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Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance – 17.10.2019

Treasury Bills and Bonds in Sri Lanka

“The secondary market yield curve remained broadly unchanged while overall market witnessed thin volumes. Stock market rebounded today from the negative sentiment witnessed in the previous two trading sessions with price appreciations witnessed in SLTL and LOLC.

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance.  #CSE #CBSL #lka.

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 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.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance – 16.10.2019

Stock Brokers in Sri Lanka

“Bond market witnessed heavy buying interest from both local and foreign counter parties with overall market witnessing moderate volumes. In the equity market bourse ended in red for the second straight session on the price losses of LOLC and NTB………..”

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance.  #CSE #CBSL #lka.

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 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.

Special Awareness building session for professionals

Stock Brokers in Sri Lanka

Our Matara Branch recently held a special awareness building session for Professionals.

Presentation made by Devin Yasas, Kavin Karunamoorthy Senior Manager – Asset Management and Rohana Jayakody Senior Manager – Branch Sales.

Our branch network cover all product offerings from the Investment Bank’s five subsidiary businesses, consisting services in Government SecuritiesStockbrokeringUnit TrustsWealth ManagementCapital Markets Advisory including Debentures, Commercial Papers, Trust Certificate, Share/ Business Valuations and Mergers and Acquisitions.

Nisansala Kuruppumudali, Research Analyst at First Capital commenting on the bond and stock market performance – 15.10.2019

Stock Brokers in Sri Lanka

“In the bond market the secondary market yield curve shifted downwards while overall market witnessed moderate volumes. In the equity market bourse ended in red, reversing the positive sentiment witnessed for last seven trading sessions……….”

Nisansala Kuruppumudali, Research Analyst at First Capital commenting on the bond and stock market performance.  #CSE #CBSL #lka.

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 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.

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market performance – 14.10.2019

Stock Brokers in Sri Lanka

“The secondary bond market witnessed continued buying interest during the day while the overall market witnessed moderate volumes. Beginning of the week stock market started on a positive note, concluding the day in green on the price gains made by HNB.N and DIST, recording a near 1-1/2 month high……..”

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market performance. #CSE #CBSL #lka.

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 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 Lanka c.bank keeps rates steady, rupee still vulnerable

Reuters | 11.10.2019

COLOMBO, Oct 11 (Reuters) – Sri Lanka’s central bank left its key rates unchanged on Friday after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.

The decision to hold rates was expected ahead of presidential elections next month and as lower bank rates go into effect following a raft of measures to support the economy.

But some analysts foresee the possibility of further loosening next year.

The central bank kept the standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) steady at 7.00% and 8.00%, respectively. A Reuters poll had expected the Central Bank of Sri Lanka to keep both rates steady.

“The measures that have been put in place during the past 12 months are sufficient to achieve the desired outcomes, given adequate time for their transmission through the financial sector,” the central bank said in a statement.

Interest rates were lowered by 100 basis points in two meetings since May to bolster the economy after deadly Easter Day bomb attacks by Islamist militants.

Pressure on the rupee has been building since early September as foreign investors started to pull out their funds after the central bank’s rate cuts. The rupee is down around 4% against the U.S. dollar since April.

The central bank also reduced the SRR by 250 bps, releasing around 150 billion rupees ($832 million) of liquidity to the financial market and imposed caps on rupee deposit interest rates that enabled banks to reduce the cost of mobilising funds from the general public.

The Monetary Board last month ordered banks to cut interest rates on all rupee denominated loans by at least 200 basis points by Oct. 15, from levels in April.

The central bank said on Friday the economy was likely to remain subdued this year and was expected to recover gradually in the medium term. It had said in August that growth would slow to 3.1% or less in 2019.

Growth eased to a 17-year low of 3.2% in 2018 and a Reuters poll has predicted growth will be its lowest in nearly two decades this year.

Analysts say investors and businesses will likely be cautious until the Nov. 16 presidential elections are over.

“We are very close to the elections, so there is unlikely to be a change in rates,” said Dimantha Mathew, head of research at broker First Capital Holdings.

Capital Economics said in a report it was pencilling in a 50-basis-point cut for the second half of next year. “Global sentiment should start to improve around the middle of next year, and this could allow the central bank to cut interest rates further,” said Alex Holmes, Asia economist.

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.

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market forecast – 13.10.2019

Stock Brokers in Sri Lanka

“We expect markets to slow down with the ambiguity caused by the island wide presidential campaigns coupled with the release of upcoming company quarterly statements this week…….”

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market forecast. #CSE #CBSL #lka.

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 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 expects ASPI to hit 6,500 by 1H’20

Ceylon Today | 06.10.2019

A leading investment banking service provider expects the benchmark index of the Colombo Stock Exchange to hit 6,000 points by the end of this year, while the Sri Lankan rupee is expected to weaken to Rs 183 against the US dollar.

Though the rupee is predicted to weaken to
Rs 188 against the dollar by end-June next year, the firm believes the All Share Price Index (ASPI) would accelerate to 6,500 points.

First Capital Holdings, in its ‘Mid-Year Outlook’, said that a reversal in economic activity and upward trend in company earnings can be expected in the market, supported by stronger market multiples.

First Capital Head of Research, Dimantha Mathew said, “Stock markets usually pass through many phases.

It very rarely reaches fair value and as a result, markets either overshoot or overcorrect. The ASPI, we believe, has recovered to the ‘Disbelief’ stage from the ‘Depression’ stage, following the decline in interest rates.”

“We expect the market to adopt an upward trajectory over the next 12 months, as we expect the ASPI to reach the next stage of the market cycle – the ‘Hope’ stage – and then the ‘Optimism’ stage,” he said.

First Capital Holdings expects the lower interest regime to continue over the next 9-12 months, resulting in most companies recording lower finance costs.

The firm also expects the lower interest rate environment and the upcoming elections to boost consumer demand and economic activity, resulting in stronger topline growth for most companies.
In its report, the firms highlighted that the Sri Lankan rupee would weaken to Rs 183 against the US dollar, and further weaken to Rs 190 by end-2020.

The US dollar index was expected to remain strong with the Fed rate cut considered to be just an adjustment in the uptrend, adding that the volatile global environment was supporting the US dollar to remain strong in the mid-term, the firm said.

As the Sri Lankan economy picks up towards the fourth quarter of this year, the firm expects to witness a possible weakness in the currency, though it may be counterbalanced by possible inflows during the first quarter of 2020.

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.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance – 10.10.2019

Stock Brokers in Sri Lanka

“The secondary market remained at a standstill ahead of the monetary policy resulting the yield curve remaining unchanged. Stocks closed the day in marginal green as index gained by just 5 points…….

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance. #CSE #CBSL #lka.

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 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.

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market performance – 09.10.2019

Stock Brokers in Sri Lanka

“The secondary market yield curve shifted slightly downwards amidst the buying interest. In the stock market, bourse ended in green, continuing on the positive territory for the fourth straight session mainly contributed by the big caps JKH and HNB.N…………”

Atchuthan Srirangan, Assistant Manager- Research at First Capital commenting on the bond and stock market performance. #CSE #CBSL #lka.

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 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.