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Sri Lankan stocks slip ahead of polls

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

FEBRUARY 8, 2018

COLOMBO, Feb 6 (Reuters) – Sri Lankan shares ended slightly weaker on Tuesday, slipping from their highest close in more than three weeks, with domestic investors staying on the sidelines ahead of the local government polls over the weekend.

The Colombo stock index ended 0.12 percent weaker at 6,512.54, slipping from its highest close since Jan. 9 hit on Friday. The market was closed on Monday on account of a bank holiday.

Shares in conglomerate John Keells Holdings Plc slipped 0.9 percent, while Hatton National Bank Plc edged down 0.8 percent and Sampath Bank Plc lost 1.2 percent.

“Local investors are on a wait-and-see mode ahead of the elections and that is the main reason why we don’t see much local activity. We expect this trend to continue for the next few days,” said Dimantha Mathew, head of research at First Capital Holdings.

Sri Lanka will hold the long-delayed local government election on Feb. 10, amid worries about the future of the country’s coalition government.

The market turnover was 848.3 million rupees ($5.49 million), less than last year’s daily average of 915.3 million rupees.

Foreign investors bought a net 122.2 million rupees worth of shares on Tuesday, extending the year-to-date net foreign inflow to 4.4 billion rupees worth of equities. ($1 = 154.6000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

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 Review on Ada Derana – 04.02.2018

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 stocks climb for 3rd session as Janashakthi Insurance jumps

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

FEBRUARY 3, 2018

COLOMBO, Feb 2 (Reuters) – Sri Lankan shares rose for a third straight session on Friday to their highest close in more than three weeks, boosted by a surge in Janashakthi Insurance Plc as it agreed to sell its general insurance unit to Germany’s Allianz SE.

Janashakthi stock jumped about 28 percent in the session, bringing its weekly gain to a whopping 73 percent.

The insurer said on Friday it agreed to sell its wholly owned subsidiary, Janashakthi General Insurance Ltd, for 16.4 billion rupees ($106.4 million) to Allianz.

The Colombo stock index ended up 0.34 percent at 6,520.46, its highest close since Jan. 9. The market rose 1 percent this week, its second straight weekly gain.

“A combination of retail, high-net-worth and foreign investors were active today,” said Dimantha Mathew, head of research at First Capital Holdings.

Cargills (Ceylon) Plc rose 5.7 percent, while Nestle Lanka Plc ended 2.4 percent up, and Ceylon Tobacco Company Plc rose 0.9 percent.

The market turnover was 1.22 billion Sri Lankan rupees ($7.9 million), more than last year’s daily average of 915.3 million rupees.

Foreign investors sold a net 3.8 million rupees worth of shares on Friday, but they have been net buyers of 4.2 billion rupees worth of equities so far this year.

Analysts said the political uncertainty ahead of a local election next month continued to weigh on sentiment. Sri Lanka will hold a long-delayed local government election on Feb. 10.

President Maithripala Sirisena in an election rally over the weekend said he was ready to form a new government with his Sri Lanka Freedom Party (SLFP), breaking away from the current coalition – a comment that exacerbated worries about the future of the coalition government.

Sri Lanka’s stock, bond and foreign exchange markets are closed on Monday for a special holiday. Markets will resume trading on Tuesday. ($1 = 154.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

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 -02-02-2018

Ceylon Today | 2018-02-02

Following the T.-Bond auction on 29 January the yield curve experienced a slight downward shift during the day while overall market saw moderate volumes. On 30 January the Treasury Bill auction 6M maturity saw its yield decreasing by 1bps while the yield of 1-yr Bill remained unchanged at 8.90%. Overall yield curve remained almost unchanged amidst market participants remaining on the sideline.

Liquidity & CBSL Holdings

Market liquidity had a high volatile trend during the week with CBSL Holdings having a sharp drop on 23 January and this downward trend continued however on 30 January a sharp spike was witnessed, the highest volatility recorded on 22 January amounting to 13.1Bn.

Foreign Interest

Amidst renewed foreign buying interest, foreign holding increased by LKR 1.77Bn to record at LKR 328.1Bn. With the overall Government Securities increased with foreign buying interest the overall foreign holding percentage improved to 6.7%.

Maturities for next Week

The Government Securities market has Treasury Bill maturity amounting to LKR 22.02Bn which needs to be settled on 9 February 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.