CSE requests clients of barred broker firms to transfer their stocks

LBO – Colombo Stock Exchange on Tuesday requested the clients of stockbroker firms whose trading activities have been prohibited due to non-compliance, to transfer their securities portfolios to any other firm if they want.

The CSE further revealed that these barred broker firms will only be permitted to resume all trading activities no sooner they comply with the Minimum Capital Adequacy Requirements and Minimum Shareholders’ Fund Requirement, as applicable.

The following four stockbroker firms have been prohibited from carrying out trading activities due to non-compliance with Rule 5.1.1 and Rule 5.2.1 of the stockbroker rules.

Renuka Tower mixed development project begins in Sri Lankan capital

ECONMYNEXT – Sri Lanka’s Renuka Holdings group said one of its subsidiaries had started construction work on a high rise mixed development property in which equity investment will be over Rs3.2 billion, partly funded by a foreign investor.

The subsidiary, Galle Face Properties Ltd. had started construction work on the 32-storey ‘Renuka Tower’ in the Colombo 3 ward on 22 April, a stock exchange filing said.

The mixed development project will have ‘A grade’ office space, office amenities, service suites, recreational areas and ample parking, it said.

It is situated between Beira Lake and the Galle Face Green esplanade.

The project will be funded with a mix of debt and equity, with part of the latter coming from a prospective overseas investor, the company said.

Sri Lanka 01-year Treasuries yield falls to 9.59-pct

ECONOMYNEXT – Sri Lankan Treasury Bill yields fell again at an auction Wednesday with the one-year Treasury Bill yield down 06 basis points to 9.59% from 9.65% last week, data from the state debt office showed.

The debt office accepted 25 billion rupees in bids from the market for the one-year bills, after offering only 20 billion rupees of bills and getting bids worth almost 70 billion rupees.

Bids for 5.0 billion rupees of 6-month bills were rejected but the debt office accepted 3.0 billion rupees in 3-month bills, the same amount offered, with its yield dropping 05 basis points to 8.10%.

Sri Lanka’s Bogala Graphite back in profit in March quarter

ECONOMYNEXT – Sri Lankan graphite miner Bogala Graphite bounced back into profit in the March 2018 quarter with net earnings of Rs44 million from a loss of Rs4.2 million the year before when the mine was closed after a fatal accident.

Sales of the firm, controlled by Germany's Graphit Kropfmuhl Gmbh, rose 25% to Rs224 million in the period, according to interim results filed with the stock exchange.

Bogala Graphite Lanka had made a loss of Rs.17.1 million in 2017 as the mine was closed from January to June 2017 after a mine worker died and also because of the cost of an early retirement scheme to shed staff.

Sri Lankan stocks gain on foreign buying

Reuters: Sri Lankan shares edged higher on Wednesday from their lowest close in more than one week as foreign buying provided some support to the market amid continued political uncertainty, stockbrokers said.

Foreign investors bought shares worth a net 315.9 million rupees ($2.0 million) on Wednesday, but they have been net sellers of 999.5 million rupees worth of equities so far this year.

The market has been awaiting signs of political stability after President Maithripala Sirisena suspended parliament until May 8. A cabinet reshuffle was expected on Monday, but government sources said it had been delayed.

The Colombo stock index ended 0.26 percent firmer at 6,533.63, edging up from its lowest close since April 16 hit on Tuesday. The index gained 0.88 percent last week.

“High level of foreign interest in banking shares such as Sampath Bank helped the index,” said Dimantha Mathew, head of research, First Capital Holdings.

“We have also seen some interest in blue chips after a while.”

Turnover stood at 845.4 million rupees, less than this year’s daily average of 1.1 billion rupees.

Shares of conglomerate John Keells Holdings Plc rose 1.9 percent, while Ceylon Cold Stores Plc ended 3.2 percent firmer.

Distilleries Company of Sri Lanka Plc closed 2.4 percent higher and Sampath Bank gained 1.3 percent. 

($1 = 157.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)