Tag Archives: Ceylon Tobacco Company Plc

Sri Lankan shares edge up; beverage, telecoms lead

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

Sri Lankan shares closed slightly firmer on Monday, after posting a more than three-week closing low in the previous session, with beverage and telecom stocks driving the gains.

However, investor sentiment continued to remain low amid concerns about rising interest rates.

The Colombo stock index ended up 0.26 percent at 6,117.19, after posting its lowest close since Feb. 9 on Friday. It shed 0.6 percent last week in its second straight weekly decline.

Foreign investors were net buyers of shares worth 384.7 million rupees ($2.55 million) on Monday, extending the year-to-date net foreign inflow to 1.35 billion rupees worth of equities.

Turnover was 711.9 million rupees, more than this year’s daily average of 680.1 million rupees.

“Some crossings boosted the turnover. The good sign is we are seeing continued foreign buying these days,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“Local investors are on the sidelines, mainly because of the high interest rates and economic uncertainty.”

Shares in Ceylon Cold Stores Plc jumped 6.12 percent, Lion brewery (Ceylon) Plc rose 6.27 percent, Ceylon Tobacco Company Plc gained 0.71 percent, and Sri Lanka Telecom Plc climbed 2.41 percent.

Yields on treasury bills have risen to a more than four-year high since October, while the central bank has kept key policy rates on hold.

($1 = 151.0000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

 

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 fall for 3rd session; blue-chips down

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

Sri Lankan shares hit a one-week closing low on Monday, as investors sold shares of blue chip firms such as Ceylon Tobacco Company Plc and John Keells Holdings Plc amid concerns over rising market interest rates.

The Colombo stock index fell 0.33 percent to 6,139.51, slipping for a third straight session to its lowest close since Feb. 13.

“Blue-chips brought the market down. The profit-taking is still continuing and investors are more on a wait and see approach,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“The buying interest is there, but at a lower level. So investors are waiting to buy at cheaper rates.”

Shares of Ceylon Tobacco Company Plc fell 1.83 percent, while conglomerate John Keells Holdings Plc dropped 1.22 percent.

Turnover stood at 728.9 million rupees ($4.83 million), more than this year’s daily average of 625.5 million rupees.

Foreign investors offloaded a net 34.88 million rupees worth of equities on Monday, extending the year-to-date net foreign outflow to 272.7 million rupees worth of shares.

The market will remain slow for the next few days and many investors will wait for directions from a sovereign bond issue, Mathew said.

The Sri Lankan cabinet last week approved a $1.5 billion sovereign bond issue to repay loans and manage interest payments.

Yields on treasury bills are hovering at a more than four-year high.

($1 = 150.8300 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.

 

Sri Lankan shares hit 2-wk closing high as blue chips rally

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

Sri Lankan shares hit a two-week closing high on Tuesday as investors picked up blue chip shares such as John Keells Holdings Plc and Ceylon Tobacco Company Plc, brokers said.

The Colombo stock index ended 0.17 percent firmer at 6,148.94, its highest close since Jan. 23.

“Bargain hunting in blue chips is continuing. There was some block trades too,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Shares of John Keells Holdings Plc rose 1.01 percent, while Ceylon Tobacco Company Plc rose 0.59 percent.

Turnover stood at 548.9 million rupees ($3.65 million), more than this year’s daily average of 623.3 million rupees.

Foreign investors net bought 58.2 million rupees worth of equities on Tuesday. They have net sold 313.1 million rupees worth of shares so far this year.

On Thursday, Fitch Ratings affirmed Sri Lanka’s Long-Term Foreign- and Local Currency Issuer Default Ratings (IDR) at ‘B+’ and revised the outlook to ‘stable’ from ‘negative’.

Sri Lankan stocks have been hit by political uncertainty after ruling coalition parties decided to contest local polls separately, and on worries over a rise in interest rates.

Last week, the country’s central bank kept key rates steady for a sixth straight month, but flagged possible “corrective measures” in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee.

Yields on treasury bills are hovering at a more than four-year high.

Sri Lanka’s stock and foreign exchange markets were closed on Friday for a Buddhist religious holiday.

($1 = 150.3000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

 

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 recover from 10-mth closing low on bargain-hunting

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

Sri Lankan shares rose on Tuesday, recovering from a more than 10-month closing low hit in the previous session, as investors picked up battered blue chips after the central bank held its key policy rates steady, brokers said.

However, concerns over rising market interest rates continued to weigh on sentiment, they added.

The central bank kept its key rates steady for a sixth straight month, but flagged possible “corrective measures” in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee.

The Colombo stock index ended 0.4 percent firmer at 6,093.04, snapping two consecutive sessions of declines.

Bargain-hunting was seen in the later part of the session with investors picking up blue chips, said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Sri Lankan stocks, which have been declining since October, have been hurt by political uncertainty arising from a decision of the ruling coalition parties to contest local polls separately, and on worries over a rise in market interest rates.

Yields on treasury bills rose 2-8 basis points at a weekly auction on Tuesday.

