Sri Lanka to sell US$3.0bn in dollar bonds

ECONOMYNEXT - Sri Lanka has raised a limit on selling dollar denominated Sri Lanka Development Bonds to 3.0 billion in 2017, the government said.

The cabinet of ministers had approved a proposal to more dollar debt, by Finance Minister Ravi Karunanayake.

The move was due to 'low liquidity' in Treasury bills and bonds, a statement said.

Dollar denominated SLDB's are sold to mainly to domestic investors who are permitted to have foreign currency accounts, including banks and exporters.

Sri Lanka Treasuries yields drop

ECONOMYNEXT - Sri Lanka's Treasuries yields dropped at Wednesday's auction with the 12-month yield falling 09 basis points to 11.02 percent, data from the debt office showed.

The 6-month yield dropped 09 basis points to 10.70 percent.

All bids for 3-month bills were rejected.

The debt office sold 14.5 billion rupees of 6-month bills and 15.0 billion in 12 month bills.

Sri Lankan shares end higher as foreign investors pick blue chips

Reuters: Sri Lankan shares closed higher on Wednesday after two straight sessions of losses as foreign investors actively bought into blue chips, with the net stock buys touching nearly 15 billion rupees so far in the year.

Foreign investors bought shares for a 24th straight session, buying a net 318.6 million rupees ($2.10 million) worth of stocks on Wednesday.

They have snapped up a net 12.4 billion rupees worth equities during the period and a net 14.9 billion rupees worth year-to-date.

The Colombo stock index ended 0.36 percent firmer at 6,516.26.

The index has climbed 9.1 percent in the 19 sessions through Wednesday, having risen for 16 sessions in that period.

It added 2.1 percent last week, marking its fourth week of gains.

"Foreigners are very active and buying aggressively, while local investors are cautiously waiting to buy," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Turnover stood at 1.44 billion rupees, higher than this year's daily average of 882 million rupees.

Market heavyweight John Keells Holdings gained 1.1 percent, while Ceylon Tobacco Company rose 0.6 percent.

($1 = 151.9000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lankan shares edge down on profit taking, foreign-buying caps fall

Reuters: Sri Lankan shares edged down for a second day on Tuesday as investors took profit after steady gains that lifted the index to a six-and-a-half-month high last week, although foreign buying for a twenty-third straight session capped the decline.

The Colombo stock index ended 0.2 percent weaker at 6,492.77, moving further away from its highest close since Oct. 11 hit on Friday. It has climbed 9.4 percent in the 16 sessions through Friday, having risen for 15 sessions in that period.

The index added 2.1 percent last week, marking its fourth week of gains.

"This is profit taking as the index went up by almost 500 points early this month. But foreign investors are still on the buying side," said Prashan Fernando, CEO at Acuity Stockbrokers.

Foreign investors bought 204.3 million rupees worth of equities on a net basis and have been net buyers in the last 23 sessions, acquiring equities worth a net 12.1 billion rupees ($79.74 million).

The year-to-date net foreign inflow is 14.6 billion rupees.

Turnover stood at 986.6 million rupees, higher than this year's daily average of 874.6 million rupees.

Market heavyweight John Keells Holdings lost 1.3 percent, while top private lender Commercial Bank of Ceylon fell 0.3 percent, dragging the overall index.

($1 = 151.7500 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lanka's IOC unit keeps economy oiled

ECONOMYNEXT - Lanka IOC, a unit of Indian Oil Corporation is maintaining deliveries to its network of fuel stations, a top official said as pumps ran dry in distributors of state-run Ceylon Petroleum Corporation amid a strike.

Lanka IOC owns operates about a third of the retail fuel market in the country, after a monopoly of the CPC was broken in a privatization drive, vastly improving the quality of fuel and fuel stations.

A common user facility Ceylon Petroleum Storage Terminals, in which Lanka IOC, which operates in Colombo has also been hit by strike action.

An LIOC official said the firm was transporting fuel from a tank farm in Trincomalee in the north east of the country.

Unions are opposing a joint development of remaining tanks in Trincomalee port, which they say is further privatization of state assets.

