Tag Archives: mergers and acquisitions sri lanka

Weekly Government Securities Market – 26-01-2018

The yield curve remained mostly unchanged, while overall market saw thin volumes amidst market participants continuing to adopt a wait-and-see approach, ahead of the bond auction to be held next week. The bill auction saw mixed results, with yield of the 6-month bill dipping by 1bps while the 1-year bill saw its yield increasing by 5bps amidst CBSL accepting lower volumes for 1-year bill. During the week, foreigners continued to dominate market activities.

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 Holdings, with the Market Review on Ada Derana – 21.01.2018

Share Market Investment 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 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 snap 7-session losing streak

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

JANUARY 24, 2018

COLOMBO, Jan 19 (Reuters) – Sri Lankan shares snapped a seven-session streak of declines on Friday, recovering from a near three-week closing low hit in the previous session, as investors picked up battered blue-chip and banking shares.

However, foreign investors, who have been net buyers of 2.7 billion rupees worth shares so far this year, sold equities worth net 62.1 million rupees ($403,640) on Friday.

They bought equities worth 18.5 billion rupees last year and 633.5 million rupees in 2016.

The Colombo Stock index ended 0.52 percent higher at 6,443.50. In the previous session, it closed at its lowest since Dec. 29.

The bourse shed 2 percent in the past seven sessions and dropped 0.47 percent for the week recording its second straight weekly fall.

“Today we are seeing a lot of foreign activities, but the local investors are buying blue-chip shares,” said Dimantha Mathew, head of research, First Capital Holdings.

“It looks like local, mainly high net worth investors, are eager to buy now,” he added.

Turnover stood at 1.7 billion rupees, nearly twice of last year’s daily average of 915.3 million rupees.

After the market close, diversified company Hemas Holdings Plc said it will take over 75.1 percent of leading stationery manufacturer Atlas Axillia Co (Pvt) Ltd for 5.7 billion rupees.

Shares in conglomerate John Keells Holdings Plc ended 2.5 percent higher, while Hemas Holdings closed 2.5 percent up, and Sri Lanka Telecom Plc ended 2.5 percent higher.

$1 = 153.8500 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips

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 Research : Top Equity Recommendations 2018

Equity Portfolio Performance 2014-2017

As at 31st Dec 2017 at 2018, First Capital Research Top Recommendations have achieved a Capital Gain of 6.4% (Excluding Dividends) compared to the market performance of 2.3%.

Following are our current and previous top recommendations and their performances for 2014, 2015, 2016 & 2017 for your reference.

 

Top Recommendations for 2018

Brief Equity Outlook

Market earnings: The current tight monetary policy has slowed down the economy significantly reducing earnings growth for most companies. The situation is expected to ease off towards 2H2018. Therefore the companies are likely to have a better earnings performance in 2018E/19E compared to the weak performance we are experiencing in CY17/FY18E. We believe overall market earnings are likely to grow by a modest 5%-7% during 2018E/FY19E supported by a recovery in economic performance in the 2H2018. Earnings Growth is likely to accelerate to 10%-12% towards CY19E/FY20E backed by further improvement in economic health of the country and also easing of the monetary policy with more stability in the system.

Market Returns: Market returns are likely to be slow but positive in the 1H2018 due to attractive valuations prevailing in the economy and is likely to improve in the 2H2018 supported by expectations of a better economic outlook and earnings performance. Thereby, we expect overall market returns are likely to be 10%-12% approximately 50% above the expected earnings performance as some counters are likely to re-rate with an expected better earnings outlook in the future. In terms of the ASPI index it is only likely to reach 7000 (+10% or +650 points) towards end of 2018. Market returns are likely to accelerate towards the 2019 to about 15% with the actual earnings performance and renewed investor confidence. Index is likely reach 8000 level (+15% or +1000 points) towards 2019. These targets however are highly dependent on the current stable outlook and reform agenda continuing during 2018 as well.

Key Sectors: We believe the key sectors that are likely to outperform the market and expected provide high returns are the Banking Sector, Building Materials Sector and Apparel Sector while the energy sector also may turnaround depending on the implementation of the pricing formulas by the Government which is also a condition of the IMF.

 

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 extend fall on foreign selling

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

JANUARY 19, 2018

COLOMBO, Jan 18 (Reuters) – Sri Lankan shares fell for a seventh straight session on Thursday and closed at their lowest in nearly three weeks, as foreign investors turned net sellers for the first time in 14 sessions while local players stayed on the sidelines.

Foreign investors, who have been net buyers of 2.7 billion rupees worth shares so far this year, sold equities worth net 279.5 million rupees ($1.82 million) on Thursday, especially banks and blue chips.

They net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

The Colombo Stock Index ended 0.45 percent weaker at 6,410.11, its lowest close since Dec. 29. It has shed 2 percent in the past seven sessions.

“Market came down on some foreign selling. But turnover was pushed up by foreign trade,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Turnover stood at 1.3 billion rupees, higher than last year’s daily average of 915.3 million rupees.

Shares in Commercial Bank of Ceylon Plc dropped 2.8 percent, Hemas Holdings Plc declined 4.1 percent, and Ceylon Cold Stores Plc fell 2.1 percent. ($1 = 153.8000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

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.

