Tag Archives: mergers and acquisitions sri lanka

First Capital records highest ever PAT of Rs. 1.96 billion in 17/18

Nishan Fernando: Chairman First Capital

Colombo 30 May 2018:  First Capital Holdings PLC (The Group) the only listed investment bank in Sri Lanka, recorded its highest ever Consolidated Profit after Tax of Rs 1,960Mn for the year 2017/18, marking a milestone in the investment bank’s history.

The results show a significant growth compared to Rs. 232Mn in 2016/17. First Capital, with its impressive 35 year history, has total assets of Rs.35Bn and Equity in excess of Rs. 3.5Bn.

Dilshan Wirasekara: Director/CEO – First Capital

The Group recorded a total comprehensive income of Rs 1,866Mn for the year, a healthy increase from Rs. 238Mn recorded in 2016/17.  First Capital’s performance includes recognition of a deferred tax asset amounting to Rs. 897Mn (2017/18) in accordance to LKAS 12.

The Group’s primary dealer contributed Rs. 1,668Mn Profit after Tax (including recognition of a deferred tax asset of Rs. 845Mn) for the year, bolstered by opportunities derived through secondary market activities, the business displayed an impressive performance.

The corporate finance division, mobilized Rs. 24Bn through the structuring and placement of corporate debt securities. Increasing its contribution to the Group’s profitability, the business reported a total fee income of Rs. 80Mn for the year.

The asset management division, increased its assets under management by Rs. 2.1Bn in 2017/18, demonstrating a positive impact to the Group’s bottom line, with a total fee income of Rs. 38Mn.

The Group’s stock brokering unit, recorded an income of Rs. 78Mn for the financial year.

First Capital also made investments to enhance its regional presence through the expansion of its branch network to Negombo; in addition to fully-fledged branches operating in Matara, Kandy and Kurunegala.

The credit rating of SL [A-] with a stable outlook for First Capital Holdings PLC and First Capital Treasuries PLC were re-affirmed by ICRA Lanka Limited.

In March 2018, First Capital Holdings PLC declared a dividend payment of Rs. 2/- per share totaling Rs. 202.5Mn for 2017/18.

First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.

 

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Sri Lankan stocks steady in dull trade; political woes weigh

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

FEBRUARY 20, 2018

COLOMBO, Feb 19 (Reuters) – Sri Lankan shares ended steady on Monday in thin trade amid political uncertainty after both parties in the ruling coalition suffered defeats in a local election earlier this month.

Turnover stood at 288.4 million rupees ($1.9 million), well below the daily average of 849.7 million rupees.

The Colombo stock index ended 0.03 percent firmer at 6,565.63, its highest close since Feb. 9.

Shares in Melstacorp Ltd rose 7 percent, while Trade Finance Plc gained 16.8 percent.

The index fell 0.13 percent last week, after gaining for three straight weeks.

“Very slow day as investors are waiting for political direction after the election debacle,” said Dimantha Mathew, head of research at First Capital Holdings.

Prime Minister Ranil Wickremesinghe’s centre-right United National Party (UNP) and President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP) were routed by a party backed by former President Mahinda Rajapaksa in local polls on Feb. 10, plunging the government into crisis.

Since the results, both parties have locked horns on how best to continue in the government. Sirisena’s party wants to form its own government, his party ministers have said, while Wickremesinghe’s party has said it is in the process of forming its own government.

Wickremesinghe, addressing the media on Friday said that the government will continue with a reshuffle of the cabinet.

Foreign investors bought a net 20.7 million rupees worth of shares on Monday, extending the net foreign buying to 5.5 billion rupees worth of equities so far this year. ($1 = 155.3000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan stocks end higher on retail buying

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

FEBRUARY 16, 2018 

COLOMBO, Feb 15 (Reuters) – Sri Lankan shares recovered on Thursday, following two straight sessions of losses, on retail buying after the central bank held key policy rates steady amid signs political uncertainty was easing, dealers said.

The central bank’s decision was widely expected, with policymakers emphasizing the need to support an economy that has been beset by production disruptions due to massive intermittent floods and prolonged drought last year.

The Colombo stock index ended 0.32 percent firmer at 6,553.21, hovering near its highest close since Nov. 8 hit on Friday.

The index gained 0.8 percent last week, its third straight weekly rise.

Shares in Melstacorp Ltd rose 2.8 percent, while Ceylinco Insurance Plc ended 6.7 percent higher and Aviva NDB Insurance Plc gained 25 percent.

