Sri Lankan shares rise to near one-week high

Reuters: Sri Lankan shares rose for a second straight session on Friday, hitting near one-week highs as local investors picked up battered large-cap stocks.

The main stock index ended 0.32 percent, or 20.16 points, higher at 6,340.05, its highest since close since Jan. 25.

The index has fallen over 8 percent so far this year as foreign investors, unnerved by global concerns over China's economy, have cut their exposure.

"Local investors were largely active on the bourse," TKS securities said in a note to investors.

Foreign investors sold a net 34.5 million rupees ($239,666.55) worth of shares on Friday, extending the year-to-date net foreign outflow to 2.71 billion rupees worth of equities.

Turnover was 387.3 million rupees, around half of this year's daily average of 748.2 million rupees.

The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more than two-year high of 7.80 percent last week.

This move could help investors return to the market, analysts said.

Shares of Distillers Company of Plc rose 2.83 percent, while Nestle Lanka Plc advanced 2.43 percent.

Lanka ORIX Leasing Co Plc rose 2.17 percent, while conglomerate John Keells Holdings Plc gained 0.72 percent. 

($1 = 143.9500 Sri Lankan rupees) 

(Reporting by Ranga Sirilaland Shihar Aneez; Editing by Anand Basu)

RBI extends Sri Lanka US$1.1bn swap deal

ECONOMYNEXT – Reserve Bank of India has agreed to extend the 1.1 billion US dollar swap deal with Sri Lanka’s central bank which was to expire in March 2016, Finance Minister Ravi Karunanayake said.

The deal has been extended for one year, Karunanayake told a news conference.

Inflows of dollars currently being received by the island will help support the rupee, Karunanayake said.

Sri Lanka Trans Asia Hotels December quarter net down 53-pct

ECONOMYNEXT - Trans Asia Hotels, a unit of Sri Lanka’s John Keells Holdings, which operates the five-star Cinnamon Lakeside Hotel, said December 2015 quarter net profit fell 53 percent to 82 million rupees from a year ago.

Sales fell 11 percent to 703 million rupees, the company said in a stock exchange filing.

Distribution and operating expenses rose while tax costs fell.

In the nine months ending 31 December 2015, et profit fell 97 percent to 12 million rupees with sales down 30 percent to 1.7 billion rupees.

Omani firms eye tourism, property investments in Sri Lanka

ECONOMYNEXT – Investors from Oman are keen on big projects in Sri Lanka including in property and tourism, the Ceylon Chamber of Commerce said.

It said in a statement it hosted a visit by the Omani Chamber of Commerce and Industry.

“We like to invest in big projects, which Sri Lanka is planning to launch. Give us information on those projects,” Omani Chamber of Commerce and Industry Chairman Said Saleh Said Al Kiyumi was quoted as saying.

Kiyumi and his team, in the country to attend the Eastern Investment forum, said that they are willing to look at projects in the areas of tourism, property development and SME development.

Transparent bids for Sri Lanka airport duty free shops

ECONOMYNEXT – Companies wanting to operate duty free shops at Sri Lanka’s Bandaranaike International Airport in Katunayake, earlier given to two firms without bids, will now have to go through a transparent bidding process, a government spokesman said.

Duty free shops play a key role in airport trade activities and the maintenance of these shops in the arrival and departure terminals had been given as a franchise right shared among two operators, said Health Minister Rajitha Seneratne.

“No tender procedure or calling for competitive bidding had been done in the selection,” he told a news conference.

The Cabinet of minister approved a proposal by Minister of Transport and Civil Aviation Nimal Siripala de Silva to appoint a Cabinet Appointed Procurement Committee and Technical Evaluation Committee to award duty free shop operations for a five-year period.

“This will be done according to the tender procedure in a more transparent manner with the intention of gaining more benefits to Airport and Aviation Services Limited,” Senaratne said.

CSE suspends PCH share trading with immediate effect

The Colombo Stock Exchange (CSE) today (28 January) decided to suspend the trading of PC House PLC and PC Pharma PLC due to non-submission of Annual Reports for the year ended 31 March 2014 and 31 March 2015 to the CSE in compliance with CSE Listing Rules and Sri Lanka Accounting Standards.

Several weeks ago, the CSE suspended trading of Entrust Securities PLC and the suspension is yet to be lifted.

Meanwhile, this morning the CSE also halted the trading of Lanka Ashok Leyland PLC pending a clarification from the Company regarding a press article on the financial results as at 31 December 2015. Subsequently, this trading halt was lifted at 11.00 am today (28 January) after the interim financial statements as at 31 December 2015 were uploaded on the CSE website.

www.adaderana.lk

Sri Lankan shares snap three-session losing streak

Reuters: Sri Lankan shares snapped a three-session losing streak and closed marginally higher on Thursday as investors picked up some beaten-down large-cap stocks.

The main stock index ended 0.05 percent, or 3.43 points, higher at 6,319.89, after posting its lowest close since Jan. 20 on Wednesday.

The index had fallen 8.4 percent so far this year through Wednesday as foreign investors, unnerved by global concerns over China's economy, have cut their exposure.

Foreign investors sold a net 13.9 million rupees ($97,081) worth of shares on Thursday, extending the year-to-date net foreign outflow to 2.71 billion rupees worth of equities.

Turnover was 548.4 million rupees, lower than this year's daily average of 768.3 million rupees.

The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more than two-year high of 7.80 percent last week.

This move could help investors return to the market, analysts said. The central bank, as expected, kept its key policy interest rates unchanged on Monday.

Shares of Lanka ORIX Leasing Company Plc rose 3.85 percent, while Ceylon Tobacco Company Plc gained 0.60 percent.

Dialog Axiata Plc rose 0.99 percent, while conglomerate John Keells Holdings Plc ended steady . 

($1 = 143.1800 Sri Lankan rupees) 

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