Tag Archives: Investment bank in Sri Lanka

Sri Lankan shares hit more than 2-wk closing low led by banks

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

Sri Lankan shares fell for a third straight session on Friday to close at their lowest in more than two weeks, as a dollar rally to a 14-year peak after an interest rate increase by the U.S. Federal Reserve earlier this week kept investors subdued.

The 25-basis-point rate increase could hike borrowing costs of foreign capital for Sri Lanka and force the coalition government to borrow locally at higher interest rates, which could also result in movement of money from equities, analysts said.

The Fed also signalled a faster pace of increases in 2017, partly as a result of changes anticipated under a Donald Trump presidency, with the U.S. central bank hinting at three rate hikes next year instead of the two foreseen as of September.

The Colombo stock index ended 0.27 percent weaker at 6,268.61, its lowest close since Nov. 30. The bourse fell 0.88 percent for the week, its second weekly fall.

A block deal in Seylan Bank Plc boosted turnover, with dealers saying state-owned Bank of Ceylon sold 13 million shares to a foreign investor.

“A sizeable crossing of Seylan Bank boosted the turnover. Other than the Seylan trade, there was nothing. The market is getting slower by the day with the holiday mood,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Shares of Seylan Bank Plc ended steady, while Lanka ORIX Leasing Company Plc fell 4.49 percent and conglomerate John Keells Holdings Plc lost 1.14 percent.

Sri Lanka Telecom Plc dropped 2.61 percent, while Commercial Leasing and Finance Plc fell 5.88 percent.

Turnover stood at 1.86 billion rupees ($12.51 million), well above this year’s daily average of 753.4 million rupees.

 

Foreign investors bought a net 1.35 billion rupees worth of shares on Friday, extending the year-to-date net foreign inflow to 1.87 billion rupees worth of equities.

($1 = 148.6500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

 

Sri Lankan shares hit more than 2-wk closing low; Fed rate hike weighs

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

Sri Lankan shares fell in line with regional bourses to close at their lowest in more than two weeks on Thursday, as a 25-basis-point interest rate increase by the U.S. Federal Reserve and hints of more to come next year kept investors on tenterhooks.

The Fed signalled a faster pace of increases in 2017 as central bankers adapted to incoming President Donald Trump’s promises of tax cuts, spending and deregulation. Partly as a result of the changes anticipated under Trump, the Fed sees three rate hikes next year instead of the two foreseen as of September.

The Colombo stock index ended 0.21 percent weaker at 6,285.53, its lowest close since Nov. 30.

“Market was on a very slow downtrend,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“Bond and equity markets have adjusted for the Fed rate hike. We have seen outflows in the last three months. But going forward, we may go into a period of economic and political uncertainty because of a large number of bonds maturing in the first half on 2017 and local elections, plus a referendum coming up next year.”

The rate hike could increase borrowing costs of foreign capital for Sri Lanka and force the coalition government to borrow locally at higher interest rates, which could also see some outward movement of money from equities, analysts said.

The government is considering a change in the country’s constitution next year which requires a referendum.

The two main parties in the coalition government are expected to contest separately in the upcoming local government election, which the administration of President Maithripala Sirisena has postponed since mid-2015 citing delays in a new electoral process.

Foreign investors bought a net 44.7 million rupees ($301,213) worth of shares on Thursday, with the year-to-date net foreign inflow in shares declining to 514.7 million rupees.

 

Turnover was 361.8 million rupees, less than half this year’s daily average of 749 million rupees.

Shares of John Keells Holdings Plc fell 2 percent, while top mobile phone operator Dialog Axiata lost 1.9 percent.

($1 = 148.4000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

 

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

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

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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)

 

First Capital wins Bronze – Financial Services Category at Annual Report Awards

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Chief Financial Officer of First Capital Holdings Mangala Jayashanth receiving the Bronze Award for “Financial Institutions” category at the 52nd Annual Report Awards  

Investment Bank First Capital Holdings PLC, won the Bronze Award for “Financial Institutions” category at the 52nd Annual Report Awards competition organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

Consisting of five subsidiaries providing a diverse range of advisory services and financial products including Capital Markets Advisory, Wealth Management, Fixed Income and Equities, First Capital Holdings PLC is the holding company deriving its income from the dividends from the group entities and income from its investments, which includes interest income and profit from investments. The company is listed on the Colombo Stock Exchange and is rated A- by ICRA Lanka Limited.

