Tag Archives: mergers and acquisitions sri lanka

Weekly Government Securities Market

Ceylon Today | 2017-11-23

By First Capital Research

Weekly Yield movement & Volume
Bond market activity remained relatively moderate during the past week, following the last Bill Auction held on 15 November 2017, illustrating a slowdown in the upward movement in yields. Heavy slowdown in activity was witnessed on Monday ahead of the Bill Auction. On Wednesday the market witnessed steep buying interest, specifically in the short to mid tenures, on expectations of a dip in rates in the bill auction.

Liquidity & CBSL Holdings
Market liquidity remained volatile over the past week, but remained around the LKR 25-28 billion mark, while the CBSL Holdings also registered a slow deterioration. However, a sudden drop in market liquidity, coupled with a jump in CBSL Holdings, was witnessed on 17 November 2017, which could be linked to an outflow for the Government.

Foreign Interest
Foreigners remained net foreign buyers for the 10th consecutive week, adding a further LKR 1.4 billion to foreign holding. However, with the overall outstanding Government securities stock increasing, overall foreign holding percentage remained at 6.3% as at 15 November 2017.

Maturities for next week
The Government securities market has Treasury Bill maturities on LKR 27 billion, which needs to be settled on 30 November 2017. Further, the Government also needs to settle LKR 22.3 billion of Treasury Bond interest falling due 1 December 2017, which will be settled on 30 November 2017, which is the last working day for settlement.

Sri Lankan shares edge up on large caps; turnover hits over 2-wk low

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

NOVEMBER 22, 2017

COLOMBO, Nov 22 (Reuters) – Sri Lankan shares ended slightly higher on Wednesday in dull trade, as investors stayed on the sidelines awaiting clarifications on new taxes in the national budget and key legislations unveiled earlier this month, analysts said.

The Colombo stock index ended 0.09 percent firmer at 6,464.44. It lost 1 percent last week.

Large caps led the gains, with Ceylon Beverage Holdings Plc jumping 17.8 percent and Lion Brewery Ceylon Plc up 5.6 percent.

“Investors are waiting for clarifications on the budget, Inland Revenue Act, and Exchange Control Act,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings PLC.

“There was interest in blue chips. The index has yet to find a direction after the budget.”

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented on Nov. 9 to boost revenues, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

The final budget vote is scheduled for Dec. 9 and the market expects some amendments that could help give it some direction.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarifications on the new legislations.

Foreign investors net bought equities worth 20.7 million rupees ($134,678) on Wednesday, extending the net foreign inflow to 19.7 billion rupees so far this year.

The day’s turnover, which hit a more-than two-week low, stood at 324.3 million rupees, around a third of this year’s average of around 952.5 million rupees.

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 for 2nd session on John Keells

JALIYA WIJERATNE, CEO AT FIRST CAPITAL EQUITIES, SPEAKS TO REUTERS

NOVEMBER 17, 2017

COLOMBO, Nov 17 (Reuters) – Sri Lankan shares rose half a percent on Friday, climbing for a second straight session, buoyed by gains in market heavyweight John Keells Holdings on bargain hunting.

The Colombo stock index ended 0.54 percent firmer at 6,483.55, recovering from its lowest close since Sept. 27 hit on Wednesday.

It shed 2.6 percent in the five sessions through Wednesday on worries over new taxes on cash-rich telecom and banking sectors. It shed 1 percent this week.

“There was strong interest in Keells shares. The market is recovering after some unclear budget policies,” said Jaliya Wijeratne, CEO at First Capital Equities.

John Keells shares rose 2.3 percent, while Cargills (Ceylon) Plc climbed 2.4 percent.

Foreign investors, who have net bought equities worth 19.6 billion rupees so far this year, net sold shares worth 92.6 million rupees ($602,865) on Friday.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined last week, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

Samaraweera imposed taxes on telecom towers and text messages, and introduced a debt repayment levy of 20 cents per 1,000 rupee bank transaction with effect from April 1 next year.

Turnover was 717.6 million rupees on Friday, less than this year’s average of around 953.6 million rupees. ($1 = 153.6000 Sri Lankan rupees) (Reporting by 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.<

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 16.11.2017

Stock-Brokers-in-Sri-Lanka

First Capital’s Head of Researchh, Dimantha Mathew, with the Market Review on Ada Derana

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.

Atchuthan Srirangan of First Capital Holdings PLC on Ethiroli (Shakthi TV) – 19th November 2017

investment-banking-in-Sri-Lanka

First Capital’s Senior Research Analyst Atchuthan Srirangan on Ethiroli on Shakthi TV, discussing about Economy reforms of Sri Lanka and how Budget 2018 proposals would assist the goals.

Watch full interview >

The Budget’s impact on Entrepreneurship – 24×7 Derana

“The government is proposing to ignite entrepreneurship through facilitation and support of all types of services ….and this is significantly reflected through out the budget under the concept of ‘Enterprise Sri Lanka’.”

