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Sri Lankan stocks extend gains, hit 5-week closing high

ATCHUTHAN SRIRANGAN, ASSISTANT  MANAGER – RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

April 19, 2018

COLOMBO, April 18 (Reuters) – Sri Lankan share index ended at its highest close in more than five weeks on Wednesday, gaining for a sixth straight session, but many market participants stayed away due to extended holidays after the Sinhala-Tamil New Year festival last weekend.

The Colombo stock index ended 0.12 percent higher at 6,551.83, its highest close since March 13. The index gained 0.44 percent last week.

Turnover stood at 188.3 million rupees ($1.21 million), well below this year’s daily average of 1.13 billion rupees.

“The turnover level was very low with most investors still on holiday. The index, however, is up on blue-chip buying in low volumes,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings PLC.

Shares of Ceylon Tobacco Company Plc ended 2.8 percent higher, while the biggest listed lender Commercial Bank of Ceylon Plc closed up 1.1 percent, conglomerate John Keells Holdings Plc closed 0.4 percent higher.

The market was waiting for some political stability after President Maithripala Sirisena suspended parliament until May 8, brokers said.

Foreign investors bought shares worth a net 24.3 million rupees on Wednesday, but they have net sold 1.33 billion rupees worth of equities so far this year.

The central bank unexpectedly cut its key lending rate by 25 basis points early this month, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

Sri Lankan shares hit 5-week closing high in thin trade

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

APRIL 18, 2018

COLOMBO, April 17 (Reuters) – Sri Lankan shares hit a five-week closing high in thin trade on Tuesday, rising for a fifth straight session, as many market participants stayed away due to extended holidays after the Sinhala-Tamil New Year festival over the weekend, brokers said.

The Colombo stock index ended 0.74 percent higher at 6,544.25, its highest close since March 13. The index gained 0.44 percent last week.

Shares of Distilleries Company of Sri Lanka Plc rose 10.2 percent, while Melstacorp Ltd ended 1 percent higher. Ceylinco Insurance Plc rose 5.2 percent, while fixed line telephone operator Sri Lanka Telecom Plc closed 2.2 percent firmer.

Turnover stood at 315.4 million rupees ($2.02 million), less than this year’s daily average of 1.13 billion rupees.

“Market is up on low volumes. Lack of investors in the market resulted in the low volumes, most investors are on holidays and not active still,” said Dimantha Mathew, head of research, First Capital Holdings.

The market was waiting for some political stability after President Maithripala Sirisena suspended parliament until May 8, brokers said.

Foreign investors bought shares worth a net 9.5 million rupees on Tuesday, but they have net sold 1.36 billion rupees worth of equities so far this year.

The central bank unexpectedly cut its key lending rate by 25 basis points last week, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty. ($1 = 156.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 15.04.2018

Share market Investment 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.

Sri Lankan shares end higher; foreigners sell

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

April 16, 2018

COLOMBO, April 11 (Reuters) – Sri Lankan shares ended slightly firmer on Wednesday led by blue-chip stocks in thin trade, while foreign selling boosted turnover with most local investors on leave ahead of the Sinhala-Tamil New Year this week, brokers said.

Foreign selling accounted for 80 percent of the day’s turnover of 553 million rupees ($3.55 million), less than half of this year’s daily average of 1.17 billion rupees.

Foreign investors exited mainly by selling Softlogic Finance Plc, brokers said. Shares in Softlogic Finance, which accounted for 60 percent of the day’s turnover, however, ended 0.6 percent lower.

The Colombo stock index ended 0.18 percent higher at 6,451.17.

Foreign investors sold shares worth net 420.8 million rupees on Wednesday, extending the net foreign outflow to 1.25 billion rupees from equities.

“It was a very dull day as most local investors are on leave,” said Atchuthan Srirangan, assistant research manager, First Capital Holdings Plc.

Market sentiment improved after Prime Minister Ranil Wickremesinghe survived a no-confidence motion last week, dealers said.

Top fixed-phone line operator Sri Lanka Telecom closed 6.3 percent higher, while Hatton National Bank ended up 1.8 percent.

Dealers expect the stock market to be tepid this week ahead of the Sinhala-Tamil New Year on April 14.

The central bank unexpectedly cut its key lending rate by 25 basis points on Wednesday, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The index fell 0.33 percent last week and dropped 1.14 percent in March.

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 08.04.2018

Share market Investment 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.

Sri Lankan stocks end lower; turnover hits 15-week low

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

APRIL 9, 2018

COLOMBO, April 6 (Reuters) – Sri Lankan shares slipped on Friday from their highest close in a week hit in the previous session, led by blue-chip stocks with the day’s turnover slumping to a 15-week low ahead of the traditional Sinhala-Tamil New Year later next week, brokers said.

The turnover stood at 134.6 million rupees ($866,152), its lowest since Dec. 22, 2017, and well below this year’s daily average of around 1.2 billion rupees.

The Colombo stock index ended 0.3 percent down at 6,455.32, edging down from its highest close since March 29 hit on Thursday.

The central bank unexpectedly cut its key lending rate by 25 basis points on Wednesday, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The index fell 0.33 percent during the week and dropped 1.14 percent last month.

“Market conditions were extremely slow with the festival season ahead. Foreign outflow is also continuing,” said Dimantha Mathew, head of research, First Capital Holdings.

