Tag Archives: Treasury Bills and Bond Sri Lanka

Bond Yields Decline With Lower Borrowing Costs

Bond Yields Decline With Lower Borrowing Costs: Inside Sri Lanka

2019-01-24 02:58:30.589 GMT

By Anusha Ondaatjie

(Bloomberg) — Sri Lanka’s bond yields fell as the government’s cost of borrowing was mostly lower at an auction Wednesday.

* Central bank sold 21b rupees ($115m) of 364-day bills at 10.70%, down from 10.75% at previous auction, and 2.55b of 182- day notes at 9.87%, unchanged from the last sale

* “There is buying interest coming in at the short end, especially with bills down,” says Dimantha Mathew, head of research at First Capital in Colombo

** “Some foreign inflows into two-year bonds also boosted sentiment and helped shift money from the mid to longer tenors.”

* Yield on 11.5% govt bonds due December 2021 fell 4bps to 10.78% on Wednesday

* Global funds bought a net $0.1m of Sri Lankan shares on Wednesday, helping pare the month’s outflows to $13m: exchange data

* USD/LKR marginally changed t 182.20

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 04.11.2018

Stock Brokers 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.

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.

Sri Lanka shares fall to near 5-year closing low on foreign selling

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

SEPTEMBER 26, 2018

COLOMBO, Sept 25 (Reuters) – Sri Lankan shares fell over 1 percent on Tuesday to their lowest close in nearly five years, as foreign investor selling, a weaker rupee and government plans to curb imports hurt investor sentiment.

Prime Minister Ranil Wickramasinghe said on Monday the government would take measures to impose taxes to curb imports by $500 million to $1 billion to face the currency crisis.

The rupee hit a record low for an eighth straight session on Friday despite the central bank’s intervention. It fell to an all-time low of 169.00 per dollar on Friday, weighed down by importer demand for the scarce U.S. currency.

The rupee has weakened 4.5 percent so far this month after a 1.2 percent drop last month, and has declined 9.97 percent so far this year.

Analysts said the acceleration in the rupee’s depreciation was creating panic among investors.

The Colombo stock index declined 1.21 percent to 5,833.58 on Tuesday, its lowest close since Dec. 18, 2013. This was also the sharpest single-day drop since late November 2017.

“It’s another disastrous day, lots of exits happened. It’s mainly because of panic selling, that’s why the market came down sharply in lower turnover,” said Dimantha Mathew, head of research at broker First Capital Holdings.

Turnover was 297.6 million rupees ($1.77 million), the lowest since Sept. 6, and less than half of this year’s daily average of 793.5 million rupees.

Foreign investors sold a net 60.9 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 5.6 billion rupees worth of equities.

Analysts said the recent fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices earlier this month for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of Ceylon Tobacco Company Plc fell 1.5 percent, Hemas Holdings Plc lost 4.3 percent, Sri Lanka Telecom Plc ended 5.7 percent down and conglomerate John Keells Holdings Plc closed 1.1 percent lower. ($1 = 168.5500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

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.

Sri Lanka’s Bid to Boost Value of Colombo Stock Exchange Set for Analysis in 2018 Report

First Capital signs third MoU with Oxford Business Group

 

Stock_Market_Sri_Lanka

Andrea Tsiachtsiri, Country Director, Oxford Business Group, Dilshan Wirasekara Director / CEO First Capital Holdings PLC, Nisansala Munasinghe Manager Branding and Marketing Services First Capital Holdings PLC

First Capital Holdings signs third MoU with Oxford Business Group Colombo, April 2018: A new report by the global research and consultancy firm Oxford Business Group (OBG) on Sri Lanka’s economy will highlight efforts under way to encourage the larger, state-owned banks to list on the Colombo Stock Exchange (CSE).
The Report: Sri Lanka 2018 will track the measures put in place to facilitate the listing of major lenders, which forms part of a broader, national bid to generate capital and boost the exchange’s value. OBG’s publication will also provide wide-ranging analysis of the other segments that are expected to play a key role in the development of Sri Lanka’s capital markets. These include companies producing building materials such as cement and commercial vehicle retailers, both of which look set to benefit from heightened construction activity, fuelled by a growing project pipeline.

 

In addition, the report will consider the positive impact that improved access to the EU market under the Generalised System of Preferences Plus is having on Sri Lanka’s exports, which bodes well for manufacturers and firms operating in related sectors, such as transport and logistics.
Investment Bank, First Capital Holdings PLC has signed a third memorandum of understanding (MoU) with OBG for its forthcoming publication. Under the MoU, the firm will once again share its experience of the local capital market help to produce the Capital Markets Chapter of The Report: Sri Lanka 2018, contributing in-depth analysis of both the Equity stock and Government Securities bond markets.
Dilshan Wirasekara Dilshan Wirasekera, Director and CEO of First Capital Holdings, said he looked forward to working with OBG’s team once again and documenting the latest developments changing in the investment landscape at the CSE against Sri Lanka’s changing rapidly economic economy evolving economy landscape.

 

“Forecasts point to a revival in private sector credit growth in the second part of 2018, which is expected to boost the performance of Sri Lanka’s banks, enabling them to benefit from robust levels of capitalisation and, in turn, better returns on equity,” he said. “With the country’s major infrastructure drive and other construction projects already helping to stimulate economic activity and attract greater inflows, the outlook for capital market expansion looks bright.”

 

Welcoming First Capital Holdings on board, Michael Todemann, OBG’s editorial manager in Sri Lanka, agreed that while private sector credit growth had eased last year, data suggested it was on track to reach a targeted 16% in 2018.
“A national drive under way to support smaller enterprises and encourage FDI is steering the country towards the next phase of its economic development, with new measures aimed at enhancing the business climate expected to provide a further boost,” he said. “The team at First Capital Holdings are known to be experts in their field, with an in-depth knowledge of the local and regional markets. I’m delighted that our readers will once again benefit from their analysis of market activity and potential opportunities at the CSE.”
The Report: Sri Lanka 2018 will mark the culmination of more than six months of field research by a team of analysts from Oxford Business Group. It 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 contributions from leading representatives, including: President Maithripala Sirisena; Greg Hands, the UK’s minister of state for international trade; Changyong Rhee, director of Asia and Pacific Department for the IMF; and Qitao Liu, chairman, China Communications Construction Company. It will be available in print and online.

About Oxford Business Group

 

Oxford Business Group is a global research and consultancy company with a presence in over 30 countries, from Asia, Africa and the Middle East to the Americas. A distinctive and respected provider of on-the- ground intelligence on many of the world’s fastest growing markets, OBG has offices in London, Berlin, Dubai and Istanbul, and a network of local bureaus across the countries in which we operate.
The Report: Sri Lanka 2018 will be produced with Board of Investment and the Ceylon Chamber of Commerce. Contributions will also be made by First Capital Holdings, PwC, HSBC and John Wilson Partners.

Through its range of products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, tourism, energy, construction, transport, industry and ICT. OBG provides business intelligence to its subscribers through multiple platforms: Economic News and Views, OBG Business Barometer – CEO Survey, Roundtables and conferences, Global Platform – exclusive video interviews, The Report publications and its Consultancy division.

 

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.