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Hiruni Perera, Senior Research Analyst, at First Capital on the bond market performance – 27.06.2019

Government Securities Sri Lanka

Hiruni Perera, Senior Research Analyst, at First Capital on the bond and equity market forecast – 27.06.2019

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

Rupee Falls as USD Bonds Marketed Overseas: Inside Sri Lanka

Treasury Bills and Bonds in Sri Lanka

(Bloomberg) — Sri Lanka’s rupee fell as investors watch marketing of dollar-denominated bonds in overseas markets for the second time since March that would help repay the island nation’s debt and bolster its foreign exchange reserves.

* Sri Lanka may price five- and 10-year bonds Monday, and it has set initial price guidance of 6.6% and 7.8%, respectively for the offerings.

* “After the Easter Sunday attacks, there’s been a weakness in the rupee. But these bond sales will help build more confidence and drive sentiment,” as it draws foreign inflows and helps boost reserves, says Dimantha Mathew, head of research at First Capital in Colombo.

* USD/LKR up 0.1% to 176.80

* The yield on 10% bonds due March 2023 fell 15bps Friday to 9.90%.

* Overseas investors sold a net $0.2m of local equities on Friday, helping take withdrawals this year to $33m: exchange data.

* Sri Lanka’s May national consumer prices rose 3.5% y/y

Sri Lanka Returns to Overseas Bond Markets After Terror Attacks

Investment Bank in Sri Lanka

(Bloomberg) — Sri Lanka is marketing dollar-denominated bonds in overseas markets for the second time since March as the South Asian nation recovers from the Easter Sunday terror attacks.

* The sovereign is offering five-year and long 10-year bonds with initial price talk in the area of 6.6% and 7.8%. That’s lower than the yields on similar maturity bonds the country priced in March, before a series of coordinated explosions in April at churches and luxury hotels killed more than 250 people.

* Sri Lanka borrowers are finding a window for issuance after the Federal Reserve last week opened the door for an interest- rate cut as early as July, and the European Central Bank said extra monetary stimulus might be needed.

*The government’s bond sale comes right after struggling carrier Sri Lankan Airlines Ltd. priced $175 million of five-year notes last week.

“The government is capitalizing on increased investor risk appetite subsequent to recent dovish comments by the Fed and ECB, and the successful placement last week of the Sri Lankan Airlines government-guaranteed bond, which was massively oversubscribed,” said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd.

“Returning to the overseas bond markets will allow Sri Lanka to increase foreign-currency reserves and prop up the economy after the suicide bombings affected tourism and consumer demand, said Dimantha Mathew, head of research at First Capital Holdings PLC in Colombo.”

Nisansala Kuruppumudali, Research Analyst, at First Capital on the bond and equity market performance – 26.06.2019

Treasury Bills and Bonds in Sri Lanka

Nisansala Kuruppumudali, Research Analyst, at First Capital on the bond and equity market performance – 26.06.2019

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.

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

Atchuthan Srirangan, Assistant Manager – Research, at First Capital on the Bond and equity Market performance – 25.06.2019

Share Market Investment in Sri Lanka

Atchuthan Srirangan, Assistant Manager – Research, at First Capital on the bond and equity market performance – 25.06.2019

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

Sri Lanka’s 2019 growth to hit 18-year low after Easter bombings: Reuters poll

Reuters | May 10, 2019

COLOMBO (Reuters) – Sri Lanka’s economic growth is expected to slump to a near two-decade low this year, a Reuters poll showed, as tourism, foreign investment and overall business activity eased sharply in the wake of the devastating Easter Sunday bombings.

Security in Sri Lanka has been ramped up since the April 21 attacks by Islamic militants, who killed over 250 people including 42 foreign nationals in churches and hotels across the country. Tourism, which accounts for 5 percent of the country’s gross domestic product, has suffered as travelers from around the globe canceled hotel and flight bookings fearing more attacks.

Islamic State has claimed responsibility for the attacks.

The poll of 10 analysts predicted that the full-year median economic growth could slide to 2.5 percent, its lowest since 2001, when the Indian Ocean island’s growth contracted after Tamil Tiger rebels attacked the country’s main airport.

That compares with gross domestic product growth of 3.2 percent in 2018, the weakest in 17 years as a weeks-long political crisis and past policy tightenings sapped business confidence and cooled investment.

Some of the analysts in the poll are forecasting a contraction in the second quarter.

Many analysts said their revised growth figures were only a preliminary estimate as they are yet to incorporate all of the latest available data in their economic models.

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.

CTC drags Sri Lanka stocks 0.17- pct down at close

ECONOMYNEXT | 24.06.2019

Sri Lanka stocks closed 0.17 percent lower on Monday with Ceylon Tobacco Company (CTC) dragging the index down, brokers said.

The All Share Price Index (ASPI) at the Colombo Stock Exchange closed 8.97 points lower at 5,354.53, falling from an intra-day high of 5,369.23 in the first half hour of trade, and recovering from a low of 5,348.66 in the final hour.

The ASPI has now fallen for three straight days, after gaining 92.50 points from the start of the month till last Wednesday.

“Investors are now adopting a wait-and-see approach until the June quarter earnings are released,” said Atchuthan Srirangan, Assistant Manager at First Capital Research.

The S&P SL20 Index of more liquid stocks closed 0.01 percent or 0.22 points up at 2,489.20.

