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Category Archives: Research

Weekly Govt Securities Market Steep decline of 1-Yr T-bill to 9.18%


Published on Friday, May 17, 2019

CEYLON TODAY | 17.05.2019 By First Capital Research Weekly Yield movement & Volume The secondary market yield curve was seen once again recording a parallel shift downwards, on the back of heavy buying interest primarily centred on the short to mid tenor maturities. The shorter end of the curve witnessed a steep decline in the… …
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Expolanka sees steady growth


Published on Wednesday, May 8, 2019

CEYLON TODAY | 08.05.2019 A global presence in all major apparel sourcing regions for USA provides a strategic benefit for Expolanka Holdings (EXPO) due to the prevailing trade tensions between USA and China, First Capital Research (FCR) stated the firm in an equity analytical report. Therefore, as stated in the report, FCR expects EXPO’s top… …
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Sri Lankan stocks reaching bottom of cycle


Published on Wednesday, April 17, 2019

ECONOMY NEXT | 17.04.2019 Sri Lanka’s stock market is heading towards the bottom of a cycle, with opportunities for buying and potential recovery in the coming quarters, a research house said. “With the recent stock market plunge, we believe that we inaccurately assessed the market to be at the depression stage during the December 2018… …
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1-Yr T-bill records at single-digit 9.99 per cent


Published on Friday, April 12, 2019

CEYLON TODAY | 12.04.2019 Weekly yield movement and volume The yield curve shifted downwards across the board in anticipation of a possible policy easing at the monetary policy announcement on 8 April 2019. Contrary to expectations, policy rates remained unchanged, resulting in the yield curve shifting upwards amidst both local and foreign selling. At the… …
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Accelerate equity accumulation to 80 per cent exposure


Published on Thursday, April 11, 2019

CEYLON TODAY | 11.04.2019 In our last update on 26 December 2018, equity exposure was increased to 60 per cent (from 50 per cent) despite the risk associated in the economy and the weak outlook in the 1Q2019. During the three months (26 December – 2 April) the ASPI dipped by seven per cent, with… …
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Government and Central Bank push banks to cut rates and lend more to SMEs


Published on Friday, April 5, 2019

DAILY MIRROR | 05.04.2019 The government and Central Bank in lockstep are pushing the banks to cut rates and deploy more funds as loans to the micro, small and medium enterprise (MSME) sector as the authorities attempt to reinvigorate the economy, which has lost its momentum. In a hurriedly called meeting with the bank chieftains… …
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Yields continue to plunge due to positive sentiment


Published on Friday, April 5, 2019

CEYLON TODAY | 05.04.2019 By First Capital Research Weekly Yield movement and Volume On the back of continuous foreign interest in Government Securities, coupled with positive liquidity, the secondary market witnessed a downtrend across the yield curve amidst renewed buying interest from market participants. Positive sentiment was further fuelled on the back of the Treasury… …
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Sri Lanka has a 50-pct chance of rate cut


Published on Friday, April 5, 2019

ECONOMY NEXT | 05.04.2019 There is a 50 percent chance of cut in Sri Lanka’s 9.0 percent ceiling policy rate and a narrowing of a policy corridor on April 08, a financial research house has said. “First Capital Research allocates a 50 percent probability for a policy rate cut in April 2019, as we are… …
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Bond Prices Lifted by Lower Borrowing Costs: Inside Sri Lanka


Published on Thursday, April 4, 2019

(Bloomberg) — Sri Lanka’s bond prices rose after the government’s cost of borrowing declined at an auction Wednesday. * Central bank sold 4b rupees ($23m) of 91-day bills at 9.24%, down from 9.39%, 4b rupees of 182-day bills at 9.50%, down from 9.67% at previous auction, and 20b rupees of 364-day notes at 10.15% versus… …
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Possible rate cut amidst sluggish economic activities


Published on Thursday, April 4, 2019

CEYLON TODAY | 03.04.2019 By First Capital Research Previous Pre-Policy issue; CBSL continues to support liquidity Contrary to our expectation of unchanged policy stance, CBSL reduced the SRR by 100 bps to 5 per cent as they believed policy intervention was required to address the large and persistent liquidity deficit prevailing in the domestic money… …
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