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Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 11.03.2018

First Capital's Amanda Lokugamage

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.

Stocks: Foreign buying may slow down

Sunday Times| 11.03.2018

The Colombo Stock Exchange’s (CSE) rally by foreign investors looks dicey now that a state of emergency has been imposed by the government on Tuesday, some stock analysts say.

“From Tuesday onwards some funds were trying to book profits on selected blue chip blocks such as John Keells Holdings and Commercial Bank,” an analyst told the Business Times. According to him JKH saw a Rs. 5 drop on Thursday to Rs. 160.50 and stood at Rs. 163 on Friday. He added that calls to sell certain blocks escalated on Tuesday after the unrest at Teldeniya on Monday.

A stockbroker ‘strongly’ disagreed with this statement saying that foreign funds don’t decide on short term incidents. “They aren’t exactly panic retailers.” He added that CSE has witnessed worse times during the war and when Galleon Fund of Raj Rajaratnam pulled out it was much worse.

Dimantha Mathew, Head of Research First Capital told the Business Times that foreign participation was on a worrying note. He said that foreign participation had significantly have come down since Monday, but they aren’t panicking essentially because they are positive on CSE. “But they are cautious. By tomorrow they’ll return.”

By Friday, foreign buying had slowed down, another analyst added. “They are taking a cautious stance. If this situation continuous they may adopt a wait-and-see stand.”

These sentiments arose just after two major investor forums showcasing the CSE. Early this month ‘’Invest Sri Lanka’ investor forum was organised by the CSE in Singapore which saw leading Asia–based institutional funds and other investors across multiple industries. The other was ‘CSE – Tundra Fonder Sustainability Forum’ which the CSE in collaboration with Tundra Fonder hosted on Monday in Colombo.

First Capital fostering strong bonds with foreign, local clients

Sunday Times| 11.03.2018

First Capital Holdings PLC has continued its pursuits to establishing strategic partnerships with stock brokering houses based in the US and Japan, in addition to reinforcing its local efforts through the group’s expanding branch network, according to officials.

“The company has been playing an active role in exploring capital market prospects and opportunities through international collaborations; in recent years the debt structuring arm of First Capital has completed several successful deals with development financial institutes based in the UK and the Netherlands,” Director/Group CEO, Dilshan Wirasekara told the Business Times.

Emphasizing its commitment, officials of First Capital concluded a series of successful meetings and critical discussions against the backdrop of the Invest Sri Lanka – Investor Forums recently concluded in New York and Singapore, he added. Cross broader collaborations will not only highlight Sri Lanka as a prominent emerging market, but also focus on exchanging practical experiences and tactical capabilities in implementing strategies to broad-based capital market investment and know-how, he highlighted.

The company further expanded its branch network in an effort to foster stronger bonds with regionally based clients. During the last year First Capital added a new branch in Negombo to its existing network, while also re-locating offices in Kandy, Kurunegala and Matara to state-of-the-art, stand-alone branches providing value-added products and solutions to both issuer and investor clients.

The First Capital branch network covers all product offerings from the investment bank’s five subsidiary businesses, consisting services in Government Securities, stock broking, Unit Trusts, Wealth Management, Capital Markets Advisory including Debentures, Commercial Papers, Trust Certificate, Share/ Business Valuations and Mergers and Acquisitions, a media release said.

“We embarked on a strategy of improving our branch network, to complement the already existing delivery channels, as we feel it’s an important investment made to broad base the access to capital market knowledge and investment across the country,” Mr. Wirasekara was quoted in the release.

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 (CSE). The Company is one of the 15 member firms of the CSE, with a Director of the Company sitting on the Board of the CSE.

First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications.

The Company has recently signed agreements with broker houses based in the United States of America and Japan to act as their partner Stock Brokers in Sri Lanka.

 

Atchuthan Srirangan discussed about Economic implications of the local government poll results

Invest in Sri Lanka

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 drop to near 3-week closing low; communal clash weighs on market

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

FEBRUARY 8, 2018

COLOMBO, March 6 (Reuters) – Sri Lankan shares dropped to their lowest close in nearly three weeks on Tuesday amid investors’ concerns about communal violence.

The country declared a nationwide state of emergency for 10 days on Tuesday to stop the spread of violence, after clashes erupted between majority Buddhists and members of the minority Muslim community.

