Tag Archives: First Capital Holdings PLC

First Capital Fixed Income Recommendation – June 2017

  • Economic Health Score

  • Recommendation

  • Recap of Dec 2016 Economic Wrap

Read the full report – First Capital Fixed Income Recommendation 14th-June-2017

 

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 proving services to invest in Sri Lanka through fixed income securities such as investments 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 near 2-week closing low

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

Mon Jun 12, 2017

Sri Lankan shares on Monday ended at their lowest in near two weeks due to profit-booking in banking shares, but foreign inflows helped curb losses.

The Colombo stock index ended 0.09 percent weaker at 6,663.15, its lowest close since May 30.

Last week, the bourse dropped 0.3 percent, posting its third consecutive weekly decline.

“Foreign trade dominated the day. The net foreign trade is low, there is very less local participation as there is no new money coming into the market,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Turnover was 841.6 million rupees ($5.51 million), little less than this year’s daily average of 897.1 million rupees.

Analysts said investors are still waiting to see the impact of the recent floods and landslides, caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

Foreign investors were net buyers of 65.7 million rupees worth of shares, extending the year-to-date net foreign inflow to 20.3 billion rupees.

Shares of Bukit Darah Plc ended 4.27 percent weaker, Ceylinco Insurance Plc closed down 2.24 percent, Commercial Leasing & Finance Plc dropped 6.45 percent, while the country’s biggest listed lender Commercial Bank of Ceylon Plc ended 0.07 percent down.

($1 = 152.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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 at 1-wk low on profit-taking

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Tue Jun 6, 2017

Sri Lankan shares fell to a one-week closing low on Tuesday on profit-booking in blue-chip shares such as John Keells Holdings Plc while investors assessed the impact of the recent floods on exchange rate and inflation.

Analysts said it was also too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.1 percent weaker at 6,669.53, its lowest close since May 30.

Turnover was 468.3 million rupees ($3.07 million), around half of this year’s daily average of 889.6 million rupees.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

“Some profit-taking is taking place. It’s a small pullback which is good for the future run,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors were net buyers of 134.4 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.78 billion rupees.

Shares of conglomerate John Keells Holdings Plc fell 0.82 percent, while Melstacorp Plc declined 1.36 percent and Dialog Axiata Plc shed 0.84 percent. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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 profit-taking in telecom shares; investors await direction

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Fri Jun 2, 2017

Sri Lankan shares snapped two straight sessions of gains on Friday on profit-booking in telecom stocks such as Dialog Axiata Plc, while investors assessed the impact of deadly floods that hit rubber and tea plantations last week on exchange rate and inflation.

Analysts said it is too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.07 percent weaker at 6,689.07, edging down from its highest close since May 26 hit on Thursday. The bourse fell 0.13 percent during the week, recording its second straight weekly loss.

Turnover was 523.8 million rupees ($3.43 million), less than this year’s daily average of 898.7 million rupees.

Inflation could rise in the short term, especially due to crop damages and difficulties in distributing fresh food produce and staple food items, analysts said.

“Market wants to find a direction, one day it’s up another day it’s down as investors are awaiting for the direction,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors were net buyers of 66.5 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.55 billion rupees.

Shares of Dialog Axiata Plc fell 2.5 percent while Carson Cumberbatch Plc dropped 5.7 percent and Lanka ORIX Leasing Company Plc ended 2.7 percent weaker. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez)

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 snap 3 sessions of falls; flood woes weigh on mkt

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

Wed May 31, 2017

May 31 Sri Lankan shares rose on Wednesday, recovering from a more than three-week closing low hit in the previous session and snapping three straight sessions of falls, though floods and landslides that killed over 200 people weighed on sentiment.

The extent of the damage is yet to be assessed, with the country’s main agricultural exports – tea and rubber – hit by the worst torrential rains in 14 years.

Analysts said it is too early to evaluate the real impact of the floods and landslides, though short-term disruptions in rubber tapping and plucking of tea leaves and buds could lead to a decline in output.

Inflation could rise in the short term, especially due to crop damages and distribution difficulties with regard to fresh food produce and staple food items, they said.

“Market is up mainly on local buying. Investors are still looking for bargains. They are waiting to see weather prices would come down further,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

The Colombo stock index ended 0.29 percent stronger at 6,674.32, posting a monthly gain of about 1 percent. It posted its lowest close since May 5 on Tuesday.

Turnover was 597.8 million rupees ($3.91 million) on Wednesday, less than this year’s daily average of 901.2 million rupees.

Foreign investors, who have been net buyers of 19.42 billion rupees worth of equities so far this year, sold shares worth 43.1 million rupees on a net basis.

Dialog Axiata Plc jumped 3.42 percent, while conglomerate John Keells Holdings Plc rose 0.60 percent. ($1 = 152.7500 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 to two-week closing low; floods weigh

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

Mon May 29, 2017

May 29 Sri Lankan shares fell on Monday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings Plc and Commercial Bank Plc while floods and landslides that hit the island nation weighed on sentiment.

Sri Lankan authorities on Monday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.

The Colombo stock index ended 0.27 percent weaker at 6,679.46, at its lowest close since May 15.

