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Sri Lanka Construction Sector Boom Seen Reviving

SRI LANKA CONSTRUCTION SECTOR “Construction back with a BOOM” – First Capital Research Report


ECONOMYNEXT – Sri Lanka’s construction industry is expected to do well in the next few years given increasing homeownership affordability, big government infrastructure projects and rising demand for high-rises, stock brokers First Capital Equities said.

Growth in the sector slowed down in 2015 after the new government halted some big infrastructure projects, pending reviews of their costs and environmental impact.

“Infrastructure being one the main driving forces of the construction sector, suffered a hefty blow amidst slowdown in the infrastructure drive during 2015,” the brokers said in a research report on the construction sector.

But the brokers said they expect “a booming construction sector over next 2-3 years supported by rising affordability for housing, demand for skyscrapers and the government’s mega infrastructure drive.”

The report said the listed Construction & Building Material Sector on the Colombo bourse is expected to provide 46% average return (annualized 29%) over an 18-month period, well above the expected market return.

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Sri Lankan Shares Post 3-wk Closing High as Banks Gain on Rate Decision

First Capital’s Head of Research, Dimantha Mathew speaks to Reuters Wed Sep 28, 2016

COLOMBO, Sept 28 (Reuters) – Sri Lankan stocks closed higher on Wednesday, hitting a more than three-week closing high, led by gains in banking stocks after the central bank held the key monetary policy rates steady.

The central bank’s widely expected decision earlier on Wednesday to hold the rates steady suggested that policy makers were keen to support a slowing economy even as they kept a tight leash on rampant credit growth.

Treasury bill yields fell for the second session at Wednesday’s auction. They fell between 16-33 basis points.


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Sri Lankan shares end flat amid foreign outflows

First Capital’s Head of Research, Dimantha Mathew speaks to Reuters Mon Sep 26, 2016

COLOMBO, Sept 26 (Reuters) – Sri Lankan stocks ended steady on Monday, as gains in financial shares were offset by losses in consumer staples, amid foreign outflows and tax hike concerns.

Foreign investors sold a net 183 million rupees worth of shares on Monday extending the year-to-date net forging outflow to 3.01 billion rupees worth of equities.

The International Monetary Fund (IMF) on Friday said Sri Lanka’s government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without further delay.


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Sri Lankan shares rise on blue chips; foreign outflow hits 7-mth high

First Capital’s Head of Research, Dimantha Mathew speaks to Reuters Thu Sep 22, 2016

“Index turned green today with sudden buying interest in blue chip counters”
“Buying interest is there mainly in diversified shares.”

COLOMBO, Sept 22 (Reuters) – Sri Lankan stocks hit a one-week closing high on Thursday, led by blue chips as investors picked up beaten-down counters, even as foreign investor outflow touched a seven-month high, mainly due to selling in shares of National Development Bank.

The benchmark index of the Colombo Stock Exchange ended 0.21 percent higher at 6,464.94, its highest close since Sept.15.


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Sri Lankan shares fall for 4th straight session; VAT proposal weighs

First Capital’s Head of Research, Dimantha Mathew speaks to Reuters Tue Sep 20, 2016

“Going forward, we don’t think this trend of correction will last long.”

COLOMBO, Sept 20 (Reuters) – Sri Lankan shares fell for a fourth straight session on Tuesday, led by large caps, as selling pressure on stocks expected to take a hit from a proposed tax increase weighed on sentiment.

The benchmark Colombo stock index ended 0.32 percent weaker at 6,429.94, its lowest close since Aug. 1. It fell 0.34 percent last week, its fourth straight weekly loss.


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Sri Lankan shares edge down on VAT-hike concern

First Capital’s Senior Research Analyst, Atchuthan Srirangan speaks to Reuters Wed Sep 14, 2016

“Investors are worried about the VAT hike. Profit-taking was also there.”

COLOMBO, Sept 14 (Reuters) – Sri Lankan shares closed marginally lower on Wednesday, posting their lowest closing level in nearly six weeks, as a government proposal to raise the value added tax (VAT) hurt market sentiment.

The government on Wednesday said the cabinet has approved a proposal to increase the VAT to 15 percent from 11 percent with some amendments, a move halted by the Supreme Court earlier. The hike is expected to be implemented after parliamentary approval later this month.


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Is it time to break open the piggy bank?

First Capital’s Senior Manager Research, Dimantha Mathew shares his outlook for equity markets in 2016.

“The economy is on recovery mode and things will take a bit more time to settle”.

Share market investment in Sri Lanka, Stock brokers in Sri Lanka, First Capital Equities, First Capital Research, Investment banking in Sri Lanka, Investment in Sri Lanka, Investment banks in Sri Lanka, Capital Market Research

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Monthly Economic Watch – Aug 2016


Content Briefing

  • Inflation
  • External Sector
  • Monetary Policy Review
  • Tourist Arrivals
  • Treasury Bills & Bonds
  • Global News

Read the full report here



Source: First Capital Research

CIM Sri Lanka partners First Capital Holdings for cross-discipline knowledge sharing

CIM Sri Lanka Vice Chair Brian Selvanayagam, CIM Sri Lanka Chairman Sanjika Perera, First Capital Holdings Chief Executive Officer Dilshan Wirasekara and Nisansala Munasinghe from First Capital Holdings’ Branding and Marketing Services
CIM Sri Lanka Vice Chair Brian Selvanayagam, CIM Sri Lanka Chairman Sanjika Perera, First Capital Holdings Chief Executive Officer Dilshan Wirasekara and Nisansala Munasinghe from First Capital Holdings’ Branding and Marketing Services



The Chartered Institute of Marketing Sri Lanka entered into a strategic partnership with First Capital Holdings PLC, one of the country’s leading investment banks, to lay the foundation for a cross-discipline knowledge sharing platform.

Further strengthening the aspiration to build awareness and share industry knowhow a Memorandum of Understanding (MOU) was signed between CIM Sri Lanka and First Capital, committing to goals mutually benefiting both organisations.

Commenting on the partnership, CIM Sri Lanka Chairman Sanjika Perera said: “As CIM Sri Lanka enters its 21st year in developing professional education in the Island it is a privilege to partner First Capital Holdings PLC with over 30 years’ experience in investment banking to increase awareness around both industries through a series of initiatives planned to unfold during the year.”

First Capital Holdings Chief Executive Officer Dilshan Wirasekara said: “We at First Capital are pleased to collaborate with a renowned professional body such as the Chartered Institute of Marketing Sri Lanka. In our commitment towards setting industry standards, we are constantly seeking to sharpen our competitive edge by working together with leading professional bodies. We believe this partnership will benefit both organisations to increase its footprints by sharing insights and understanding about our industries.”

CIM Sri Lanka is the first International branch of CIM UK and is proud to claim the largest membership outside the UK. CIM Sri Lanka has always campaigned for high professional standards, greater recognition for the Profession and Marketing excellence in Sri Lanka through education, training and development.

First Capital Holdings PLC is a full-service investment bank providing a diverse range of advisory services and financial products. The company’s integrated business platform comprises four specialised areas – Capital Markets Advisory, Wealth Management, Fixed Income and Equities.

First Capital currently serve an array of companies, institutions, government agencies, high net worth individuals and retail clients seeking truly objective advice, innovative solutions and execution expertise. The Company is listed on the Colombo Stock Exchange and is rated A- by ICRA Lanka Ltd.

Source: Daily FT | Published : September 7, 2016