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Sri Lankan shares extend gain to 1-week closing high

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

MAY 16, 2018 

COLOMBO, May 16 (Reuters) – Sri Lankan shares rose for a second straight session on Wednesday and closed at a one-week high, with Ceylon Tobacco Co Plc leading the gains.

The Colombo stock index ended 0.42 percent firmer at 6,483.47, its highest close since May 9. It hit a five-week low on Monday.

“There was slow local buying on select shares. Still we do not see a bounce-back,” said Jaliya Wijeratne, CEO, First Capital Equities.

Turnover stood at 455.2 million rupees ($2.88 million), less than half of this year’s daily average of 1.01 billion rupees.

Foreign investors net sold equities worth 7.3 million rupees, extending the year-to-date net foreign outflow to 669.6 million rupees worth of shares.

Meanwhile, recent fuel price hikes weighed on investor sentiment, stockbrokers said.

State-run Ceylon Petroleum Corp (CPC) raised retail prices for gasoline and diesel on Thursday midnight in response to rises in global oil prices. Lanka IOC, a subsidiary of Indian Oil Corp, also increased fuel prices the same day.

Shares of Ceylon Tobacco rose 3.3 percent, Softlogic Holdings Plc closed 4.4 percent firmer and Lanka ORIX Leasing Co Plc climbed 1.8 percent.

The depreciation in rupee also weighed on the market, analysts said, as it is likely to hit profits of some listed firms that rely heavily on imports.

The rupee hit a fresh low of 158.50 per dollar on Wednesday on importer demand for the U.S. currency.

Analysts said concerns over political instability following President Maithripala Sirisena’s decision to suspend the parliament last month after 16 legislators from his ruling coalition defected, also hurt sentiment.

Last week, Sirisena urged his own coalition government and the opposition to end a power struggle in order to achieve ambitious goals including anti-corruption measures. ($1 = 158.0000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan shares hit 5-week closing low on fuel price hike, foreign outflows

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

MAY 14, 2018 

COLOMBO, May 14 (Reuters) – Sri Lankan shares ended at a near five-week low on Monday, led by industrial shares such as John Keells Holdings, while foreign outflows and the recent fuel price hike weighed on sentiment, stockbrokers said.

State-run fuel retailer Ceylon Petroleum Corp (CPC) raised retail prices for gasoline and diesel on Thursday midnight in response to the hike in oil prices, while Lanka IOC, a subsidiary of Indian Oil Corp, increased fuel rates the same day.

“The fuel price hike hit overall market sentiment. The increase could hit cost of production and services in almost all the companies. So investors expect lower profits,” said Jaliya Wijeratne, CEO, First Capital Equities.

The Colombo stock index fell for a sixth straight session and ended 0.52 percent weaker at 6,444.96, its lowest close since April 10. The index lost 0.4 percent last week, in its third straight weekly decline.

The day’s foreign selling accounted for 80 percent of the turnover, which stood at 924.4 million rupees ($5.86 million), less than this year’s daily average of 1.03 billion rupees.

Foreign investors net sold 333.2 million rupees worth of equities on Monday, extending net foreign outflow to 668.5 million rupees worth of equities so far this year.

John Keells Holdings, whose transport business is seen to be affected due to the price hike, ended 1.2 percent down, while top mobile phone operator Dialog Axiata, closed 1.4 percent lower despite posting a rise of 78.6 percent in first-quarter net profit, and Lanka IOC ended down 4.5 percent.

Garment exporter Teejay Lanka Plc accounted for 65 percent of the day’s turnover.

The market shrugged off the central bank’s policy decision on Friday as it was widely expected, brokers said.

The central bank kept its key policy rates steady, a little more than a month after it unexpectedly cut the main lending rate, forecasting a modest recovery in the economy this year after growth slumped to a 16-year low in 2017.

Analysts said the depreciation of rupee also weighed on investor sentiment as it is likely to hit profits of some listed firms that rely heavily on imports.

The rupee hit a fresh low of 158.00 per U.S. dollar on Monday on importer demand for the U.S. currency.

Analysts said concerns over political instability following President Maithripala Sirisena’s decision to suspend the parliament last month after 16 legislators from his ruling coalition defected also weighed on sentiment.

Sirisena last week urged his own coalition government and the opposition to end a power struggle in order to achieve ambitious goals including anti-corruption measures.

