Sri Lankan shares snap losing spree to end higher

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

JULY 31, 2018

COLOMBO, July 31 (Reuters) – Sri Lankan shares ended their losing spree to close higher on Tuesday as investors picked up battered blue-chip stocks, but lean first-quarter corporate results dampened sentiment.

The Colombo stock index ended 0.3 percent firmer at 6,147.27, edging up from its lowest close since July 12 hit on Monday. The bourse dropped 3.5 percent so far this year.

The index fell 0.47 percent last week, marking its first weekly decline in three.

Turnover stood at 409.9 million rupees ($2.57 million), less than this year’s daily average of 856.1 million rupees.

“We can see the local buying interest coming in to the market at the psychological support level of 6100 levels,” said Dimantha Mathew, head of research, First Capital Holdings.

“It is a good sign that the selling pressure is not there and we can see some select buying interest coming in to the market.”

Foreign investors sold equities net worth 731,474 rupees on Tuesday, extending the year-to-date net foreign outflow to 2.5 billion rupees worth of equities so far this year.

A downward revision in economic growth estimate earlier this month by the central bank hurt sentiment, analysts said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in Nestle Lanka Plc ended 2.9 percent higher, while Ceylon Tobacco Company Plc ended 1.3 percent firmer, Ceylinco Insurance Plc closed 3.1 percent up and Carson Cumberbatch Plc ended up 0.9 percent.

Sri Lankan shares hit over 2-week low

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

JULY 30, 2018

COLOMBO, July 30 (Reuters) – Sri Lankan shares extended losses to a fifth straight session on Monday as investors sold blue-chip stocks such as John Keells Holdings Plc after weak first-quarter numbers from the conglomerate dampened sentiment.

Conglomerate John Keels Holdings Plc after market hours on Thursday reported a 26 percent year-on-year fall in quarterly net profit.

The stocks, bond and foreign exchange markets were closed on Friday for a public holiday.

The Colombo stock index ended 0.41 percent weaker at 6,128.95, its lowest close since July 12, extending its year-to-date loss to 3.8 percent.

The index dropped 0.47 percent last week, its first weekly fall in three.

Turnover stood at 169.4 million rupees ($1.06 million), well below of this year’s daily average of 859.4 million rupees.

“The market came down manly on JKH as the earnings came down,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

Shares of Keells fell 1.4 percent on Monday.

“Because the blue-chips are showing negative results, most of the investors are on the sidelines.”

Foreign investors bought equities net worth 1.4 million rupees on Monday. But they have been net sellers of 2.5 billion rupees worth of equities so far this year.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in Hatton National Bank Plc ended 1.3 percent lower while Caltex Lubricant Lanka Plc closed 5.3 percent down and Sampath Bank Plc fell 1 percent. ($1 = 159.5500 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 29.07.2018

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.

Colombo stocks see dreary prospects

Sunday Times | 30.07.2018

Colombo shares are hardly trading with the market losing money daily with analysts saying the next six months would be bleak on the back of political uncertainty plus foreign selling. They said that foreign investors sold diversified stocks such as conglomerate John Keells Holdings PLC and Aitken Spence PLC during the past few months and the country’s political system showed no signs of recovery impacting negatively on Colombo shares.

All these and inconsistent policies are bringing down trader sentiment, with investors resorting to the sidelines, they added. They noted that the country is heading towards a budget in a few months (November) which isn’t making it any easier for the sentiment to be optimistic. Also the impending elections in a few months (next year) will keep traders at bay for most of the year, they added.

Sri Lanka about seven years ago had a very expensive market with the price earnings ratio (PER) going to 20 times following the post war bull-run. Since then Sri Lanka has had askew movements despite some volatility over the years ranging from ASPI index value of 4800 – 7800.

The Colombo Stock Exchange failed to break the peak ASPI target of 7800 during 2011. “Despite the volatility of the index, earnings have had a steady growth pace of 10 to 15 per cent on a continuous basis. Rising bond yields and political uncertainty has made the conditions unpredictable for an average investor, resulting in low investor participation over the last few years,” an analyst said. Coupled with the negative investor sentiment with Federal rate hikes happening in the US and US bond yields rising, many fund flows shifted frontier and emerging markets towards the US resulting in continuous foreign outflows over the last few months in 2018.

But analysts say that the tide seems to be on the verge of turning for the better maybe after about six months. Following continuous growth in the earnings and further supported by the pickup in earnings in recent times after the slowness due to monetary tightening during 2017, the market valuations have become very attractive with Sri Lankan market PER falling to single digit of nine times.

“We are now one of the cheapest frontier and emerging markets. With earnings expected to continue with average growth of 10 to 15 per cent over the next five years as well Sri Lanka is poised to be one of the first countries that value-seeking investors would be targeting,” Dimantha Mathew, Head of Research First Capital Holdings PLC told the Business Times.

Further, large funds such as Black Rock and Templeton indicated that emerging and frontier markets are starting to look attractive and they would like to re-enter most of these markets, he said. He added that most funds are looking for markets that have bottomed out and consist of strong valuations. “We’ve already started having six consecutive days of net foreign inflows, though on a smaller scale which is an indication that the tide is turning.” Local investor interest and bargain hunting is also on the rise with overall market conditions and investor sentiment turning positive which is likely to signal a re-rating of the Sri Lankan stocks in the shorter term, another analyst added.

Sri Lankan shares fall for fourth straight session

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

JULY 30, 2018

COLOMBO, July 26 (Reuters) – Sri Lankan shares extended their losses to a fourth straight session on Thursday as foreign investors sold blue-chip stocks such as John Keells Holdings Plc and Hemas Holdings Plc.

