Investment in Sri Lanka

Sri Lankan stocks end steady; cbank rate move, foreign buying boost sentiment

FIRST CAPITAL’S HEAD OF RESEARCH DIMANTHA MATHEW SPEAKS TO REUTERS

Fri Jun 23, 2017

Sri Lankan shares closed little changed on Friday, but sentiment was positive as the central bank kept key policy rates steady and as foreign investors bought diversified shares such as Hemas Holdings Plc and John Keells Holdings.

The banking regulator said the current monetary policy, which was in line with forecasts, was appropriate as it expected the economy to recover in the second half of the year.

The Colombo stock index ended 0.01 percent firmer at 6,715.33, but fell 0.05 percent on week.

“Unchanged policy rates could be one reason for the positive and healthy atmosphere that was there today,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“It was a very active day with all retail, high networth institutional and foreign investors trading in the market.”

Turnover was 2.7 billion rupees ($17.64 million), nearly three times this year’s daily average of 921.1 million rupees.

Foreign investors net bought 257.7 million rupees ($1.68 million) worth of shares, extending the year to date net foreign inflow to 21.1 billion rupees worth of equities.

Shares of conglomerate John Keells ended 1.2 percent firmer, while Ceylinco Insurance Plc rose 6.7 percent and Hemas Holdings closed up 1.9 percent.

The markets will be closed on Monday for Id-Ul-Fitr or the Ramzan Festival Day. Normal trading will resume on Tuesday. ($1 = 153.1000 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.<