Sri Lanka's LOLC to continue growth path after Orix exit: Official

ECONOMYNEXT - Sri Lanka's LOLC group will continue its growth path after the exit of Japan's Orix, which had a 30 percent stake, Group Managing Director Kapila Jayawardene said.

LOLC will focus on micro-finance and growth with acquisitions in Asian markets, he said.

"I expect the growth trajectory to continue," Jayawadene said.

Orix sold its stake for 12.8 billion rupees to LOLC Holdings, privately held company controlled by Deputy Chairman Ishara Nayakkara taking 29.9 percent.

Orix had been a passive investor in the LOLC for many years.

The Orix stake was traded at 90 rupees, below the previous close of 111 rupees.

The stock was up 6.50 at 117.50 rupees in intra -day trading after the Orix deal.

Sri Lanka February vehicle registrations up 26-pct

ECONOMYNEXT - Sri Lanka's vehicles registrations rose 26.6 percent from a year earlier to 37,354 in
February 2018, with motor cars up 131 percent to 4,949 units and broad-based double digit growth in all categories, data compiled by an equities research house shows.

Total registrations of all vehicles in February was down from 42,783 unit in January, with working days down in the second month of the year, J B Securities, a Colombo-based equities brokerage said in an analysis of Sri Lanka's vehicle registry data.

Van registrations were up 73 percent from a year earlier to 1,000 and marginally down from 1,085 in January.

Three wheeler registrations were up 63 percent to 1,477 from a year earlier and slightly down from 1,544 in January.

The three wheelers became the car of the craftsmen and the public transport, ambulance and goods a haulage vehicle less affluent households especially in rural areas.

The current administration delivered an interventionist blow to people's aspirations by pushing up taxes and restricting credit to three wheelers.

There was also a collapse of the currency in 2015 and 2016 pushing up inflation. The administration took a drubbing in local elections last month.

Out of the 4,849 cars registered 773 were brand new and 4,042 pre-owned. Many so-called pre-owned vehicles are 'registered-de-registered' cars imported from Japan with zero mileage.

In February 2,681 vehicles registered were hybrids. Of that 1,836 were Wagon R models. Among vans Suzuki led with 618 out of a 1,000 units.

Sri Lankan stocks edge up as financials lead

Reuters: Sri Lankan shares ended firmer on Thursday led by financials, edging up from a nine-week closing low hit in the previous session, with block deals boosting turnover on the last trading day of the current fiscal year.

The Colombo stock index ended 0.57 points firmer at 6,476.78, edging up from its lowest closing level since Jan. 23 hit on Wednesday. The markets will be closed on Friday for a holiday.

The index rose 0.51 percent on week, its first weekly gain in five, but has fallen 1.14 percent this month.

“A number of crossings went through today and that helped to push the turnover. Being the last day of the financial year, we saw some window-dressing in some stocks,” said Dimantha Mathew, head of research at First Capital Holdings.

Shares in Sofltogic Holdings Plc rose 10.3 percent, while the biggest listed lender Commercial Bank of Ceylon Plc ended 1.9 percent.

Ceylinco Insurance Plc climbed 7.4 percent, while Dialog Axiata Plc inched up 0.7 percent.

Turnover stood at 3.5 billion rupees ($22.49 million), well above this year’s daily average of around 1.2 billion rupees.

Foreign investors bought a net 2.7 billion rupees worth of shares on Thursday, but they have net sold 2.6 billion rupees worth equities so far this year.

Political uncertainty and worries over a slowing economy weighed on sentiment, brokers said.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released showed last week.

Prime Minister Ranil Wickremesinghe is facing a no-confidence motion, which will be debated on April 4 before voting, with analysts saying support from many political parties will be needed for Wickremesinghe to clear the vote. 

($1 = 155.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lankan stocks mark 9-wk closing low; turnover at 7-yr high

Reuters: Sri Lankan shares hit a nine-week closing low on Wednesday, but turnover touched a seven-year high as foreign investors exited from Lanka ORIX Leasing Company Plc.

The Colombo stock index ended 0.23 points weaker at 6,440.20, its lowest closing level since Jan. 23.

LOLC Holdings (Private Ltd) bought nearly 30 percent stake in its own subsidiary, Lanka Orix Leasing Company Plc, from ORIX Corporation of Japan, the company said in a disclosure to the bourse.

The Japanese firm’s stake sale resulted in a foreign fund outflow of a net 12.7 billion rupees ($81.62 million) worth shares on Wednesday, reversing the year-to-date net foreign inflow to a net 5.3 billion rupees worth outflow.

This was the highest net outflow in the last nine years for which data is available.