The bourse fell 0.47 percent last week recording its first weekly fall in nine weeks.

Turnover on Monday stood at 270.6 million rupees ($1.8 million), well below this year’s daily average of 895.9 million rupees.

Foreign investors bought shares worth 57.1 million rupees on a net basis, extending the year-to-date net foreign inflow to 19.46 billion rupees worth of equities.

“Profit-taking that started last week is continuing. The market is coming down on low volumes,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods.”

Shares in conglomerate John Keells Holdings Plc and Nestle Lanka Plc fell 0.9 percent each, while biggest listed lender Commercial Bank of Ceylon Plc fell 1.2 percent. ($1 = 152.7000 Sri Lankan rupees)

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

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 lower on profit-booking; John Keells falls

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

Fri May 26, 2017

May 26 Sri Lankan shares ended lower on Friday, recording their first weekly decline in nine, as investors booked profits in shares of diversified companies such as John Keells Holdings Plc and Melstacorp Plc .

The Colombo stock index ended 0.25 percent weaker at 6,697.86. On Tuesday the bourse hit its lowest close since May 15 hit on Tuesday. The bourse fell 0.47 percent during the week recording its first weekly fall in nine weeks.

The index rose 0.86 percent last week.

Turnover stood at 237.4 million rupees ($1.56 million), well below this year’s daily average of 902.4 million rupees.

Foreign investors net bought shares worth 15.3 million rupees worth of shares extending the year-to-date net foreign inflow to 19.39 billion rupees wroth of equities.

“Market has came down on low volumes. Though there is no serious selling pressure, there is a bit of a wait-and-watch attitude to see whether selling will come,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“Investors are waiting to buy at bargain prices.”

Shares in conglomerate John Keells Holdings Plc fell 0.65 percent while biggest listed lender Commercial Bank of Ceylon Plc fell 1.16 percent and Melstacorp Plc ended 1.35 percent weaker and Colombo Cold Stores Plc fell 0.95 percent.

($1 = 152.6000 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.<

“Don’t overtax corporate sector” : First Capital CEO – Daily News

First Capital Equities CEO Jaliya Wijeratne, in a recent interview with Daily News Business, said Sri Lankan policymakers should come out with some strong and permanent economic policies soon.

“Currently there are some uncertainties with regard to corporate tax, capital gains tax and several other such areas.”

He said that the government needs taxes and it is also a social obligation of the corporate sector to pay them. “However the corporate sector should not be overtaxed.”

Wijeratne said that it would be a good idea for the government to widen the tax net and rope in several sectors that are currently enjoying a tax-free regime.

He said that due to this both local and foreign investors are adopting a wait-and-see policy and this is not good for the future of the country.

Commenting on the stock market, he said that after a lull, signs are that it would move upward. “If you take John Keells shares, it has moved up from around Rs. 130 to over Rs. 160. We also observe an increase in foreign inflows.”

He said Sri Lanka needs more listed companies and the government can move in this regard and ask some of the public entities to be listed.

“If state banks like the People’s Bank, Bank of Ceylon and National Savings Bank, along with Sri Lanka Insurance, lists even 15 percent it would be great for the stock market.”

He said that there was talk about SriLankan Catering being listed; however it still seems to be confined to discussions.

Wijeratne feels Sri Lanka should go ahead with the lease agreements with China and India for the Hambantota Harbor, Mattala International Airport, Trincomalee Port and other loss-making ventures.

He said that the funds raised from these leases should be diverted to debt repayments, which is now emerging as a major issue.

The First Capital CEO, however, said that Sri Lanka should retain a share or control when leasing out these projects and look at terms favorable for the country.

Commenting on the real estate sector, Wijeratne said that he feels it is not a bubble and demand would continue.

“With Sri Lanka’s population increasing and economy growing, the demand for land would increase. This would help to keep the demand active and aggressive for the apartment segment as well.”

Sri Lankan shares fall on profit-taking in blue chips

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

Mon May 22, 2017

May 22 Sri Lankan shares edged down on Monday as investors booked profits in blue chips such as John Keells Holdings Plc, with analysts saying the market was waiting for policy direction from newly-appointed finance minister Mangala Samaraweera.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration’s handling of the economy.

The Colombo stock index ended 0.04 percent weaker at 6,726.90, slipping from its highest close since Jan. 7, 2016 hit on Friday.

The index rose 0.83 percent last week, and has climbed 11 percent since March 31 through Friday.

Turnover stood at 335.6 million rupees ($2.20 million), well below this year’s daily average of 887.3 million rupees.

“The market is struggling to break the current psychological level. The market need a bit of a breather before it kickstarts again. We are seeing a bit of profit-taking,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Foreign investors net sold shares worth 30.6 million rupees on Monday, but they have net bought 17.98 billion rupees worth of shares so far this year.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 3.41 percent, while conglomerate John Keells Holdings Plc ended 0.30 percent weaker. ($1 = 152.5000 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.<

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.05.21

Investment In Sri Lanka

First Capital’s Head of Research Dimantha Mathew with the market update – between 15.08 mins to 15.46 mins

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.