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Amanda Lokugamage, Senior Research Analyst, at First Capital commenting on the bond and equity market performance

Treasury Bills and Bonds in Sri Lanka

Amanda Lokugamage, Senior Research Analyst, at First Capital commenting on the bond and equity market performance – 27.02.2019

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 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.

 

Hiruni Perera, Senior Research Analyst, at First Capital commenting on the bond and equity market performance

Invest in Sri Lanka

Hiruni Perera, Senior Research Analyst, at First Capital commenting on the bond and equity market performance – 26.02.2019

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.

 

 

 

 

Amanda Lokugamage, Senior Research Analyst, at First Capital commenting on the bond and equity market performance – 24.02.2019

Treasury Bills and Bonds Sri Lanka

Amanda Lokugamage, Senior Research Analyst, at First Capital commenting on the bond and equity market performance.

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.

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.

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.

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.

1-yr T-bill slightly rises to 10.73 per cent

Ceylon Today | 22.02.2019

Share Market Investment Sri Lanka

By First Capital Research
Weekly Yield movement & Volume

The secondary market remained dull during the week, witnessing a low level of activity. The yield curve remained relatively unchanged during the week, although the five-year maturity shifted slightly upwards by 8bps. Despite the continued foreign buying interest in Government Securities, the rupee witnessed a slight depreciation against the USD to close at Rs 179.70 compared to Rs 178.46 at the beginning of the week. At the primary bill auction held on 20 February 2019, the weighted average yield of the 1-year bill was seen increasing slightly up by 01 bps to 10.73 per cent, while all bids received for the three-month bill were rejected.


Liquidity & CBSL Holdings

CBSL market liquidity remained negative throughout the week, while the highest liquidity deficit for the week was recorded on 18 February, amounting to Rs 102.2 billion. Meanwhile, CBSL holdings increased towards the latter part of the week and recorded Rs 181.5 billion.


Foreign Interest

Foreign holding was recorded at Rs 165.9 billion, recording an increase of Rs 3.3 billion, while witnessing foreign buying in Government Securities for the fourth consecutive week. Foreign holding percentage for the week remained at 3.1 per cent.


Maturities for next Week

The Government Securities Market has a Treasury Bill maturity amounting to Rs 30.0 billion and a coupon payment of Rs 19.8 million, which needs to be settled on 01 March 2019.


Daily Summary

Thursday (14.02.19): The overall yield curve remained mostly unchanged, while the market witnessed thin volumes amidst limited activity levels in the secondary market. Mixed activities were witnessed on [01.08.26] at 11.35 per cent, two 2027 maturities ([15.01.27] and [15.06.27]) at 11.40 per cent and [01.09.28] at 11.48 per cent.
Friday (15.02.19): Secondary market yield curve remained broadly unchanged to close the week at previous day’s levels with market witnessing thin volumes as market participants were seen remaining on the side-line while the USD: LKR opened the day at 178.50/60, prior to weakening slightly to close the week at 178.60/85.
Monday (18.02.19): The secondary market saw low activity levels, while the overall yield curve remained broadly unchanged from the previous week’s closing levels. Limited activities were witnessed in two 2021 maturities with mixed activities on [01.08.21] at 10.96-10.92 per cent levels and [15.12.21] traded at 11.00 per cent on the back of foreign selling, while the market witnessed thin volumes. CBSL has offered Rs 22.5 billion comprising all three maturities at Wednesday’s bill auction. During the day, USD:LKR was seen weakening to close at 179.80/05 from opening levels of 178.55/85.
Wednesday (20.02.19): The secondary market witnessed low volumes, while the overall yield curve remained broadly unchanged. [01.08.21] was seen trading at 11.00 per cent, while [01.08.26] traded at 11.30-34 per cent levels and [15.06.27] at 11.43 per cent.
Meanwhile, at the weekly bill auction, one-year T- Bill slightly increased to 10.73 per cent, while the yield for the six-month bill remained unchanged.

 

 

First Capital Holdings – Head of Research’s interview on Channel Eye Business Today-16.01.19

Investment in Sri Lanka

Dimantha Mathew, Head of Research at First Capital discussing how the overall macro-economic conditions will positively affect the stock market and share market investments in 2019, and sectors booming in the short to medium term on Business Today – Channel Eye 16-01-2019. 

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.

Atchuthan Srirangan, Assistant Manager Research, at First Capital commenting on the bond and equity market performance – 21.02.2019

Invest in Sri Lanka

Atchuthan Srirangan, Assistant Manager Research, at First Capital commenting on the bond and equity market performance

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 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.

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.

