MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 28.11.2017

First Capital’s Amanda Lokugamage with the Market Review on Ada Derana

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 hit over 2-mth closing low

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

NOVEMBER 28, 2017

COLOMBO, Nov 28 (Reuters) – Sri Lankan shares touched a more than two-month closing low on Tuesday, dragged down by financials, even as investors waited for clarity on new taxes and key legislations amid political uncertainty.

The Colombo stock index ended 0.19 percent lower at 6,405.22, its lowest close since Sept. 15. The index fell 1.1 percent last week, but is up 3 percent in the year so far.

Shares in Sampath Bank Plc fell 1.5 percent, while Commercial Bank of Ceylon Plc ended 0.7 percent weaker and Colombo Cold Stores Plc dropped 2.9 percent, dragging down the index.

Turnover stood at 238.9 million rupees ($1.55 million) on Tuesday, a quarter of this year’s daily average.

“It’s a very slow day with low turnover level, as market is very dull with lower investor confidence,” said Dimantha Mathew, head of research at First Capital Holdings.

Foreign investors net bought equities worth 35.8 million rupees on Tuesday, extending the year-to-date net foreign inflow to 18.4 billion rupees worth of stocks.

Analysts said political worries over a delay in local government polls and a lack of clarity over the budget and two other key policy measures continued to weigh on sentiment.

Last week, a court issued a stay order on a legislation that cleared the island nation’s Election Commission to hold local government polls in which the coalition partners of the government have decided to contest separately.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented earlier this month, with the final budget vote scheduled for Dec. 9.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarification on the new legislations. ($1 = 153.7500 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 providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka

First Capital ties up with foreign brokerages

First Capital Equities, the equity arm of First Capital Holdings PLC, has taken several steps to strengthen its business by establishing strategic partnerships with stock brokering houses based in Asia and the US, in addition to reinforcing its local efforts through the group’s expanding branch network.

Director/Group CEO, Dilshan Wirasekara told the Business Times that they have tied up with foreign brokerages in Japan and New York who will promote local equities amongst their clients.

He added that the group sees its earnings moderating in the second half with interest rates stabilising resulting in lower trading opportunities for the primary dealer business. The group recorded a profit after tax of Rs. 731 million for the first half of 2017/18, a substantial increase compared to Rs. 406 million in the corresponding period of the previous year. Total comprehensive income for the first half was Rs. 641 million (2016/17 – Rs. 406 million).

The primary dealer business dominated the group’s earnings reporting a profit after tax of Rs. 538 million for the first half (2016/17 – Rs. 371 million), Mr. Wirasekara said. First Capital Treasuries PLC capitalised on opportunities created by declining interest rates in the secondary market realising significant trading gains, he added noting that it has a capital base of Rs. 2.2 billion.

A strategic approach has led to improved activity in the corporate finance business, mobilising Rs. 13 billion for clients through structuring and placement of corporate debt securities and recording a fee income of Rs. 42 million (2016/17 – Rs. 30 million) during the period under review.

First Capital Asset Management Ltd recorded a growth in funds under management to end with Rs. 6.7 billion as at 30th September2017.

“Our main focus is to enhance the fee-based activities and the management of risk,” Mr. Wirasekara added.

The credit rating of First Capital Holdings PLC and First Capital Treasuries PLC was reaffirmed by ICRA Lanka Ltd in October 2017 at “A-”.

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 recover from 2-mth closing low as large caps gain

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

NOVEMBER 27, 2017

COLOMBO, Nov 27 (Reuters) – Sri Lankan shares ended marginally higher on Monday in dull trade, recovering from a near two-month closing low hit in the previous session, even as investors awaited clarity on new taxes and key legislations.

The Colombo stock index ended 0.05 percent firmer at 6,417.15, edging up from its lowest close since Sept. 26 hit on Friday. The index fell 1.1 percent last week, but is still up 3 percent in the year so far.

Turnover stood at 342.7 million rupees ($2.23 million) on Monday, around a third of this year’s average.

“Investors are on wait-and-see approach with continued political uncertainty,” said Atchuthan Srirangan, senior research analyst, First Capital Holdings PLC.

“The good sign is that the foreign participation is high.”

Foreign investors net bought equities worth 42.9 million rupees on Monday, extending the year-to-date net foreign inflow to 18.4 billion rupees worth of stocks.

Shares in Ceylon Tobacco Company Plc rose 2.1 percent, while Lion Brewery Plc ended 2.3 percent up and Hatton National Bank Plc ended 0.7 percent firmer, pushing the overall index up.

Analysts said political worries over delay in local government polls and a lack of clarity over budget and two other key policy measures continued to weigh on sentiment.

A court on Wednesday issued a stay order on a legislation that cleared the island nation’s Election Commission to hold local government polls in which the coalition partners of the government have decided to contest separately.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented earlier this month, with the final budget vote scheduled for Dec. 9.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarification on the new legislations. ($1 = 153.6500 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 providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka

Sri Lankan shares hit 1-wk closing low amid heavy foreign outflow

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

NOVEMBER 23, 2017

COLOMBO, Nov 23 (Reuters) – Sri Lankan shares hit a one-week closing low on Thursday, as investors waited for clarity on new taxes in the national budget and on key legislations, although selling by foreign investors in Commercial Bank of Ceylon helped boost turnover.

The Colombo stock index ended 0.13 percent weaker at 6,456.11, its lowest close since Nov. 16.

Commercial Bank, which accounted for 82.3 percent of the day’s turnover, closed 0.5 percent firmer. The index was, however, dragged down by large caps, with Ceylon Tobacco Company falling 1 percent and Nestle Lanka Plc slipping 1.1 percent.