The market turnover 261.4 million rupees with 54 stocks gaining and 59 stocks declining.

There was high foreign participation with 125.9 million rupees in outflows from the market.

CTC dragged the ASPI down, closing 20.10 rupees lower at 1,279.90 rupees a share.

CTC was moved out of the S&P SL20 Index on Friday.

Hemas Holdings closed 2.20 rupees down at 61.90 rupees a share and Cargills (Ceylon) closed 4.80 rupees down at 190.10 rupees a share, also pushing the ASPI down.

Sampath Bank accounted for half the daily turnover, and closed 50 cents lower at 138 rupees a share.

Retail investor interest was seen on Singer Finance, which closed 20 cents up at 12.40 rupees a share.

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.

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.

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and equity market performance – 24.06.2019

Share Market Investment Sri Lanka

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and equity market performance – 24.06.2019

 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.

 

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.

1-Yr T-bill rallies on its downward spiral

CEYLON TODAY | 24.06.2019

Treasury Bills and Bonds in Sri Lanka

By First Capital Research
Weekly Yield movement & Volume

The secondary market yield curve remained relatively unchanged, however, closing the week with a slight downward shift on the back of buying interest that stemmed mainly from local counterparties. On the back of continued buying interest, the short end of the curve dipped by 5-10bps, while the belly-end of the curve dipped by 10-20bps and the long end of the curve fell by 11-12bps.
At the primary bill auction, the three-month and six-month were accepted at a weighted average of 8.38 per cent and 8.60 per cent respectively, while the one-year was accepted at a weighted average of 8.86 per cent. The total offered amount of Rs 19.0 billion was fully subscribed with a bid-to-offer ratio of 3.22:1, recording a four-week high. In the forex market, the rupee appreciated marginally to close at
Rs 176.68 on 19 June, relative to
Rs 176.71 at the beginning of the week.

 
Liquidity and CBSL
Holdings

Market liquidity remained positive throughout the week to close at Rs 24.3 billion, while CBSL continued to drain out liquidity by way of term repo auctions during the week. CBSL holdings marginally declined to Rs 129.1 billion, relative to Rs 130.1 billion held at the beginning of the week.

 
Foreign Holdings
Foreign holdings in Government securities increased by Rs 311.0 million to record Rs 143.0 billion, while foreign holding percentage for the week was maintained at 2.6 per cent.

 
Maturities for next Week
The Government Security Market has a Treasury Bill maturity amounting to Rs 16.5 billion that needs to be settled during the week ending 28 June 2019.

 
Daily Summary
Friday (14.06.19): The secondary market yield curve remained mostly unchanged while overall market witnessed thin volumes. Limited activity was seen on selected maturities, with short end of the curve [01.05.20], [15.10.21] and [15.12.21] trading at 8.80 per cent, 9.80 per cent and 9.82 per cent-9.79 per cent levels respectively, while mid tenure maturities, [01.10.22], [15.03.23] and [15.03.24] traded at 10.00 per cent, 10.20 per cent and 10.33 per cent. In addition, on the long end of the curve, [01.08.26] traded at 10.50 per cent, [15.01.27] at 10.58-10.55 per cent levels, [15.06.27] at 10.64 per cent and [01.05.29] at 10.68 per cent.

 
Monday (17.06.19): The secondary market witnessed moderate volumes with limited activity, resulting in the overall yield curve remaining unchanged. Buying was mainly centred on short-tenor [15.10.21] and [15.12.21], resulting in yields dipping to day’s lows of 9.75 per cent and 9.76 per cent respectively. Furthermore, [01.10.22] traded at 10.00 per cent, while [15.06.27] changed hands in the range of 10.65-10.63 per cent. In the long end of the curve, [01.05.29] traded at 10.68 per cent.

 
Tuesday (18.06.19): The secondary market yield curve remained relatively unchanged with greater number of market participants remaining on the sideline ahead of the primary T-bill auction. Buying interest with limited activity was seen primarily centred on the following maturities, short-tenor [01.05.20], [15.10.21] and [15.12.21] traded at day’s low of 8.75 per cent, 9.74 per cent and 9.75 per cent respectively. Mid- to long-tenor maturities traded at their intraday lows with [15.03.22] trading at 9.92 per cent, [15.03.23] at 10.14 per cent, [15.03.24] at 10.26 per cent; in addition, [15.01.27] traded at 10.57 per cent, while overall market witnessed thin volumes.

 
Wednesday (19.06.19): The secondary market witnessed moderate activity levels and volumes, while the yield curve witnessed a slight downward shift with continued buying interest.

 

On the shorter end of the curve, [01.05.21] and [15.10.21] maturities saw yields dipping to day’s lows of 9.50 per cent and 9.63 per cent, while [15.03.22] traded at 9.90 per cent. Mid-tenor [15.03.23] and [15.03.24] traded at 10.02 per cent and 10.17 per cent. Furthermore, [15.01.27] traded at intra-day low of 10.49 per cent. Meanwhile, at the primary bill auction, the six-month and one-year bill declined to 8.60 per cent and 8.86 per cent respectively, while the three-month bill remained steady.

Hiruni Perera, Senior Research Analyst, at First Capital on the bond and equity market forecast – 23.06.2019

Treasury Bills and Bonds in Sri Lanka

Hiruni Perera, Senior Research Analyst, at First Capital on the bond and equity market forecast – 23.06.2019

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research delivers a 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.

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka
First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.