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Weekly Government Securities Market – 14-06-2018

Stock Market Sri Lanka

Sri Lankan stocks near 6-month closing low on foreign selling

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

JUNE 14, 2018

COLOMBO, June 13 (Reuters) – Sri Lankan shares ended lower for a sixth straight session on Wednesday to hit their lowest closing in nearly six months, as foreign investors sold banking shares such as Commercial Bank of Ceylon Plc.

The Colombo stock index ended 0.17 percent weaker at 6,337.88, its lowest close since Dec. 22. The index dropped 0.7 percent last week, marking its third straight weekly fall.

Foreign investors net sold 213.2 million rupees ($1.34 million) worth of equities on Wednesday, extending the year-to-date net foreign outflow to 741.1 million rupees worth of shares.

“The market is down with foreign selling,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

“We saw some foreign selling in Commercial Bank, which brought the index down. The rupee depreciation also affected foreign investors.”

Shares in Distillers Company of Sri Lanka Plc closed 2.3 percent weaker, while Lanka ORIX leasing Company Plc ended down 3.3 percent, conglomerate John Keells Holdings Plc ended 0.2 percent lower and biggest listed lender Commercial Bank of Ceylon ended 0.2 percent down.

Most investors have adopted a wait-and-watch approach, hoping for some positive news on the economic front, analysts said.

Turnover stood at 459.8 million rupees, half of this year’s daily average of 964.6 million rupees.

A weaker rupee, political uncertainty and the recent fuel price hike weighed on sentiment in the past few weeks with local investors remaining on the sidelines as they gauged the impact of the floods last month, brokers said.

The Sri Lankan rupee slipped to a fresh all-time low of 159.80 per dollar on Monday, pulled down by a lack of support for the local currency from exporters.

Sri Lankan stocks hover near 5-1/2-month closing low

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

JUNE 12, 2018

COLOMBO, June 11 (Reuters) – Sri Lankan shares edged lower on Monday, falling for a fourth straight session to end at their lowest close in more than five months, as investors continued to stay on the sidelines looking for fresh cues.

The Colombo stock index ended 0.04 percent weaker at 6,352.61, its lowest close since Dec 26. The bourse fell 0.7 percent last week recording a third straight weekly fall.

“The market was very slow with weak investor sentiment and things continue to remain low,” said Dimantha Mathew, head of research, First Capital Holdings.

“The investor perspective is things are uncertain and they are not willing to invest due to lack of any positive news on the economic front.”

Most investors have adopted a wait-and-watch approach, hoping for some positive news on the economic front, analysts said.

Turnover was 393.9 million rupees ($2.48 million), less than half of this year’s daily average of 970.2 million rupees.

Foreign investors bought net 59.6 million rupees worth of equities on Monday. The market, however, has witnessed a year-to-date net foreign outflow of 494.9 million rupees worth of shares.

A weaker rupee, political uncertainty and the recent fuel price hike weighed on sentiment in the past week with local investors remaining on the sidelines as they gauged the impact of the floods last month, brokers said.

The Sri Lankan rupee slipped to a fresh all-time low of 159.10 per dollar on Monday, pulled down by a lack of support for the local currency from exporters.

Shares in Asiri Hospitals Plc ended 0.4 percent lower, while Melstacorp Ltd closed 0.6 percent weaker, Distillers Company of Sri Lanka Plc closed down 0.9 percent, the biggest-listed lender Commercial Bank of Ceylon Plc ended 0.3 percent lower and Sri Lanka Telecom Plc closed 1.6 percent weaker.

$1 = 159.0000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez, Editing by Sherry Jacob-Phillips

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 10.06.2018

Stock Market Sri Lanka

First Capital’s Atchuthan Srirangan 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.

Sri Lankan shares end lower; blue chips lead

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

JUNE 07, 2018

COLOMBO, June 7 (Reuters) – Sri Lankan shares ended weaker on Thursday, after breaching the psychological barrier of 6,400, pulled down by blue-chip shares such as John Keells Holdings Plc , brokers said.

Foreign investors, who were net sellers for the fist time in five sessions, sold a net 114.3 million rupees ($719,773.3) worth of equities on Thursday, extending the year-to-date net foreign outflow to 576.1 million rupees worth of shares.

The Colombo stock index closed 0.57 percent weaker at 6,363.62.

Analysts expected a further decline in the index as there weren’t any positive news to boost market sentiment.

“The selling pressure is there after the index broke the psychological barrier of 6,400 on Wednesday,” said Dimantha Mathew, head of research, First Capital Holdings.

“We don’t see real positivity among the investors, and we expect the index to continue sliding till the next support level of 6,320.”
Most of the investors have adopted the wait-and-watch approach, hoping for some positive news especially on the economic front, analysts said.

Turnover was 545.7 million rupees, below this year’s daily average of 982.1 million rupees.

A weaker rupee, political uncertainty and the recent fuel price hike weighed on sentiment in the past week, as local investors mostly remained on the sidelines as they gauged the impact of the floods that killed 24 people in the island nation over the past two weeks, brokers said.

The rupee touched its record low of 158.90 per dollar on Thursday owing to the demand from importers for the greenback.

Shares in conglomerate John Keells Holdings Plc ended 0.8 percent weaker, while Lanka ORIX leasing Plc closed 3.6 percent and Distiller Company of Sri Lanka Plc ended down 1.8 percent.

Weekly Government Securities Market – 07-06-2018

Treasury_Bills_and_Bonds

Sri Lankan shares hit 5-month closing low, foreign investors cap falls

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

JUNE 05, 2018

COLOMBO, June 4 (Reuters) – Sri Lankan shares ended weaker on Monday to hit their lowest close in more than five months as investors sold telecom and banking shares, while foreign buying curbed further decline.

Foreign investors bought net 318.2 million rupees ($2.01 million) worth of equities on Monday, but the market has witnessed a year-to-date net foreign outflow to 824 million rupees worth of shares.

The Colombo stock index ended 0.1 percent weaker at 6,394.93, its fifth drop in six sessions. It fell 1 percent last week.

“The market is completely dead and some block deals pushed the turnover levels,” said Dimantha Mathew, head of research, First Capital Holdings.

“Investors are adopting the wait-and-see approach for some positive news, especially on the economic front.”

Turnover was 771.8 million rupees, less than this year’s daily average of 994.2 million rupees.

A weaker rupee, political uncertainty and the recent fuel price hike also weighed on sentiment, as local investors mostly remained on the sidelines as they gauged the impact of the floods that killed 24 people in the island nation over the past two weeks, brokers said.

Shares in Dialog Axiata Plc ended 2.1 percent lower, while Ceylinco Insurance Plc closed down 4.3 percent and Hemas Holdings Plc ended 2.4 percent weaker.

Foreign investors, who mostly sold shares of John Keells last week, bought the market heavyweight after the lower prices made it more attractive, stockbrokers said. Shares of John Keells ended steady on Monday.

Reports that MSCI Frontier Markets 100 Index, which captures large- and mid-cap representation across 29 frontier markets, will remove Keells from its index triggered foreign selling.

The rupee hit a fresh low of 158.80 per dollar on Friday owing to dollar demand from foreign banks and importers, but ended steady on late inflows from remittances.

Analysts said market sentiment was dented by concerns over political instability following President Maithripala Sirisena’s decision to suspend parliament last month after 16 legislators from his ruling coalition defected.

Last month, Sirisena urged his own coalition government and the opposition to end a power struggle to achieve ambitious goals including anti-corruption measures.