Tag Archives: Private Wealth Management in Sri Lanka

Dimantha Mathew, Head of Research at First Capital Holdings, Commenting on the Bond and the Equity Market Performance on Ada Derana – 12.12.2018

Investment in Sri Lanka

First Capital’s Dimantha Mathew Commenting on the Bond and the Equity Market Performance 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’s Dimantha Mathew with the Market Review on Ada Derana

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.

CSE to launch a dollar board for secondary listing of foreign firms shortly

Daily Mirror | 13.12.2018

In an attempt to diversify investment options for foreign investors, the Colombo Stock Exchange (CSE) is set to launch a dollar-denominated secondary board for foreign firms to trade their securities on the CSE shortly.
“It’s a new platform, a new board we are planning to introduce, where trading and settlement will happen based on multi-currency and we will start with US dollar. Initially, it will be opened for companies which are based overseas for a secondary listing on the CSE,” a top CSE official on grounds of anonymity, said.
Foreign firms seeking a secondary listing will have to be listed in their host country, where the market regulator has to be a member of The International Organisation of Securities Commissions.
Initially, the investments of the dollar board securities will be limited to foreigners (non-residential investors).

 

We will go by the listing rules of the host country, subject to certain additional disclosures, which are required in terms of the CSE rules. There will be a capital requirement in dollars,” the official said.
Securities and Exchange Commission (SEC) Chairman Ranel Wijesinghe yesterday told Mirror Business that the SEC Commissioners on Tuesday approved the listing rules for the dollar board, paving the way for the new board to be launched shortly.
For this exercise, the CSE has already received clearances from the Registrar of Companies Department and Central Bank of
Sri Lanka.
The CSE official said that as soon as the CSE receives the approval from the SEC, they would launch the dollar board as the necessary infrastructure work has been completed.

 

Several Maldivian leisure sector companies have already shown interest for potential secondary listings.
“It will come from markets where they don’t have a large investor base and cost of listing also matters. The Maldives has some level of good companies, particularly in the leisure sector, but they don’t have a large investor base. When we get one or two listings, others will also look at it,” the CSE official remarked.
The stockbrokers welcomed the moved by the CSE noting that it would provide more diverse equity investment options for foreign intuitional investors.
Speaking to Mirror Business, First Capital Holdings PLC Research Head Dimantha Mathew said, “It will increase the diversity, by entering into new geographical locations; there will be more variety in investment options for foreign investors.”
He pointed out that the CSE only has one class of equity to be invested in; hence, the foreign investors have limited investment options in the Sri Lankan equity market.
The CSE expects that Colombo’s comparatively large foreign institutional investor base and custodian banks will attract foreign firms to Sri Lanka, who are at similar level of the CSE or below.
Mathew noted that the CSE would probably attract small foreign companies for listings initially. However, he said that Sri Lanka has the potential to attract foreign firms from fast-growing economies in the region, such from Bangladesh in the future.(NF)

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Forecast on Ada Derana – 09.12.2018

Treasury Bills and Bonds Sri Lanka

First Capital’s Atchuthan Srirangan with the Market Forecast 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

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.

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 06.12.2018

Stock Market Sri Lanka

First Capital’s Amanda Lokugamage 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.

Bloomberg Comment – 04-12-2018

LKR May Weaken as Fitch Cuts Nation’s Rating: Inside Sri Lanka
2018-12-04 03:38:53.764 GMT
By Anusha Ondaatjie

(Bloomberg) — Sri Lanka’s rupee could extend declines after Fitch Ratings downgraded the nation’s rating amid a deepening political crisis.
* USD/LKR little changed at 178.85; pair has climbed 17% this year

* Fitch lowered Sri Lanka’s rating by one notch to B, five levels below investment grade, with a stable outlook

** Co. said ongoing political turmoil worsens nation’s external financing risks which are already under pressure due to tighter global monetary conditions

* “We’ve been getting one bad news after the other and with things extremely uncertain, most investors have cut off trading portfolios,” says Dimantha Mathew, head of research at First Capital

* NOTE: Sri Lanka’s Court of Appeal issued an interim order on Monday preventing newly appointed PM Mahinda Rajapaksa and his ministers from exercising powers until it hears a petition challenging their authority

* Overseas investors sold $0.1m of local stocks on Monday after $30.1m of net outflows in November, a fifth month of withdrawals: exchange data

* Yield on 11.5% govt bonds due May 2023 rose 3bps to 11.95% Monday

Listed companies earnings drop by 10% in Sept. quarter

Published on Daily FT on 05 December 2018

Share Market Investment in Sri Lanka

  • Dip suffered by Food, Beverage and Tobacco, Telecommunication and Materials sectors outweighs positive momentum experienced by banks and insurance segment

 

Listed companies earnings in the 2018 September quarter have declined by 10% to Rs. 54.3 billion from an year earlier, First Capital Research revealed yesterday.

The broking firm had researched interim results of 267 companies and the September quarter performance matched the 10% decline suffered in the June quarter as well. It said the decline was primarily due to the sluggish performance in the Food, Beverage and Tobacco (-31% YoY), Telecommunication (-36% YoY) and Materials (-68% YoY) sectors which outweighed the positive momentum experienced by Banks (+14% YoY) and Insurance (+217% YoY) sectors. First Capital said a lacklustre performance in the Food, Beverage and Tobacco, Telecommunication and Materials sectors was mainly due to the lower consumer spending stemming from subdued economic growth.

A profits dip in Carsons and Bukit Dhara (due to a loss of Rs. 943 million as a result of a change in fair value of financial assets, deferred tax of Rs. 442 million and Rs. 821 million in foreign exchange loss) and CCS (due to a decline in volumes as a result of sugar tax) caused the -31% YoY decline in Food, Beverage and Tobacco sector earnings.

Amidst the heavy depreciation in the rupee, Dialog Axiata recorded a forex loss which led to a -54% YoY decline in earnings leading to a – 36% YoY dip in Telecommunication sector earnings.

A dip of 68% YoY in Material sector earnings was a result of a 90% YoY dip in earnings of Tokyo Cement due to a slowdown in economic activities.

First Capital said banking sector earnings posted a +14% YoY growth to Rs. 17.7 billion while continuing to be the largest contributor to overall earnings.

Commercial, HNB and Sampath, being the largest banks in terms of asset base, contributed 72% to total banking sector earnings.

“Improved earnings during the quarter resulting in higher interest rates prevailed in the market thereby improving margins and spreads which negated the effect of increase in impairment provisioning under IFRS 9,” the broking firm added.

It said the twofold growth in Insurance sector earnings was due to phenomenal growth in earnings of Union Assurance (Rs. 1.6 billion) and Asian Alliance (Rs. 2.3 billion) resultant to the reversal in deferred tax assets in the life insurance business.

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 29.11.2018

Investment in Sri Lanka

First Capital’s Atchuthan Srirangan 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 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.

Dimantha Mathew, Head of Research at First Capital Holdings, with the Market Forecast on Ada Derana – 25.11.2018

Treasury Bills and Bonds Sri Lanka

First Capital’s Dimantha Mathew with the Market Forecast 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’s Dimantha Mathew with the Market Review on Ada Derana

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.

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 14.11.2018

Treasury Bills and Bonds

First Capital’s Amanda Lokugamage 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 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.

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 08.11.2018

Treasury Bills and Bonds Sri Lanka

First Capital’s Amanda Lokugamage 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 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.