($1 = 157.8000 Sri Lankan rupees)

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 13.05.2018

Stock Market Sri Lanka

First Capital’s 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.

Sri Lankan shares close little changed, but post third weekly fall

ATCHUTHAN SRIRANGAN, ASSISTANT  MANAGER – RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

May 14, 2018

COLOMBO, May 11 (Reuters) – Sri Lankan shares closed little changed on Friday as most investors stayed on the sidelines to see the real impact of a hike in fuel prices, brokers said.

State-run fuel retailer Ceylon Petroleum Corp (CPC) raised retail prices for gasoline and diesel from Thursday midnight in response to rising oil prices.

The Colombo stock index fell for a fifth straight session and ended 0.01 percent weaker at 6,478.87, its lowest close since April 11. The index lost 0.4 percent this week, in its third straight weekly fall.

“Most of the investors were on the sidelines waiting to see the real impact of the fuel price increase,” said Atchuthan Srirangan, assistant manager-research at First Capital Holdings PLC.

“Though the fuel price increase was expected, it could impact the bottom lines of manufacturing and transportation companies directly, while it will also push inflation and other costs, and could impact other companies too.”

The market shrugged off the central bank’s policy decision earlier in the day as it was widely expected, said Srirangan.

The central bank kept its key policy rates steady, a little more than a month after it unexpectedly cut the main lending rate, forecasting a modest recovery in the economy this year after growth slumped to a 16-year low in 2017.

Analysts said the depreciation of rupee also weighed on investor sentiment as it is likely to hit profits of some listed firms that rely heavily on imports.

The rupee hit a fresh low last week on importer demand for the U.S. currency.

Shares of BRAC Lanka Finance Plc fell 23.4 percent, Dialog Axiata Plc dropped 1.4 percent and conglomerate John Keells Holdings Plc ended down 0.2 percent.

Fitch Ratings has said that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Sri Lankan President Maithripala Sirisena on Tuesday urged his own coalition government and the opposition to end a power struggle in order to achieve ambitious goals including anti-corruption measures.

Turnover stood at 769.5 million rupees ($4.88 million), less than this year’s daily average of 1.03 billion rupees. Foreign investors net bought 24.3 million rupees worth of equities on Friday, but the market has seen a net foreign outflow to 335.4 million rupees worth of equities so far this year. ($1 = 157.8000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan stocks end flat near 4-week low; lenders gain

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

MAY 10, 2018

COLOMBO, May 9 (Reuters) – Sri Lankan shares ended little changed on Wednesday, at a near four-week low, as losses in shares of beverage companies outweighed gains in bank stocks even as many investors continued to stay on the sidelines looking for fresh cues.

President Maithripala Sirisena’s appeal to his own coalition government and the opposition in parliament on Tuesday to end a power struggle failed to cheer investors as weakness in the rupee continued to weigh.

The Sri Lankan rupee hit a fresh low last week on importer demand for the U.S. currency, dealers said.

Analysts said depreciation of the rupee also weighed on the sentiment as it is likely to dent the profits of some listed firms that rely heavily on imports.

The Colombo stock index ended 0.03 percent weaker at 6,483.65, its lowest since April 12. The index lost 0.37 percent last week, its second straight weekly fall.

“Market is searching for directions,” said Dimantha Mathew, head of research, First Capital Holdings.

“After a long time, we saw the turnover crossing 1 billion rupees thanks to a block deal. We also saw some buying interest in banking sector which is a good sign for the market.”

Shares of Nestle Lanka Plc fell 2.2 percent, while conglomerate John Keells Holdings Plc ended 0.3 percent down and Distilleries Company of Sri Lanka Plc closed 0.5 percent lower.

Union Assurance Plc, which accounted for 24 percent of the day’s turn over, closed 2.6 percent higher.

Fitch Ratings has said that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at 1.2 billion rupees ($7.60 million), its highest since April 4 and more than this year’s daily average of 1.03 billion rupees.

Foreign investors bought a net 86.8 million rupees worth of equities on Wednesday, but the market has seen a net foreign outflow to 400.2 million rupees worth of equities so far this year. ($1 = 157.8500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 06.05.2018

Stock Market in Sri Lanka

First Capital’s 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.

Sri Lankan stocks end at over 3-week low in thin trade

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

MAY 09, 2018

COLOMBO, May 8 (Reuters) – Sri Lankan shares fell on Tuesday to more than a three-week low, dragged down by shares of beverage companies such as Distilleries Company of Sri Lanka Plc , while investors continued to await fresh cues from political and economic fronts.

