for high growth in 2018/19 and beyond.”
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Sri Lanka’s People`s Merchant Finance sells property for Rs1bn

ECONOMYNEXT - People`s Merchant Finance (PMF) said it had sold a 108-perch property to its parent firm, Sri Lanka’s state-owned People's Bank, for just over a billion rupees that would help settle debt and which may increase profitability.

A stock exchange filing said the related party transaction was done on normal commercial terms after two valuations including one by the government valuer.

The 108.4 perch property is located at No. 21 Nawam Mawatha, Colombo 2, part of the capital’s business district.

The funds will also be used to strengthen People's Merchant Finance’s core capital in order to meet minimum capital requirements set for finance companies.

“The excess money may be used for future expansion of PMF,” the statement said. “It may increase the net interest income and profitability of PMF accordingly.”