Turnover stood at 13.4 billion rupees ($86.12 million), the highest since March 16, 2012 and well above this year’s daily average of around 1.2 billion rupees.


“The biggest trade was the LOLC deal. Apart from that, there was no improvement in sentiment as investors are waiting for the outcome of the no-confidence motion against the prime minister,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Losses in shares such as Ceylinco Insurance Plc, which fell 6.8 percent, and Ceylon Theatres Plc, which ended 4.4 percent weaker, offset gains by Lanka ORIX leasing Company and Dialog Axiata Plc, which ended up 2.2 percent.

Shares in Lanka ORIX leasing Company rose 6.3 percent.

Prime Minister Ranil Wickremesinghe is facing a no-confidence motion, which will be debated on April 4 before voting. Analysts say Wickremesinghe needs support from many political parties to survive the vote.

Negative sentiment over the island nation’s slower economic growth also weighed on the market, brokers said.

The index fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed. 

($1 = 155.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lankan stocks fall to lowest close in nine weeks

Reuters: Sri Lankan shares fell on Tuesday to their lowest close in nine weeks as negative sentiment over the island nation’s slower economic growth continued to weigh on the market.

However, foreign investors bought a net 477.1 million rupees ($3.06 million) worth of shares, extending the year-to-date net foreign inflow to 7.4 billion rupees worth of equities.

The Colombo stock index closed 0.13 percent weaker at 6,440.43, at its lowest close since Jan. 23.

The bourse fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed.

“Most investors are on the sidelines waiting for the central bank’s interest rate decision in April,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“But we can see some block trades taking place while foreign investors are also collecting.”

Turnover was 865.9 million rupees ($5.55 million), less than this year’s daily average of around 955 million rupees.

Shares in Ceylon Cold Stores Plc fell 3.9 percent, while conglomerate John Keells Holdings Plc ended 0.4 percent weaker and Lanka ORIX Leasing Company Plc ended 0.8 percent down.

Analysts said an increase in retail fuel prices also weighed on investor sentiment.

Sri Lankan fuel retailer Lanka IOC Plc, which fell 1.6 percent in the session, raised retail prices for gasoline and diesel over the weekend due to losses incurred after the government’s failure to implement a pricing formula. 

($1 = 156.0000 Sri Lankan rupees) 

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

Sri Lankan stocks edge higher from 8-week low

Reuters: Sri Lankan shares crawled higher on Monday from their lowest close in more than eight weeks as blue chip stocks gained, but negative sentiment over the island nation’s slower economic growth weighed on the market.

The Colombo stock index closed 0.08 percent firmer at 6,448.60, edging up from its lowest close since Jan. 24 hit on Friday.

The bourse fell 1 percent last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released last week showed.

Investors are waiting for the central bank’s interest rate decision in April, said Dimantha Mathew, head of research, First Capital Holdings.

Turnover was 1.6 billion rupees ($10.3 million), more than this year’s daily average of around 956.6 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 0.8 percent, while Ceylinco Insurance Plc ended 2.3 percent firmer and biggest listed lender Commercial Bank of Ceylon Plc gained 0.1 percent.

Foreign investors sold a net 354.9 million rupees worth of shares, but they have been net buyers of 6.9 billion rupees worth of equities so far this year.

Analysts said an increase in retail fuel prices also weighed on investor sentiment.

Sri Lankan fuel retailer Lanka IOC Plc raised retail prices for gasoline and diesel, the company said on Saturday, due to losses incurred after the government’s failure to implement a pricing formula. 

($1 = 156.1000 Sri Lankan rupees) 

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

Sri Lankan stocks slip to over 8-week closing low; lower economic growth weighs

Reuters: Sri Lankan shares slipped to their lowest close in more than eight weeks on Friday, led by beverage and telecom stocks as investors remained worried about the island nation’s slower economic growth, brokers said.

The Colombo stock index closed 0.12 percent lower at 6,443.75, marking its fourth session of fall in five. It fell 1 percent this week, in its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

“The market is moving sideways as investors are on the sidelines due to concerns over lower growth. They are also awaiting directions from the policy interest rate decision in April,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings Plc.

Turnover was 953.9 million rupees ($6.11 million), more than this year’s daily average of around 944.8 million rupees.

Shares in Lion Brewery (Ceylon) Plc fell 3.6 percent, Nestle Lanka Plc dropped about 1 percent, Softlogic Holdings Plc slumped 5 percent and Dialog Axiata Plc ended 0.7 percent weaker.

Foreign investors sold a net 58.4 million rupees worth of shares, but they have been net buyers of 7.2 billion rupees worth of equities so far this year. 

($1 = 156.0500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)