The Colombo stock index ended 0.33 percent weaker at 6,485.57, its lowest since April 12. The index lost 0.37 percent last week, its second straight weekly fall.

“It was a very slow market as investors are still scared and they are worried …. they don’t see that the economy has picked up and they feel its still uncertain for equity investments though there are signs of improvement in the economy,” said Dimantha Mathew, head of research, First Capital Holdings.

Shares of Sri Lanka Plc ended 3.1 percent lower while Ceylon Cold Stores Plc fell 1.2 percent and Lanka ORIX Leasing Plc ended 1.9 percent weaker.

Conglomerate John Keells Holdings Plc ended 0.6 percent down and Sri Lanka Telecom Plc closed 1.1 percent weaker.

Analysts said depreciation of the rupee also weighed on the sentiment as it is likely to dent the profits of some listed firms that rely heavily on imports.

The Sri Lankan rupee hit a fresh low on Wednesday on importer demand for the U.S. currency, dealers said, but recovered after the central bank intervened in the market.

Fitch Ratings has said that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at 601.6 million rupees ($3.82 million), less than this year’s daily average of 1.03 billion rupees.

Foreign investors bought a net 100.9 million rupees worth of equities on Tuesday, but the market has seen a net foreign outflow to 487 million rupees worth of equities so far this year. ($1 = 157.4000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lankan stocks end at near 3-week low in thin trade

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

MAY 08, 2018

COLOMBO, May 4 (Reuters) – Sri Lankan shares ended at a near three-week low on Friday, led by large-cap shares in a light trading session, as investors looked for fresh cues from political and economic fronts.

The Colombo stock index ended 0.26 percent weaker at 6,506.74, its lowest since April 16. The index lost 0.37 percent during the week, its second straight weekly fall.

“The market was down primarily on CTC (Ceylon Tobacco Company PlC). It fell in low volumes and dragged the market. Other shares ended flat with most of the investors still on the sidelines awaiting direction,” said Dimantha Mathew, head of research, First Capital Holdings.

Shares in Ceylon Tobacco Company Plc ended 2.6 percent lower while Lanka ORIX Leasing Plc fell 2.7 percent.

Conglomerate John Keells Holdings Plc ended 0.1 percent down and Dialog Axiata Plc closed steady.

Analysts said depreciation of the rupee also weighed on the sentiment as it is likely to dent the profits of some listed firms that rely heavily on imports.

The Sri Lankan rupee hit a fresh low on Wednesday on importer demand for the U.S. currency, dealers said, but recovered after the central bank intervened in the market.

Fitch Ratings said on Thursday that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at 386.4 million rupees ($2.45 million), around a third of this year’s daily average of 1.04 billion rupees.

Foreign investors bought a net 34.8 million rupees worth of equities on Friday, but the market has seen a net foreign outflow to 587.9 million rupees worth of equities so far this year. ($1 = 157.4300 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lankan stocks end at over 1-wk low; Teejay drags index

ATCHUTHAN SRIRANGAN, ASSISTANT  MANAGER – RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

May 3, 2018

COLOMBO, May 2 (Reuters) – Sri Lankan shares ended at their lowest in over a week on Wednesday led by textile company Teejay Lanka due to a fall in the rupee and on higher global cotton prices, brokers said.

The Colombo stock index ended down 0.23 percent at 6,518.64, its lowest since April 24. The index lost 0.15 percent last week.

Teejay closed down 6.3 percent.

“Teejay shares were hit by both rupee depreciation and higher cotton prices in the world market,” said Atchuthan Srirangan, assistant manager-research at First Capital Holdings PLC.

Distilleries Company of Sri Lanka fell 0.9 percent.

The Sri Lankan rupee hit a fresh low on Wednesday on importer demand for the U.S. currency, dealers said, but recovered after the central bank intervened in the market.

Fitch Ratings said on Thursday that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at 612.8 million rupees ($3.89 million), less than this year’s daily average of around 1.1 billion rupees.

Foreign investors sold a net 18.3 million rupees worth of equities on Wednesday, extending the net foreign outflow to 669.1 million rupees worth of equities so far this year.

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 29.04.2018

Stock_Market_Investment_Sri_Lanka

 

 

 

 

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.