Tag Archives: capital markets of Sri Lanka

Sri Lankan shares hit near 1-wk closing low; Keells down 3 pct

FIRST CAPITAL’S HEAD OF RESEARCH DIMANTHA MATHEW SPEAKS TO REUTERS

Mon Jun 19, 2017

Sri Lankan shares hit a near one-week closing low in tepid trade on Monday, as selling in diversified and banking shares offset foreign inflow into equities.

The Colombo stock index ended down 0.52 percent at 6,684.02, its weakest since June 14.

Foreign investors net bought 26.7 million rupees ($174,396) worth of shares, extending the year-to-date net foreign inflow to 20.74 billion rupees.

Turnover was 846.3 million rupees ($5.53 million), less than this year’s daily average of 899.4 million rupees.

“Market came down on selling in Keells,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Shares of conglomerate John Keells Holdings Plc fell 3.03 percent, while the country’s biggest listed lender, Commercial Bank of Ceylon Plc, ended 1.43 percent lower.

“Investors are (also) worried about growth numbers,” he said.

Sri Lanka’s economy grew 3.8 percent in the first quarter, slowing from the previous quarter’s 5.3 percent, the state-run Census and Statistics Department said last week.

($1 = 153.1000 Sri Lankan rupees) ($1 = 153.1000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

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.<

OBG outlines reforms for growth

Published on Daily FT on  Tuesday, 20 June 2017

– By Charumini de Silva

 InvestmentInSriLanka
From left: Oxford Business Group Country Director Andrea Tsiachtsiri, Oxford Business Group Editor-in-Chief Oliver Cornock, BOI Chairman Upul Jayasuriya, Ceylon Chamber of Commerce Chairman Samantha Ranatunga, First Capital CEO Dilshan Wirasekara and Standard Chartered Commercial Banking Head Dushan Casie Chetty with the report – Pic by Ruwan Walpola

Sri Lanka needs to concentrate on a much-needed modernisation drive and structural reforms to improve growth, experts said yesterday, as the country attempts to break out of its low-middle income status.

Sri Lanka’s plans to boost economic growth, which places tourism development high on the agenda, towards a new era of optimism buoyed by strong growth, low unemployment and rising incomes were mapped out in a report by the Oxford Business Group.

Titled ‘The Report: Sri Lanka 2017’, it also highlighted Sri Lanka’s plans to capitalise on high levels of investor confidence and a $ 1.5 billion program with the International Monetary Fund (IMF) to implement a much-needed modernisation drive and structural reforms.

Speaking at the launch event, OBG Editor-in-Chief Oliver Cornock said the report this year has outlined that the reforms needed to help Sri Lanka reach its long-term goal of securing sustainable and inclusive economic growth were taking shape.

“The post-war years have brought impressive economic expansion and investor interest; pockets of poverty and inequalities remain an issue,” he added.

He said the finding suggests that Sri Lanka’s new administration is already moving to align its economic policy and address these weaknesses, while embarking on an infrastructural overhaul that will sit well with investors eyeing the country’s many opportunities.

Considering the global economic outlook, Cornock pointed out that growth in emerging markets is still very strong, adding that Sri Lanka is well located among huge growing engines like India and China.

OBG Managing Editor for Asia Paulius Kuncinas in a statement agreed that there was a tangible sense of optimism in Sri Lanka, with new trade deals in the pipeline and a shift in the economic landscape towards service-led industries.

“Sometimes overlooked, Sri Lanka has a fascinating story to tell, which most recently includes 15 years of continuous growth,” he said.

“With ambitious plans that include transforming the country into an international transport hub and driving new growth in the greater Colombo region, the Government’s bid to take Sri Lanka’s development to the next level looks to be well on track,” Kuncinas pointed out.

OBG analyses the part that improved transport infrastructure, including upgrades to ports and roads together with Customs reforms, will play in supporting Sri Lanka to strengthen trade and international relations, while building on its strategic location in the Indian Ocean.

It also explores the Government’s plans for developing the tourism sector further, while highlighting the activity already underway, which includes a raft of new hotel openings.

In addition, OBG looks in detail at the country’s fast-developing telecommunication and IT industry, which is being driven forward by rising demand for a wider range of services from a growing and increasingly tech savvy population. Other areas of Sri Lanka’s economy examined agricultural industry, which is earmarked for modernisation as a part of a national drive to boost both production and exports.

In addition to the launch event of the report, there was a discussion where experts shared their insights on the building blocks expected to drive growth across key sectors of the economy.

First Capital CEO Dilshan Wirasekara called for policy consistency as it had deterred the confidence and momentum of the economy with many investors waiting to see changes come into the system.

“No matter what policy, we need consistency. The latest example was the Budget 2017 which brought in a significant number of tax changes to the capital market which was implemented. This creates a ‘wait-and-see’ phase for foreign investors,” he added.

He said if the proposed Inland Revenue Act and Foreign Exchange Management Act would be put into place, it would help the building blocks which are critical to take Sri Lanka to the next level.

In addition, he said the implementation of the Central Counter Party (CCP) system at the Colombo Stock Exchange by the end of the year as well as digitalising the processes of financial services would bolster the investment climate in the country.

However, he said it was unfortunate that Sri Lanka was too dependent on banks and financial institutions, which “rip-off people.”

“It is important to acknowledge the importance of the capital market. The banks and financial institutes are ripping off the consumers. What we need is a financial disintermediation, which would allow investors to access the capital market directly for cheaper funding,” Wirasekara stressed.

Agreeing with Wirasekara, BOI Chairman Upul Jayasuriya also highlighted the need for regulations that allow investors to tap into private equity, which will also make their businesses more viable.

