Sri Lankan shares end down, dragged by large caps

Reuters: Sri Lanka's benchmark index fell for the third straight session on Friday, dragged down by large caps, as investors stayed on the sidelines amid confusion over falling bond yields, stockbrokers said.

The benchmark Colombo stock index ended 0.11 percent lower at 6,494.86, its lowest close since Aug. 1. The bourse had fallen 0.68 percent last week, posting its third straight weekly loss.

"Downward trend is continuing as investors are still in profit-taking mode," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "We believe the downtrend and the low turnover is shortlived."

Analysts said they expected shares to rise after results of the central bank's weekly treasury bill auction on Wednesday showed yields fell between 23 and 34 basis points, with the benchmark 91-day treasury bill yield falling for the first time since July 8.

However, the index fell as there is confusion on the bond yields, brokers said. The t-bill yields fell, and short term fixed deposit yields have been higher, attracting some investors in share markets to fixed assets, dealers said.

Foreign investors net sold 28.3 million rupees ($195,037.90) worth of shares on Friday, extending the year-to-date net foreign outflow to 2.77 billion rupees worth of equities.

Turnover stood at 303.2 million rupees, less than half of this year's daily average of 749.7 million rupees.

Shares of Nestle Lanka Plc fell 2.42 percent, while Carson Cumberbatch Plc fell 2.49 percent. 

($1 = 145.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lankan shares hit more than 1-mth closing low; large caps down

Reuters: Sri Lanka's benchmark index hit a more than one-month closing low on Thursday, dragged down by large cap shares, as investors largely stayed on the sidelines amid confusion over falling bond yields, stockbrokers said.

The benchmark Colombo stock index ended 0.09 percent lower at 6,501.89, its lowest close since Aug. 1.

Analysts said they expected shares to rise after results of the central bank's weekly treasury bill auction on Wednesday showed yields fell between 23 and 34 basis points, with the benchmark 91-day treasury bill yield falling for the first time since July 8.

"Many investors are confused because while t-bill yields are coming down, the short term fixed-deposit rates offered by banks are very high," said Prashan Ferbando, COO at Acuity Stockbrokers.

Foreign investors net sold 22.7 million rupees ($156,444) worth of shares on Thursday, the first time in seven sessions, extending the year-to-date net foreign outflow to 2.77 billion rupees worth of equities.

Turnover stood at 758.4 million rupees, slightly higher than this year's daily average of 752.4 million rupees.

Shares of Ceylon Tobacco Company Plc fell 0.50 percent, while Ceylon Cold Stores Plc ended 1.53 percent lower and John Keells Holdings Plc lost 0.67 percent. 

($1 = 145.1000 Sri Lankan rupees) 

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

Sri Lankan shares fall to near one-month low

Reuters: Sri Lanka's benchmark index ended lower in lean trading on Wednesday, dragged by blue chips to a near one-month closing low, as investors largely stayed on the sidelines, stockbrokers said.

The benchmark Colombo stock index ended 0.25 percent lower at 6,507.98, its lowest since Aug. 8. The bourse had fallen 0.2 percent last week, posting its second straight weekly loss.

Foreign investors, who have sold shares worth net 2.74 billion rupees ($18.86 million) so far this year, were net buyers of shares worth 32.9 million rupees on Wednesday.

Turnover stood at 500.4 million rupees, around two-third of this year's daily average of 752.4 million rupees.

"It was a dull day. Today, it was mainly the retail activity and we didn't see aggressive buying or selling in the market even though there were opportunities in the market," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.

"Market is stagnant and investors are awaiting some direction."

After the market close, the central bank's weekly treasury bill auction results showed rates fell 23 to 34 basis points. The benchmark 91-day treasury bill rates fell for the first time since July 8.

Dealers said the reduction in rates will help attract investors into stocks.

The fall was led by shares of Sri Lanka Telecom Plc and Distillers Sri Lanka Plc, which fell as much as 1.9 percent and 2.5 percent, respectively. 

($1 = 145.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez)

Chinese tourists outnumber Indians for second consecutive month

Tourist arrivals in August rose by 12% to 186,288, bringing the first eight months’ tally to 1.36 million, up 16% from a year earlier.