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First Capital Finance Team presents Bronze Award for Financial Institutions category to company CEO.  In picture; Manager Finance Dhilip Joseph, CEO Dilshan Wirasekara, CFO Mangala Jayashantha Senior Accountant Gihan Weerasinghe

“As a listed entity we strive to exemplify compliance, corporate governance, financial transparency, disclosure and effective communication in executing our business transactions. It is due to this focus on providing a true reflection of our fair value that we are able to provide a comprehensive viewpoint for the benefit of our shareholders, clients as well as in a broader context for our market participants” commented Chief Financial Officer of First Capital Holdings Mangala Jayashanth.

The theme for this year’s competition was ‘Precision Exemplified’ acknowledging publications that enhance Sri Lanka’s financial reporting standards to keep with global best practices of accountability, transparency and good governance.

Following a stringent process of analysis and evaluation the most outstanding Annual Reports of Sri Lankan companies be it a small-time non-profit organisation or a large-scale conglomerate were recognized at the gala event at under the patronage of honorable Minister of Finance Ravi Karunanayake with top corporate leaders and government officials also present.

Sri Lanka shares end near one-week closing low

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

Sri Lankan shares ended weaker for a second straight session on Wednesday, to hit their lowest close in nearly one week, with foreign investors selling domestic shares as uncertainty over budget proposals continued to keep sentiment subdued.

The Colombo stock index ended down 0.36 percent at 6,327.30, moving away from its highest close since Nov. 15 hit on Monday. The bourse gained 1.17 percent last week, recording its first weekly gain in four weeks.

Foreign investors sold a net 105.6 million rupees ($711,590.30) worth of shares on Wednesday extending the year-to-date net foreign outflow to 1.9 billion rupees worth of shares.  Turnover was 830.1 million rupees, compared with this year’s daily average of 699.03 million rupees.

Despite recent gains, investors are concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“Market is moving sideways as there is no clear direction and not much of retail (investor) participation,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“The positive sentiment was short-lived and uncertainty over budget proposals and lack of positive sentiments very bad for investor climate.”

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 Colombo Cold Stores Plc fell 1.12 percent while the biggest-listed lender Commercial Bank of Ceylon Plc ended steady.

($1 = 148.4000 Sri Lankan rupees)

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

 

 

 

Sri Lanka shares slip from near 3-wk high on profit taking

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

Sri Lankan shares ended slightly weaker on Tuesday, ending a four-session run of gains, to slip from a near three-week high as investors booked profits, brokers said.

The Colombo stock index ended 0.28 percent or 17.72 points down at 6,350.40, slipping from its highest close since Nov. 15 hit on Monday. The bourse gained 1.17 percent last week, recording its first weekly gain in four weeks.

Despite recent gains, investors are concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“The market is going to be volatile for some time,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

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.

Foreign investors bought a net 36.9 million rupees ($248,000) worth of shares on Tuesday. They have been net sellers of 1.79 billion rupees worth of shares this year.

Turnover was 492.97 million rupees, compared with this year’s daily average of 698.4 million rupees.

Shares of Commercial Leasing and Finance Plc fell 8.33 percent while Dialog Axiata Plc fell 0.95 percent.

($1 = 148.8000 Sri Lankan rupees)

(Reporting by Ranga Sirilal)

 

 

Sri Lanka shares end 1 pct higher; foreign buying seen

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

Sri Lankan shares jumped more than 1 percent on Thursday as investors sought bargains in blue-chips and on buying by foreign investors.

The Colombo stock index ended up 1.09 percent at 6,309.04, its highest close since Nov. 18.

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.

Foreign investors bought a net 45.4 million rupees ($306,860.43) worth of shares on Thursday, but have been net sellers of 1.59 billion rupees worth of shares so far this year.

Turnover stood at 1.18 billion rupees, more than this year’s daily average of 696.8 million rupees.

“Market is very bullish with continued foreign buying,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Early morning buying in John Keells boosted confidence levels and brought the buying in to the market. Excess liquidity in the banking system is also helping the market.”

