Sri Lanka inflation declines to 3.5 percent in August 2014

Aug 29, Colombo: Sri Lanka's inflation, as measured by the change in the Colombo Consumers' Price Index (CCPI) , declined to 3.5 percent in August 2014 on a year-on-year basis after rising to 3.6 percent in July, figures released by the Census and Statistics Department Friday showed .

The year on year inflation has been in single digit figures for 64 months continuously.

Annual average inflation, which declined since June 2013, declined further to 4.5 percent in August 2014, from 4.7 percent in the previous month.

The general price level decreased in August 2014 by 0.5 percent for the first time in 10 months compared to the prices in the previous month. The absolute CCPI computed by the Department of Census and Statistics dropped to 182.3 from 183.2 in July.

Decline in prices of certain food items, mainly in vegetables, Potatoes, Red onions, Green Chilies, Coconuts and Sugar offset the rise in prices of rice contributing to the overall decline in the index for August.
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CHC Rest Houses to be developed

The Ceylon Hotels Corporation (CHC) Rest Houses would be developed with an investment of Rs.250 million through the joint venture leisure arm of CHC, Ceylon Holidays Holdings (CHH), a company filing to the stock exchange stated. CHH is a fully owned subsidiary of CHC and Zinc Hospitality Lanka would be investing Rs.250 million for 50 per cent equity in Ceylon Holidays. Zinc Hospitality is the hospitality arm of the multinational conglomerate Cinnovation / CG Group.
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Sri Lanka stocks at over 3-year high on large caps, banks

Aug 29 (Reuters) - Sri Lankan stocks hit more than three-year high on Friday, led by large cap and banking shares as low interest rates and continued foreign buying into risky assets boosted sentiment, brokers said.

The main stock index ended up 0.61 percent, or 42.33 points, at 7,034.09, its highest close since Aug. 16, 2011.

Up to Friday's close, the index had gained 18.96 percent this year.

"With low interest rates and low inflation the market will continue to go up despite being slightly over heated," said a stockbroker asking not to be named.

"We may see profit-taking here and there but it will continue to go up."

The bourse has been trading in an overbought region since July and on Friday the Relative Strength Index, a momentum indicator tracked by chartists, was at 74.982, Thomson Reuters data showed. Stocks are deemed "overbought" above the 70-mark, which tends to signal a reversal in the near-term.

Ceylon Tobacco Co Plc, which led the overall gains in the index, rose 1.37 percent to 1,197.20 rupees, while biggest listed lender Commercial bank of Ceylon Plc rose 1.3 percent to 148 rupees.

Shares in Dialog Axiata Plc rose 0.9 percent to 11.20 rupees.

Friday's turnover stood at 1.14 billion rupees ($8.76 million), slightly below this year's daily average of 1.2 billion rupees.

Foreign investors were net buyers of 101.3 million rupees worth of shares on Friday, extending the year-to-date net foreign inflow to 8.2 billion rupees.

The central bank rejected all 91-day treasury bill bids for the second straight week at an auction, while yields on the 182-day and 364-day treasury bills held steady at a weekly auction on Wednesday. 

($1 = 130.1800 Sri Lankan rupee) 

(Reporting by Ranga Sirilal; Editing by Anand Basu)

Sri Lanka stocks close up 0.6-pct

Aug 29, 2014 (LBO) - Sri Lanka's stocks close 0.61 percent higher on Friday with beverage stocks gaining despite low foreign participation, brokers said.

The Colombo benchmark All Share Price Index closed 42.33 points higher at 7,034.09, up 0.61 percent. The S&P SL20 closed 26.64 points higher at 3,872.51, up 0.69 percent.

Turnover was 1.14 billion rupees, up from 888.75 million rupees a day earlier with 118 stocks closed positive against 79 negative.

Commercial Bank of Ceylon closed 1.90 rupees higher at 148.00 rupees with three off-market transactions of 102.00 million rupees changing hands at 148.00 rupees per share contributing 9 percent of the daily turnover.

Sanasa Development Bank closed 10.70 rupees higher at 103.50 rupees, attracting most number of trades during the day.

Foreign investors bought 165.47 million rupees worth shares while selling 64.13 million rupees worth shares.

Ceylon Tobacco Company closed 16.20 rupees higher at 1,197.20 rupees and Nestle Lanka closed 48.00 rupees higher at 2,148.00 rupees, contributing most to the index gain.

Lion Brewery Ceylon closed 26.70 rupees higher at 632.30 rupees.

MTD Walkers enters property development with Rs. 2 b investment

MTD Walkers Plc is foraying into property development business with an acquisition worth Rs. 2.1 billion.

The company said its Board has approved the purchase of 100% equity in Wincon Development Ceylon Ltd. for Rs. 2.174 billion at Rs. 4.01 per share.

Wincon Development is venture by a Malaysian investor and at present is engaged in a public housing scheme in Galle.

MTD Walkers specialises in construction and engineering and the acquisition signals it foray into real estate and property development given its belief of future upside.
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Sri Lanka bourse edges up on Keells; seen near 3-year high

Aug 28 (Reuters) - Sri Lankan stocks edged up on Thursday, hovering near a three-year high, led by conglomerate John Keells Holdings Plc in low volume trade with foreign investors buying into risky assets, brokers said.

The main stock index ended 0.1 percent, or 6.85 points up at 6,991.76, near its highest close since Aug. 18, 2011 hit on Tuesday.

Analysts said an increase in speculative trading in fundamentally weak shares could dent the healthy growth the index has seen this year.

The index has gained 18.25 percent so far this year.

"The market is slightly over heated that's why we are seeing it stagnate at these levels around 7000 points for a while till the next earnings season," said Dimantha Mathew, manager, research, at First Capital Equities (Pvt) Ltd.

"There is no major reason for the index to come down."

Analysts said the market is struggling to rise above a psychological barrier of 7,000 points which has turned it to a technical barrier now.

The bourse has been trading in an over bought region since July and on Thursday the Relative Strength Index was at 72.573 points, above its upper neutral region of 70, Thomson Reuters data showed.

Market heavyweight John Keells Holdings Plc, which led the overall gain in the index, rose 1.59 percent to 248.90 rupees, while Lanka IOC Plc rose 3.41 percent to 42.40 rupees.

Shares in Distillers Sri Lanka Plc rose 0.70 percent to 209 rupees.

Thursday's turnover stood at 887.2 million rupees ($6.82 million), well below this year's daily average of 1.2 billion rupees.

Foreign investors were net buyers of 102.7 million rupees worth of shares on Thursday, extending the year-to-date net foreign inflow to 8.1 billion rupees.

The central bank rejected all 91-day treasury bill bids for the second straight week at an auction, while yields on the 182-day and 364-day treasury bills held steady at a weekly auction on Wednesday.

($1 = 130.1800 Sri Lankan rupee) 

(Reporting by Ranga Sirilal; Editing by Anupama Dwivedi)

Senkadagala Finance buys over Newest Capital

Senkadagala Finance PLC has entered into a share purchase agreement with Newest Capital Limited to acquire 100 percent of the fully paid issued share capital for Rs. 300 million.

Accordingly, from 25 August 2014, Newest Capital is a fully owned subsidiary of Senkadagala Finance PLC.

This is under the Master Plan for the Consolidation of the Financial Sector 2014 initiated by the Central Bank of Sri Lanka.
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