“We need to encourage private equity to come into the country,” he added.

He said that there are a number of factories that close down every month in the zones as the companies are unable to pay their bank loans.

“While attracting new investments to the country, it is also our duty to retain existing investors in the 12 zones we have at present. There are a number of companies closing down their factories every month as they are unable to repay bank loans.”

Noting that 15 new licensed zones will be launched under the BOI, Jayasuriya asserted that the Government has outlined special allowances in the Northern and Eastern provinces.

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.06.18

InvestmentInSriLanka

First Capital’s Atchuthan Srirangan with the market update – between 22.32 mins to 22.56 mins

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 gain for 3rd day to hit near 4-wk closing high

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Fri Jun 16, 2017

Sri Lankan shares rose on Friday for the third straight session to hit a near four-week closing high as investors picked up blue chip stocks.

The Colombo stock index ended 0.36 percent higher at 6,718.83, its highest close since May 22, and recorded its first weekly gain in four.

Analysts said investor reaction to slower economic growth in the first quarter was mixed.

Sri Lanka’s economy grew 3.8 percent in the first quarter, slowing from the previous quarter’s 5.3 percent, the state-run Census and Statistics Department said on Thursday.

“The first-half growth will be affected by the drought and the floods, but we expect a pick up in the second half,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

“But slower growth this year will cause a higher loan-to-GDP ratio, which is a concern.”

Turnover on Friday was 966.4 million rupees ($6.3 million), above this year’s daily average of 899.4 million rupees.

Foreign investors were net buyers of 63.3 million rupees worth of shares, extending the year-to-date net foreign inflow to 20.71 billion rupees.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh-food produce and staple food items, analysts said, after the recent floods and landslides, caused by the worst torrential rains in 14 years.

Shares in Hemas Holdings Plc ended up 4.2 percent, while Ceylon Tobacco Company Plc rose 1.2 percent. ($1 = 152.9500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

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 Fixed Income Recommendation – June 2017

  • Economic Health Score

  • Recommendation

  • Recap of Dec 2016 Economic Wrap

Read the full report – First Capital Fixed Income Recommendation 14th-June-2017

 

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 proving services to invest in Sri Lanka through fixed income securities such as investments 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 hit near 2-week closing low

FIRST CAPITAL’S HEAD OF RESEARCH DIMANTHA MATHEW SPEAKS TO REUTERS

Mon Jun 12, 2017

Sri Lankan shares on Monday ended at their lowest in near two weeks due to profit-booking in banking shares, but foreign inflows helped curb losses.

The Colombo stock index ended 0.09 percent weaker at 6,663.15, its lowest close since May 30.

Last week, the bourse dropped 0.3 percent, posting its third consecutive weekly decline.

“Foreign trade dominated the day. The net foreign trade is low, there is very less local participation as there is no new money coming into the market,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Turnover was 841.6 million rupees ($5.51 million), little less than this year’s daily average of 897.1 million rupees.

Analysts said investors are still waiting to see the impact of the recent floods and landslides, caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

Foreign investors were net buyers of 65.7 million rupees worth of shares, extending the year-to-date net foreign inflow to 20.3 billion rupees.

Shares of Bukit Darah Plc ended 4.27 percent weaker, Ceylinco Insurance Plc closed down 2.24 percent, Commercial Leasing & Finance Plc dropped 6.45 percent, while the country’s biggest listed lender Commercial Bank of Ceylon Plc ended 0.07 percent down.

($1 = 152.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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.<

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.06.11

InvestmentInSriLanka

First Capital’s Head of Research Dimantha Mathew with the market update – between 18.50 mins to 19.20 mins

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 at 1-wk low on profit-taking

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Tue Jun 6, 2017

Sri Lankan shares fell to a one-week closing low on Tuesday on profit-booking in blue-chip shares such as John Keells Holdings Plc while investors assessed the impact of the recent floods on exchange rate and inflation.

Analysts said it was also too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.1 percent weaker at 6,669.53, its lowest close since May 30.

Turnover was 468.3 million rupees ($3.07 million), around half of this year’s daily average of 889.6 million rupees.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

“Some profit-taking is taking place. It’s a small pullback which is good for the future run,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors were net buyers of 134.4 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.78 billion rupees.

Shares of conglomerate John Keells Holdings Plc fell 0.82 percent, while Melstacorp Plc declined 1.36 percent and Dialog Axiata Plc shed 0.84 percent. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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.<

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.06.04

InvestmentInSriLanka

First Capital’s Head of Research Dimantha Mathew with the market update – between 18.22 mins to 18.56 mins

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 profit-taking in telecom shares; investors await direction

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Fri Jun 2, 2017

Sri Lankan shares snapped two straight sessions of gains on Friday on profit-booking in telecom stocks such as Dialog Axiata Plc, while investors assessed the impact of deadly floods that hit rubber and tea plantations last week on exchange rate and inflation.

Analysts said it is too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.07 percent weaker at 6,689.07, edging down from its highest close since May 26 hit on Thursday. The bourse fell 0.13 percent during the week, recording its second straight weekly loss.

Turnover was 523.8 million rupees ($3.43 million), less than this year’s daily average of 898.7 million rupees.

Inflation could rise in the short term, especially due to crop damages and difficulties in distributing fresh food produce and staple food items, analysts said.

“Market wants to find a direction, one day it’s up another day it’s down as investors are awaiting for the direction,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors were net buyers of 66.5 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.55 billion rupees.

Shares of Dialog Axiata Plc fell 2.5 percent while Carson Cumberbatch Plc dropped 5.7 percent and Lanka ORIX Leasing Company Plc ended 2.7 percent weaker. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez)

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.<