Tag Archives: Stock-brokering Sri Lanka

First Capital’s Atchuthan Srirangan with the Market Review on Ada Derana – 24.12.2017

Invest in 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.

Sri Lankan stocks hit near 2-wk closing high

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

DECEMBER 27, 2017

COLOMBO, Dec 26 (Reuters) – Sri Lankan shares touched a near two-week closing high on Tuesday, as investors picked up banking and diversified stocks, with muted trading as investors went on holiday in the Christmas week.

Investors were also waiting for direction on interest rates when the central bank unveils its monetary policy later this week, analysts said.

The Colombo Stock Index ended 0.42 percent firmer at 6,350.30, its highest since Dec. 15.

“The overall uptrend is due to some window-dressing in some of the blue chip counters,” said Dimantha Mathew, head of research at First Capital Holdings.

“Overall investor interest is very low and it’s a very weak market with most of the broker community also on holiday.”

Shares in conglomerate John Keells Holdings Plc gained 1.1 percent, while Sri Lanka Telecom Plc ended 4.1 percent higher and Hatton National Bank Plc rose 0.2 percent.

Turnover stood at 153.8 million rupees ($1.01 million), below this year’s daily average of 923.2 million rupees.

Foreign investors net sold 4.1 million rupees worth of shares on Tuesday, but they have net bought 18.4 billion rupees worth equities so far this year.

The currency and stock markets were closed on Monday for Christmas. ($1 = 152.6000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

 

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.

Listed firms earnings dip 2% to Rs. 60 b in Sept.

Published on Daily FT on 18 December 2017

Earnings of listed companies in the September quarter have declined marginally by 2% to Rs. 60.1 billion largely owing to a weaker performance by diversified financials and energy sector firms.

 

Analysing interim financials reported by 275 companies, First Capital Research revealed that September quarter earnings marginally dipped 2% YoY to Rs. 60.1 billion (Sep 2016 – Rs. 61.6 billion) driven by the adverse performance of the Energy (-108%YoY), Diversified Financials (-18%YoY) and Consumer Services (-54%YoY) sectors.

“The dip in earnings diminished the effect of positive earnings growth in the Food, Beverage and Tobacco (+9%YoY) and Banks (+6%YoY) sectors and one-off gains in the Food, Staples and Retailing (+178%YoY) sector,” First Capital said. It said the primary source of decline in September earnings was the Energy Sector (-108%YoY) which saw a loss of Rs. 137 million (September 2016 = Rs. 1,731 million), driven by LIOC (-112%YoY) and LGL (-85%YoY) attributable to higher oils prices and LP Gas prices that drove costs while the selling price remained fixed.

The Diversified Financials sector (-18%YoY) also almost equally contributed to an earnings dip where profits declined to Rs. 8.3 billion (September 2016 = Rs. 10.1 billion) driven by LOLC (-23%YoY).

Most finance companies in the sector saw higher net impairment losses as the effects of floods spilled over to the September quarter.

Consumer Services sector (-54%YoY) earnings dipped to Rs. 744 million (Sep 2016 = Rs. 1,613 million) driven by KHL (-71%YoY) which saw several hotels closing for refurbishment.

The negative effect was partially diluted by the positive earnings growth in the Food, Beverage and Tobacco sector (+9%YoY) to Rs. 12.5 billion (September 2016 – Rs. 11.5 billion) driven by BUKI (+788%YoY) and CARS (+2,419%YoY) which saw a dramatic increase in its gross margins while also being supported by plantation companies amidst higher tea prices.

The Banks sector (+6%YoY) reported earnings of Rs. 15.5 billion (Sep 2016 = Rs. 14.6 billion) driven by COMB (+11%YoY) which saw a healthy growth in net interest income.

However, First Capital Research said the largest positive effect on earnings came from the Food and Staples Retailing sector (+178%YoY) which recorded earnings of Rs. 2.7 billion (September 2016 = Rs. 960 million) driven by CARG (+189%YoY) which included a one-off non-operating gain of Rs. 1,012 million from the sale of its properties in Colombo 2. Having adjusted this one-off gain, the sector’s earnings dipped 33%YoY to Rs. 645 million while the quarter’s overall earnings dipped 6% to Rs. 58 billion.

Sri Lankan shares fall to 4-mth closing low; blue chips drag

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

August 16, 2017

COLOMBO, Aug 16 (Reuters) – Sri Lankan shares fell for a fourth consecutive session on Wednesday, posting their lowest close in four months, as local investor sentiment remained muted following a string of disappointing June-quarter corporate results.