“Banks were actively traded and Commercial Bank foreign selling was the main contributor for the turnover. Other than that, the market was very dull,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings PLC.

The day’s turnover stood at 1.49 billion rupees, more than this year’s average of around 954.9 million rupees.

Foreign investors net sold equities worth 1.23 billion rupees ($8 million) on Thursday, but they have bought a net 18.5 billion rupees worth stocks so far this year.

“It is a bit weak market. There is also some political uncertainty after a court decision related to local government election. But we expect foreign trading to continue,” Srirangan said.

A court on Wednesday issued a stay order on a legislation that cleared the island nation’s Election Commission to hold local government polls in which the coalition partners of the government have decided to contest separately.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented earlier this month, with the final budget vote scheduled for Dec. 9.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarification on the new legislations. ($1 = 153.6500 Sri Lankan rupees) (Reporting by 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 providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka.

Weekly Government Securities Market

Ceylon Today | 2017-11-23

By First Capital Research

Weekly Yield movement & Volume
Bond market activity remained relatively moderate during the past week, following the last Bill Auction held on 15 November 2017, illustrating a slowdown in the upward movement in yields. Heavy slowdown in activity was witnessed on Monday ahead of the Bill Auction. On Wednesday the market witnessed steep buying interest, specifically in the short to mid tenures, on expectations of a dip in rates in the bill auction.

Liquidity & CBSL Holdings
Market liquidity remained volatile over the past week, but remained around the LKR 25-28 billion mark, while the CBSL Holdings also registered a slow deterioration. However, a sudden drop in market liquidity, coupled with a jump in CBSL Holdings, was witnessed on 17 November 2017, which could be linked to an outflow for the Government.

Foreign Interest
Foreigners remained net foreign buyers for the 10th consecutive week, adding a further LKR 1.4 billion to foreign holding. However, with the overall outstanding Government securities stock increasing, overall foreign holding percentage remained at 6.3% as at 15 November 2017.

Maturities for next week
The Government securities market has Treasury Bill maturities on LKR 27 billion, which needs to be settled on 30 November 2017. Further, the Government also needs to settle LKR 22.3 billion of Treasury Bond interest falling due 1 December 2017, which will be settled on 30 November 2017, which is the last working day for settlement.

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 inTreasury 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 edge up on large caps; turnover hits over 2-wk low

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

NOVEMBER 22, 2017

COLOMBO, Nov 22 (Reuters) – Sri Lankan shares ended slightly higher on Wednesday in dull trade, as investors stayed on the sidelines awaiting clarifications on new taxes in the national budget and key legislations unveiled earlier this month, analysts said.

The Colombo stock index ended 0.09 percent firmer at 6,464.44. It lost 1 percent last week.

Large caps led the gains, with Ceylon Beverage Holdings Plc jumping 17.8 percent and Lion Brewery Ceylon Plc up 5.6 percent.

“Investors are waiting for clarifications on the budget, Inland Revenue Act, and Exchange Control Act,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings PLC.

“There was interest in blue chips. The index has yet to find a direction after the budget.”

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented on Nov. 9 to boost revenues, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

The final budget vote is scheduled for Dec. 9 and the market expects some amendments that could help give it some direction.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarifications on the new legislations.

Foreign investors net bought equities worth 20.7 million rupees ($134,678) on Wednesday, extending the net foreign inflow to 19.7 billion rupees so far this year.

The day’s turnover, which hit a more-than two-week low, stood at 324.3 million rupees, around a third of this year’s average of around 952.5 million rupees.

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 rise for 2nd session on John Keells

JALIYA WIJERATNE, CEO AT FIRST CAPITAL EQUITIES, SPEAKS TO REUTERS

NOVEMBER 17, 2017

COLOMBO, Nov 17 (Reuters) – Sri Lankan shares rose half a percent on Friday, climbing for a second straight session, buoyed by gains in market heavyweight John Keells Holdings on bargain hunting.

The Colombo stock index ended 0.54 percent firmer at 6,483.55, recovering from its lowest close since Sept. 27 hit on Wednesday.

It shed 2.6 percent in the five sessions through Wednesday on worries over new taxes on cash-rich telecom and banking sectors. It shed 1 percent this week.

“There was strong interest in Keells shares. The market is recovering after some unclear budget policies,” said Jaliya Wijeratne, CEO at First Capital Equities.

John Keells shares rose 2.3 percent, while Cargills (Ceylon) Plc climbed 2.4 percent.

Foreign investors, who have net bought equities worth 19.6 billion rupees so far this year, net sold shares worth 92.6 million rupees ($602,865) on Friday.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined last week, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

Samaraweera imposed taxes on telecom towers and text messages, and introduced a debt repayment levy of 20 cents per 1,000 rupee bank transaction with effect from April 1 next year.

Turnover was 717.6 million rupees on Friday, less than this year’s average of around 953.6 million rupees. ($1 = 153.6000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

 

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 – 16.11.2017

Stock-Brokers-in-Sri-Lanka

First Capital’s Head of Researchh, Dimantha Mathew, with the Market Review on Ada Derana

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.

Atchuthan Srirangan of First Capital Holdings PLC on Ethiroli (Shakthi TV) – 19th November 2017

investment-banking-in-Sri-Lanka

First Capital’s Senior Research Analyst Atchuthan Srirangan on Ethiroli on Shakthi TV, discussing about Economy reforms of Sri Lanka and how Budget 2018 proposals would assist the goals.

Watch full interview >

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.