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Sri Lankan shares fall to two-week closing low; floods weigh

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Mon May 29, 2017

May 29 Sri Lankan shares fell on Monday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings Plc and Commercial Bank Plc while floods and landslides that hit the island nation weighed on sentiment.

Sri Lankan authorities on Monday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.

The Colombo stock index ended 0.27 percent weaker at 6,679.46, at its lowest close since May 15.

The bourse fell 0.47 percent last week recording its first weekly fall in nine weeks.

Turnover on Monday stood at 270.6 million rupees ($1.8 million), well below this year’s daily average of 895.9 million rupees.

Foreign investors bought shares worth 57.1 million rupees on a net basis, extending the year-to-date net foreign inflow to 19.46 billion rupees worth of equities.

“Profit-taking that started last week is continuing. The market is coming down on low volumes,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods.”

Shares in conglomerate John Keells Holdings Plc and Nestle Lanka Plc fell 0.9 percent each, while biggest listed lender Commercial Bank of Ceylon Plc fell 1.2 percent. ($1 = 152.7000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

Sri Lankan shares end lower on profit-booking; John Keells falls

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Fri May 26, 2017

May 26 Sri Lankan shares ended lower on Friday, recording their first weekly decline in nine, as investors booked profits in shares of diversified companies such as John Keells Holdings Plc and Melstacorp Plc .

The Colombo stock index ended 0.25 percent weaker at 6,697.86. On Tuesday the bourse hit its lowest close since May 15 hit on Tuesday. The bourse fell 0.47 percent during the week recording its first weekly fall in nine weeks.

The index rose 0.86 percent last week.

Turnover stood at 237.4 million rupees ($1.56 million), well below this year’s daily average of 902.4 million rupees.

Foreign investors net bought shares worth 15.3 million rupees worth of shares extending the year-to-date net foreign inflow to 19.39 billion rupees wroth of equities.

“Market has came down on low volumes. Though there is no serious selling pressure, there is a bit of a wait-and-watch attitude to see whether selling will come,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“Investors are waiting to buy at bargain prices.”

Shares in conglomerate John Keells Holdings Plc fell 0.65 percent while biggest listed lender Commercial Bank of Ceylon Plc fell 1.16 percent and Melstacorp Plc ended 1.35 percent weaker and Colombo Cold Stores Plc fell 0.95 percent.

($1 = 152.6000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

“Don’t overtax corporate sector” : First Capital CEO – Daily News

First Capital Equities CEO Jaliya Wijeratne, in a recent interview with Daily News Business, said Sri Lankan policymakers should come out with some strong and permanent economic policies soon.

“Currently there are some uncertainties with regard to corporate tax, capital gains tax and several other such areas.”

He said that the government needs taxes and it is also a social obligation of the corporate sector to pay them. “However the corporate sector should not be overtaxed.”

Wijeratne said that it would be a good idea for the government to widen the tax net and rope in several sectors that are currently enjoying a tax-free regime.

He said that due to this both local and foreign investors are adopting a wait-and-see policy and this is not good for the future of the country.

Commenting on the stock market, he said that after a lull, signs are that it would move upward. “If you take John Keells shares, it has moved up from around Rs. 130 to over Rs. 160. We also observe an increase in foreign inflows.”

He said Sri Lanka needs more listed companies and the government can move in this regard and ask some of the public entities to be listed.

“If state banks like the People’s Bank, Bank of Ceylon and National Savings Bank, along with Sri Lanka Insurance, lists even 15 percent it would be great for the stock market.”

He said that there was talk about SriLankan Catering being listed; however it still seems to be confined to discussions.

Wijeratne feels Sri Lanka should go ahead with the lease agreements with China and India for the Hambantota Harbor, Mattala International Airport, Trincomalee Port and other loss-making ventures.

He said that the funds raised from these leases should be diverted to debt repayments, which is now emerging as a major issue.

The First Capital CEO, however, said that Sri Lanka should retain a share or control when leasing out these projects and look at terms favorable for the country.

Commenting on the real estate sector, Wijeratne said that he feels it is not a bubble and demand would continue.

“With Sri Lanka’s population increasing and economy growing, the demand for land would increase. This would help to keep the demand active and aggressive for the apartment segment as well.”

Sri Lankan shares fall on profit-taking in blue chips

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Mon May 22, 2017

May 22 Sri Lankan shares edged down on Monday as investors booked profits in blue chips such as John Keells Holdings Plc, with analysts saying the market was waiting for policy direction from newly-appointed finance minister Mangala Samaraweera.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration’s handling of the economy.

The Colombo stock index ended 0.04 percent weaker at 6,726.90, slipping from its highest close since Jan. 7, 2016 hit on Friday.

The index rose 0.83 percent last week, and has climbed 11 percent since March 31 through Friday.

Turnover stood at 335.6 million rupees ($2.20 million), well below this year’s daily average of 887.3 million rupees.

“The market is struggling to break the current psychological level. The market need a bit of a breather before it kickstarts again. We are seeing a bit of profit-taking,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Foreign investors net sold shares worth 30.6 million rupees on Monday, but they have net bought 17.98 billion rupees worth of shares so far this year.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 3.41 percent, while conglomerate John Keells Holdings Plc ended 0.30 percent weaker. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.05.21

Investment In Sri Lanka

First Capital’s Head of Research Dimantha Mathew with the market update – between 15.08 mins to 15.46 mins

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.

First Capital Fixed Income Recommendation – May 2017

  • Economic Risk Score

  • Recap of Dec 2016 Expectations

Read the full report – First Capital Fixed Income Recommendation 16th-May-2017

 

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka proving services to invest in Sri Lanka through fixed income securities such as investments in government securities– treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.

Sri Lankan shares rise; post 8th straight weekly gain

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Fri May 19, 2017

May 19 Sri Lankan shares ended higher on Friday, posting the eighth straight gain on week and hitting their highest closing level in more than 16 months, led by blue chips such as John Keells Holdings Plc.

The Colombo stock index ended 0.47 percent firmer at 6,729.66, its highest close since Jan. 7, 2016.

It rose 0.83 percent during the week, and has climbed 11 percent since March 31.

Turnover stood at 618.02 million rupees ($4.06 million), less than this year’s daily average of 893.4 million rupees.

“The market is up on significant buying interest in John Keells. There was some buying interest in some finance companies too,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“We expect profit-taking next week as the market needs some breather.”

Foreign investors net bought shares worth 728,954 rupees, extending the year-to-date net foreign inflows to 18.02 billion rupees.

Shares in Nanda Investment Plc rose 24.89 percent to hit a record closing high, while conglomerate John Keells Holdings Plc climbed 1.51 percent and Browns Investment Plc was up 15.79 percent. ($1 = 152.3000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

First Capital records Rs. 231 Mn PAT 2016/17

Investment banks in Sri Lanka, Investment banking in Sri Lanka, Investment companies in Sri Lanka, Share market investment in Sri Lanka, Investment in Sri Lanka, Stock brokers in Sri Lanka, Corporate debt structuring in Sri Lanka, Fixed income securities in Sri Lanka, Fixed income bonds in Sri Lanka, Investment bank in Sri Lanka, Margin trading in Sri Lanka, Wealth management in Sri Lanka
Director / Group CEO, Dilshan Wirasekara

Colombo 19th June 2017: First Capital Holdings PLC, a full service investment bank providing a diverse range of advisory services and financial products through its subsidiaries, (First Capital Group) reported a consolidated profit after tax of Rs. 231Mn for the year 2016/17 compared to Rs. 47Mn in the previous year.

The Group’s primary dealer arm, First Capital Treasuries PLC, was the main contributor towards the financial results recording a profit after tax of Rs. 343Mn for the year 2016/17 (2015/16 – Rs. 11Mn) attributed to net interest income and fair valuation gains on government securities. First Capital Treasuries, is the pioneer non-bank Primary Dealer appointed by Central Bank in 1982 and is listed on the Colombo Stock Exchange. Further, the company’s credit rating was reaffirmed by ICRA Lanka as A- with stable outlook.

The capital markets advisory of the Group, First Capital Limited, which specialises in structuring and placement of corporate debt securities, successfully mobilised Rs. 12.4Bn through structuring and placement of corporate debt securities. Despite the above performance First Capital Limited was negatively affected as a result of higher funding cost and fair valuation losses on trading securities.

The performance of the Group’s subsidiaries were further impacted due to damped investor sentiments as a result of the proposed changes to taxation via the budget proposal – 2017.

“Despite the setback experienced in the preceding quarters, the Group is optimistic in its outlook and have planned several calculated improvements to its operations” said Director / Group CEO, Dilshan Wirasekara.

 

First Capital Holdings PLC (the Company or First Capital) is a full service investment bank providing a diverse range of advisory services and financial products.

We currently serve an array of companies, institutions, government agencies, high net worth individuals and retail clients both international and local, who seek truly objective advice, innovative solutions and execution expertise. We operate throughout Sri Lanka via offices in Colombo, Kandy, Matara and Kurunegala. Our global outreach continues to expand through institutional trading and investment product placement.

As a company listed on the Colombo Stock Exchange (CSE) since 1994 (Ticker: CFVF), we exemplify requisite financial transparency and governance standards.

Reflecting credit fundamentals including a robust capital structure, liquidity, risk controls and earnings profile, we are rated A- by ICRA Lanka Limited.

Sri Lankan shares slip from over 1-yr high on profit-taking

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Thu May 18, 2017

May 18 Sri Lankan shares ended marginally down on Thursday, slipping from their highest level in more than a year hit in the previous session, as investors booked profits in blue chips including John Keells Holdings Plc and Dialog Axiata Plc.

The Colombo stock index ended 0.30 percent weaker at 6,697.90, slipping from its highest close since Jan. 8, 2016 hit on Wednesday. The benchmark index has risen nearly 11 percent through Wednesday since March 31.

Turnover stood at 629.2 million rupees ($4.13 million), less than this year’s daily average of 896.5 million rupees.

“We have seen a sizable selling pressure on blue chips today after some time,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“The market is taking a breather after the index passed 6,700 levels and we feel profit-taking will continue for couple of days.”

Foreign investors net bought shares worth 28.9 million rupees, extending the year-to-date net foreign inflows to 18.02 billion rupees.

Shares in John Keells Holdings Plc fell 0.60 percent while Carson Cumberbatch Plc fell 4.23 percent and Dialog Axiata Plc ended 0.83 percent weaker.

($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

Foreign inflows to stock market soar to Rs. 18 b

Thursday, 18 May 2017

Net foreign inflows to the Colombo stock market swelled to Rs. 18 billion by yesterday, reaffirming growing investor confidence from overseas unlike their Lankan counterparts.

Year to date net inflow was boosted by a Rs. 903 million contribution yesterday. So far in May, net inflows have been Rs. 1.5 billion.

The year to date figure of Rs. 18 billion is very significant given the fact that last year net inflows amounted to only Rs. 400 million. In 2015 there was an outflow of Rs. 5.3 billion.

Year to date, the All Share Index has improved by nearly 8% while the more active S&P SL 20 Index moved up to offer a double-digit return of 10.51%. Since 31 March, the ASI has risen by 11%.

Reuters in its report said the CSE ended at its highest level in over a year as foreign investors continued to buy blue chips after an annual trade concession worth $ 300 million from the European Union (EU) added fuel to a rally that started towards the end of March.

Index heavyweight John Keells Holdings Plc ended almost 1% higher on foreign buying. JKH saw 5.6 million of its shares traded for Rs. 939 million of which five million shares were done at Rs. 168 each via three crossings. JKH’s foreign holdings increased by 4.9 million shares.

Deals on JKH, Dialog Axiata, Nestle Lanka and Chevron Lubricants accounted for 60.3% of the day’s turnover.

The Colombo stock index ended 0.39% firmer at 6,718.34, its highest close since 8 January 2016.

Turnover stood at Rs. 1.75 billion ($ 11.48 million), well above this year’s daily average of Rs. 899.5 million.

“Foreign interest is continuing in blue chips,” Atchuthan Srirangan, a senior research analyst at First Capital Holdings Plc, was quoted as saying by Reuters.

Reduction of 11-38 basis points in T-bill yields in the last four weeks, stable currency on the expectation of inflows from foreign borrowing and an IMF statement on the disbursement of the third tranche of a $ 1.5 billion loan have helped boost sentiment, analysts said.

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<