However, the decline was limited as foreign investors bought into equities.

The Colombo stock index fell 0.36 percent, or 23.50 points, to 6,417.41, its lowest close since April 18.

It declined in 13 of the last 14 sessions, while yields on short-term government securities also fell over the past two weeks.

“The market came down on blue chips. The main reason for the market to come down is the poor quarterly earnings,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors bought shares worth a net 98.3 million rupees (about $641,854) on Wednesday, extending the year-to-date net inflow to 27.6 billion rupees.

Turnover was 780.3 million rupees, less than this year’s daily average of around 875.3 million rupees.

Shares of market heavyweight John Keells Holdings fell 0.5 percent, Carson Cumberbatch Plc dropped 3.2 percent, Melstacorp Plc ended 0.8 percent weaker and Ceylon Cold Stores declined 0.8 percent.

Pan Asia Banking Corp (PABC), which had its primary dealer status suspended by the central bank on Tuesday for six months, fell 2.4 percent. ($1 = 153.1500 Sri Lankan rupees) (Reporting by Ranga Sirilal and 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.<

Sri Lankan shares post steepest drop in 5 mths despite foreign buying

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

August 15, 2017

COLOMBO, Aug 15 (Reuters) – Sri Lankan shares posted their worst decline in nearly five months on Tuesday, as local investor sentiment remained muted, after a string of disappointing June-quarter corporate results.

However, foreign investors bought the island nation’s risky assets, with offshore buying accounting for more than 80 percent of the session’s turnover.

The Colombo stock index fell 0.69 percent, or 44.85 points, to 6,440.91, its lowest close since April 18. The index posted its steepest percentage fall since March 22.

“It was mainly on poor quarterly earnings. The retail segment is hit hard after the last-quarter floods. Banks are hit by non-performing loans and some companies are hit by rise in global commodity prices,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

“Local investors are waiting, but foreign investors are buying heavily because they see Sri Lankan bourse is under-valued compared to some other regional peers.”

Foreign investors bought shares net worth 788.5 million rupees ($5.15 million) on Tuesday, extending the year-to-date net inflow to 27.6 billion rupees.

This accounted for about 82 percent of the day’s turnover, which came in at 1.12 billion rupees, higher than this year’s daily average of around 875.9 million rupees.

The stock market has posted losses in 12 out of the last 13 sessions, while yields on short-term government securities also fell over the past two weeks.

Sri Lanka’s Supreme Court said early this month that a major tax reform proposed by the government cannot be passed into law in its current form, unless it is approved by more than a two-third majority vote in parliament and gets the greenlight from a nationwide referendum.

Shares in the market heavyweight John Keells Holdings fell 2.5 percent, while Ceylon Cold Stores fell 4.1 percent.

Shares in Pan Asia Banking Corp (PABC), which had its primary dealer status suspended by the central bank on Tuesday for six months, fell 0.7 percent.

$1 = 153.1500 Sri Lankan rupees Reporting by Shihar Aneez; Editing by Amrutha Gayathri

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 Fixed Income Recommendation – August 2017

  • Economic Health Score

  • Recommendation

  • Recap of Dec 2016 Economic Wrap

Read the full report – First Capital Fixed Income Recommendation August 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 proving services to invest in Sri Lanka through fixed income securities such as investments 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 – 13.08.2017

Stock-Brokers in Sri Lanka

First Capital’s Head of Research Dimantha Mathew with the market update – between 19.22 mins to 19.59 mins.

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.

Monthly Economic Watch – August 2017

Monetary Policy Review – Aug 2017

Policy rates unchanged

  • The recovery of the agriculture related activities and the positive performance of the industry and services related activities together with the reinstatement of GSP+ facility are expected to contribute to economic growth. Headline inflation moderated at a faster pace to 4.8% in Jul 2017.
  • Private sector credit growth further decelerated to 18.6% in June 2017 compared to 18.9% in May 2017 owing to high nominal and real interest rates prevailed in the market.
  • Despite improved export performance, a sustained increase in import expenditure resulted in a trade deficit of USD 4.2Bn till May 2017
  • Gross official reserves dipped to USD 6.7Bn in July from USD 7.0Bn in Jun 2017. Sri Lanka received the third tranche of the IMF-Extended Fund Facility (EFF) amounting to USD 167.2Mn. Both the government securities market and the Colombo Stock Exchange experienced noticeable foreign inflows.
  • Accordingly policy rates were decided to be maintained at,
    • Standing Deposit Facility Rate – 7.25%
    • Standing Lending Facility Rate – 8.75%
    • Statutory Reserve Ratio (SRR) – 7.50%