The Colombo stock index ended 0.14 percent weaker at 6,153.99, its lowest close since July 16

The index dropped 0.47 percent this week, its first weekly fall in three, bringing its year-to-date losses to 3.4 percent.

Turnover stood at 430.8 million rupees ($2.7 million), half of this year’s daily average of 864.5 million rupees.

“The market is slowly coming down on blue-chip selling and is back to its support level of 6,100 again,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

Foreign investors sold equities net worth 169.6 million rupees on Thursday, extending the year-to-date net foreign outflows to 2.5 billion rupees.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares of conglomerate John Keels Holdings Plc fell 1.9 percent, while Hemas Holding Plc ended 3.1 percent lower. Biggest listed lender Commercial Bank of Ceylon closed 1.5 percent down and Sri Lanka Telecom Plc lost 2.9 percent.

The stocks, bond and foreign exchange markets are closed on Friday for a public holiday and will resume trading on Monday. ($1 = 159.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

Sri Lankan shares fall for third straight session in dull trade

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

JULY 26, 2018

COLOMBO, July 25 (Reuters) – Sri Lankan shares extended fall for a third straight session on Wednesday as investors sold blue-chip shares, but foreign buying helped limit losses.

The Colombo stock index ended 0.34 percent weaker at 6,162.49. The index, which is down nearly 3 percent in the year so far, had on Friday recorded its highest close since June 29.

Turnover stood at 161.4 million Sri Lankan rupees ($1.01 million), less than a third of this year’s daily average of 873.1 million rupees.

“Today the market came down on blue-chip selling in dull trade,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

“Investors are waiting to see the direction and the good sign is we are seeing net foreign buying for the fifth straight day.”

Foreign investors bought equities worth net 4.3 million rupees ($26,959.25) on Wednesday, but they have been net sellers of stocks worth 2.4 billion rupees so far in the year.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in Ceylon Tobacco Company Plc fell 9.5 percent, while conglomerate John Keels Holdings Plc ended 0.9 percent down, biggest listed lender Commercial Bank of Ceylon closed 1.0 percent down, Dialog Axiata Plc lost 0.1 percent and Hemas Holding Plc ended 1.3 percent lower. ($1 = 159.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Sri Lankan shares fall for second straight session

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

JULY 25, 2018

COLOMBO, July 24 (Reuters) – Sri Lankan shares extended fall for a second straight session on Tuesday, easing further from a three-week closing high recorded late last week, but foreign buying helped limit losses.

The Colombo stock index ended 0.02 percent weaker at 6,183.64. The index, which is down nearly 3 percent in the year so far, had on Friday recorded its highest close since June 29.

Turnover stood at 273.8 million Sri Lankan rupees ($1.72 million), less than a third of this year’s daily average of 873.1 million rupees.

“Though there is selling pressure in the market, the decline is not huge,” said Dimantha Mathew, head of research, First Capital Holdings.

“Foreigners are net buyers and that creates some positive sentiment.”

Foreign investors bought equities worth net 90.3 million rupees on Tuesday, but they have been net sellers of stocks worth 2.4 billion rupees so far in the year.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in conglomerate John Keels Holdings Plc ended 0.7 percent down and Hemas Holding Plc ended 1.1 percent lower while Sri Lanka Telecom Plc shed 1.6 percent. ($1 = 159.4000 Sri Lankan rupees)

Sri Lankan shares edge lower from 3-wk high in dull trade

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

JULY 24, 2018

COLOMBO, July 23 (Reuters) – Sri Lankan shares ended weaker on Monday, slipping from the last session’s three-week closing high, but foreign buying prevented steeper losses.

The Colombo stock index ended 0.1 percent weaker at 6,184.68, edging lower from its highest close since June 29 hit on Friday. The bourse rose 0.86 percent last week, but has fallen 2.9 percent year to date.

Turnover was 238.4 million rupees ($1.5 million) in the session, less than a quarter of this year’s daily average of 877.6 million rupees.

“The selling pressure was absorbed by foreign buying which is a good sign,” said Dimantha Mathew, head of research, First Capital Holdings.

Foreign investors bought equities net worth 98.1 million rupees on Monday, but they have been net sellers of stocks worth 2.5 billion rupees so far this year.

A downward revision in economic growth estimate by the central bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in Ceylon Tobacco Company Plc fell 1.6 percent, while Distillers Company of Sri Lanka Plc ended 1.9 percent weaker and conglomerate John Keels Holdings Plc ended 0.7 percent down. ($1 = 159.4000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 22.07.2018

Stock Market 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 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.

 

 

Sri Lankan shares close at 3-week high; Keells leads

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

JULY 20, 2018

COLOMBO, July 19 (Reuters) – Sri Lankan shares rose on Thursday and marked their highest close in nearly three weeks, led by market heavyweight John Keells Holdings, as foreign buying boosted sentiment.

The Colombo stock index ended 0.36 percent firmer at 6,183.02, its highest close since June 29.

“We saw some renewed interest coming into the market with both local and foreign investors returning,” said Dimantha Mathew, head of research, First Capital Holdings.

“Falling commodity prices are also helping.”

Turnover stood at 634.7 million rupees ($3.97 million), less than this year’s daily average of 887.7 million rupees.

Foreign investors bought net equities worth 73.7 million rupees on Thursday, but they have been net sellers of stocks worth 2.6 billion rupees in the year so far.

A downward revision in economic growth estimate by the central bank has also hurt sentiment, analysts said.

Economic growth in 2018 is likely to be between 4 percent and 4.5 percent, falling short of an earlier estimate of 5 percent, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in conglomerate John Keells Holdings Plc rose 1.5 percent while biggest listed lender Commercial Bank of Ceylon Plc gained 2.1 percent and Nestle Lanka Plc ended 2.1 percent higher. ($1 = 160.0000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)