Sri Lanka stocks up on foreign buying in Keells

(Reuters) - Sri Lankan stocks closed at six-week highs on Wednesday, led by foreign buying in conglomerate John Keells Holdings Plc, brokers said.

The main stock index ended 0.05 percent, or 2.95 points, firmer at 6,004.78, its highest since Feb. 18.

The days turnover was boosted by the foreign buying in John Keells. Turnover was at 1.95 billion rupees ($14.9 million), more than double of this year's daily average of 915.5 million rupees.

Shares in John Keells, which saw foreign buying of 3.4 million shares, gained 0.73 percent to 234.00 rupees, while Sri Lanka Telecom Plc rose 1.76 percent to 46.20 rupees.

On Wednesday, the bourse saw a net foreign inflow of 852.9 million rupees worth of shares, but foreign investors have been net sellers of 5.81 billion rupees so far this year.

Analysts said investor sentiment was hit following the United Nations announced it would probe alleged war crimes by the island nation.

The UN last week launched an inquiry into war crimes allegedly committed by both Sri Lankan state forces and Tamil rebels during the conflict that ended in 2009, saying the government had failed to investigate properly.

Analysts said the outcome of the resolution was expected, but investors sentiment has been dented over concerns it could hurt the country's economy. Several potential buyers of risky assets are awaiting a clear direction.

The bourse suffered 2.77 billion rupees of foreign outflow on Friday, a day after the resolution was passed. But brokers said the foreign selling was not due to the resolution and the relevant foreign fund has been on the selling side since February. 

($1 = 130.7000 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka stocks close flat

Apr 02, 2014 (LBO) - Sri Lanka's stocks close flat Wednesday with strong foreign buying on the board, brokers said.

The Colombo benchmark All Share Price Index closed 2.95 points higher at 6,004.78 up 0.05 percent. The S&P SL20 closed 17.96 points lower at 3,281.94, down 0.54 percent.

Turnover was 1.95 billion rupees, up from 341.54 million rupees a day earlier with 93 stocks close positive against 76 negative.

All off market transactions accounted for 27 percent of the daily turnover. Foreign investors bought 1.03 billion rupees worth shares while selling 179.94 million rupees worth shares.

Softlogic Holdings closed 1.20 rupees higher at 12.00 rupees, attracting most number of trades.

John Keells Holdings closed 1.70 rupees higher at 234.00 rupees with market transactions of 841.82 million rupees contributing to 43 percent of the daily turnover and contributing index gain.

JKH’s W0022 warrants closed 50 cents lower at 69.00 rupees and its W0023 warrants closed 20 cents lower at 72.80 rupees.

Sri Lanka Telecom closed 80 cents higher at 46.20 rupees.

Ceylon Tea Services closed 39.90 rupees higher at 700.00 rupees and Oil palm firm shalimar closed 94.00 rupees higher at 1,494.00 rupees.

Bukit Darah closed 37.80 rupees lower at 562.00 rupees and Lion Brewery Ceylon closed 18.90 rupees lower at 372.10 rupees.

Ceylon Tobacco Company closed 7.90 rupees lower at 1,067.10 rupees and Aitken Spence closed 2.20 rupees lower at 95.70 rupees.

LOLC closed 1.30 rupees lower at 75.00 rupees and Nestle Lanka closed 1.70 rupees higher at 1,995.00 rupees.

Maximum rates for savings at finance companies made public

By Charumini De Silva

Ceylon FT: The Central Bank yesterday (1) revised and made public, maximum interest rates finance companies could offer for savings and fixed deposits.

The maximum interest rate for savings deposits is 7.58%. For fixed deposits up to one year 11.01%, up to three years 12.01 and over three years 13.51%.

The Central Bank said senior citizens above 55 years may receive 1% more than the above rates.

These maximum rates came into effect on 1 April.

Central Bank Governor, Ajith Nivard Cabraal, said the maximum deposit rate directive had been in force for many years. "We have now decided to inform the public in addition to giving the direction to the finance companies, in order that the process is more transparent," he said.

Central Bank Deputy Governor Dr. Nandalal Weerasinghe, said the directive was placed in order to prevent finance companies offering unnecessarily high interest rates.
www.ceylontoday.lk

CEAT to open new Rs 600 mn radial plant in Sri Lanka

CEAT Kelani Holdings, the company that manufactures half of Sri Lanka’s tyre requirements, has announced a further commitment to the country in the form of an investment of Rs 600 million on a new tyre plant to produce high-end radial tyres.

The new plant is integrated with the sprawling CEAT Kelani manufacturing complex at Kelaniya, enabling it to seamlessly augment production of CEAT branded tyres for the domestic and export markets, the company said.When the new tyre building machines and presses start production in April 2014, CEAT Kelani will increase its radial tyre building and curing capacity by 70 per cent, from 23,000 tyres per month to 39,000.www.island.lk

Sri Lanka bourse gains to 6-week high on blue chips

(Reuters) - Sri Lankan stocks rose to six-week highs on Tuesday, led by blue chips, but trading was light as investors remained on the sidelines awaiting directions after the United Nations announced it would probe alleged war crimes by the island nation.