“Today, there was retail and high net-worth interest on insurance sector and it was mainly retail driven,” said Dimantha Mathew, head of research at First Capital Holdings.

“Foreign investors were worried with the continued political uncertainty and delaying to see some settlement will create more uncertainty in the market,” he said, referring to a decision that could end the political instability.

Analysts, however, said they see some positive signs as both the ruling coalition parties are in talks to end the political impasse, with President Maithripala Sirisena expected to make a statement possibly on Friday.

The ruling coalition government of Sirisena’s center-left Sri Lanka Freedom Party and Prime Minister Ranil Wickremesinghe’s center-right United National Party suffered defeats in a local election over the weekend.

Since the results, both parties have locked horns on how best to continue in the government.

Investors are waiting for some stability and to see where coalition partners are headed, analysts said.

Turnover stood at 878.1 million rupees ($5.67 million), well below last year’s daily average of 915.3 million rupees.

Foreign investors sold a net 2.3 million rupees worth of shares on Thursday, but have been net buyers of 5.4 billion rupees worth of equities so far this year. ($1 = 154.8500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 04.02.2018

First Capital’s 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.

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Sri Lankan stocks climb for 3rd session as Janashakthi Insurance jumps

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

FEBRUARY 3, 2018

COLOMBO, Feb 2 (Reuters) – Sri Lankan shares rose for a third straight session on Friday to their highest close in more than three weeks, boosted by a surge in Janashakthi Insurance Plc as it agreed to sell its general insurance unit to Germany’s Allianz SE.

Janashakthi stock jumped about 28 percent in the session, bringing its weekly gain to a whopping 73 percent.

The insurer said on Friday it agreed to sell its wholly owned subsidiary, Janashakthi General Insurance Ltd, for 16.4 billion rupees ($106.4 million) to Allianz.

The Colombo stock index ended up 0.34 percent at 6,520.46, its highest close since Jan. 9. The market rose 1 percent this week, its second straight weekly gain.

“A combination of retail, high-net-worth and foreign investors were active today,” said Dimantha Mathew, head of research at First Capital Holdings.

Cargills (Ceylon) Plc rose 5.7 percent, while Nestle Lanka Plc ended 2.4 percent up, and Ceylon Tobacco Company Plc rose 0.9 percent.

The market turnover was 1.22 billion Sri Lankan rupees ($7.9 million), more than last year’s daily average of 915.3 million rupees.

Foreign investors sold a net 3.8 million rupees worth of shares on Friday, but they have been net buyers of 4.2 billion rupees worth of equities so far this year.

Analysts said the political uncertainty ahead of a local election next month continued to weigh on sentiment. Sri Lanka will hold a long-delayed local government election on Feb. 10.

President Maithripala Sirisena in an election rally over the weekend said he was ready to form a new government with his Sri Lanka Freedom Party (SLFP), breaking away from the current coalition – a comment that exacerbated worries about the future of the coalition government.

Sri Lanka’s stock, bond and foreign exchange markets are closed on Monday for a special holiday. Markets will resume trading on Tuesday. ($1 = 154.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka

Weekly Government Securities Market -02-02-2018

Ceylon Today | 2018-02-02

Following the T.-Bond auction on 29 January the yield curve experienced a slight downward shift during the day while overall market saw moderate volumes. On 30 January the Treasury Bill auction 6M maturity saw its yield decreasing by 1bps while the yield of 1-yr Bill remained unchanged at 8.90%. Overall yield curve remained almost unchanged amidst market participants remaining on the sideline.

Liquidity & CBSL Holdings

Market liquidity had a high volatile trend during the week with CBSL Holdings having a sharp drop on 23 January and this downward trend continued however on 30 January a sharp spike was witnessed, the highest volatility recorded on 22 January amounting to 13.1Bn.

Foreign Interest

Amidst renewed foreign buying interest, foreign holding increased by LKR 1.77Bn to record at LKR 328.1Bn. With the overall Government Securities increased with foreign buying interest the overall foreign holding percentage improved to 6.7%.

Maturities for next Week

The Government Securities market has Treasury Bill maturity amounting to LKR 22.02Bn which needs to be settled on 9 February 2018.

 

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. 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 Treasury Bills and Bonds in Sri Lanka.
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. 

Sri Lankan shares hold steady; political woes weigh

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

JANUARY 30, 2018

COLOMBO, Jan 29 (Reuters) – Sri Lankan shares closed little changed on Monday in dull trade as political uncertainty ahead of a local election next month weighed on the sentiment, dealers said.

