Rights Issue by Palm Gardens Hotels PLC

Palm Gardens Hotels PLC is to offer a Rights Issue of 32,450,250 ordinary shares at Rs. 55.00 each in the proportion of 03 ordinary shares for every existing ordinary share as at the relevant date.

The current stated capital of Palm Gardens Hotels PLC is Rs. 651,327,020 represented by 10,816,750 ordinary shares.

The proceeds of the issue are to be utilized for the construction of a star class hotel and repay existing debts.
www.adaderana.lk

Trading of Ascot Holdings shares resume: New hotel at Yala

Though trading of Ascot Holdings PLC shares was suspended this morning due to a discrepancy in the notice issued to the Colombo Stock Exchange (CSE), trading has resumed again by now.

A CSE spokesman told adaderanabiz.lk that trading resumed since the discrepancy had been rectified.

Meanwhile, Ascot Holdings PLC states that it is to issue shares with attached warrants by way of a rights issue to construct a hotel in the Yala region.

Ascot Holdings is to issue 3.9 million shares in the proportion of one new ordinary share at Rs. 12.50 each for every two existing ordinary shares.

Apart from this, 998,188 share warrants are to be issued at Rs. 25.00 each.

Upali Mendis was appointed recently as chairman of Ascot Holdings PLC and in January 2013 Ascot Holdings bought 80% shares of the concrete block manufacturing entity Amtrad Limited for Rs. 6.2 million.
www.adaderana.lk

Sri Lanka’s First Capital profits up to Rs 218 mn in June

Aug 13, 2014 (LBO)- Sri Lanka's First Capital Holdings said profits in the first quarter ending June 2014 soared by 230 percent to 218 million rupees , benefiting from lower interest rates and higher trading volumes.

Sri Lanka's First Capital Holdings said profits in the first quarter ending June 2014 soared by 230 percent to 218 million rupees , benefiting from lower interest rates and higher trading volumes.

The group has recorded a turnover of 577 million rupees up 17 percent over the corresponding period of the last year, the company said in a Colombo stock exchange filling.

Net trading income for the three months increased by 71 percent to 254 million rupees.

“The Group’s leading subsidiary First Capital Treasuries Limited had continued to be the main contributor to revenue and profits in the period under review,” Manjula Mathews, Managing Director of First Capital Holdings was quoted in the media release.

“The declining interest rates presented opportunities with increased activity across the yield curve contributing to higher trading volumes.”

First Capital Treasuries Limited launched a medium to long term repurchase agreement called ‘Platinum Bond’ backed by Government Securities, raising a total fund in excess of 700 million rupees.

First Capital Treasuries is one of four non-bank primary dealers in the country.

Sri Lanka stocks edge up on high turnover

(Reuters) - Sri Lankan stocks rose on Wednesday to end at a near three-year closing high as falling interest rates left investors with few options but to invest in risky assets despite foreign outflows.

Stockbrokers, however, expect a correction during the week, as the market is overbought with the index gaining for seven straight sessions.

The main stock index, closed 0.09 percent, or 6.24 points firmer at 6,954.14, its highest close since Sept. 12, 2011. It has risen 17.6 percent so far this year.

Turnover was 1.82 billion rupees ($14 million), much more than this year's daily average of 1.12 billion rupees.

"The market is struggling simply because it is near its psychological barrier of 7,000," said Dimantha Mathew, manager, research at First Capital Equities (Pvt) Ltd.

"We are expecting bit of a correction on some high networth and blue-chip shares which are overvalued but the rest of the market is positive."

Analysts said hopes of a policy rate cut on Friday and a further fall in interest rates helped boost turnover. Yields in government treasury bills fell 9-14 basis points at a weekly auction on Wednesday.

Better corporate earnings and continued foreign buying too have helped maintain positive sentiment.

Foreign investors were net sellers for the first time in nine sessions. They sold a net 70 million rupees worth of shares on Wednesday. But foreigners have been net buyers of 12.22 billion rupees worth of shares so far this year.