Weekly Government Securities Market – 18-01-2018

Weekly Yield movement & Volume

Bond market activity was very dull following last Wednesday’s (10th) bill auction which saw yield falling in a short tenor due to high demand. Today (17th Jan) primary bill auction saw yields of 182 days maturity dipping 9bps while 364 days maturity increased by 5bps.

Liquidity & CBSL Holdings

Market liquidity saw an enormous decline over past week while CBSL Holdings remained volatile over the past week but remained around the LKR 20-30B mark.

Foreign Interest

Foreigners remained net foreign seller for a 2nd consecutive week sold a further LKR 799M from foreign holding. However, with the overall outstanding Government Securities stock decreasing overall foreign holding percentage remained at 6.5% as at 10th Jan 2018.

Maturities for next Week

The Government securities market has Treasury Bill maturities on LKR22.4Bn which needs to be settled on 26th Jan 2018.

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 Holdings, with the Market Review on Ada Derana – 14.01.2018

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 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 extend declines, foreign buying curbs fall

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

JANUARY 18, 2018

COLOMBO, Jan 17 (Reuters) – Sri Lankan shares ended down for a sixth consecutive session on Wednesday, hitting their lowest close in more than two weeks, as retail investors sold blue chips, but foreign buying in the island nation’s risky assets capped further decline.

The Colombo Stock Index ended 0.13 percent weaker at 6,439.34, its lowest close since Jan. 2. It has shed 1.6 percent in the past six sessions.

“Things were a bit slower and the trend is continuing,” said Dimantha Mathew, head of research, First Capital Holdings.

“Market is coming towards a correction rather than profit-taking as the latter lasted far more than expected. However, foreigners are still on the buying side.”

Foreign investors bought shares worth net 146.2 million rupees ($949,968) on Wednesday, extending the net foreign inflow so far this year to 3 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

Turnover stood at 491.1 million rupees on Wednesday, less than last year’s daily average of 915.3 million rupees.

Shares in Hemas Holdings Plc ended 1.8 percent lower, Sri Lanka Telecom Plc closed 1.4 percent down, and Overseas Realty Plc closed 2.9 percent lower.

$1 = 153.9000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips

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.

Sri Lankan shares extend fall to 2-week closing low

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

JANUARY 18, 2018

COLOMBO, Jan 16 (Reuters) – Sri Lankan shares fell for a fifth straight session on Tuesday and closed at their lowest in two weeks, as local retail investors booked profits in blue chips ahead of a long-delayed local election next month.

The Colombo Stock Index ended 0.4 percent weaker at 6,447.61, its lowest close since Jan. 2. It has shed 1.4 percent in the past five sessions.

“The market is coming down on profit-taking by local retailers in blue chips before the next rally after the election,” said Dimantha Mathew, head of research, First Capital Holdings.

“The good sign is that foreign buying continues, it looks like foreign investors are returning back to the Sri Lankan market.”

Foreign investors bought shares worth net 539.3 million rupees ($3.51 million) on Tuesday, extending the net foreign inflow so far this year to 2.87 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

Turnover stood at 884.6 million rupees on Tuesday, less than last year’s daily average of 915.3 million rupees.

Shares in Hatton National Bank Plc fell 1.2 percent, Commercial Bank of Ceylon Plc dropped 1.1 percent, and Nestle Lanka Plc slipped 1.1 percent.

Sri Lanka’s stock, bond, and foreign exchange markets were closed on Monday for a holiday. ($1 = 153.8500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

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.

Sri Lankan shares fall on profit-taking; foreign buying continues

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

JANUARY 12, 2018

COLOMBO, Jan 11 (Reuters) – Sri Lankan shares ended marginally weaker on Thursday as recent gainers witnessed profit-booking, while foreign buying in the island nation’s risky assets curbed losses.

The Colombo Stock Index ended 0.1 percent lower at 6,49502.96.

Turnover stood at 531.9 million rupees ($3.46 million) on Thursday, less than last year’s daily average of 915.3 million rupees.

Foreign investors net bought shares worth 23.9 million rupees on Thursday, extending the net foreign inflow in this year to 2.24 billion rupees.

They had net bought 18.5 billion rupees worth equities in 2017 and 633.5 million rupees in 2016.

“There was bit of profit-taking in stocks which gained last few days. Activity has come down as investors are waiting to see the direction,” said Dimantha Mathew, head of research, First Capital Holdings.

The bourse hit a near two-month high on Monday as declining interest rates and expectations of higher economic growth boosted investor appetite for risky assets.

Shares in Sri Lanka Telecom Plc ended 2.4 percent weaker while conglomerate John Keells Holdings Plc ended 0.9 percent down.

Access Engineering Company Plc, which on Wednesday said its net profit for the financial year 2017/18 will see a rise of more than 10 percent, ended 0.9 percent higher.

Treasury bill rates fell between March and December last year, mainly driven by foreign buying in Treasury bonds, resulting in a decline in interest rates.

The country’s 2018 economic growth trajectory is likely to help boost market sentiment, analysts said.

Sri Lanka’s economic growth in 2018 is forecast at 5-5.5 percent, against an anticipated four-year low of less than 4 percent last year, central bank governor Indrajit Coomaraswamy said last week. ($1 = 153.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

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.