First Capital’s Head of Research Dimantha Mathew discussing the budget’s impact on Entrepreneurship at Derana 24×7.

Watch full interview >>

First Capital records profit after tax of Rs. 731Mn for the 1st half of 2017/18

Colombo 16th November 2017 First Capital Holdings PLC (the Group) recorded a profit after tax of Rs. 731Mn for the 1st half of 2017/18, a substantial increase compared to Rs. 406Mn in the corresponding period of the previous year. Total comprehensive income for the 1st half was Rs. 641Mn (2016/17 – Rs. 406Mn).

The primary dealer business dominated the Group’s earnings reporting a profit after tax of Rs. 538Mn for the 1st half (2016/17 – Rs. 371Mn), displaying an impressive performance. First Capital Treasuries PLC capitalized on opportunities created by declining interest rates in the secondary market, realizing significant trading gains. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Sri Lanka, with a capital base of Rs. 2.2Bn.

A strategic approach has led to improved activity in the corporate finance business, mobilising Rs. 13Bn for clients through structuring and placement of corporate debt securities and recording a fee income of Rs. 42Mn (2016/17 – Rs. 30Mn) during the period under review.

Nishan Fernando: Chairman First Capital

First Capital Asset Management Limited recorded a substantial growth in funds under management to end with Rs. 6.7Bn as at 30th September2017.

The Group’s equity arm, First Capital Equities took several steps to strengthen its business by establishing strategic partnerships with brokering houses based in Asia and the United States, in addition to reinforcing its local efforts through the Group’s expanding branch network.

“Whilst we are pleased with our performance to date, we expect earnings to moderate in the 2nd half with interest rates stabilizing resulting in lower trading opportunities for the primary dealer business” said Director / Group CEO, Dilshan Wirasekara.

Dilshan Wirasekara: Director/CEO – First Capital

“However, we will continue to work throughout the year towards ensuring that our fundamentals remain strong to sustain our business in the long term. Our main focus is to enhance the fee-based activities and the management of risk” concluded Wirasekara.

 

The credit rating of First Capital Holdings PLC and First Capital Treasuries PLC was reaffirmed by ICRA Lanka Limited in October 2017 at “A-”.

Sri Lankan stocks extend run of declines, hit near 6-week closing low

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

NOVEMBER 13, 2017

COLOMBO, Nov 13 (Reuters) – Sri Lankan shares fell for a third straight session on Monday to their lowest close in near six weeks, weighed down by declines in telecom and banking stocks after the island nation targeted both cash-rich sectors in its 2018 budget to boost revenue.

The Colombo stock index ended 0.63 percent weaker at 6,511.55, its lowest close since Oct. 4. Last week it dropped 1 percent.

The market was dominated by foreign investors who accounted for 86 percent of the day’s buying.

The net bought shares worth 570.1 million rupees ($3.71 million), extending the net foreign inflow in equities to 18.7 billion rupees so far this year.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined on Thursday, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

Samaraweera imposed taxes on telecom towers and text messages, and introduced a debt repayment levy of 20 cents per 1,000 rupee bank transaction with effect from April 1 next year.

“Retail investors are not clear about the budget. That is the main reason for the fall. Retail investors were not active at all,” said Atchuthan Srirangan, senior research analyst, First Capital Holdings PLC.

“There are several taxes that are not decided if they should be borne by the customers or businesses. But eventually they will be passed to the customers, making cost of living higher.”

He also said the release of the government gazzate notification on new Inland Revenue Act will also weigh on the market in the next few days.”

Turnover was 1.29 billion rupees ($8.40 million) on Monday, more than this year’s average of around 956 million rupees.

The finance minister announced tax concessions worth a monthly 1.5 billion rupees ($9.8 million) on Wednesday to reduce the cost of living and boost consumption.

Top mobile services provider Dialog Axiata dropped 3 percent, while listed private lender Hatton National Bank fell 1.8 percent.

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 – 12.11.2017

Stock-Brokers-in-Sri-Lanka(1)

First Capital’s Senior Research Analyst Atchuthan Srirangan with the Market Review on Ada Derana

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 Lanka sugar tax to hit beverage firms

ECONOMYNEXT – The Sri Lankan government’s decision to impose a tax on sugar content on beverages is likely to affect the profitability of listed companies selling sweetened drinks, an analysis by a brokerage said.

The government’s 2018 budget presented to parliament Thursday by Finance Minister Mangala Samaraweera proposed to introduce an excise duty of 50 cents per gram of sugar contained in beverages with effect from midnight the same day.

First Capital Equities the new tax will hit food and beverage sector companies like Ceylon Cold Stores, Nestlé Lanka, and Cargills which make and sell soft drinks.

The increase in costs will impact the profitability of the companies affected, the brokerage said in an analysis of the budget.

Samaraweera told parliament the new tax was imposed as part of the ongoing effort to reduce diabetes and obesity, especially among children. (COLOMBO, November 11, 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 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.