Tag Archives: Share market investment in Sri Lanka

Nisansala Kuruppumudali, Research Analyst at First Capital commenting on the bond and stock market performance – 06.11.2019

In the bond market the secondary market yield curve shifted slightly upwards while overall market witnessed moderate volumes.  Equity market continued to end in red for the third consecutive day recording a week’s low index. 

Nisansala Kuruppumudali, Research Analyst at First Capital commenting on the bond and stock market performance.

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 commenting on the bond and stock market performance – 04.11.2019

In the bond market secondary market yield curve remained broadly unchanged while overall market witnessed limited activity amidst thin volumes. Stock market ended in red on the price losses made in JKH and CARG.

Atchuthan Srirangan , Assistant Manager – Research at First Capital commenting on the bond and stock market performance.

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.

Hiruni Perera, Senior Research Analyst at First Capital commenting on the bond and stock market forecast – 03.11.2019

Bond market has been witnessing moderate activity levels during the past week. With surplus liquidity in the system, we expect some buying interest on mid to long tenor maturities.
On equity side, we expect some positivity to emerge with positive earnings results.

Hiruni Perera, Senior Research Analyst at First Capital commenting on the bond and stock market forecast.

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.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance – 31.10.2019

The secondary market yield curve shifted slightly upwards while overall market witnessed moderate volumes. Stock market rebounded to positive territory recording the highest daily gain in 13 weeks, predominantly contributed by the price appreciations of HNB.N and SLTL.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance.

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.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance – 30.10.2019

Invest in Sri Lanka

“The secondary market yield curve remained broadly unchanged while overall market witnessed limited activities with low volumes. Bourse ended in red reversing the positive sentiment witnessed for the last nine trading sessions dragged down by big cap DIAL and JKH.”

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance

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 commenting on the bond and stock market performance – 23.10.2019

Stock Brokers in Sri Lanka

“The secondary market yield curve remained broadly unchanged while overall market witnessed limited activities amidst thin volumes. Stock market closed the day on a mixed note, with ASPI remaining in the positive territory for the fifth straight session.”

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance  #CSE #CBSL #lka

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.

Low interest rates set to provide flywheel to mutual fund industry

Daily Mirror | 23.10.2019

Investment Bank in Sri Lanka

The mutual fund or the unit trust industry, which went on a rollercoaster ride due to the exodus of funds following new tax laws, is expected to make a comeback with fund managers eying a slice of the banking sector savings, offering attractive returns.
Several fund management companies have already ramped up their promotional campaigns to woo, specially the mom-and-pop investors or the small-sized retail investors, who have hitherto patronized banks to park their savings.
A unit trust fund by First Capital Holdings PLC is offering a return of 13 percent to its unit holders even when the market interest rates are on a downward trend, and is looking at luring the bank savers to its unit trust fund.
“For instance, currently some of the unit trusts that we are running are yielding 12.77 percent, which is net of taxes as well. Then you knock off your inflation of around 6.0 percent, you are still left with 6.5 percent as a real return,” said Kavin Karunamoorthy, a Wealth Manager at First Capital.
In comparison, one –year bank fixed deposit fetches not more than 10 percent at its highest in nominal terms, and one cannot earn more than five percent in real terms when accounted for inflation.
Besides that, Karunamoorthy pointed out that bank interest is also liable for 5 percent withholding tax.
Hence, the circumstances favour the unit trust industry as the banking sector interest rates are currently on a downtrend.
Sri Lanka’s unit trust industry, which had assets under management (AUM) of Rs.133 billion by 2015, fell to Rs.100 billion AUM by early 2017 and saw further erosion due to the removal of the withholding tax exemption on dividends received by corporate unit holders and other tax reforms affecting the industry.
At the time, corporate unit holders accounted for over 80 percent of the AUM, as they used to park their excess liquidity at returns which are exempted from withholding tax.

As Sri Lanka has almost reached the peak of its monetary easing cycle with back-to-back rate cuts, the traditional savers, who are at the mercy of bank interest rates, have received a raw deal with their real incomes either greatly waning or turning negative.
Meanwhile, the Central Bank has resorted to some unconventional macro-prudential measures such as deposit rate caps, which were rescinded with the imposition of lending rate ceilings from last week, to provide a tailwind for an otherwise slow monetary policy transition process, though its effectiveness is yet to be seen.
As monetary accommodation takes its toll on the traditional savers, the fund management industry has revved up their efforts to provide more lucrative investment opportunities to the traditional alternatives offered by the banks, which according to them, beats both the low nominal interest rates and inflation.
Taking an example of a typical pay cycle of a salaried employee, Karunamoorthy said a good 40 to 50 percent of his or her income is spent immediately on commitments such as loan servicing, while the balance is often left to be lying in a bank savings account at very low rates until such moneys are being spent on household staples and others.
“If one can carefully plan out one’s expenditure and the cash flows, unit trusts offer a better investment opportunity, where one can increase his returns while enjoying the same flexibility and the safety of a bank savings account as such moneys are kept with a trustee, which is often a bank, and the Securities and Exchange Commission (SEC) provides the regulatory oversight to the fund management industry.”
According to Karunamoorthy, what hinders the masses of taking the advantage of this is the lack of knowledge of these alternative investment opportunities, and he believes the continuous awareness programmes could address this knowledge gap.
Unit Trusts were introduced to Sri Lanka during 1991/92 with the main intention of broad basing the share ownership following the incorporation of the Colombo Stock Exchange (CSE) in 1985.
But the objective is far from being achieved as there are only 40,000 investors, representing just under 0.20 percent of the population.
First Capital Money Market Fund is a unit trust fund which at present offers returns of 12.77 percent and the funds that are collected from unit holders who are invested in fixed income securities such as Treasury bills, commercial papers and repurchase agreements taking positions on the future upside or downside on interest rates based on research, market insights and prowess in the fund management industry.

 

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance – 22.10.2019

Stock Brokers in Sri Lanka

“In the secondary market yield curve remained almost unchanged while overall market witnessed moderate volumes. Stock market ended in positive territory for the fourth straight session recording 1 ½ month high on the gains made in NEST and CARG.”

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance  #CSE #CBSL #lka

 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 commenting on the bond and stock market forecast – 20.10.2019

Stock Brokers in Sri Lanka

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market forecast   #CSE #CBSL #lka

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 provides 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 commenting on the bond and stock market performance – 17.10.2019

Treasury Bills and Bonds in Sri Lanka

“The secondary market yield curve remained broadly unchanged while overall market witnessed thin volumes. Stock market rebounded today from the negative sentiment witnessed in the previous two trading sessions with price appreciations witnessed in SLTL and LOLC.

Atchuthan Srirangan, Assistant Manager – Research at First Capital commenting on the bond and stock market performance.  #CSE #CBSL #lka.

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.