CB seen keeping rates steady as political tensions ease

stock market sri lanka

Reuters | 21 February 2019

Dimantha Mathew, Head of research at First Capital Holdings  speaks to the Reuters on the Monetary policy Forecast

Reuters:  Sri Lanka’s Central Bank is expected to leave its key interest rates steady on Friday, a Reuters poll showed, as the island’s economy slowly recovers from a political crisis that sparked credit downgrades by all three major global rating agencies.

The rupee fell to a record low in early January but has recovered slightly, giving policymakers some breathing room, but the Government’s financial position remains shaky.

All 11 economists surveyed expected the Central Bank of Sri Lanka to keep both its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) steady at 8.00% and 9.00%, respectively.

The central bank raised SDFR by 75 bps and SLFR by 50 bps in November, while reducing the statutory reserve ratio (SRR) by 150 bps to 6.00%.   All of analysts also expected the SRR to be kept steady.  “We expect the central bank to hold rates as there is no real time to assess the impact of the November hike,” said Dimantha Mathew, head of research, First Capital Holdings. “We don’t think you can go for further hikes with the current GDP rate. We also can’t go for rate cut as it might lead to further outflows,” which will erode foreign exchange reserves, he said.  Sri Lanka started discussion with the International Monetary Fund (IMF) last week to continue a $1.5 billion loan, which has been delayed after the political crisis unfolded in October.

President Maithripala Sirisena’s abrupt change of Prime Minister and his decision to dissolve Parliament created panic and uncertainty among investors.  The move was later ruled unconstitutional, and Ranil Wickremesinghe was reinstated after a 51-day political crisis.

Wickremesinghe’s Government aims to focus on economic growth, which has been sluggish due to tight policies, ahead of a Presidential Poll later this year and General Election in 2020.

The Sri Lankan rupee hit an all-time low of 183.00 per dollar on 3 January, but has recovered 1.8% since then as political tensions eased and foreign investors returned to the island nation’s government bonds.

Economic growth edged up to 3.3% in the first nine months of 2018, from 3.2% in the same period a year earlier.

First Capital Research expects a continuation of policy rates at current levels

Feb 21, 2019 (LBO) – First Capital Research said it expects a continuation of monetary policy rates at current levels although they recognize an increased probability of 10 percent for a rate cut considering the prevailing below par GDP growth and sluggish credit growth.

First Capital Research expects the Central Bank to keep Statutory Reserve Ratio (SRR) unchanged at 6.00 percent amidst slow economic activities and to allow the impact of a previous rate hike to materialise.

The Monetary Board of the Central Bank will announce the monetary policy review No.1 of 2019, tomorrow at 7.30 a.m.

On a base case, First Capital Research expects 2 rate cuts of 25bps each during 2019 (2Q & 4Q) as overnight Central Bank standing lending facility rate which stands at 9.0 percent, they believe is too high for accelerated economic activity.

In early January the secondary market yield curve experienced a parallel downward shift predominantly on the belly and long end of the curve followed by a brief uptrend with the overall curve dipping by 22-60bps.

“Equity market saw a continuous downward shift with low activities and foreign outflow of LKR 5.1Bn YTD. However, the debt market saw an inflow of LKR 20.5Bn since mid-Jan 2019,” First Capital Research said.

“On the back of foreign inflows and accelerated USD conversions by exporters, USD: LKR strengthened towards the early Feb 2019, to reach LKR 176.65 on 01 Feb from 2018 closing of 182.90 and stabilising around 178.00-179.00 levels,”

“CBSL holdings increased throughout the period to peak at LKR 177.2Bn and stabilized around LKR 176.3Bn while market liquidity shortage widened to LKR 139.3Bn towards mid-Jan 2019 and narrowed to fall below LKR 70.0Bn.”

The firm observed that the instability in political front continued as further delay in holding provincial council elections, major political parties not having nominated their prospective Presidential candidate while divergence between the President and the UNF continue to persist.

Meanwhile, the Fed indicated the adoption of a cautious approach signaling that the tightening phase might be coming to an end amid rising risks to economic growth.

Fed Reserve officials decided to keep rates unchanged at the first meeting for 2019 as Policymakers is of the view that they have the capacity to wait and carefully take stock of the incoming data and other developments.

First Capital’s Anjelo Simmons speaks on the interest rate hike towards the Investment Banking

Investing in Sri Lanka

Anjelo Simmons , Chief Dealer of First Capital discussing about the Investment in Sri Lanka, and the impact of interest rate hike towards the Investment Banking in Sri Lanka on State of Business – Art Tv 20-02-2019

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.

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.

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.

 

 

Anjelo Simmons, Chief Dealer of First Capital discussing about the Investment in Sri Lanka – State of Business – Art Tv 19-02-2019

Invest in Sri Lanka

Anjelo Simmons, Chief Dealer of First Capital discussing about the Investment in Sri Lanka, and the expected development in the Market on State of Business – Art Tv 19-02-2019

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.

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.

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.