The main stock index ended 0.56 percent, or 33.52 points, firmer at 6,001.83, its highest since Feb. 19. The index also breached the psychological barrier of 6000 points.

The days turnover was 341.5 million rupees, well below this year's daily average of 897.99 million rupees.

The UN on Thursday launched an inquiry into war crimes allegedly committed by both Sri Lankan state forces and Tamil rebels during the conflict that ended in 2009, saying the government had failed to investigate properly.

Analysts said the outcome of the resolution was expected, but investors sentiment has been dented over concerns it could hurt the country's economy. Several potential buyers of risky assets are awaiting a clear direction.

The bourse suffered 2.77 billion rupees of foreign outflow on Friday, a day after the resolution was passed. But brokers said the foreign selling was not due to the resolution and the relevant foreign fund has been on the selling side since February.

On Tuesday, the bourse saw a net foreign inflow of 181.6 million rupees ($1.4 million) worth of shares, but foreign investors have been net sellers of 6.67 billion rupees so far this year.

Shares in John Keells Holdings Plc gained 2.33 percent to 232.30 rupees, while Ceylon Tobacco Co rose 1.8 percent to 1075.00 rupees. 

($1 = 130.7000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Sri Lanka Hemas Holdings to sell Rs1.0bn debt rated 'A+(lka)': Fitch

Apr 01, 2014 (LBO) - Sri Lanka's Hemas Holdings will sell up to 1.0 billion rupees in senior debt which has been given a expected 'A+(lka)' investment grade rating, Fitch Ratings said.

The funds will be used to re-finance and extend the tenor of existing debt.

Hemas has interests in consumer goods, power, leisure, logistics and healthcare.

The full statement is reproduced below:-

Fitch Rates Hemas Holdings Debt at 'A+(lka)(EXP)' - Fitch

COLOMBO, March 31 (Fitch) Fitch Ratings has assigned Sri Lanka-based Hemas Holdings PLC's (HHP) proposed issue of senior unsecured redeemable debentures of up to LKR1bn an expected rating of 'A+(lka)(EXP)'.

The final rating on the debentures is subject to the receipt of transaction documents conforming to information already received.

The proceeds of the issuance are likely for refinancing existing debt, therefore lengthening HHP's debt maturity profile.

HHP is a holding company (holdco) with key wholly owned subsidiaries operating in fast-moving consumer goods, healthcare and transportation sectors. The company also has majority interests in subsidiaries across leisure and power.

KEY RATING DRIVERS 

Diversified Operations: Hemas' rating reflects the essential nature of and resilient demand for end products and services of its key operating subsidiaries, supported by its low financial risk at the Holdco and Group levels. The rating also factors in the businesses' strong brands, leading market share and moderate free cash flow generation.

Dependence on Subsidiaries Dividends: As a holding company Hemas is dependent on dividends and fees from its operating subsidiaries in order to service debt at the Holdco level. Fitch considers the structural subordination of holdco creditors to be low, because Hemas' key subsidiaries are wholly owned with low leverage. However, should leverage at the holdco and the main, wholly owned operating subsidiaries in manufacturing, pharmaceutical, and transportation increase significantly, there will be negative pressure on the rating. PPA Re-negotiation and Renewal: The power purchase agreement (PPA) of Hemas' main dividend contributing plant Heladhanavi (HD) is up for renewal in Dec 2014. HD is a 100MW plant run as a joint venture between Hemas and state-owned Lakdhanavi. In the event HD's PPA is not renewed the significant contribution to Holdco dividend is likely to reduce. However, Fitch expects this negative impact to be lessened by the fact that the holdco leverage adjusted for its wholly owned subsidiaries is low.

Low leverage and Moderate Liquidity: Fitch expects that the group is likely to maintain financial leverage (measured as gross adjusted debt / Operating EBITDAR) at less than 3.0x over the medium term (Dec-13: 1.9x, FY13: 1.6x), despite ongoing new investments and expansions across the group.

RATING SENSITIVITIES
Negative: Future developments that may individually, or collectively, lead to a negative rating action include: -Financial leverage being sustained above 3.0x at the consolidated level -Increase of financial leverage at the Holdco, manufacturing, pharmaceutical and transportation subsidiaries -Any unforeseen pressures on the credit profile of the subsidiaries or Holdco due to new investments.

Positive: Positive rating action is anticipated in the near term in view of the group's significant investment and expansion plans.

Krishan Balendra appointed chairman of NTB

Apr 01, 2014 (LBO) - Krishan Balendra, has been appointed chairman of Sri Lanka's Nations Trust Bank.

NTB said in a stock exchange filing that Arjuna Gunaratne, who had been on the board of the bank from 2005 is stepping down to comply with a regulatory direction limiting a director's tenure to nine years.

Balendra will take-over from May 01, 2014.

Related News:

http://www.cse.lk/cmt/upload_cse_announcements/6621396332517_.pdf