Tag Archives: Hatton National Bank Plc

Sri Lankan shares fall for third straight session; John Keells down

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

Sri Lankan shares fell for a third straight session on Thursday, posting their lowest close in a month, dragged down by diversified stocks such as John Keells Holdings Plc as investor sentiment continued to remain low on concerns about rising interest rates.

The Colombo stock index ended down 0.1 percent at 6,088.80, its lowest since Feb. 6. It shed 0.6 percent last week in its second straight weekly decline.

Foreign investors were net buyers for the seventh straight session on Thursday, purchasing shares worth 63.6 million rupees ($420,495.87), and extending the year-to-date net foreign inflow to 1.95 billion rupees worth of equities.

Turnover was 875.6 million rupees, more than this year’s daily average turnover of 689.7 million rupees.

“The market is mainly down because of John Keells. It is slowly coming down with rising rates and economic uncertainty,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Foreigners seem to be the only buyers at the moment.”

Traders said there were concerns after the International Monetary Fund urged Sri Lanka’s central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

Shares of John Keells Holdings fell 1.06 percent while Commercial Bank of Ceylon Plc, the country’s biggest listed lender, declined 1.29 percent and Carson Cumberbatch Plc dropped 2.91 percent.

Sri Lanka Telecom Plc dropped 1.41 percent and Hatton National Bank Plc ended 1.16 percent weaker.

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 = 151.2500 Sri Lankan rupees)

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

Sri Lankan shares hit 2-1/2-week closing low; block deals boost turnover

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

Sri Lankan shares fell on Monday to hit their lowest close in more than two weeks as investors were worried over rising interest rates, but foreign buying and block deals in Expolanka Holdings boosted the turnover.

Foreign investors net bought 716.2 million rupees worth of equities on Monday, reversing the year-to-date net foreign outflow to an inflow of 580.7 million rupees worth of equities so far this year.

The Colombo stock index ended down 0.24 percent at 6,122.04, its lowest close since Feb. 9.

“Selling pressure on John Keells brought the market down,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Investor sentiment is negative due to the rising interest rates and most of the investors are on a wait-and-see approach,” he added.

Shares in conglomerate John Keells Holdings Plc slid 1.20 percent, while Hatton National Bank Plc slipped 2.04 percent.

Expolanka Holdings Plc, which accounted almost half the day’s turnover, climbed 1.72 percent on foreign buying.

Turnover stood at 1.35 billion rupees ($8.90 million), well more than this year’s daily average of 625.2 million rupees.

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 = 151.7500 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.

US bond rate increase good for CSE; not so much for local bonds

FIRST CAPITAL’S  SENIOR RESEARCH ANALYST ATCHUTHAN SRIRANGAN, SPEAKS TO THE SUNDAY TIMES

Foreigners rally in cash at CSE

Despite being one of the poorest performing markets in the region, Sri Lanka’s stock market which has been in the doldrums has attracted a lot of foreign buying interest since of late.

This heavy investor participation stems mainly from the rate increase in the US bond market. While the rates going up is seeing foreign funds shifting back to the US from frontier markets such as Sri Lanka, a small component of their corresponding funds which invest in stock markets  are being ploughed into the Colombo Stock Exchange (CSE), analysts say.

There has been continuous foreign selling in local bonds and as at January 1, 2017 it was US$ 2 million.  The new regime under Donald Trump is trying to strengthen the US Dollar and luring back  funds  to the US.

Atchuthan Srirangan, Senior Research Analyst First Capital Equities noted that on the back of all this, this month’s foreign inflow at CSE was Rs. 600 million as at February 8. Mr. Srirangan said that in the year to date the total foreign participation so far is more than 50 per cent of CSE’s turnover, while for the same period last year it’s 38 per cent.

But why put cash in the CSE? 

That’s due to most shares at the CSE trading at 4x their price to Earnings Ratio (PER) which has made these bargain counters for foreign investors. Foreign fund managers say that CSE is a good investment this year owing to superior earnings projections, low valuations and the potential for better earnings.

