Tag Archives: private wealth management sri lanka

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Forecast on Ada Derana – 11.11.2018

Treasury Bills and Bonds Sri Lanka

First Capital’s Atchuthan Srirangan with the Market Forecast 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.

Bloomberg Comment – 25-10-2018

Rupee Bonds Seen Weighed Down by Slow Inflows: Inside Sri Lanka

By Anusha Ondaatjie

(Bloomberg) — Sri Lanka’s bond prices will be weighed down in the short-term by a lack of fund inflows, according to First Capital.

* The nation’s low FX reserve levels and a lack of inflows in the short term to hold back yields from moving lower, says Dimantha Mathew, head of research at First Capital

* If the central bank holds the benchmark borrowing rates at current levels then slow downward shift of the rupee against dollar will continue

NOTE: Sri Lanka’s monetary policy has been conservative, central bank Governor Indrajit Coomaraswamy said on Tuesday; the nation’s growth, which is forecast to be about 4% by end-2018, will be inadequate even though its on an upward trend

* Sri Lanka’s inflation well within central bank target even as the bank would like lower T-bill rates: Coomaraswamy

NOTE: Monetary authority rejected all bids at a sale of 3.5b rupees ($20m) of 91-day treasury bills on Tuesday; the central bank sold 7.5b rupees of 364-day bills at 10.39%, down from 10.44% at previous auction; local markets were shut on Wednesday for a holiday

*Yield on 10.2% govt bonds due July 2023 rose 5 bps on Tuesday to 11.35%, data compiled by Bloomberg show

*USD/LKR steady at 172.65 after reaching a record high of 172.98 on Oct. 23

*Overseas investors sold a net $0.3m of local stocks on Tuesday, taking outflows so far this month to $19.3m: exchange dataTo contact the reporter on this story:

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Forecast on Ada Derana – 07.10.2018

Stock Brokers in Sri Lanka

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’s Dimantha Mathew with the Market Review on Ada Derana

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 04.10.2018

Stock Market Sri Lanka

First Capital’s Amanda Lokugamage 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.

Weekly Government Securities Market – 05-10-2018

Stock Market Sri Lanka

 

 

Nisansala Kuruppumudali, Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 02.10.2018

Stock Brokers in Sri Lanka

First Capital’s Nisansala Kuruppumudali 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.

Pre-policy analysis Local markets panic, but current policy stance desired – Ceylon Today

Share Market Investment in Sri Lanka

The Monetary Board (MB) of the Central Bank of Sri Lanka (CBSL) is expected to keep its key interest rates steady at its policy review on Monday (1), considering the prevailing vulnerable external environment and lower GDP growth level, economists and financial sector analysts predicted on Friday.
During the coming months, the Sri Lankan economy expects debt-driven inflows from the US$ 1 billion syndicated loan from the China Development Bank and US$ 250 million worth of Panda Bond issuances to boost reserves.
“The vulnerable external environment and lower GDP growth level provides lowered scope for the monetary board to hike rates. Continuous weakening in currency and continued foreign outflows almost completely removes the possibility of a rate cut, as it would aggravate outflows,” First Capital Holdings Head of Research Dimantha Mathew told Ceylon FT.
However, he highlighted the increased possibility of a hike in rates, depending on CBSL expectations of the debt-driven inflows to support reserves, which has so far been delayed by almost five weeks.
Heavy foreign outflows, lower foreign reserves and lower yields in bonds saw the currency suffer with a month-to-date depreciation of 4.6% against the greenback in September 2018, while over the last three weeks, overall yield curve experienced a steep spike, as the more liquid short- to mid-tenure yields jumped almost 100bps.
According to them, the Sri Lankan Rupee has settled down, following the rise in yield curve and weaker dollar witnessed over the last couple of days……Further, US Federal Reserve as expected increased rates by 25bps.

On a negative note on the back of stronger US economy and upgraded GDP growth target, Federal Reserve expects additional hikes to take place, with three hikes predicted for 2019 compared to the previously expected two hikes.
According to the statement made by International Monetary Fund (IMF) on Friday, Sri Lanka’s current account deficit widened on the back of higher fuel imports, despite strong export performance, while international reserves declined from their peak level in April, amid volatile global market conditions.

Growth is projected to remain below 4 per cent in 2018, and gradually reach 5 per cent over the medium-term.

Current policy stance desired, less probability for a rate hike: First Capital Research

Sept 29, 2018 (LBO) – First Capital Research believes that a policy rate change is not required at this moment considering the prevailing economic conditions of the country.

First Capital Research also believes that the vulnerable external environment and lower GDP growth level provide less scope for the monetary board to increase rates.

“The possibility of a rate cut is almost completely eliminated amidst continuous weakening in the currency and continued foreign outflows,” the firm said.

“However, we are of the view that a 20% probability exists for a rate hike, depending on the CBSL expectations of the timing on the debt-driven foreign inflows.”

First Capital Research said the expected debt driven inflows have so far delayed by almost 5 weeks and are of paramount importance to boost the reserve position.

Heavy foreign outflows considerably lower foreign currency reserve position and lower bond yields resulted in the currency suffering an MTD depreciation of 4.6 percent against the greenback in September.

The research arm said over the last 3 weeks the overall yield curve experienced a steep upward movement as the yields of more liquid short to mid-tenure maturities spiked by almost 100bps.

“Stabilization of LKR: USD at LKR 169 levels was witnessed subsequent to the upward shift in the overall yield curve, coupled with relatively weaker dollar witnessed over the last couple of days,” the firm said.

US Federal Reserve, as expected, increased rates by 25bps to 2.25 percent in Sep 2018 and they expect additional rate hikes to take place predicting 3 hikes for 2019 compared to the previously expected 2 hikes.

“Expected debt driven inflows from the USD 1Bn Syndicated loan from the China Development Bank and USD 250Mn from the issuance of Panda Bond is key to improving the reserve position.”

Central Bank said the next Monetary Policy Review which was previously scheduled to be issued on Friday, 28 September, has been rescheduled to Tuesday, 02 October 2018.

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Forecast on Ada Derana – 30.09.2018

Stock Brokers in Sri Lanka

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’s Dimantha Mathew with the Market Review on Ada Derana

Weekly Government Securities Market – 28-09-2018

Stock Brokers in Sri Lanka