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 monetary policy decision on Tuesday to keep rates unchanged. Brokers said investors are concerned about sustainability of rates.

Shares of biggest listed lender Commercial Bank of Ceylon Plc jumped 1.43 percent while Colombo Cold stores Plc rose 3.59 percent and conglomerate John Keells Holdings Plc rose 1.15 percent.

($1 = 147.9500 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Sunil Nair)

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)

 

Monthly Economic Watch – Aug 2016

 

Content Briefing

  • Inflation
  • External Sector
  • Monetary Policy Review
  • Tourist Arrivals
  • Treasury Bills & Bonds
  • Global News

Read the full report here

 

 

Source: First Capital Research

Unit Trust Solutions

First Capital Holdings PLC is a full-service investment bank with a 30-year history, which offers an array of investment solutions to its clients including services in capital markets advisory, fixed income, equities and wealth management.

The company’s wealth management suite serves individual and institutional investors through unit trusts, financial planning and discretionary portfolio management.

Currently, the company is focusing on promoting its unit trust products to the market, which offers a low-risk investment option. Unit trusts are well suited for both corporates and individuals, as it allows for capital to be invested and managed professionally. The unit trusts funds act as a pooling vehicle in which funds from multiple investors are accumulated, allowing for larger investment in certain instruments with negotiated terms.

First Capital unit trusts products cater to a large base of high-net-worth and institutional clientele including SME and mid-level corporates.

The funds are managed by professional fund managers, who ensure that risks are diversified over a multitude of assets, while the largest state bank, the Bank of Ceylon acts as an independent trustee. Investors are given further peace of mind through the stringent monitoring and regulatory control of the unit trust industry by the Securities Exchange Commission (SEC).

Globally, the unit trust sector asset  base exceeds that of the banking sector. According to the Central Bank of Sri Lanka the bank deposits at LKR 4.7 trillion as at year end 2014, is leaps ahead of industry assets under management LKR 133 billion. Considering the tax exemptions given to unit trusts investments and that retail investors are seeking higher-yield alternative investments away from conventional bank-deposits, the company sees potential for growth in this segment.

Striving to excel in its customer centricity, First Capital encourages potential investors to consider their risk appetite, objectives, and purpose for investing prior to getting involved, ensuring that customers choose the most fitting investment option. “We profile the client, looking at age, responsibilities and commitments, and help them understand what sort of risk they should be taking, to fulfil their goals in life,” explains CEO, Dilshan Wirasekara. The company conducts financial planning on behalf of its clients to help them assess where they stand in relation to achieving their goals.

First Capital has a range of unit trust products targeting varying investor requirements. For the passive investor, it provides a gilt-edged fund, which invests purely in government securities, while providing a money-market fund for moderate risk-takers giving a return of 7-8% per annum, giving a higher rate than short-term bank deposits.   For the more aggressive risk-takers who want high returns, the company offers an equity fund, maintained on ethical grounds.

The company’s flagship unit trust fund – First Capital Wealth Fund was the best-performing fund in its category in 2013 and 2014, and has outperformed the unit trust industry in terms of Annual Equivalent Rate (AER) for the five years ended December 2015.

First Capital even offers customised portfolio management for investors with larger funds, and provides investment advice covering many business sectors.

Wirasekara comments: “The Company differentiates itself by the ability to navigate varying market cycles in multiple asset classes. Its superior performance in unit trust is a result of the ability to identify advantageous trends coupled with exemplary risk management.”

First Capital’s asset management business is only one aspect of its total offering. “We are a fully-fledged investment bank, having many other business lines,” avers Wirasekara adding that “being a primary dealer, we have insights into the bond market and interest-rate direction.” As testimony, First Capital claims to have been the largest manager of debt issuance in the market last year, raising LKR 25 billion of debt.

The company enjoys an unparalleled advantage with its research-backed market insights and expertise, which enables its fund managers to make notable capital gains by capitalising on movement, through risk mitigation and locking-in long-term rates at high yields.

First Capital has extended its local footprint through branches in Colombo, Kandy, Matara and Kurunegala. The company is geared for its journey towards growth in unit trust investments and customer-centric wealth management.

 

Published in May 2016 on the LMD Magazine – Digest Segment on Wealth Management