Tag Archives: Nestle Lanka PLC

Sri Lankan shares edge up as investors pick up bank stocks

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

Sri Lankan shares rose slightly on Wednesday from a more than one-week closing low hit in the previous session as investors bought banking shares, but concerns over rising interest rates weighed on sentiment.

Yields on treasury bills rose 3-10 basis points at a weekly auction on Tuesday. They have risen 44-73 basis points since Oct. 7 to more than four-year highs, while the central bank has kept key policy rates on hold.

The Colombo stock index ended 0.04 percent firmer at 6,129.69, snapping a four-session losing streak and edging up from its lowest close since Feb. 9 hit on Tuesday.

“Some crossings in blue chips boosted the turnover. Other than that, there was nothing and the market was very dull as investors are still on the sidelines,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Selling pressure is there, but there are no buyers.”

Shares in Lanka ORIX Leasing Company Plc rose 4.18 percent, while Nestle Lanka Plc, which posted a 42 percent rise in profit for the quarter ended Dec. 31, climbed 2.02 percent.

Turnover stood at 482.7 million rupees ($3.19 million), well below this year’s daily average of 612.5 million rupees.

Foreign investors net bought 37.8 million rupees worth of equities on Wednesday, but they have net sold 215 million rupees worth shares so far this year.

 

($1 = 151.1000 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.

Sri Lankan shares recover from 10-mth closing low on bargain-hunting

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

Sri Lankan shares rose on Tuesday, recovering from a more than 10-month closing low hit in the previous session, as investors picked up battered blue chips after the central bank held its key policy rates steady, brokers said.

However, concerns over rising market interest rates continued to weigh on sentiment, they added.

The central bank kept its key rates steady for a sixth straight month, but flagged possible “corrective measures” in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee.

The Colombo stock index ended 0.4 percent firmer at 6,093.04, snapping two consecutive sessions of declines.

Bargain-hunting was seen in the later part of the session with investors picking up blue chips, said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Sri Lankan stocks, which have been declining since October, have been hurt by political uncertainty arising from a decision of the ruling coalition parties to contest local polls separately, and on worries over a rise in market interest rates.

Yields on treasury bills rose 2-8 basis points at a weekly auction on Tuesday.

Market turnover was 500.4 million rupees ($3.33 million), less than this year’s daily average of 620.7 million rupees.

Foreign investors, who have been net sellers of 1.18 billion rupees worth of shares so far this year, net bought 110.6 million rupees worth of equities on Tuesday.

Shares of John Keells Holdings Plc rose 1.20 percent, Nestle Lanka Plc gained 2.56 percent and Sri Lanka Telecom Plc climbed 3.53 percent.  Hemas Holdings Plc gained 2.92 percent, Dialog Axiata Plc climbed 0.96 percent and Ceylon Tobacco Company Plc rose 0.36 percent.

 

($1 = 150.4000 Sri Lankan rupees)

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

 

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 hit 10-mth closing low ahead of cbank rate review

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

Sri Lankan shares fell on Monday to an over 10-month closing low, dragged down by beverage and banking stocks, as investors awaited cues from the central bank’s monetary policy review on Tuesday.

The Colombo stock index ended 0.8 percent lower at 6,068.31, it’s lowest close since March 30, 2016.

Margin calls are expected in the coming days, said an analyst, as the bourse fell below the psychological 6,140-level and the index fell sharply to end only marginally higher than the lower band of the neutral territory.

The index, which had risen from an oversold region, has been trading in the neutral territory since Jan. 10, with the 14-day relative strength index dropping to 30.474 on Monday, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Sri Lankan stocks, which have been declining since October, have been hurt by political uncertainty arising from a decision by the ruling coalition parties to contest local polls separately, and on worries over a rise in market interest rates with yields on 91-day treasury bills hitting near four-year highs last week.

Sri Lanka’s central bank could raise its key policy rates in coming months if it skips a chance to tighten next week, a Reuters poll showed, underlining renewed pressure on the rupee after the Federal Reserve’s rate hike last month.

Monday’s market turnover was 393.8 million rupees ($2.62 million), well below this year’s daily average of 625.5 million rupees.

“Market seen in negative note ahead of the central bank rate announcement as many investors expect a rate hike,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“We may see some margin calls coming in as the index fell below the psychological barrier.”

Foreign investors, who have been net sellers of 1.29 billion rupees worth of shares so far this year, net bought 241.3 million rupees worth of equities on Monday.

Shares of Nestle Lanka Plc fell 2.4 percent while Dialog Axiata Plc fell 2.8 percent and Hatton National Bank Plc fell 0.9 percent.

($1 = 150.2500 Sri Lankan rupees)

(Reporting by Ranga Sirilal; 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.

Sri Lankan shares hit near 10-mth closing low; foreign selling boosts turnover

FIRST CAPITAL’S SENIOR RESEARCH ANALYST, ATCHUTHAN SRIRANGAN, SPEAKS TO REUTERS.

Sri Lankan stocks fell for a third straight session on Wednesday to close at their lowest in nearly 10 months, dragged down by beverages and banking shares, as concerns over rising interest rates and ongoing political instability weighed on sentiment.

Selling by foreign investors in Nestle Lanka boosted turnover, traders said.

The Colombo stock index ended 0.12 percent lower at 6,127.08, its lowest close since April 4.

“Market is not moving up due to lack of confidence among the investors with rising interest rates,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

“Investors might stay away for a while till they see positive news which can move the market up.”

Yields on treasury bills rose 2-5 basis points at a weekly auction on Wednesday to a near five-month high after the central bank governor signalled reduced intervention to defend the rupee.

Rising market interest rates, which move in tandem with t-bill yields, have been a cause for concern, brokers said.

Foreign investors net sold 385 million rupees ($2.56 million) worth of equities on Wednesday, extending the year to date net foreign outflow to 1.75 billion rupees worth shares.

Nestle Lanka, which accounted for around 62 percent of the day’s turnover of 690 million rupees, fell 2.5 percent.

Market heavyweight John Keells Holdings slipped 0.6 percent.

Investors are also concerned about possible political uncertainty as the main coalition partners in the government are contesting local polls separately, analysts said.

($1 = 150.1500 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.

Sri Lankan shares fall from near 2-wk high ahead of budget

First Capital’s Head of Research, Dimantha Mathew, speaks to Reuters Friday November 04, 2016

Sri Lankan shares fell on Friday from a near two-week high hit in the previous session as investors waited for cues from the national budget scheduled on Nov. 10.

The benchmark index of the Colombo Stock Exchange ended 0.11 percent weaker, or 6.92 points, at 6,435.17, slipping from its highest close since Oct. 21 hit on Thursday.

Turnover stood at 275.7 million rupees ($1.86 million), less than half of this year’s daily average of 718.9 million.

However, foreign investors bought beaten down stocks for a third straight session, picking up shares worth a net 90.6 million rupees. They have net sold 1.21 billion rupees worth of shares so far this year.

“The momentum was short lived,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. “Investors turned to wait-and-see approach again. They are awaiting direction from the budget.”

Shares in Nestle Lanka Plc fell 2.37 percent while Ceylon Tea Services Plc fell 9.20 percent.

Conglomerate John Keells Holdings Plc fell 0.39 percent. The company on Friday reported an 8 percent rise in second quarter net profit.

($1 = 147.9500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)