“Market came down with investors worried over the government declaring state of emergency,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

“Investors are waiting to see how foreign investors will react to this state of emergency.”

The Colombo stock index ended 0.3 percent weaker at 6,533.46, following a 0.28 percent drop last week.

Turnover was 436.8 million rupees ($2.82 million), less than half of this year’s daily average of 954.9 million rupees.

Analysts said local investors continued to be on the sidelines as they were still worried about political uncertainty.

Foreign investors bought a net 27.9 million rupees worth of shares on Tuesday, extending the year-to-date net foreign inflow to 6 billion rupees worth of equities so far this year.

Shares of conglomerate John Keells Holdings Plc fell 0.7 percent, Ceylon Tobacco Co Plc ended 0.4 percent weaker and Browns Investments Plc declined 7.7 percent.

Sri Lanka’s two key parties in the ruling coalition last week decided to remain in the ruling coalition, allaying fears of a government collapse.

President Maithripala Sirisena reshuffled his cabinet last week, appointing his prime minister as the law and order minister, after the governing coalition suffered a series of defeats in local elections earlier this month.

However, the changes failed to boost the market as the cabinet reshuffle was not enough to address the election defeats, analysts said. ($1 = 155.0000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

FIRST CAPITAL FOSTERING STRONG BONDS WITH REGIONAL CLIENTS

Dilshan Wirasekara Director / CEO of First Capital, staff members Kosala Liyanagedara, Naveen Samarasekera, Anushi Ranawaka, Sewwandi Kathriarachchi, Rangajeewa Abeywickrama, Nisansala Munasinghe at Branch Opening Ceremonies in Negombo, Kurunegala and Kandy.

March 06th 2018 – First Capital Holdings PLC, further expanded its branch network in an effort to forester stronger bonds with regionally based clients. During the last year First Capital added a new branch in Negombo to its existing network, while also re-locating offices in Kandy, Kurunegala and Matara to state-of-the-art, stand-alone branches providing value-added products and solutions to both issuer and investor clients.

The First Capital branch network cover all product offerings from the Investment Bank’s five subsidiary businesses, consisting services in Government Securities, Stockbrokering, Unit Trusts, Wealth Management, Capital Markets Advisory including Debentures, Commercial Papers, Trust Certificate, Share/ Business Valuations and Mergers and Acquisitions.

“We embarked on a strategy of improving our branch network, to complement the already existing delivery channels, as we feel it’s an important investment made to broad base the access to capital market knowledge and investment across the country said Director and Chief Executive Officer of First Capital Holdings PLC, Dilshan Wirasekara.

“We understood that our customers seek comfort in approaching a more tangible branch premises, discussing their investments over a cup of tea. This builds a lot of confidence between our clients and our brand. Our branch expansion is aimed to accommodate these needs” said Senior Manager – Branch Operations Menaka Wavegedara.

“First Capital takes this opportunity to express our appreciation for the continued trust placed on us by our loyal clients and assure that we strive to exceed the expectations placed on us.” Wavegedara concluded.

The new office will continue to offer the same efficient and friendly service delivering reliable advice and awareness on investing for the benefit of its customers.

The branch contact details are as follows; Negombo Branch Office (located on the Chilaw-Colombo Main Road) +94 31-2233299, Kandy Branch Office (located on Kotugodella Veediya) +94 81 2 236 010, Kurunegala Branch Office (located on Mihindu Mawatha) +94 37 2 222 930 and Matara Branch Office (located on Anagarika Dharmapala Mawatha) +94 41 2 222 988. The First Capital Holdings PLC head office is located at No 02 Deal Place Colombo 00300

Company information –

First Capital Holdings PLC (First Capital Group) is an investment bank comprising of First Capital Treasuries PLC, First Capital Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited and First Capital Markets Limited. The company’s Board of Directors comprises of Nishan Fernando – Chairperson, Dinesh Schaffter – Managing Director, Eardley Perera, Ms. Minette Perera, Chandana de Silva and Dr. Nishan de Mel as Independent Directors and Dilshan Wirasekara as Director and Chief Executive Officer.

The company is listed on the Colombo Stock Exchange and is rated “A-” with a stable outlook by ICRA Lanka.