A strike leader claimed that reduced fuel distribution would boost the economy.

Strike leaders who have had links to Sri Lanka Freedom Party and the Janatha Vimukthi Peramuna have opposed privatization, and have wanted them kept under the control of the elected ruling class ensuring that the SOEs like Ceylon Petroleum Corporation is overstaffed and rife in procurement corruption.

Sri Lankan shares fall from six-month high on profit taking

Reuters: Sri Lankan shares fell on profit taking on Monday after reaching a six-month closing high and gaining 9.4 percent in the previous 16 session as foreign investors bought risky assets.

The Colombo stock index ended 0.45 percent weaker at 6,505.95, from its highest close since Oct. 11 hit in the previous session. It has climbed 9.4 percent in the 16 sessions through Friday, having risen for 15 sessions in that period.

The index added 2.1 percent last week, marking its fourth week of gains.

"This is a typical settling in market. Foreign focus has slightly changed ... but foreign buying is continuing," said Hussain Gani, deputy CEO of Softlogic Stockbrokers.

Foreign investors have been net buyers in the last 22 sessions, acquiring equities worth a net 123.3 million rupees ($811,184). The year-to-date net foreign inflow is 14.4 billion rupees.

Turnover was moderate on Monday at 530.3 million rupees, less than of this year's daily average of 873.1 million rupees.

Market heavyweight John Keells Holdings lost 0.9 percent, while top private lender Commercial Bank of Ceylon fell 1.3 percent, dragging the overall index.

($1 = 152.0000 Sri Lankan rupees) 

(Reporting by Shihar Aneez, editing by Larry King)

Nestle posts record profit in 2016, pays 80-rupee dividend per share

Nestle Lanka PLC, one of the highest dividend payers quoted on the Colombo Stock Exchange has posted an all time high profit after tax of nearly Rs. 4.39 billion, up from Rs. 4.12 billion the previous year, and the directors have proposed a final dividend of Rs. 40 per share on top of the Rs. 40 interim already paid.

Analyst note that Nestle is dominantly owned by its Swiss principal, Nestle S.A. owning 90.82 percent of the Lankan unit. All other shareholders including, some foreign funds, own less than 1%. But there are over 5,300 shareholders on the register, the majority (4,848) owning up to a thousand shares each.

The Nestle share traded between Rs. 1,903.30 and Rs. 2,445 in 2016 closing at Rs. 2,001.90 on Dec. 31.

The company’s chairman, Mr. Suresh Narayanan said in the recently release annual report that "despite a very difficult year," Nestle had delivered steady results and healthy returns to its shareholders as a result of "a strategic combination of agility, consumer centricity, innovations and focus on lean value stream."

Noting that the company had been here for over 110 years, and has been rated the top Food and Beverage Company in LMD’s Most Respected Entities for 2016, he promised that they would leverage their global expertise and local know-how to innovate and renovate their products.

The company pumped over six billion rupees into the rural economy during the year under review paying Rs. 3.8 billion to 21,000 local dairy farmers for their milk and Rs. 2.3 billion to nearly 6,000 coconut growers for fresh coconuts.

Nestle has been exporting coconut milk powder processed at it Kurunegala factory since 1986. The product manufactured from 80 million fresh high quality coconuts annually is now exported to over 50 countries globally making Nestle Lanka one of the largest coconut milk powder exporters in the world.

The company’s Managing Director Shivani Hegde said that despite challenges including volatile market conditions and significant uncertainties they were able to grow their business and market share across most categories.

She said that they have invested Rs. 500 million in a new state-of- the-art ultra heat treated milk plant at their factory and continues to invest in dairy farmers and coconut growers in the rural economy.

The Nestle product portfolio includes Nestomalt, Milo, Nespray, Maggi, Nescafe, Milkmaid, a range of breakfast cereals and many more.

The directors of the company are Messrs. Suresh Narayanan, Ms. Shivani Hegde, Jagdish Kumar Singla, Shobinder Duggal, Mahen Dayananda and Ranjan Seevaratnam.