Sri Lanka will hold a long-delayed local government election on Feb. 10.

President Maithripala Sirisena in an election rally over the weekend said he was ready to form a new government with his Sri Lanka Freedom Party (SLFP), breaking away from the current coalition, in a comment that exacerbated worries about the future of the coalition government.

“The market is stagnated as most of the investors are on wait-and-see approach with election date coming closer,” said Dimantha Mathew, head of research at First Capital Holdings.

“The sluggish trend will continue until the elections are over.”

The Colombo Stock index ended 0.03 percent weaker at 6,453.95, slipping from its highest close since Jan. 12 hit on Friday. The index rose 0.19 percent last week, recording its first weekly gain in three.

Shares in conglomerate John Keells Holdings Plc were down 1.6 percent, while Dialog Axiata Plc lost 0.7 percent, and Sri Lanka Telecom Plc ended 2.5 percent weaker.

Turnover was 337.1 million rupees ($2.19 million), well below last year’s daily average of 915.3 million rupees.

Foreign investors bought a net 404,053 rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 4.02 billion rupees worth of equities. ($1 = 153.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka

Atchuthan Srirangan, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 21.01.2018

Treasury Bills and Bonds Sri Lanka

First Capital’s 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.

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

Sri Lankan shares hit 2-wk closing high

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

JANUARY 29, 2018

COLOMBO, Jan 26 (Reuters) – Sri Lankan shares rose for a third straight session to hit a two-week closing high on Friday, led by telecom shares, but trading was dull as investors waited for direction amid political concerns over local-government elections next month, dealers said.

The Colombo Stock index ended 0.12 percent firmer at 6,456.04, its highest close since Jan. 12. The index rose 0.19 percent on week, its first weekly gain in three.

Shares in Hemas Holdings Plc were up 0.5 percent, while Dialog Axiata Plc ended 1.5 percent higher, and Sri Lanka Telecom Plc gained 2.5 percent.

“Things were very slow, even the foreign activity was very low today,” said Dimantha Mathew, head of research at First Capital Holdings.

“Activities have been coming down from the last few days. Probably towards elections it will slow down further as investors are on a wait-and-see attitude.”

Turnover was 264.1 million rupees ($1.72 million), its lowest since Jan. 2 and well below last year’s daily average of 915.3 million rupees.

Foreign investors bought a net 21.2 million rupees worth of shares on Friday, extending the year-to-date net foreign inflow to 4.02 billion rupees worth equities.

Sri Lanka will hold a long-delayed local government election on Feb. 10.

President Maithripala Sirisena said over the weekend that he would handle the economy, taking over from the government’s main coalition partner, led by Prime Minister Ranil Wickremesinghe.

The comments have sparked uncertainty over the future of the coalition government, analysts said.

$1 = 153.7000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka

Strategy Report 2018 – First Capital Research

Private Wealth Management in Sri Lanka

by First Capital Research

“Tough Conditions, but Cautiously Optimistic 2018”

 Bond Market

We expect the yield curve in Government securities to have upward pressure in 2Q & 3Q in 2018, but First Capital Research has reduced the expected peaks in bond rates (1Yr, 5Yr & 10Yr) amidst the sharp rise in the health of the economic indicators towards 4Q2017. We expect the yield curve to marginally ease off again towards the 4Q2018, but not too much considering 1Q & 2Q 2019 maturities including maturities of 2 sovereign bonds

Banking Rates

Banking rates which has a 6-monthh lag effect to Government securities are likely experience a dip in deposit and lending rates during the 1Q2018 while maintaining less volatile movements for the rest of the year with only marginal movements.

Exchange Rate

With further depreciation in the Dollar expected against global currencies and a higher level of foreign inflows including FDIs, our base case (65%) is slightly bullish with depreciation expected at only 2% at LKR 156 : 1 USD.

Equity Market

We expect Market returns to be slow but generate returns of 10%-12%, above the expected earnings performance as some counters are likely to re-rate with expected better earnings outlook in the future. ASPI index is expected to reach 7000 (+10% or +650 points) towards the end of 2018. Market returns are likely to accelerate towards 2019 to reach 8000 level (+15% or +1000 points) with the actual earnings performance and renewed investor confidence. These targets, however, are highly dependent on the current stable outlook and reform agenda continuing during 2018 as well.

Business Confidence & Consumer Demand

We expect business confidence and consumer demand to improve from 3Q2018 onwards improving overall business activity of the economy

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka.