Sri Lankan shares recover from 10-day low in dull trade

Reuters: Sri Lankan shares snapped a three-session decline to end slightly firmer on Friday, as investors picked up beverage shares in thin volume, brokers said.

The Colombo stock index finished 0.26 percent higher at 6,572.70, edging up from its lowest close since Oct. 10 hit in the previous session. But the bourse fell 0.9 percent for the week, recording its first weekly fall in six.

“Some retail activities in mid-cap shares helped the market to end higher. The retail activities gave some boost to investor sentiment,” said Atchuthan Srirangan, senior research analyst, First Capital Holdings PLC.

“Foreign investors were net buyers for the day and that also helped the market to end up.”

Shares of Ceylon Tobacco Company Plc ended 3 percent higher while Chevron Lubricants Lanka Plc closed 4.6 percent up and Nestle Lanka Plc finished 2.6 percent firmer.

Turnover was 568.1 million rupees ($3.70 million), less than this year’s daily average of 938 million rupees.

Foreign investors were net buyers of shares worth 51.9 million rupees on Friday extending the year-to-date net foreign inflow to 19.1 billion rupees worth of shares.

($1 = 153.6500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

East West Group records Rs 288 mn revenue for F/Y ended March 31, 2017

The East West PLC Group has recorded a Rs 288 million revenue for the year ended March 31, 2017. This revenue was recorded from warehousing, self storage rental, supply of ready mix concrete, broadcasting and media, equipment trading and apartments rental income.

During the financial year under review warehouse were successful with continued tenancy said Chairman, Nahil Wijesuriya.

High occupancy was achieved with revenue of Rs. 35.3 million which was 45% higher than the last year. As the hotel project was over, the company managed to rent out the area which was utilized by the hotel project to Nor Lanka Manufactures Colombo Ltd. Self storage rental income contributed Rs 6.1 million to the company turnover. During the financial year under review the Group recorded finance expense of Rs 180 million. This includes Rs159.4 million of exchange loss incurred by the depreciation of the Sri Lanka rupee against the US Dollar. However compared to the corresponding periods finance expenses of Rs. 214 million was 16% lower than the last financial year. Since the Weligama Marriot Hotel Properties Limited has been completed and commenced its commercial operations we expect 70% occupancy through the year and the Group will receive new revenue streams. The hotel will be managed by the Marriott International, Luxury Hotel management (BV$) Limited.

Meanwhile East West Properties Chairman, Nahil Wijesuriya in a stock market filing informed that he has transferred his majority stake in East West Properties PLC, which has a subsidiary operating a Marriot hotel in the country’s south coast, to his two sons and the daughter in a Rs.1.1 billion deal. Following the transaction, Vajira Wijesuriya has 21.3 percent stake in East West Properties, Vijitha Wijesuriya has 25.83 percent stake and Anika Wijesuriya has 21.55 percent stake.All four involved in the transaction are directors of East West Properties, which is currently in the Default Board of the Colombo Stock Exchange for the non-submission of annual reports for the year ended March 31, 2017.
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