Tag Archives: President Maithripala Sirisena

Sri Lanka’s changing investment landscape set for analysis in 2017 report

Sri Lanka’s efforts to boost capital inflows through the gradual liberalisation of its trade and investment laws will be explored in a forthcoming report by the global publishing firm Oxford Business Group (OBG).

Invest in Sri Lanka with First Capital Holdings Plc

The Report: Sri Lanka 2017 will look in detail at what the country’s capital markets sector is doing to prepare for an era of higher investment. Key developments set for analysis include a drive under way to modernise the industry and the emergence of new private equity groups on the scene.

OBG’s report will also consider the economic challenges that Sri Lanka currently faces, led by rising debt levels and balance of payment issues.

First Capital Holdings PLC has signed a second memorandum of understanding (MOU) with OBG for the publishing firm’s forthcoming report on the country. Under the MOU, the investment bank will team up with OBG once again to compile and produce the capital markets chapter of The Report: Sri Lanka 2017.

Dilshan Wirasekara, Group CEO, First Capital Holdings PLC, said he was confident that OBG’s 2017 report would play a pivotal part in highlighting the opportunities emerging across Sri Lanka’s economy to investors keen to tap into the country’s post-war economic expansion.

“Initiatives such as Oxford Business Group’s reports are helping to meet growing demand for up-to-date, accurate information on Sri Lanka at a time when efforts to attract new foreign investment for projects are gaining pace,” he said. “I look forward to partnering with the Group’s team and once again contributing to what is undoubtedly a valuable global research tool.”

Welcoming First Capital Holdings on board, Andrea Tsiachtsiri, OBG’s Country Director, agreed that the rolling out of big-ticket, capital projects, such as Colombo Port City and Megapolis, had heightened the need to keep business leaders updated on developments in Sri Lanka.

“Sri Lanka’s Government will be looking to its project pipeline to help ensure that future growth is broader and more inclusive,” she said. “First Capital has been a key player on Sri Lanka’s financial services industry for over 30 years, giving its experts an in-depth knowledge of the country’s capital markets and investment banking spectrum. I’m thrilled that our readers will once again benefit from its team’s input.”

The Report: Sri Lanka 2017 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will also contain interviews with leading representatives, including President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and UN Secretary General Ban Ki-moon. It will be available in print and online.

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 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 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)

Sri Lankan Shares Recover from 12-wk Low in Dull Trading

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters Tuesday Oct 25, 2016

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Sri Lankan shares edged up on Tuesday from a 12-week closing low hit in the previous session, but trading volume slumped to a more than 2-1/2-year low as investors awaited cues from the government budget and five-year plan as well as corporate earnings.

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

The benchmark index of the Colombo Stock Exchange ended 0.29 percent or 18.63 points higher at 6,436.97, edging up from Monday’s close of 6,418.34, its lowest since Aug. 1. The index fell 0.54 percent last week, its second straight weekly loss.

Tuesday’s turnover was 135.9 million rupees ($921,355.93), its lowest since March 17, 2014 and lower than a fifth of this year’s daily average of around 736.2 million rupees.

“It was a very dull day. It’s a waiting game now and nothing is happening,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“The equity market is dead and all are waiting for the government’s five-year plan and the budget.”

Stockbrokers said the market was also digesting political concerns over the resignation of the head of Sri Lanka’s anti-corruption body on Oct. 17, a few days after President Maithripala Sirisena implied that the agency was favouring the rival party of his prime minister.

This is likely to delay one of the promises of Sirisena’s coalition government, eliminating corruption, and could hurt business confidence, analysts said.

Foreign investors bought a net 17.6 million rupees worth of equities on Tuesday, in the eleventh straight session of net foreign inflows and bringing the total net inflows to 1.23 billion rupees over that period.

They have sold a net 1.74 billion rupees worth of shares this year.

Shares in Ceylon Tobacco Company rose 2 percent, while Carson Cumberbatch Plc rose 1.65 percent.

($1 = 147.5000 Sri Lankan rupees)

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

Sri Lankan Shares hit 12-wk low as Investors Eye Budget, 5-yr plan

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters Monday Oct 24, 2016

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Sri Lankan shares closed Monday at their lowest in 12 weeks in lean trade as investors awaited cues from the central government budget and the five-year plan ahead of corporate results.

Sri Lanka’s quarterly earnings season started two weeks back, but the bulk of locally listed firms will not report until late October or early November.

The national budget is scheduled to be presented on November 10.

The benchmark index of the Colombo Stock Exchange ended 0.45 percent or 29.19 points lower at 6,418.34, its lowest close since August 1. The index had fallen 0.54 percent last week, its second straight weekly loss.