Market turnover was 500.4 million rupees ($3.33 million), less than this year’s daily average of 620.7 million rupees.

Foreign investors, who have been net sellers of 1.18 billion rupees worth of shares so far this year, net bought 110.6 million rupees worth of equities on Tuesday.

Shares of John Keells Holdings Plc rose 1.20 percent, Nestle Lanka Plc gained 2.56 percent and Sri Lanka Telecom Plc climbed 3.53 percent.  Hemas Holdings Plc gained 2.92 percent, Dialog Axiata Plc climbed 0.96 percent and Ceylon Tobacco Company Plc rose 0.36 percent.

 

($1 = 150.4000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

 

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 fall on foreign selling amid political uncertainties

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

Sri Lankan shares fell on Tuesday to end near a 10-month low as foreign investors sold equities amid political instability and on worries of further interest rate hikes, brokers said.

While investors turned cautious after the government’s coalition partners decided to contest local polls separately, a rise in treasury bill yields last week also affected risk appetite, said analysts.

Yields on treasury bills rose 2-5 basis points at a weekly auction on Wednesday to a near five-month high after the central bank governor signalled reduced intervention to defend the rupee.

Rising interest rates, which move in tandem with T-bill yields, have been a cause for concern, brokers said.

The Colombo stock index ended 0.13 percent down at 6,132.68, near its 10-month closing low hit last week, its second straight weekly decline.

“Big chunk of today’s trade was foreign-to-foreign transaction. Other than that, there was no major activity as most of the investors are on the sidelines, awaiting direction,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Turnover stood at 1.65 billion rupees ($10.99 million), the highest since Dec. 28.

Foreign trading accounted for 67 percent of the day’s turnover, as foreign investors net sold 20.77 million rupees ($138,374) worth of equities on Tuesday, extending the year-to-date net foreign outflow to 1.65 billion rupees worth of shares.

Shares in Colombo Cold Stores Plc fell 1 percent while Ceylon Tobacco Company Plc fell 0.33 percent.

($1 = 150.1000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

 

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 end flat as policy uncertainty continues to weigh

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

cse

Sri Lankan shares were little changed on Monday after hitting a nine-month low last week as uncertainty over the government’s monetary and budget policies continued to weigh on the market.

But foreign investors were net buyers on Monday for a second session after five straight sessions of net-selling through Thursday.

They bought a net 152.7 million rupees ($1.02 million) worth of equities on Monday, the highest since Dec. 8. However, foreign investors have been net sellers to the tune of 817.03 million rupees so far this year.

The Colombo stock index ended 0.04 percent up at 6,155.52, slightly above the lowest since April hit on Thursday. Last week the index fell 0.64 percent and was down 9.7 percent for 2016, its second straight annual decline.   The day’s turnover was at 843.6 million rupees.

“Net foreign inflow is a good sign and it will help regain the lost confidence,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Yields on treasury bill auctions rose 5-6 basis points at a weekly auction on Wednesday, a day after the central bank governor signalled reduced intervention to defend the currency.

Shares in Hemas Holdings Plc rose 1.9 percent, while Teejay Lanka Plc gained 3.69 percent and Ceylon Tobacco Company Plc added 0.33 percent.

($1 = 149.6000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan shares rise on bargain hunting, snap 5-day losing streak

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

Sri Lankan shares edged higher on Friday, ending a five-day losing streak and recovering from a nine-month low hit in the prior session as investors picked up battered down shares.

People walk past an electronic board displaying various Asian countries' stock price index and world major index outside a brokerage in Tokyo, Japan, August 21, 2015.  REUTERS/Issei Kato/File Photo

Foreign investors turned net buyers on Friday after offloading shares for five straight sessions.

The bourse hit a nine-month low on Thursday as foreign investors sold close to one billion rupees worth of stocks in the first four sessions of 2017 amid worries over a weakening rupee and rising interest rates hurt sentiment.

Foreign investors bought a net 26.95 million rupees ($180,026.72) worth of equities on Friday. They have been net sellers to the tune of 969.69 million rupees so far this year.

The Colombo stock index ended 0.09 percent up at 6,153.02, edging up from its lowest close since April 4 hit on Thursday. It fell 0.64 percent for the week and was down 9.7 percent in 2016, its second straight annual decline.

The index has been trading in the oversold territory since Tuesday with the 14-day relative strength index breaking below 30, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.  The day’s turnover was at 273.7 million rupees.

“Market edged up in thin volumes despite continued selling pressure,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Analysts said interest rate volatility and policy uncertainties are also hurting investor sentiment.

Yields on treasury bill auctions rose 5-6 basis points at a weekly auction on Wednesday, a day after the central bank governor signalled less intervention to defend the currency as market has braced for a depreciation.

Shares in Ceylon Tobacco Company Plc rose 1.17 percent while Colombo Cold Stores Plc rose 1.26 percent and Dialog Axiata Plc rose 0.95 percent.

Shares in biggest listed lender Commercial Bank of Ceylon Plc rose 0.42 percent while Conglomerate John Keells ended 0.43 percent up.  Talks of a high net worth foreign investor exiting from Keells has triggered panic selling, dealers said.

