Tag Archives: government securities sri lanka

PLATINUM BOND – Aug 2020

August 2020 – Platinum Bond – A medium to long-term Repurchasing (Repo) investment with a guaranteed return, backed by Government Securities.

  • Period 5 Years – Annual Interest 7%
  • Period 10 Years – Annual Interest 7.5%

Liquidity on your investment with 90% reverse-repo facility. Minimum investment Rs. 1,000,000.00

Conditions apply

In May of 2014 First  Capital Treasuries, was the first primary dealer to offer repo investment option beyond one year backed by Government securities with maturity beyond one year.

The First Capital Treasuries Platinum Bond will offer annual interest of 7%, and 7.5% respectively on maturities of five and ten years on a minimum investment of Rs. 1 million.

The investment is backed by Sri Lanka Government securities (Treasury bills/bonds), where the respective collateral will be logged in a Central Depositary System (CDS) account opened under the name of the investor.

Premature withdrawals and loan facilities are also available with this product in order to facilitate any urgent cash requirements of the investor, the company said.

For details : Tel No: +94 11 2 639 882, +94 11 2 639 898 | Email: anushi@firstcapital.lk | Web: www.firstcapital.lk

 

First Capital Treasuries PLC, is a primary dealer regulated by the Central Bank of Sri Lanka.

The Company is a subsidiary of First Capital Holdings PLC an investment bank with an impressive history of over 35 years, and is the only listed investment bank in Sri Lanka,

ICRA Lanka reaffirms the ratings of First Capital Treasuries PLC

ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has reaffirmed the issuer rating of [SL]A- (pronounced SL A minus) with stable outlook for First Capital Treasuries PLC (FCT or “the Company”). ICRA Lanka has also reaffirmed the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the LKR 500Mn Subordinated Unsecured Redeemable Debenture programme of the company. Further, ICRA Lanka has assigned the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the proposed LKR 750Mn Subordinated Unsecured Redeemable Debenture programme of FCT.

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Exposure in low-yield Bonds must be reduced

CEYLON TODAY | 05.08.2019

Stock Market in Sri Lanka

By First Capital Research

Maintain in Bond Yield bands: In our last fixed income report on 24 June 2019, we upgraded our expectation in the First Capital Economic Health Score, primarily supported by the successful issuance of US$ 2.0 billion sovereign Bond and possible further issue of additional Bonds amounting to US$ 2.5 billion to manage debt in 2020.

A surge in foreign currency reserves and stability in all other indicators may significantly strengthen macro economic conditions and reduce volatility of interest rates. Accordingly, we maintain our yield curve expectations in the Bond market for the next couple of months.

One-year yield at 3½-year low breaks FCR lower bands: Dips in the one-year yield have broken First Capital Research’s lower band by touching 8.38 per cent, a 3½-year low.

Yields dipped during the last few weeks, primarily led by Sri Lanka’s successful International Sovereign Bond (ISB) issuance of US$ 2.0 billion, offering tenors of five- and 10-year.

Following the issuance, foreign reserves exhibited a significant improvement, reaching US$ 8.8 billion as at end of June 2019. We expect reserves to be maintained above US$ 7.5 billion during August to December 2019.

Reduce exposure in low-yield Bonds: We recommend investors reduce overall portfolio exposure to 45 per cent from 60 per cent.

We recommend to cut 2021 and 2022 maturities of the carrying portfolio amidst the significant reduction in yields, while we also recommend an increase in 2023 and 2024 maturities in the trading portfolio amidst the slight rise in yields.

Additionally, we recommend the carrying portfolio be decreased from 50 per cent to 30 per cent, and the trading portfolio be increased to 15 per cent from 10 per cent.

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.

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.

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 12.06.2019

Treasury Bills and Bonds in Sri Lanka

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 12.06.2019

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 – 11.06.2019

Treasury Bills and Bonds in Sri Lanka

Atchuthan Srirangan, Assistant Manager – Research, at First Capital on the bond and equity market performance – 11.06.2019

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.

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 27.05.2019

Investment Companies in Sri Lanka

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 27.05.2019

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.