From January 1 to 8 February, foreigners bought Rs. 7.67 billion and sold Rs. 8.63 billion. While the net outflow is Rs. 1.026 billion, analysts note that some foreign selling was done to foreigners themselves.

Analysts say that a considerable foreign play was done by Norway’s $830 billion sovereign wealth fund, locally managed by Lynear Wealth Management. The fund has been increasing its focus on emerging countries but only has about 4 per cent of its assets managed externally.   Negotiated deals were recorded in many counters early this month – mostly blue chips and mid-caps bought by foreign funds — Hatton National Bank (0.7 million shares at Rs. 227) and Commercial Bank (0.2 million shares at RS. 145). The aggregate value of crossings accounted for 45 per cent of the turnover. Subsequent to its scrip dividend announcement, Sampath Bank attracted high investor preference where stock price increased to Rs. 267 up by 0.8 per cent.

On February 2, foreign investors stood on the ‘buy’ side with a net foreign inflow of Rs. 90 million. Net foreign inflows were seen in Commercial Bank at Rs. 29 million, Sampath at Rs. 29 million, Melstacorp at Rs. 17 million while net foreign outflows was mainly seen in Seylan Bank (Rs. 5 million). Foreign participation was 66 per cent.

Hemas Holdings saw 2.8 million shares crossed at Rs. 104 on February 2. Its main buyer in 3Q17 was Morgan Stanley and Co: International PLC. But Franklin Templeton Investment Funds had reduced its position in Hemas during the same period.

Overseas Realty Rights Issue saw a 24 per cent acquisition by Jilansu Tao Shing Pee Education Foundation on February 3. Foreign investors were net buyers with a new foreign inflow of Rs. 27 million on this day and net foreign inflows were mainly seen in Sampath Bank Rs. 35 million, Melstacorp Rs. 13 million and Tokyo Cement non-voting Rs. 12 million. That following Monday foreign investor activity accounted for 47 per cent of the turnover.

The day after foreign investors stood on the ‘buy’ side with a net foreign inflow of Rs. 111 million. Net foreign inflows were seen in John Keells Holdings (JKH) Rs. 51 million, Hemas Holdings Rs. 30 million, and Nestle Rs. 28 million while net foreign outflow was mainly seen in National Development Bank Rs. 4 million. Foreign participation was 52 per cent that day. On February 8 foreign investors were net buyers with a net foreign inflow of Rs. 152 million. Net foreign inflows were seen in JKH (Rs. 103 million), Sampath Bank (Rs. 49 million) and Melstacorp (Rs. 10 million). Net foreign outflow was mainly seen in Hatton National Bank (Rs. 17 million). Foreign participation was 33 per cent.

On February 13, foreign investors were net buyers with a net foreign inflow of Rs. 333.33 million foreign participation was 61 per cent. Let’s hope this trend co continues.

 

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 10-mth closing low ahead of cbank rate review

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

Sri Lankan shares fell on Monday to an over 10-month closing low, dragged down by beverage and banking stocks, as investors awaited cues from the central bank’s monetary policy review on Tuesday.

The Colombo stock index ended 0.8 percent lower at 6,068.31, it’s lowest close since March 30, 2016.

Margin calls are expected in the coming days, said an analyst, as the bourse fell below the psychological 6,140-level and the index fell sharply to end only marginally higher than the lower band of the neutral territory.

The index, which had risen from an oversold region, has been trading in the neutral territory since Jan. 10, with the 14-day relative strength index dropping to 30.474 on Monday, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Sri Lankan stocks, which have been declining since October, have been hurt by political uncertainty arising from a decision by the ruling coalition parties to contest local polls separately, and on worries over a rise in market interest rates with yields on 91-day treasury bills hitting near four-year highs last week.

