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Sri Lankan shares hit over one-week closing low; blue chips fall

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

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Sri Lankan shares closed at their lowest in more than a week on Friday as investors sold large-cap shares such as Ceylon Tobacco Company Plc and Conglomerate John Keells Holdings Plc amid subdued sentiment.

The Colombo stock index ended down 0.2 percent at 6,324.10, its lowest close since Dec. 1. The index was largely flat for the week after recording a 1.2-percent gain last week, its first weekly gain in four.

Turnover was 622.1 million rupees ($4.18 million), compared with this year’s daily average of 748.3 million rupees.

Foreign investors bought a net 29.3 million rupees worth of shares on Friday, raising the year-to-date net foreign inflow to 1.03 billion rupees in shares.

Investors continue to be concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“Overall market came down with some selling pressure on the blue chips,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“We continue to see volatility with continued uncertainty, no clear direction and uncertainty over budget proposals. We don’t expect market to turn around as most of people will be going on leave from next week,” Mathew said.

Sri Lankan markets will be closed on Monday and Tuesday for a holiday and will resume trading on Wednesday.

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year to meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

 

Brokers said investors were concerned about the sustainability of rates after the central bank on Tuesday kept key rates unchanged.

Shares of John Keells Holdings Plc fell 0.7 percent while the Ceylon Tobacco Company Plc fell 2.7 percent.

($1 = 148.8000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

 

First Capital wins Bronze – Financial Services Category at Annual Report Awards

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Chief Financial Officer of First Capital Holdings Mangala Jayashanth receiving the Bronze Award for “Financial Institutions” category at the 52nd Annual Report Awards  

Investment Bank First Capital Holdings PLC, won the Bronze Award for “Financial Institutions” category at the 52nd Annual Report Awards competition organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

Consisting of five subsidiaries providing a diverse range of advisory services and financial products including Capital Markets Advisory, Wealth Management, Fixed Income and Equities, First Capital Holdings PLC is the holding company deriving its income from the dividends from the group entities and income from its investments, which includes interest income and profit from investments. The company is listed on the Colombo Stock Exchange and is rated A- by ICRA Lanka Limited.

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First Capital Finance Team presents Bronze Award for Financial Institutions category to company CEO.  In picture; Manager Finance Dhilip Joseph, CEO Dilshan Wirasekara, CFO Mangala Jayashantha Senior Accountant Gihan Weerasinghe

“As a listed entity we strive to exemplify compliance, corporate governance, financial transparency, disclosure and effective communication in executing our business transactions. It is due to this focus on providing a true reflection of our fair value that we are able to provide a comprehensive viewpoint for the benefit of our shareholders, clients as well as in a broader context for our market participants” commented Chief Financial Officer of First Capital Holdings Mangala Jayashanth.

The theme for this year’s competition was ‘Precision Exemplified’ acknowledging publications that enhance Sri Lanka’s financial reporting standards to keep with global best practices of accountability, transparency and good governance.

Following a stringent process of analysis and evaluation the most outstanding Annual Reports of Sri Lankan companies be it a small-time non-profit organisation or a large-scale conglomerate were recognized at the gala event at under the patronage of honorable Minister of Finance Ravi Karunanayake with top corporate leaders and government officials also present.

Sri Lanka shares end near one-week closing low

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

Sri Lankan shares ended weaker for a second straight session on Wednesday, to hit their lowest close in nearly one week, with foreign investors selling domestic shares as uncertainty over budget proposals continued to keep sentiment subdued.

The Colombo stock index ended down 0.36 percent at 6,327.30, moving away from its highest close since Nov. 15 hit on Monday. The bourse gained 1.17 percent last week, recording its first weekly gain in four weeks.

Foreign investors sold a net 105.6 million rupees ($711,590.30) worth of shares on Wednesday extending the year-to-date net foreign outflow to 1.9 billion rupees worth of shares.  Turnover was 830.1 million rupees, compared with this year’s daily average of 699.03 million rupees.

Despite recent gains, investors are concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“Market is moving sideways as there is no clear direction and not much of retail (investor) participation,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“The positive sentiment was short-lived and uncertainty over budget proposals and lack of positive sentiments very bad for investor climate.”

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year to meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

Brokers said investors were concerned about the sustainability of rates after the central bank on Tuesday kept key rates unchanged.

Shares of Colombo Cold Stores Plc fell 1.12 percent while the biggest-listed lender Commercial Bank of Ceylon Plc ended steady.

($1 = 148.4000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Sherry Jacob-Phillips)

 

 

 

Sri Lanka shares slip from near 3-wk high on profit taking

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

Sri Lankan shares ended slightly weaker on Tuesday, ending a four-session run of gains, to slip from a near three-week high as investors booked profits, brokers said.

The Colombo stock index ended 0.28 percent or 17.72 points down at 6,350.40, slipping from its highest close since Nov. 15 hit on Monday. The bourse gained 1.17 percent last week, recording its first weekly gain in four weeks.

Despite recent gains, investors are concerned that proposed increases in various taxes and fees would reduce disposable income and challenge consumption-led growth.

“The market is going to be volatile for some time,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year to meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

Brokers said investors were concerned about the sustainability of rates after the central bank on Tuesday kept key rates unchanged.

Foreign investors bought a net 36.9 million rupees ($248,000) worth of shares on Tuesday. They have been net sellers of 1.79 billion rupees worth of shares this year.

Turnover was 492.97 million rupees, compared with this year’s daily average of 698.4 million rupees.

Shares of Commercial Leasing and Finance Plc fell 8.33 percent while Dialog Axiata Plc fell 0.95 percent.

($1 = 148.8000 Sri Lankan rupees)

(Reporting by Ranga Sirilal)

 

 

Sri Lanka shares end 1 pct higher; foreign buying seen

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

Sri Lankan shares jumped more than 1 percent on Thursday as investors sought bargains in blue-chips and on buying by foreign investors.

The Colombo stock index ended up 1.09 percent at 6,309.04, its highest close since Nov. 18.

The index hit a near-eight-month low on Tuesday on concerns that the proposed hike in various taxes and fees would reduce disposable income and challenge consumption-led growth.

Foreign investors bought a net 45.4 million rupees ($306,860.43) worth of shares on Thursday, but have been net sellers of 1.59 billion rupees worth of shares so far this year.

Turnover stood at 1.18 billion rupees, more than this year’s daily average of 696.8 million rupees.

“Market is very bullish with continued foreign buying,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Early morning buying in John Keells boosted confidence levels and brought the buying in to the market. Excess liquidity in the banking system is also helping the market.”

The government aims to boost its 2017 tax revenue by 27 percent to 1.82 trillion rupees year-on-year and meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

The market shrugged off the central bank’s monetary policy decision on Tuesday to keep rates unchanged. Brokers said investors are concerned about sustainability of rates.

Shares of biggest listed lender Commercial Bank of Ceylon Plc jumped 1.43 percent while Colombo Cold stores Plc rose 3.59 percent and conglomerate John Keells Holdings Plc rose 1.15 percent.

($1 = 147.9500 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Sunil Nair)