Cement price hiked by Rs. 30 per bag

Daily FT | 06-03-2018

Broking firms FC Capital Research yesterday downgraded public listed Tokyo Cement to “Hold” from “Strong buy” despite the increase in price of a 50kg bag of cement.

The downgrade was primarily on account of apparent shrink in market share due to intensified competition leading to a stagnant topline despite the modest 5%YoY growth registered in cement industry during 2017.

Further,  with the distribution cost continuing on its increasing trend to register a 12%YoY growth for 9MFY18 adversely impacting the earnings First Capital Research has slashed TKYO revenue forecast by almost -15% for FY18E and -24% for FY19E while incorporating a more steady moderate growth in top line spreading to FY20E and FY21E. However, we expect TKYO to maintain its margins at 25% supported by enhanced capacity levels coupled with cost savings on energy, thus upholding the earnings at c.LKR 3.4Bn in FY19E. Amidst the revenue downgrade, TKYO earnings expectations have reduced by LKR 577Mn and LKR 1.0Bn for FY18E and FY19E generating a decent c.+4% earnings growth in FY19E. As a result, First Capital Research revised its fair value for TKYO.N for FY19E downwards to LKR 64.0 (previous LKR 94.0) while TKYO.X is revised to LKR 54.4 (previous LKR 80.0) providing an overall return of 12% and 14% respectively thus downgrading to HOLD on both TKYO.N/X.

Atchuthan Srirangan, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 04.03.2018

Stock Brokers 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 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 end near 2-week closing low

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

MARCH 06, 2018

COLOMBO, March 5 (Reuters) – Sri Lankan shares fell slightly on Monday and finished the session near a two-week closing low hit last week, as investors sold stocks of diversified and palm oil companies amid continued political uncertainty, stockbrokers said.

The Colombo stock index ended 0.06 percent weaker at 6,552.81, following a 0.28 percent drop last week. On Wednesday, it posted its lowest close since Feb. 14.

Turnover was 1.3 billion rupees ($8.39 million) on Monday, more than this year’s daily average of 967.9 million rupees.

“It was a very slow day,” said Dimantha Mathew, head of research, First Capital Holdings, referring to inactive local investors.

Local investors continued to be on the sidelines as they were still worried about political uncertainty, he added.

Foreign investors bought a net 45.9 million rupees worth of shares, extending the year-to-date net foreign inflow to 5.97 billion rupees worth of equities so far this year.

Shares of Melstacorp Ltd fell 5.3 percent, Carson Cumberbatch Plc declined 6.1 percent and Bukit Darah Plc dropped 7.6 percent.

Sri Lankan shares hit a more than three-month high last month after two key parties in the ruling coalition decided to remain in the ruling coalition, allaying fears of a government collapse.

President Maithripala Sirisena reshuffled his cabinet last week, appointing his prime minister as the law and order minister, after the governing coalition suffered a series of defeats in local elections earlier this month.

However, the changes failed to boost the market as the cabinet reshuffle was not enough to address the election defeats, analysts said. ($1 = 154.9000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan stocks close almost unchanged amid selling by foreigners

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

MARCH 1, 2018 

COLOMBO, Feb 27 (Reuters) – Sri Lankan shares closed almost unchanged on Tuesday amid selling by foreign investors and some concerns about political stability, dealers said.

Shares hit a more than three-week high last week after two key parties in the ruling coalition decided to remain in the ruling coalition, allaying fears of a government collapse.

President Maithripala Sirisena reshuffled his cabinet on Sunday, appointing his prime minister as the law and order minister, after the governing coalition suffered a series of defeats in local elections earlier this month.

“A foreign fund is exiting. While some foreigners who do not want to take the risk is exiting, other foreigners who are willing to take the risk are coming in, that’s why the market is holding on,” said Dimantha Mathew, head of research, First Capital Holdings.

The Colombo stock index ended 0.01 percent weaker at 6,559.42, its lowest close since Feb. 15. The index rose 0.18 percent last week.

Turnover stood at 2.2 billion rupees ($14.21 million) on Tuesday, more than two times of this year’s daily average of 970.9 million rupees.

Foreign investors sold a net 171.2 million rupees worth of shares, but they have been net buyers of 6.2 billion rupees worth of equities so far this year.

Shares of AIA Insurance Lanka Plc ended 8.6 percent weaker, while Nestle Lanka Plc ended down 1.83 percent. ($1 = 154.8000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)