Sri Lanka’s central bank could raise its key policy rates in coming months if it skips a chance to tighten next week, a Reuters poll showed, underlining renewed pressure on the rupee after the Federal Reserve’s rate hike last month.

Monday’s market turnover was 393.8 million rupees ($2.62 million), well below this year’s daily average of 625.5 million rupees.

“Market seen in negative note ahead of the central bank rate announcement as many investors expect a rate hike,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“We may see some margin calls coming in as the index fell below the psychological barrier.”

Foreign investors, who have been net sellers of 1.29 billion rupees worth of shares so far this year, net bought 241.3 million rupees worth of equities on Monday.

Shares of Nestle Lanka Plc fell 2.4 percent while Dialog Axiata Plc fell 2.8 percent and Hatton National Bank Plc fell 0.9 percent.

($1 = 150.2500 Sri Lankan rupees)

(Reporting by Ranga Sirilal; 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 rise nearly 0.5 pct in high turnover

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

Sri Lankan shares closed about half a percent higher on Wednesday, recovering from a more than eight-month closing low hit in the previous session, led by blue chips such as John Keells Holdings and Hatton National Bank.

Turnover was 1.73 billion rupees ($11.59 million), more than twice the daily average of 739.5 million rupees for this year. Commercial Bank of Ceylon and Sunshine Holdings accounted for 48.3 percent and 44 percent of the turnover, respectively.

The Colombo stock index finished 0.41 percent higher at 6,228.51, bouncing back from its lowest close since April 6 hit in the prior session. It shed around 2.1 percent in the 10 sessions through Tuesday.

“Blue chips lifted the market. I think it was mostly due to window dressing ahead of the year-end,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Foreign investors bought a net 16.2 million rupees worth shares on Wednesday, extending the year-to-date net foreign inflows to 627.5 million rupees in equities.

Top conglomerate John Keells rose 1.1 percent, while Hatton National Bank gained 2.65 percent. Commercial Bank of Ceylon closed 2.1 percent higher, while Sunshine ended flat.

($1 = 149.3000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

 

Sri Lankan shares rise after eight sessions of falls in thin trade

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

Sri Lankan shares edged up on Friday, snapping eight straight sessions of falls and moving away from a more than eight-month closing low hit in the previous session, while turnover was low in holiday-thinned trade as investors stayed away from markets ahead of the Christmas weekend.

The Colombo stock index ended 0.11 percent firmer at 6,216.56 after posting its lowest close since April 6 in the previous session. It shed 2 percent in the eight sessions through Thursday, and declined 0.8 percent this week.

Turnover was near a four-week low at 124.9 million rupees ($835,451.51), around a sixth of this year’s daily average of 738 million rupees.

“We may see some window dressings next week, which might help the index move up,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Sri Lankan markets will be closed on Monday for a bank holiday in lieu of Christmas on Sunday.   Foreign investors, who have been net buyers of 621.5 million rupees of equities, sold a net 4.2 million rupees of shares on Friday.

Cargills (Ceylon) Plc and top conglomerate John Keells Holdings Plc accounted for 59 percent of the day’s turnover.  Cargills shares gained 2.9 percent, while Hatton National Bank Plc rose 1.1 percent to boost the overall index. John Keells, however, fell 0.14 percent.

($1 = 149.5000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

 

Sri Lankan shares fall to over 8-month low; Seylan deal weighs

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

Sri Lankan shares fell for a sixth straight session on Tuesday to hit its lowest in more than eight month led by financials as a Seylan Bank share deal cancellation weighed on sentiment.

Stockbrokers said the Colombo Stock Exchange cancelled the 1.3 billion rupees ($8.7 million) Seylan Bank foreign deal on the request of the broker with the consent of both buyer and seller.

Prime Minister Ranil Wickremesinghe ordered a reversal and a probe into the deal as it failed to follow proper procedure.

The Colombo stock index fell 0.45 percent to hit 6,222.33, its intraday lowest since April 8, but recovered to close 0.25 percent weaker at 6,234.75, its lowest close since Nov. 29. The bourse has fallen near 1.7 percent in six straight sessions through Tuesday.

“The market trading was quiet. We expect the turnover levels to fall further. The next supporting level is at 6,000. We expect the index to fall in thin trade,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Dealers said the cancellation of Seylan Bank has hurt the sentiment of potential foreign buyers.

Turnover stood at 537.6 million rupees ($3.61 million), less than this year’s daily average of around 744.7 million rupees.

 

Foreign investors bought a net 80.3 million rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 697.5 million rupees worth of equities.

Shares in top private lender Commercial bank of Ceylon lost 1.53 percent, while Hatton National Bank fell 1.87 percent to drag down the overall index.

($1 = 148.7500 Sri Lankan rupees)

(Reporting by Shihar Aneez)

 

Sri Lankan shares fall for fifth straight session; tax proposals weigh

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters

Sri Lankan shares ended for a fifth straight session of declines on Friday, and reached their lowest closing level in more than four months, in thin volume as investor sentiment was hit by budget tax proposals.

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees ($12.36 billion) year-on-year, including revisions in corporate and withholding taxes and meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

The benchmark index of the Colombo Stock Exchange ended down 0.29 percent at 6,326.11, its lowest close since July 7. It declined 1.5 percent in the last five sessions after the budget was presented on Nov. 10.  The index was in the oversold territory, with the 14-day relative strength index at 23.399 versus Thursday’s 25.714, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

“Investors are worried with the rising interest rates after the T-bill yields rose this week. There isn’t a lot of selling pressure and investors are awaiting cautiously,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Analysts said some of the budget proposals are still unclear, and there are concerns that some of them could be reversed, like what occurred last year.

The market shrugged off a move by Sri Lanka’s Securities and Exchange Commission (SEC) to change its minimum floating rule to raise market liquidity. Foreign investors sold a net 31.95 million rupees worth of shares on Friday extending the year-to-date net foreign outflow of 1.11 billion rupee worth of shares.

Analysts said the increase in various taxes and fees would reduce the disposable income of people and challenge the consumption-led growth.

Turnover was 272.7 million rupees ($1.84 million), well around a third of this year’s daily average of 702.2 million rupees. Shares of Sri Lanka Telecom Plc dropped 3.79 percent, while Hatton National Bank Plc slid 1.59 percent.

($1 = 147.8500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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Sri Lankan shares edge up in dull trade ahead of govt budget

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters Thursday Oct 27, 2016

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Sri Lankan shares ended slightly firmer on Thursday, hovering near a 12-week closing low hit earlier in the week, in thin trade as investors awaited cues from the government budget and five-year plan as well as corporate earnings.

Prime Minister Ranil Wickremesinghe issued an economic policy statement in the parliament, giving some details of the government’s future economic policies, during market hours on Thursday. Dealers said the market was assessing the prime minister’s statement.

The benchmark index of the Colombo Stock Exchange ended 0.06 percent, or 3.61 points, firmer at 6,438.50. On Monday, the index had closed at its lowest level since August 1.

Thursday’s turnover was 204.7 million rupees ($1.38 million), less than a third of this year’s daily average of around 731.3 million rupees.

“Overall market is volatile and will move side ways until the budget,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. “Uncertainty is there and investors are on wait-and-see mode.”

Foreign investors sold a net 18.4 million rupees worth of equities on Thursday. The net foreign inflow for the past eleven sessions through Tuesday was 1.23 billion rupees.

They have sold a net 1.81 billion rupees worth of shares this year.

Sri Lanka’s quarterly earnings season started two weeks ago, but most locally listed firms report in late October or early November. The national budget is scheduled to be presented on November 10.

Shares in Bukit Darah Company Plc jumped 3.72 percent while Dialog Axiata Plc rose 0.87 percent and Hatton National Bank Plc gained 0.75 percent.

 

($1 = 147.9000 Sri Lankan rupees)

 

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