Sri Lankan stocks hit near 8-month closing low on foreign investor selling

Reuters: Sri Lankan shares extended falls into a second session on Monday, closing at their lowest in nearly eight months, as foreign investors sold blue chips such as conglomerate John Keells Holdings Plc.

The Colombo Stock Index dropped 0.28 percent to 6,357.41, its lowest close since April 17. It fell 0.6 percent last week in its fifth consecutive weekly drop but has gained 2 percent so far this year.

“Market is coming down on foreign selling on blue chips... maybe foreigners are moving away from equities ahead of the U.S. Fed rate announcement and moving into fixed income (investments),” said Dimantha Mathew, head of research at First Capital Holdings.

“Local investors are not active and are on holiday mood,” he added.

Shares of conglomerate John Keells fell 1.8 percent, Lanka ORIX Leasing Co Plc dropped 0.8 percent and Sri Lanka Telecom Plc declined 1.7 percent.

Turnover was 282.2 million rupees ($1.84 million), well below this year’s daily average of 941 million rupees.

Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on Dec. 4 that the council polls would be held before Feb. 17, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s government had decided to contest separately in the council polls. 

($1 = 153.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

Central Finance increases its shareholding in NTB

Central Finance Company PLC (the “Company”) in terms of Rule 8 of the Listing Rules of the Colombo Stock Exchange, announced that it purchased 2 million two hundred and ninety nine thousand (2,299,000) shares in Nations Trust Bank PLC (“NTB”) from CF Growth Fund Limited (“CF Growth Fund”) by way of a crossing on December 8, 2017. Such shares were purchased at a consideration of Rs. 80 per share.

Pursuant to the purchase of the Rs. 2.299 million shares, the total number of shares held by the company in NTB increased from Rs. 20,715,400 million to Rs. 23,014,400 and the shareholding of the Company in NTB increased from 8.98% to 9.98%.

IT was also announced that CF Insurance Brokers (Private) Limited, which is another fully owned subsidiary of the Central Finance group of companies (“CF Insurance Brokers”) purchased one million shares in NTB held by CF Growth Fund by way of a crossing on December 8 at a consideration of Rs.80.00 per share. Pursuant to this purchase, the total number of shares held by CF Insurance Brokers in NTH increased to Rs. Eleven Million Five Hundred Ninety Two Thousand Eight Hundred and Fifty Seven (11,592, 57) and the shareholding of CF Insurance Brokers in NTB increased from Four Decimal Five Nine percent (4.59 %)] to Five Decimal Zero Three percent ( 5.03 %).

Prior to the abovementioned transactions, the Company, together with CF Growth Fund and CF Insurance Brokers, held twenty percent (20%) of the shares in NIB and consequent to the transactions, the aggregate shareholding of the Company, CF Growth Fund and CF Insurance Brokers in NTB remains unchanged.

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