Turnover nudges billion, blue chips do nicely

COLOMBO, Dec 21 (Reuters) - Sri Lanka's rupee gained for a third straight session on Friday to its highest level against the dollar in more than seven months on exporter dollar conversions, while stocks ended weaker.

The rupee firmed 0.55 percent to 126.90/127.00 to the dollar, its highest since May 3, compared with Thursday's close of 127.60/70, Reuters data showed.

'The lowest trade was done at 125.50 early but later importers bought dollars and booked forwards,' a dealer said.

Central Bank Governor Ajith Nivard Cabraal said on Thursday the rupee was likely to further appreciate due to continuous inflows in the absence of importer demand for dollars.

Colombo Stock Exchange's main index edged down 0.2 percent or 10.87 points to close at 5,526.49.

Analysts said selling pressure due to year-end settlements dragged the bourse down, but falling interest rates would help to attract investors towards risky assets in the new year.

Treasury bill yields eased between 21-27 basis points at a weekly auction on Wednesday in line with the central bank's rate cut last week.,

Total turnover on Friday was 959.3 million rupees ($7.51 million), higher than this year's daily average of 891.9 million rupees. Foreign investors were net buyers of 310.5 million rupees worth of shares, extending net foreign buying this year to 37.78 billion rupees. ($1 = 127.7500 Sri Lanka rupees)

(Reporting by Shihar Aneez; Editing by Robert Birsel)

(shihar.aneez@thomsonreuters.com)(+94-11-232-5540)(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net)
http://www.xe.com/news/2012/12/21/3130337.htm

Dec 21, 2012 (LBO) - Sri Lanka's stocks closed down 0.2 percent Friday with foreign interest in key large cap stocks and the rupee extended gains for the second day, dealers and brokers said.

The benchmark Colombo All Share Price Index closed at 5516.49 down 10.8 points and the S&P SL 20 Index closed at 3,034 up 3.38 points or 0.11 percent.

In forex markets the rupee gained to around 127.00/10 to the US dollar in late trading Friday against 127.60 levels Thursday. During the day the rupee rose to as much as 125.60/60 before falling back.

The currency usually strengthens in December amid stronger inflows and weak credit, though the Central Bank purchases dollars to stop in appreciating.

The rupee has been steadily appreciating from its weakest level of 134 to the US dollar in mid 2012 after a peg at 110 rupees to the dollar broke due to sterilized foreign exchange sales.

In October the Central Bank injected money through term auctions and spooked the market halting the upward movement of the peg.
Analysts have said Sri Lanka has a flawed, so-called soft peg built by US interventionists which is prone to balance of payments crises and high inflation.
http://lbo.lk/fullstory.php?nid=188454563

Turnover nudges billion, blue chips do nicely
Kotagala buys Union Commodities for Rs. 1.575 bn.
December 21, 2012, 7:54 pm
The Island

Turnover on the Colombo bourse nudged the billion rupee mark yesterday with indices closing in opposite directions and blue chips doing nicely, brokers said.

Turnover at Rs.959.3 million was up from the previous day’s Rs.811.9 million with the All Share Price Index which was positive most of the day closing 10.87 points (0.20%) down while the Milanka was up 13.96 points (0.28%) and S&P up 3.38 points (0.11%) with 96 gainers ahead of 80 losers while 137 counters closed flat.

Brokers said that the market had eased off slightly but block trades in Asiri Medical Services, Commercial Bank (voting) and JKH helped boost both share volumes and turnover.

"The market gave up some marginal midday gains to end lower although advances outpaced decliners. Block trades on JKH, AMSL and COMB accounted for 68% of turnover," John Keells Stockbrokers said.

Foreign purchases amounted to Rs. 380.06 million, leading to a net inflow of Rs. 310.53 million.

Asiri saw nearly 31.8 million shares crossed at Rs.9.50 in three parcels in transactions worth Rs.301.9 million, ComBank saw a single crossing of nearly 0.4 million shares at Rs.102 worth Rs.39.4 million while JKH saw over 1.4 million shares crossed in four parcels in deals worthRs.313.7 million.

Apart from the crossings, Asiri saw nearly 6.6 million shares traded on the floor closing 40 cents up at Rs.9.40 traded between Rs.9 and Rs.9.50 generating a turnover of Rs.62.4 million.

Similarly ComBank (voting) saw floor trades of over 0.2 million shares closing Rs1.20 up at Rs.103 trading between Rs.102 and Rs.103 and JKH 56,895 shares traded on the floor closing 20 cents down at Rs.217.80 on a trading range of Rs.217 and Rs.218.

Other most traded stocks included Chevron up Rs.1.50 to Rs.204 on over 0.2 million shares done between Rs.202.50 and Rs.205.20 contributing Rs.48.3 million to turnover and Pan Asia closing flat at Rs.19 on nearly 1.1 million shares done between Rs.18.50 and Rs.19.20 generating a turnover of Rs.20.5 million.

Ascot was active yesterday gaining Rs.4.10 to close at Rs.184 with 0.1 million shares done between Rs.179 and Rs.184.

Asian Alliance Insurance, following the previous day’s announcement of institutional investment from German and Dutch funds, closed Rs.1.90 up at Rs.87.10 on nearly 0.2 million shares done between Rs.87.10 and Rs.95 contributing Rs.14.million to turnover.

Kotagala Plantations announced that it has purchased 100% of the equity of Union Commodities (Pvt) Limited at a price of Rs.1.575 billion.

Union Commodities established in 1985 is a leading tea exporter ranked among the top five tea exporters in recent years and is currently the fourth largest exporter of tea from Sri Lanka.

The company owns a state-of-the-art self-sufficient factory in Kelaniya with an in-house advanced tea bagging facility, on-site purpose built storage, packaging facilities and a shipping and freight forwarding company fully owned by the group.

In addition to tea, Union Commodities exports produce like sesame, cloves, pepper and other foodstuffs.

Kotagala is one of the largest regional plantation companies owning 12 tea plantations and 11 rubber plantations with the bulk of its tea grown in the Western high grown Dimbulla District and the low grown Kalutara District.

Union’s Chairman, Mr. Chanaka de Silva, will continue as the Chairman of the company and the other directors will continue. Kotagala will appoint its nominees to the board to pursue synergies arising from its tea plantation business.