Nestle Lanka Plc, which led the overall index's gain, rose 4.63 percent, while Sri Lanka Telecom Plc gained 1.09 percent.

Commercial Bank of Ceylon Plc, the country's biggest listed lender, rose 0.56 percent to 143.70 rupees. 

(1 US dollar = 130.2000 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Sri Lanka stocks close up 0.1-pct

Aug 13, 2014 (LBO) - Sri Lanka's stocks closed in the green on Wednesday with beverage stocks gaining while tobacco stocks losing ground, brokers said.

The Colombo benchmark All Share Price Index closed 6.24 points higher at 6,954.14, up 0.09percent. The S&P SL20 closed 2.74 points higher at 3,820.26, up 0.07 percent.

Turnover was 1.82 billion rupees, up from 1.20 billion rupees a day earlier with 114 stocks closed positive against 84 negative.

Access Engineering closed 20 cents lower at 27.30 rupees with two off-market transactions of 412.50 million rupees changing hands at 25.50 rupees per share contributing 23 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 32 percent of the turnover.

Ascot Holdings closed 16.50 rupees higher at 106.40 rupees attracting most number of trades during the day following a temporary halt in the trading of its shares.

Foreign investors bought 178.09 million rupees worth shares while selling 84.40 million rupees worth shares.

Nestle Lanka closed 97.40 rupees higher at 2,199.00 rupees, contributing most to the index gain.

Ceylon Tobacco Company closed 43.90 rupees lower at 1,153.80 rupees.

Sri Lanka Treasuries edge lower

Aug 13, 2014 (LBO) – Sri Lanka's Treasuries yields dropped across maturities at Wednesday's auction with the 12-month yield falling 14 basis points to 6.31 percent, data from the state debt office showed.

The 3-month yield fell 9 basis points to 6.19 percent and the 6-month yield also dropped 9 basis points to 6.30 percent.

The debt office said 1.00 billion rupees in 3-month bills, 2.00 billion in 6-month bills and 10.59 billion in one year bills totaling 13.59 billion rupees were sold after offering 12.00 billion for rollover.


Related News:

Vallibel One exits apparel biz with Rs. 138 m capital gain

Business leader Dhammika Perera’s Vallibel One Plc has exited from the apparel business with a capital gain of Rs. 138 million.

The company said it divested the total shareholding in Orit Apparels Lanka Ltd., amounting to a 50% stake. The shares were divested at Rs. 40.27 or $ 0.3098 per share. The price is equal to Orit’s net asset per share. The sale had realised a net capital gain of Rs. 138 million.

The buyer was Orit Chairman Channa Palansuriya who held the balance 50%.

The premier denim specialist manufacturer in Sri Lanka, Orit Apparels, produces over 8.5 million pieces annually, exporting to some of the most prestigious brands around the world. Orit is one of the three key product development centers for Levi’s.

Eight plants manned by a team of over 6,000 produce specialised apparel for Levi’s USA, Levi’s Europe, Gloria Vanderbilt, Kohls, Sears, Macy’s, Next, Ralph Lauren, Jessica Simpson, Kenneth Cole, Bon Ton and Rachel Roy.

Orit Apparels in FY14 posted a turnover of Rs. 9.78 billion whilst it suffered a loss of Rs. 
134 million.

Vallibel One in FY14 posted an after tax profit of Rs. 3.06 billion, down by 1.2% over the previous year. Net profit attributable to equity holders was Rs. 1.57 billion, down by 27% from FY13. Group turnover grew by 46% to Rs. 48.33 billion.

Vallibel One holds 64.3% of LB Finance Plc, 51% in Royal Ceramics Plc., 15% in Sampath Bank Plc., 20% in Waskaduwa Beach Resorts Plc, 62% in Delmege Ltd., and 100% in Greener Water Ltd.
www.ft.lk