($1 = 149.7000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lanka shares end near 9-mth low; foreign selling in Keells weighs

john-keells-holdings-plc-jkh-n0000

FIRST CAPITAL’S SENIOR RESEARCH ANALYST, ATCHUTHAN SRIRANGAN, SPEAKS TO REUTERS.

Sri Lankan shares fell for a fourth straight session on Wednesday, to end at a near nine-month low, as investors sold large-cap shares on fears that continued foreign selling in John Keells Holdings could dampen market sentiment further.

Foreign investors sold a net 745 million rupees ($4.98 million) worth of equities on Wednesday, the highest in a day since Sept 22, 2016, extending the net outflow in the first three trading sessions of the year to 815 million rupees.   Worries over a weakening rupee and rising interest rates also weighed on the sentiment.

Investors still don’t have the confidence to buy the shares, said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Amid interest rate volatility and policy uncertainties, they are not willing to buy for long term. They will wait to see the long-term picture.

The Colombo stock index ended 0.1 percent down at 6,153.13, its lowest close since April 4. The bourse fell 9.7 percent in 2016, its second straight annual decline.

The index dipped into the oversold territory further on Wednesday with the 14-day relative strength index extending its fall to 28.569 points versus Tuesday’s 29.238, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Conglomerate John Keells Holdings Plc, which saw net foreign selling of 5.22 million shares that accounted for 82 percent of the day’s turnover, however ended 1.2 percent higher on the back of bargain hunting by domestic investors.

Talks of a high net worth foreign investor exiting from Keells has triggered panic selling, dealers said.  Yields on treasury bill auctions rose 5-6 basis points at a weekly auction on Wednesday.

Sri Lanka’s central bank governor on Tuesday signalled less intervention to defend the currency and the market has braced for a depreciation in the currency.

The country’s failure to attract foreign direct investment and a lack of investor confidence due to a reversal in some 2016 budget policies weighed on the market and on the rupee, stockbrokers said. The currency lost 3.9 percent in 2016 and continues weaken.

Turnover stood at 958.3 million rupees ($6.41 million).  Shares in Ceylinco Insurance Plc dropped 18.1 percent while large cap Ceylon Tobacco Company Plc lost 1.6 percent.

($1 = 149.5000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

 

 

Sri Lankan shares hit over one-week closing low; blue chips fall

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

stock-market

Sri Lankan shares closed at their lowest in more than a week on Friday as investors sold large-cap shares such as Ceylon Tobacco Company Plc and Conglomerate John Keells Holdings Plc amid subdued sentiment.

The Colombo stock index ended down 0.2 percent at 6,324.10, its lowest close since Dec. 1. The index was largely flat for the week after recording a 1.2-percent gain last week, its first weekly gain in four.

Turnover was 622.1 million rupees ($4.18 million), compared with this year’s daily average of 748.3 million rupees.

Foreign investors bought a net 29.3 million rupees worth of shares on Friday, raising the year-to-date net foreign inflow to 1.03 billion rupees in shares.

Investors continue to be concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“Overall market came down with some selling pressure on the blue chips,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“We continue to see volatility with continued uncertainty, no clear direction and uncertainty over budget proposals. We don’t expect market to turn around as most of people will be going on leave from next week,” Mathew said.

Sri Lankan markets will be closed on Monday and Tuesday for a holiday and will resume trading on Wednesday.

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year to meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

 

Brokers said investors were concerned about the sustainability of rates after the central bank on Tuesday kept key rates unchanged.

Shares of John Keells Holdings Plc fell 0.7 percent while the Ceylon Tobacco Company Plc fell 2.7 percent.

($1 = 148.8000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

 

Sri Lanka shares edge up; tax proposals weigh

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

 

Sri Lankan shares ended slightly higher on Wednesday as investors sought bargains in blue-chips but concerns over recent budget tax proposals weighed on sentiment.

The Colombo stock index ended up 0.15 percent at 6,241.10, ending three sessions of losses.  The index hit a near-eight-month low on Tuesday on concerns that the proposed hike in various taxes and fees would reduce disposable income and challenge consumption-led growth, analysts said.

“Market is up on bargain-hunting by foreigners but it’s not a major factor at the moment unless the trend is going to continue,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“I feel its like a one-off thing. Investors are concerned over the current uncertainty and we could see volatility in the market with the current economic uncertainty.”

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year and meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

The market shrugged off the central bank’s key monetary policy decision on Tuesday to keep rates unchanged. Brokers said investors are concerned about sustainability of rates.  Turnover stood at 579.6 million rupees ($3.89 million), much less than this year’s daily average of 694.6 million rupees.

Foreign investors bought a net 48.1 million rupees worth of shares on Wednesday, but have been net sellers of 1.64 billion rupees worth of shares so far this year.

Shares of conglomerate John Keells Holdings Plc jumped 2.63 percent while Dialog Axiata Plc rose 2.97 percent and Ceylon Tobacco Company Plc rose 0.47 percent.

($1 = 148.9000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Sunil Nair)