“There is no improvement in the economic conditions and the uncertainty prevails, which is deterring the investors from taking long term position,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Market is waiting for the government’s five-year plan and the budget. We see investors have switched to wait-and-see mode. Not many of them are looking at long term until some certainty comes into place.”

Turnover stood at 301.3 million rupees ($2.05 million), less than half of this year’s daily average of around 740 million rupees.

Stockbrokers said the stock market was also digesting political concerns over the resignation of the head of Sri Lanka’s anti-corruption body on October 17, a few days after President Maithripala Sirisena implied that the agency was favouring the rival party of his prime minister.

This is likely to delay one of the promises of Sirisena’s coalition government, eliminating corruption, and could hurt business confidence, analysts said.

Foreign investors bought a net 62.5 million rupees worth equities on Monday, extending the net foreign inflow for the past nine days to 1.21 billion rupees worth of shares.

They have sold a net 1.76 billion rupees worth of shares so far this year.

Shares in Ceylon Tobacco Company fell 2 percent after media reports suggested there could be a further hike in cigarette prices, while Commercial Leasing and Finance Plc lost 5.3 percent.

($1 = 146.9000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Vyas Mohan)

Sri Lankan Shares Edge up on Foreign Buying, Turnover Hits Near 3-wk High

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters Fri Oct 21, 2016

Sri Lankan shares ended slightly firmer on Friday, edging up from their lowest close in 1 month hit in the previous session, as foreign investors bought risk assets ahead of a flurry of corporate results and next month’s national budget. Sri Lanka’s quarterly earnings season started last week but the bulk of locally listed firms will not report until late October or early November. The national budget is scheduled to be presented on Nov. 10.

The benchmark index of the Colombo Stock Exchange ended 0.08 percent or 5.17 points firmer at 6,447.53, up from its lowest close since Sept. 20 hit on Thursday. The index fell 0.54 percent on the week, its second straight weekly loss. Turnover stood at 1.15 billion rupees ($7.81 million), the highest since Oct. 3 and more than this year’s daily average of around 741.5 million rupees.

“Today the market was a bit positive with some foreign inflows. Even though the quantity was low the foreign interest was there,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

People walk past an electronic board displaying various Asian countries' stock price index and world major index outside a brokerage in Tokyo, Japan, August 21, 2015.  REUTERS/Issei Kato/File Photo
REUTERS/Issei Kato/File Photo

Stockbrokers said the stock market was also digesting political concerns over the resignation of the head of Sri Lanka’s anti-corruption body on Monday, a few days after President Maithripala Sirisena implied that the agency was favouring the rival party of his prime minister.

This is likely to delay one of the promises of Sirisena’s coalition government to eliminate corruption and could hurt business confidence, analysts said. Foreign investors bought a net 233.8 million rupees worth equities on Friday, extending the net foreign inflow for the past nine days to 1.15 billion rupees worth of shares. They have sold a net 1.82 billion rupees worth of shares so far this year.

Shares in Sri Lanka Telecom Plc rose 2.77 percent, while top conglomerate John Keells Holdings Plc ended steady.

($1 = 147.2000 Sri Lankan rupees)

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

Sri Lankan Shares Close at 1-month Low in Thin trade

First Capital’s Senior Research Analyst, Atchuthan Srirangan, speaks to Reuters Thu Oct 20, 2016

Sri Lankan shares ended slightly weaker on Thursday, posting their lowest close in a month, as investors awaited next month’s national budget and a flurry of corporate results. The benchmark index of the Colombo Stock Exchange ended 0.03 percent or 2.03 points lower at 6,442.36, its lowest close since Sept. 20, in thin trading.

“Investors are waiting to see the outcome of the budget and quarterly results,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd. “Market will move sideways until the budget,” he said.

Stockbrokers said the market was digesting political concerns over the resignation of the head of Sri Lanka’s anti-corruption body on Monday, a few days after President Maithripala Sirisena implied that the agency was favouring the rival party of his prime minister. This is likely to delay one of the promises of Sirisena’s coalition government to eliminate corruption and could hurt business confidence, analysts said.

Turnover stood at 365.03 million rupees ($2.50 million), well below this year’s daily average of around 739.4 million rupees. Foreign investors, who have sold a net 2.06 billion rupees worth of shares so far this year, bought a net 39.1 million rupees worth equities on Thursday.

Top conglomerate John Keells Holdings Plc ended 0.66 percent weaker while Cargills (Ceylon) Plc fell 4.61 percent. Sri Lanka’s quarterly earnings season started last week but the bulk of locally listed firms will not report until late October or early November.

($1 = 145.9000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)