Sri Lankan stocks hold steady; Ceylon Tobacco falls

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

SEPTEMBER 27, 2017

COLOMBO, Sept 27 (Reuters) – Sri Lankan stocks ended flat on Wednesday as the gains driven by manufacturing shares were offset by losses mainly in beverage companies.

The Colombo stock index ended 0.12 points weaker at 6,419.47.

Shares of Ceylon Tobacco Company Plc fell 2.9 percent, while biggest listed lender Commercial Bank of Ceylon Plc ended 1.01 percent down.

Richard Pieris Plc rose 14.4 percent and Sri Lanka Telecom Plc ended 2.1 percent firmer.

Turnover stood at 738.3 million rupees ($4.82 million), compared with this year’s daily average of about 916 million rupees.

Analysts said block deals boosted the day’s turnover.

“Block deals on blue chips are continuing,” said Dimantha Mathew, head of research at First Capital Holdings.

“The retail interest on the plantation sector continued, but that does not reflect in the overall index as the contribution is very low.”

Foreign investors bought a net 86.9 million rupees worth of shares on Wednesday extending the year-to-date net foreign inflow to 17.7 billion rupees worth of equities.

On Tuesday, the Sri Lankan central bank held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.

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 is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Economic outlook positive despite inflation

Published on Ceylon Today | 2017-09-27

By Kamal Kandewatta

Considering the improved economic growth and official reserves in the second quarter of the year, FC research expects more positive signs in the economy, despite the possibility of rising inflation.
Inflation is expected to have upward pressure towards October and beyond with the floods in May 2017 affecting the supply in the current growing season. Though FC analysts haven’t accounted for the impact of the recent drought, it will also contribute to rising inflation in agricultural products due to possible supply side shortages. Overall, FC predicts inflation to remain around the 6.0% mark throughout the year.

Also the FC read on interest rates, suggest that policy rates are likely to remain unchanged as the year passes. Improved economic growth and health signals that the current monetary policy is appropriate and no change is required.
According to data, GDP growth in the second quarter of the year was 4.0% whereas growth during the same period last year was just 2.4%.

Growth was mainly attributed to industrial and service activities that recorded higher growth rates of 5.2%YoY and 4.5%YoY respectively. FC interpreted this growth was “better than expected”.
Though concerns are raised over extensive credit growth of the private sector in the last few years, FC research expects private sector credit would grow further, towards year end to 16% from the estimated 14% figure. However, they admit that overall credit is likely to remain under check of the regulators. If credit growth continues, private consumption and investment will increase, facilitating further economic growth.

Commenting on the improved official reserve base, during the first half of the year, FC research stated Foreign Reserves were now at ”comfortable levels”.

The official forex reserves rose to USD 7.7 billion in August 2017 which is the highest figure so far this year. This increase was mainly facilitated by the USD 550 million syndicated loan and forex purchases by the CBSL in the market. Following the purchase of USD 344.7 million in July, CBSL bought USD 200 million worth forex in August from the market. The external balance of the country would improve following this improvement in forex reserves.

Over all the economic performance of the country can be expected to improved during the second half of the year despite the difficulties that curtailed the targeted economic performances in the first half.

First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.

 

Sri Lankan shares edge up from 1-wk low as investors buy blue chips

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

SEPTEMBER 26, 2017

COLOMBO, Sept 26 (Reuters) – Sri Lankan shares rose on Tuesday for the first time in four sessions, rebounding from a one-week closing low, as investors picked up banking and beverage stocks after the central bank held the policy rates steady.

The Sri Lankan central bank on Tuesday held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.

The Colombo stock index ended 0.12 percent higher at 6,419.61, edging up from its lowest close since Sept. 18 hit on Monday.

Shares of People Leasing Plc rose 2.9 percent, while conglomerate John Keells Holdings Plc ended 0.4 percent firmer, and biggest listed lender Commercial Bank of Ceylon Plc ended 0.7 percent up.

“It was a bit of a slow day with some foreign outflow,” said Dimantha Mathew, head of research at First Capital Holdings.

“High local interest in plantation sector and some block deals in blue chips were seen as a positive sign. Foreigners are inactive and global funds are shifting towards U.S. expecting a possible fed rate hike in December.”

Turnover stood at 532.3 million rupees ($3.48 million), compared with this year’s daily average of about 917 million rupees.

Foreign investors who bought a net 17.6 billion rupees worth of equities so far this year were net sellers for the second straight session. They sold 54.2 million rupees worth of shares on Tuesday. ($1 = 152.9500 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.<

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 24.09.2017

Stock-Brokers-in-Sri-Lanka

First Capital’s Senior Analyst Atchuthan Srirangan with the market update – between 19.23 mins to 19.55 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 is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

First Capital Fixed Income Recommendation – September 2017

  • Economic Health Score

  • Recommendation

  • Recap of Dec 2016 Economic Wrap

Read the full report – First Capital Fixed Income Recommendation September 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.

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka.
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

Pre-Policy Analysis – 25th September 2017

First Capital Research

Sep 2017

  • GDP growth for 2Q 2017 was better than expected, grew by 4.0%YoY in the 2Q2017 with the industrial and the services activities recorded higher growth rates of 5.2%YoY and 4.5%YoY respectively.
    FC Research upgrades private sector credit growth for 2017E to 16% from 14% amidst a possible pickup towards year end. In spite of a high private sector credit figure in June 2017 we believe overall credit is likely to continue to remain under check.
    We believe inflation will be upward pressure toward October and beyond with the floods in May 2017 affecting the supply in the current growing season. As a result there could be possible supply side shortages towards October and beyond but may continue to remain around the 6.0% mark throughout the year.
  • Sri Lanka’s forex reserves rose to USD 7.7Bn in Aug 2017 from USD 6.7Bn in July, helped by USD 550Mn syndicated loan and dollar purchases by the CBSL. The CBSL had net purchased USD 975Mn from currency markets so far this year. FC Research believe Foreign Reserves are now at comfortable levels.
  • During last two months CBSL bought down its holding in Government Securities from LKR 138Bn to below LKR60Bn as at 21st Sep 2017.
  • Economists said the Fed will still pencil in three hikes for 2018, but with the first of those not projected until June, versus March in the Fed’s previous set of forecasts. Sep-17 survey shows Fed expects to raise policy rates in Dec-17 and no further hikes are expected after Dec-17 until after May-18.

FC Research believes that considering the current economic conditions with better than expected GDP growth level and the considerable improvement in the Economic Health the current monetary policy is appropriate and no change is required

Stock Brokers in Sri Lanka

Read the full report here: Pre-Policy Analysis

 

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.

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka.
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

Sri Lankan shares end steady near 5-week closing high

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

SEPTEMBER 21, 2017

COLOMBO, Sept 21 (Reuters) – Sri Lankan shares ended flat on Thursday, near a more than five-week closing high hit in the previous session, as gains in beverage and construction shares were offset by losses in bank stocks.

The Colombo stock index ended 0.02 percent lower at 6,451.55, edging down from its highest close since Aug. 14 hit on Wednesday.

“The interest in blue chips is continuing with buying momentum and positive sentiment, even though the market ended flat,” said Dimantha Mathew, head of research at First Capital Holdings.

“Unlike dull periods, we now see block trades and there are continuous enquiries specially from foreigners.”

Shares of biggest listed lender Commercial Bank of Ceylon Plc ended 0.6 percent weaker, while Hemas Holdings Plc fell 0.8 percent.

Shares in Ceylon Tobacco Company Plc rose 0.5 percent and Access Engineering Plc rose 3.2 percent.

Foreign investors bought a net 54.1 million rupees ($354,289) worth of shares, extending the year-to-date net foreign inflow to 17.7 billion rupees.