August arrivals were however lower than the record monthly high of 209,351 achieved in July.

Nevertheless, tourist arrivals have enjoyed increases for 88 consecutive months in Sri Lanka.

Chinese tourists continue to dominate arrivals for the second consecutive month, relegating Indians to second place. Arrivals from China in August amounted to 27,519, up by 11%, bringing the year-to-date total to 190,992, up 32%.

Indian arrivals rose by 3.7% to 24,418 in August while India topped year-to-date figures with 224,924 arrivals, up by 16%. In July Chinese arrivals peaked to a high of 30,631, up 22% from a year earlier. Indians amounted to only 27,665. The previous occasion when Chinese tourists dominated Indians was in February, with the former producing 32,186 arrivals against 26,559 from India.

The traditional UK market saw a healthy growth of 14% to 20,475 arrivals in August, pushing its cumulative figure to 131,124, up 18%. Germany and France too recorded double-digit growth. Western Europe remained the largest regional source with 65,000 arrivals in June, up 16% and 445,667 up to August, a growth of 18%.

Total arrivals hit a record high of 1.8 million in 2015, while revenue from the island nation’s leisure sector also peaked at $ 2.86 billion last year.

Tourism Minister John Amaratunga has said the country’s tourism industry was targeting 2.5 million visitors this year and revenue of $ 3.5 billion.
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Distilleries Company of Sri Lanka shareholders back Melstacorp share swap

ECONOMYNEXT - More than 99 percent of the shareholders at an extraordinary general meeting had voted to swap shares of Distilleries Corporation of Sri Lanka, for Melstacorp stock, making the firm the holding company.

The firm said only 0.0013 percent of shareholders voted against the move, at the meeting indicating a 99.9987 percent support of the move.

Distilleries shareholders will get four shares of Melstacorp for each share. Distilleries will then be a subsidiary of Melstacorp.

Melstacorp will also be the holding company of Lanka Bell Limited, Continental Insurance Lanka Ltd, Melsta Regal Finance Limited, Balangoda Plantations PLC and Browns Beach Hotels PLC.

It also of Spence & Co. PLC and Madulsima Plantations PLC.

Sri Lankan shares end steady; heavyweight John Keells down

Reuters: Sri Lankan shares ended steady in thin trade on Tuesday, hovering near a more than three-week closing low hit in the previous session, as investors largely stayed on the sidelines, stockbrokers said.

The benchmark Colombo stock index edged up 0.02 percent to 6,524.46, hovering near its lowest close since Aug. 12 hit on Monday. The bourse fell 0.2 percent last week, posting its second straight weekly loss.

Foreign investors, who have net sold shares worth 2.78 billion rupees ($19.13 million) so far this year, bought a net 157.5 million rupees worth of shares on Tuesday.

Turnover stood at 449.3 million rupees, less than this year's daily average of 753.9 million rupees.

"Investors are on a wait and see mode with profit-taking here and there," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Gains led by shares of Ceylon Cold Store Plc and Hemas Holdings Plc, which rose 1.5 percent and 2.6 percent respectively, were offset by losses led by conglomerate John Keells Holdings Plc, which fell 1.25 percent. 

($1 = 145.3000 Sri Lankan rupees) 

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

Sri Lankan stocks end lower; turnover slumps

Reuters: Sri Lankan shares ended down on Monday while turnover slumped to its lowest in six weeks as investors stayed on the sidelines, stockbrokers said.

The benchmark Colombo stock index ended 0.24 percent weaker at 6,523.47, its lowest close since Aug. 12. The bourse fell 0.2 percent last week, posting its second straight weekly loss.

Foreign investors, who have been net sellers of shares to the tune of 2.93 billion rupees ($20.48 million) so far this year, bought a net 47 million rupees worth of shares on Monday.

Turnover stood at 280.7 million rupees ($1.93 million), the lowest since July 26 and well below this year's daily average of 755.8 million rupees.

"The market is slow as it takes a breather," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

"There is not a lot of selling pressure as investors are bullish on the longer run and they do not want to sell. They are waiting to buy at lower levels."

Shares of conglomerate John Keells Holdings Plc fell 0.36 percent while Bukit Darah Plc ended 1.99 percent, pulling the overall index down. 

($1 = 145.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)