Sri Lankan shares end higher; blue-chips lead

Reuters: Sri Lanka's benchmark index edged up on Tuesday to recover from a seven-week closing low hit in the previous session, led by blue-chips, but investors stayed on the sidelines amid confusion over falling bond yields.

The benchmark Colombo stock index ended up 0.2 percent at 6,508.09, edging up from its lowest close since Aug. 1 hit on Friday. The bourse fell 0.68 percent last week, posting its third straight weekly loss.

"The index ended higher amid lacklustre turnover levels. The diversified, banking, finance, manufacturing and leisure sectors saw market activity," John Keells Stockbrokers said in a note to investors.

Analysts said they expect shares to rise after results of the central bank's weekly treasury bill auction last 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, investors stayed on the sidelines as some banks offered higher yields for fixed-income assets, they said.

The yield held steady on Tuesday at the weekly auction.

Foreign investors who are net sellers of 2.7 billion rupees worth of shares so far this year, were net buyers of 96.8 million rupees worth of equities on Tuesday.

Turnover stood at 323.8 million rupees ($2.24 million), less than half of this year's daily average of 747.2 million rupees.

Shares of Sri Lanka Telecom Plc rose 1.37 percent while Lanka ORIX Leasing Company Plc gained 4.55 percent.

Shares of Ceylon Tobacco Company Plc rose 0.65 percent while Asian Hotels Properties Plc was up 3.66 percent and biggest listed lender Commercial Bank of Ceylon Plc gained 0.79 percent. 

($1 = 144.8000 Sri Lankan rupees) 

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

Big listings seen as needed to arrest CSE drift

By Hiran H.Senewiratne

The Colombo Stock Exchange (CSE) will receive a huge boost if big private and public sector entities list in the market. If that happens only, the current lacklustre movement of the market will move away to a more vibrant market scenario, CSE chairman Vajira Kulatilaka said.

"The CSE needs big listings of public and private sector entities in order to attract foreign fund managers in overseas countries. At this juncture, it is just drifting on. Otherwise, few big public or private companies come on board by way of an Initial Public Offering (IPO) for the market to pick up well, Kulatilaka told The Island Financial Review.

The CSE chairman said that if some big private sector companies are listed in the CSE it would put the CSE in a prime position in the region, because most foreign and local investors will eye CSE activities. "Until then the market will slowly but steadily move, he said.

Meanwhile, yesterday the CSE was not a happening market due to the long weekend. 

Accordingly, the total turnover reached rupees 303 million and the All Share Price Index went down by 3.5 percent, while the S&P SL 20 or Milanka Price Index went up by 6 points.

Volume-wise, the highest contributing companies were JKH Rs 44 million, Dialog Rs 27 million and ACL Cables Rs 26 million, while the number of shares traded during the day was 20 million, CSE sources said.

"Today, it was mainly retail activity and we didn't see aggressive buying or selling in the market even though there were opportunities in the market, Candor Equities Marketing Manager Buddhike Payoe said."The market is stagnant and investors are awaiting some direction, he added.After market closure, the Central Bank's weekly treasury bill auction results showed rates falling 23 percent 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.

Meanwhile, JKSB said about yesterday's CSE trading:

ASPI: 6,494.86 (-7.03 pts; -0.11%); Val T/O: Rs. 303mn (US$2.09mn); Vol T/O: 20.0mn; Trades: 4,637

Advance/decline ratio: 107/63 ; Top gainer: JKH.W (+57.89%); Top loser: CTEA.N (-16.71%)

• The ASPI ended lower amid weak market turnover. Selected banking, diversified, manufacturing, telco, and food & beverage counters led activity levels with trading in JKH amounting to 15% of total turnover.

• Banks, Finance, & Insurance was the most actively traded sector (+0.21%)

• Chemicals & Pharmaceuticals was the best performing sector (+1.04%), supported by gains on HAYC (+4.06%)

• Trading was the worst performing sector (-4.05%), dragged down by a decline in BRWN (-3.23%)

www.island.lk

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.
www.ft.lk

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.