Read the full report here: Monthly Economic Watch – August 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 proving services to invest in Sri Lanka through fixed income securities such as investments 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 recover from over 3-mth low on bargain hunting

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

August 10, 2017

COLOMBO, Aug 10 (Reuters) – Sri Lankan shares recovered from a three-and-a-half month low on Thursday, snapping a nine-session losing streak, as investors bought battered shares.

The Colombo stock index rose 0.16 percent, or 10.29 points, to 6,516.32, edging up from its lowest close since April 25 hit on Wednesday. It fell 1.5 percent last week in its third straight weekly drop.

“Market moved up on bargain hunting and (there was) less selling pressure. We have seen the bottom for the moment and we have to see whether it will sustain,” said Dimantha Mathew, head of research at First Capital Holdings.

Mathew said the resignation of Sri Lanka’s foreign minister Ravi Karunanayake, a former finance minister, also helped boost the market.

Sri Lanka’s foreign minister resigned on Thursday over corruption charges in an investigation of alleged irregularities in government bond sales, maintaining that he was not guilty of wrongdoing.

“The resignation reduces risk of a splintering in the governing coalition,” said Hasnain Malik, Global Head of Equities Research at London-based frontier markets investment bank Exotix Capital, active in South Asia.

The coalition government between President Maithripala Sirisena’s centre-left party and Prime Minister Ranil Wickremesinghe’s centre-right party had differences over the alleged corruption deal, risking the stability of the government.

“We regard Sri Lanka equities as cheap versus history and the exchange rate as lower risk than before, now it is under the IMF umbrella, but we still see a struggle for sustainable growth,” Malik said in an emailed comment.

Foreign investors net bought shares worth 98.5 million Sri Lankan rupees ($642,740.62) on Thursday, extending their year-to-date net inflow to 26.7 billion rupees.

Turnover stood at 306.6 million rupees, less than half of this year’s daily average of around 880.6 million rupees.

Shares of Dialog Axiata Plc rose 0.9 percent while, Ceylon Tobacco Company Plc gained 1.1 percent and Sampath bank Plc ended 2.9 percent higher.

Analysts, however, expect equities to gain due to a fall in government bond yields.

Short-term treasury-bond yields fell between 10 basis points (bps) and 16 bps at a weekly auction on Wednesday, while the yields on a 59-month bond dropped by 99 bps and that on a 118-month bond fell by 78 bps at the last week auction. ($1 = 153.2500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

 

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 fall to 3-1/2-month closing low; banks drag

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

August 9, 2017

COLOMBO, Aug 9 (Reuters) – Sri Lankan shares fell for the ninth straight session on Wednesday, posting their lowest close in three-and-a-half months, with banks such as Hatton National Bank leading the fall.

The Colombo stock index fell 0.28 percent, or 18.10 points, to 6,506.03, its lowest close since April 25. It fell 1.5 percent last week in its third straight weekly drop.

“Turnover levels improved with the increased foreign participation, but the market came down with the continued selling pressure on selected counters,” said Dimantha Mathew, head of research at First Capital Holdings.

“But the good thing is that foreigners are returning to the market.”

Analysts said the market is coming down due to the negative sentiment after the earnings with the economic slowdown.

Foreign investors net bought shares worth 124.3 million rupees (about $811,358) on Wednesday, extending their year-to-date net inflow to 26.6 billion rupees.

Turnover stood at 747.5 million rupees, less than this year’s daily average of around 884.6 million rupees.

Shares of Hatton National Bank fell 1.3 percent, Chevron Lubricant Lanka Plc ended 5 percent weaker and Ceylon Cold Stores Plc dropped 1.2 percent.

Analysts, however, expect equities to gain due to a fall in the yields of government bonds.

Sri Lanka’s central bank held policy rates steady on Thursday, and said tightening measures taken in the past are helping cool inflation and credit growth.

Short-term treasury-bond yields fell between 10 basis points (bps) and 16 bps at a weekly auction on Wednesday, while the yields on a 59-month bond dropped by 99 bps and that on a 118-month bond fell by 78 bps at the last week auction. ($1 = 153.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and 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.<