Weekly Government Securities Market – 31-08-2018

Stock Brokers in Sri Lanka

 

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 30.08.2018

Share Market Investment 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 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 end higher; financial stocks lead

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

AUGUST 31, 2018

COLOMBO, Aug 30 (Reuters) – Sri Lankan shares ended higher on Thursday, moving away from their lowest close in 17 months hit earlier this week, as reports that the main state-owned pension fund would return to the equity market boosted sentiment.

The Employees’ Provident Fund, which had halted equity investments in 2015, is set to resume buying and selling shares, local papers reported on Wednesday, citing Central Bank Governor Indrajit Coomaraswamy’s remarks at an event.

The Colombo stock index ended 0.53 percent higher at 6,076.68, moving further away from its lowest close since March 28, 2017, hit on Tuesday. The bourse posted its third gain in 14 sessions.

The day’s turnover was at 337.9 million rupees ($2.09 million), less than half of this year’s daily average of 814.4 million rupees.

“Market is still on positive sentiment after the central bank governor’s comment. That gave some confidence to local investors, but we don’t expect the positive sentiment to last long,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

“Foreign selling is continuing – which is a worrying sign.”

Foreign investors sold a net 76.9 million rupees of shares on Thursday, extending the net foreign selling so far this year to 4.1 billion rupees worth of shares.

Shares in Commercial Leasing and Fiance Plc ended 20 percent firmer, while Ceylinco Insurance Plc ended 5 percent up and the biggest listed lender Commercial Bank of Ceylon Plc closed 0.9 percent higher.

The central bank had left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

The economy is unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent, Coomaraswamy said early this month.

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Review on Ada Derana – 28.08.2018

Stock Brokers 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.

First Capital’s Dimantha Mathew with the Market Review on Ada Derana

Sri Lankan shares end lower as tax proposals hit sentiment

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

AUGUST 28, 2018

COLOMBO, Aug 27 (Reuters) – Sri Lankan shares ended weaker on Monday to post their tenth session of declines in 11, as worries over new tax proposals weighed on investor sentiment.

However, foreign investors bought beaten-down stocks, limiting the downside. Foreign buying accounted for about 30 percent of the day’s turnover of 246.2 million rupees ($1.54 million), which was less than a third of this year’s daily average of 818.3 million rupees.

Foreign investors purchased a net 20.6 million rupees of shares, making them net buyers for a third straight session after five consecutive sessions of sales. They have sold a net 3.4 billion rupees worth of shares so far this year.

The Colombo stock index ended 0.14 percent lower at 6,044.14. The bourse hovered near their lowest close since March 30, 2017, hit last week. It closed marginally higher last week after four straight weekly falls.

“It was a bit of a slow day. Overall, the turnover was on the slower side as there were not much of activities. Because of the tax uncertainties the local investors are on the sidelines,” said Dimantha Mathew, head of research at broker First Capital Holdings.

“We have seen some foreign interest in the last few days as the prices have come down.”

Banking and telecom stocks have been under pressure after a media report last week stated the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, have also dented investor appetite for riskier assets, analysts added.

Shares in Dialog Axiata Plc ended 0.8 percent lower, while Lion Brewery Plc closed 2.6 percent down, Overseas Realty Plc ended down 0.7 percent and Sri Lanka Telecom Plc closed 0.4 percent weaker.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

The economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent, Central bank Governor Indrajit Coomaraswamy said.

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 27.08.2018

Stock Brokers in 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.

Sri Lankan shares fall on worries over tax proposals

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

AUGUST 27, 2018

COLOMBO, Aug 24 (Reuters) – Sri Lankan shares ended slightly weaker on Friday in light trade and posted their ninth session of decline in 10, as worries over new tax proposals weighed on sentiment.

However, foreign investors bought beaten-down stocks, limiting the downside. Foreign buying accounted for about half of the day’s turnover of 209.5 million rupees ($1.31 million) which was well below this year’s daily average of 822 million rupees.

Foreign investors purchased a net 32.3 million rupees of shares, making them net buyers for a second straight session after five consecutive sessions of sales. They have sold a net 3.4 billion rupees worth of shares so far this year.

The Colombo stock index fell 0.05 percent to 6,052.69, hovering near its lowest close since March 30, 2017 hit on Tuesday. It closed marginally higher for the week after four straight weekly falls.

“We expected the uptrend to be short lived and today there was not much of turnover due to less foreign and local participation,” said Dimantha Mathew, head of research at broker First Capital Holdings.

“Lower local participation is continuing due to the tax worries and hurting investor sentiment.”

Banking and telecom stocks have been recently under pressure after a local media reported last week that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, have also dented investor appetite for riskier assets, analysts said.

Shares in Dialog Axiata Plc fell 1.7 percent, market heavyweight John Keells Holdings lost 0.5 percent and Lanka ORIX Leasing Co Plc declined 3.2 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. ($1 = 160.3500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Hiruni Perera, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 24.08.2018

Stock Brokers in Sri Lanka

First Capital’s Hiruni Perera 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 snap 8 sessions of falls on foreign buying

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

AUGUST 27, 2018

COLOMBO, Aug 23 (Reuters) – Sri Lankan shares closed higher for the first time in nine sessions on Thursday as foreign investors bought beaten-down stocks, although worries over new tax proposals limited the upside.

Foreign buying accounted for about two-thirds of the day’s turnover of 1.07 billion rupees ($6.67 million) which was better than this year’s daily average of 826 million rupees.

Foreign investors purchased a net 82.5 million rupees of shares, making them net buyers for the first time in six sessions. They sold a net 888.8 million rupees in the previous five sessions, taking the total net outflow so far this year to 3.44 billion rupees.

The Colombo stock index rose 0.25 percent to 6,055.76, edging up from its lowest close since March 30, 2017 hit in the previous session. It has declined about 4.8 percent so far this year.

“Market is up on foreign buying. Local investors are still on the sidelines with the proposed new taxes. We saw foreigners returning to the market with the index hovering near 6,000 mark as it is attractive to them,” said Dimantha Mathew, head of research at broker First Capital Holdings.

Banking and telecom stocks were recently under pressure after a local media reported last week that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, have also dented investor appetite for riskier assets, analysts said.

Market heavyweight John Keells Holdings gained 0.9 percent, while Lanka ORIX Leasing Co Plc rose 3.3 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. ($1 = 160.3500 Sri Lankan rupees) (Reporting by Shihar Aneez and Ranga Sirilal; Editing by Subhranshu Sahu)

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 21.08.2018

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.