Turnover stood at 541.4 million rupees, less than this year’s daily average of around 924 million rupees. ($1 = 152.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; 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.<

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Sri Lankan shares hit over 5-wk closing high on foreign buying

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

SEPTEMBER 20, 2017

COLOMBO, Sept 20 (Reuters) – Sri Lankan shares gained for a fifth straight session on Wednesday to hit a more than five-week closing high as foreign investors bought into blue-chips, boosting sentiment.

Foreign investors bought a net 556.6 million rupees ($3.64 million) worth of shares, extending the year-to-date net foreign inflow to 17.7 billion rupees.

The Colombo stock index ended up 0.39 percent at 6,452.91, its highest close since Aug. 14.

“We have seen major transactions in blue chips which drive the market these days,” said Dimantha Mathew, head of research at First Capital Holdings.

“Foreigners are active and they are taking positions while the locals are a bit silent. But we can see them also slowly returning to market with high foreign activities.”

Shares of Dialog Axiata Plc rose 4.3 percent, while the biggest listed lender Commercial Bank of Ceylon Plc ended 2.9 percent firmer.

Melstacrop Ltd rose 3.4 percent, while conglomerate John Keells Holdings Plc gained 0.2 percent.

Turnover stood at 1.6 billion rupees, well above this year’s daily average of around 926.2 million rupees. ($1 = 152.8000 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.<

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Three leading companies onboard as Gold Sponsors for 38th NCCA

Published on Mirror Business on 2017-09-18

share market investment in sri lanka

Three of the country’s leading companies, Citizens Development Business Finance PLC (CDB), First Capital Holdings PLC and Softlogic Life PLC recently came onboard as gold sponsors for the 38th National Conference of Chartered Accountants (NCCA) organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

The annual conference, dubbed as one of Sri Lanka’s leading and largest business summits, which attracts over 1500 delegates including business leaders and c-suit executives, will this year revolve around the theme ‘Dynamism – Agility in Leadership’ where the need for leaders to embrace agility will be emphasized upon by local and international speakers from 25th to 27th October at the BMICH, Colombo.

CA Sri Lanka President Lasantha Wickremasinghe, welcoming the three companies onboard as gold sponsors, said that the sponsorship extended by CDB, First Capital and Softlogic Life was testament to the reputation that the national conference of chartered accountants has built over the years since its inauguration way back 1979.

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Sri Lankan shares hit 3-week closing high as blue chips gain

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

SEPTEMBER 15, 2017

COLOMBO, Sept 18 (Reuters) – Sri Lankan shares rose for a third straight session on Monday and ended at a three-week closing high as investors picked up diversified and telecom shares, brokers said.

The Colombo stock index ended 0.12 percent firmer at 6,409.65, its highest close since Aug.28.

The bourse rose 0.4 percent last week, ending an eight-week long losing streak.

“We are yet to see the bullish trend, but it is slowly coming into the market with some foreign buying,” said Dimantha Mathew, head of research, First Capital Holdings.

“The Locals are a bit more conservative and are looking at only blue chips yet.”

Shares of conglomerate John Keells Holdings Plc gain 1.2 percent while Sri Lanka Telecom Plc ended 4.6 percent firmer, Melstacorp Ltd rose 1.7 percent and Dialog Axiata Plc ended 0.9 percent higher.

Foreign investors net bought 97.7 billion rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 17 billion rupees worth of equities.

Turnover stood at 459.2 million rupees, half of this year’s daily average of around 918.3 million rupees.

According to traders, recent block deals also helped boost the market sentiment.

On Wednesday after market hours, diversified conglomerate Hayleys Plc said it had agreed to purchase 61.73 percent of Singer Sri Lanka Plc for 10.9 billion rupees from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings NV.

Hayleys in a corporate disclosure said on Friday that Hayleys Plc and its subsidiaries purchased 231.9 million shares or 61.73 percent of Singer Sri Lanka Plc at a price of 47 rupees per share.

Last week, top mobile phone operator Dialog Axiata Plc said that it acquired 80.34 percent of Colombo Trust Finance Plc for 1.072 billion rupees ($7 million). ($1 = 152.9500 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.<

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.