Weekly Govt Securities Market Positive liquidity sets 1-Year bill to hit nearly 16-month low

CEYLON TODAY | 24.05.2019

Treasury Bills and Bonds Sri Lanka

By First Capital Research

Weekly yield movement and volume

The secondary market yield curve continued its downtrend on the back of heavy buying interest, primarily centred on the short to mid tenor maturities. Shorter end of the curve witnessed a decline in the range of 0-40bps while the belly-end witnessed a steep decline in the range of 45-59bps. Long tenors saw a dip in yields by nearly 30bps. The total secondary market turnover for the week from 16 May to 22 May amounted to Rs 54.4 billion. At the primary bill auction held on 22 May, the one-year bill yield was seen plunging below 9 per cent to reach 8.90 per cent levels after nearly 16 months with a steep drop of 28 basis points, followed by the six-month bill dipping by 17 basis points to 8.71 per cent. However, all bids received on the three-month bill were rejected with the total offered amount of Rs 20.0 billion being fully accepted.
Meanwhile, at the SLDB auction, out of the total offered amount of US$ 200 million, US$ 165.5 million was accepted with maturities ranging from one-year and eight-months to three-year and 11-months. In the forex market, the rupee appreciated slightly on 17 May to Rs 175.85 relative to Rs 176.04 on 16 May; thereafter, it slightly depreciated to close the week at Rs 176.59.


Liquidity and CBSL Holdings

Market liquidity remained positive throughout the week to close the week at Rs 19.75 billion, while CBSL continued to drain out liquidity by way of repo auctions during the week. CBSL holdings slightly declined to Rs 158.54 relative to Rs 160.28 held at the beginning of the week.


Foreign Interest

Foreign holding further decreased by Rs 433.1 million to record at Rs 143.3 billion. Foreign holding percentage dipped to 2.6 per cent from previous 2.7 per cent.


Maturities for next Week

The Government security market has a Treasury bill maturity amounting to Rs 14.4 billion and a coupon of Rs 23.1 billion that needs to be settled during the week ending 31 May 2019.


Daily Summary

Thursday (16.05.19): Buying interest witnessed in the secondary market led to a slight downward shift in the overall yield curve. while the market witnessed moderate volumes. Foreign buying centred on [15.03.24] at 10.41 per cent and on [01.09.28] at 10.71 per cent, while activity was witnessed on two mid tenure 2023 maturities ([15.03.23] and [15.07.23]) at intraday lows of 10.30 per cent and 10.32 per cent, while two 2027 maturities ([15.01.27] and [15.06.27]) traded at 10.68 per cent and 10.76 per cent respectively. Foreign selling was witnessed on short tenure [01.10.22] at 10.15 per cent.
Friday (17.05.19): The secondary market yield curve witnessed a slight downward shift fuelled by the continued buying interest, while the overall market witnessed high volumes. In the midst of buying interest, following maturities’ yields were seen decreasing to their intra-day lows, with short tenor [01.03.21] at 9.57 per cent, [01.05.21] at 9.65 per cent, [01.08.21] at 9.60 per cent and [15.12.21] at 9.68 per cent. Mid tenors [15.03.22], [15.03.23] and [15.07.23] changed hands at intra-day lows of 9.88 per cent, 10.25 per cent and 10.23 per cent, while both foreign and local buying were centered on [15.03.24] maturity, which traded at day’s low of 10.27 per cent. Moreover, [01.08.24] was seen trading at intraday low of 10.31 per cent, while both [01.08.26] and [15.01.27] traded at 10.60 per cent. In the long end of the curve, [01.05.29] traded at 10.80 per cent. In the money market, overnight surplus liquidity in the system stood at Rs 38.2 billion, while CBSL continued to absorb excess liquidity of another Rs 57.8 billion by way of term repo auctions.
Tuesday (21.05.19): The secondary market saw aggressive buying interest in the morning session, following the CBSL Governor’s indication of a likely monetary loosening at the next policy meeting. Short-tenure maturities reached intraday low on the back of buying interest with [15.03.22] trading at 9.90 per cent, [15.05.23] at 10.10 per cent, [15.03.24] at 10.05 per cent, [01.08.26] at 10.30 per cent and [15.01.27] at 10.36 per cent.

Ahead of primary bill auction, the one-year traded at 9.03 per cent, while the overall yield curve continued to shift down amidst buying interest, while the overall market witnessed moderate volumes. Profit taking was witnessed on [15.03.24] and [15.01.27] at 10.15 per cent and 10.50 per cent respectively. CBSL has offered Rs 20 billion consisting of all three maturities at auction.

 

 

 

 

 

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 22.05.2019

Treasury Bills and Bonds in Sri Lanka

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 22.05.2019

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.