Foreign investors sold shares worth net 19.1 million rupees on Friday extending the year-to-date net foreign outflow to 890.7 million rupees worth of equities.

Shares in Distilleries Company of Sri Lanka Plc ended 3.2 percent lower, while Dialog Axiata Plc closed 0.7 percent down, Soflogic Holdings Plc ended 2.6 percent weaker and John Keells Holdings Plc closed 0.3 percent lower.

Sri Lankan stocks climb to 1-week high; foreign buying boosts turnover

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

APRIL 7, 2018

COLOMBO, April 5 (Reuters) – Sri Lankan shares climbed on Thursday to their highest close in one week as Prime Minister Ranil Wickremesinghe survived a no-confidence motion, easing political uncertainty, dealers said.

Wickremesinghe won the motion as late on Wednesday as a majority of legislators voted to support his coalition government but the instability caused may damage its reform agenda.

The Colombo stock index ended 0.47 percent up at 6,474.70, edging up from its lowest close since March 28 hit on Wednesday.

The stock market gains come a day after the central bank unexpectedly cut its key lending rate by 25 basis points, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The index climbed 0.51 percent last week, its first weekly gain in five, but dropped 1.14 percent last month.

Distilleries Company of Sri Lanka Plc rose 4.8 percent.

“There was an initial spike with some buying interest in Distilleries, while foreign buying dominated the turnover levels,” said Dimantha Mathew, head of research, First Capital Holdings.

The turnover stood at 993.4 million rupees ($6.39 million), lower than this year’s daily average of around 1.2 billion rupees.

Foreign investors bought shares worth net 421.9 million rupees on Thursday, but they have been net sellers of 871.6 million rupees worth equities so far this year.

Ceylon Tobacco Company Plc ended 0.8 percent higher, while Lanka ORIX Leasing Company Plc rose 2.3 percent and Hatton National Bank Plc firmed 0.9 percent. ($1 = 155.4000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

 

Sri Lankan stocks fall to 1-week low as political woes weigh

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

APRIL 5, 2018

COLOMBO, April 4 (Reuters) – Sri Lankan shares fell on Wednesday to their lowest in one week as political uncertainty hurt sentiment ahead of a no-confidence vote against Prime Minister Ranil Wickremesinghe, brokers said.

The prime minister faces the vote at around 1600 GMT that could go down to the wire and lead to political instability in the island nation, even if the government manages to scrape a win.

Meanwhile, Sri Lanka’s central bank unexpectedly cut its key lending rate by 25 basis points on Wednesday, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The Colombo stock index ended 0.22 percent down at 6,444.41, its lowest close since March 28.

The index climbed 0.51 percent last week, its first weekly gain in five, but dropped 1.14 percent last month.

“Market is down due to weak buying interest from the local investors as they are waiting for direction after the no-confidence motion,” said Dimantha Mathew, head of research, First Capital Holdings.

“The biggest deterrent is the political uncertainty. The rate cut did not have an impact today.”

The turnover stood at 1.2 billion rupees ($7.7 million), same as this year’s daily average of around 1.2 billion rupees.

Foreign investors sold shares worth net 152.9 million rupees on Wednesday, extending the year-to-date net foreign outflow to 1.29 billion rupees worth equities.

Shares in Distillers Sri Lanka Plc fell 16.7 percent and Ceylon Cold Stores Plc ended 2.1 percent down. ($1 = 155.8500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan stocks end weaker on political woes

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

APRIL 2, 2018

COLOMBO, April 2 (Reuters) – Sri Lankan share index ended weaker on Monday, hovering near its nine-week closing low hit last week, as political woes over a no-confidence motion against the prime minister weighed on sentiment, although foreign buying boosted the turnover, brokers said.

The turnover stood at 2.3 billion rupees ($14.82 million), well above this year’s daily average of around 1.2 billion rupees.

The Colombo stock index ended 0.42 percent weaker at 6,449.90, near its lowest closing since Jan. 23 hit on Wednesday. The markets were closed on Friday for a holiday.

The index rose 0.51 percent last week, its first weekly gain in five, but dropped 1.14 percent last month

“Local investors are on the sidelines ahead of the no-confidence motion, but foreign buying boosted the turnover,” said Dimantha Mathew, head of research, First Capital Holdings.

Foreign investors bought a net 1.6 billion rupees worth of shares on Monday, but they have net sold 1 billion rupees worth equities so far this year.

Political uncertainty and worries over a slowing economy weighed on sentiment, brokers said.

Prime Minister Ranil Wickremesinghe is facing a no-confidence motion, which will be debated on April 4 before voting, with analysts saying support from many political parties will be needed for Wickremesinghe to clear the vote.

Cautious investors await the outcome of the rate announcement, said analysts.

Sri Lanka’s central bank is expected to keep key interest rates unchanged on Wednesday after a rate review, but economists in a Reuters poll are not ruling out the possibility of a rate cut to help bolster economic growth that has slipped to a 16-year low.

Shares in Asiri Hospitals Plc ended down 9.1 percent, while LAUGFS Gas Plc closed 22 percent down, Commercial Bank of Ceylon Plc ended 1.9 percent down and Dialog Axiata Plc closed 0.7 percent weaker.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest in 16 years and well below the 4.5 percent seen in 2016, revised government data released showed last week.

$1 = 155.2000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez, Editing by Sherry Jacob-Phillips

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