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Sri Lankan shares extend falls to near 17-month aclosing low

ATCHUTHAN SRIRANGAN, ASSISTANT  MANAGER – RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

AUGUST 23, 2018

COLOMBO, Aug 21 (Reuters) – Sri Lankan shares extended losses into an eighth session on Tuesday and posted their lowest close in nearly 17 months, as foreign investors continued to sell, while a report about new tax proposals weighed on the market as well.

Foreign investors sold shares worth a net 48.1 million rupees ($300,000), extending the foreign outflow to a net 888.8 million rupees in the last five sessions, and a net 3.52 billion rupees worth of equities so far this year.

Banking and telecom stocks have been declining since a local media reported that the government planned to impose new levies on these sectors to boost revenue, analysts said.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, also dented investor appetite for riskier assets, analysts said.

A local daily reported on Friday that a number of changes proposed in the Finance Act would see new levies on several sectors including telecom, vehicle imports and tourism.

c“Still the tax issue has not been clarified. Banks and telecom shares are mostly hit by this and an uncertainty prevails over this,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

The Colombo stock index edged down 0.06 percent to 6,040.37, its lowest close since March 30, 2017. It has declined about 5 percent so far this year.

Turnover stood at 464.1 million rupees, compared with this year’s daily average of 824.4 million rupees.

Top mobile phone service provider Dialog Axiata fell 0.7 percent, while conglomerate Hemas Holdings lost 4.3 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent.

The markets will be closed on Wednesday for a holiday. ($1 = 160.3500 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan shares fall for 7th session in thin trade

JALIYA WIJERATNE, CEO AT FIRST CAPITAL EQUITIES SPEAKS TO REUTERS

AUGUST 21, 2018

COLOMBO, Aug 20 (Reuters) – Sri Lankan shares extended losses into a seventh session on Monday and posted their lowest close in nearly seven weeks, as foreign investors continued to reduce their holdings, while confusion over new tax measures weighed on the market as well.

Lacklustre corporate results and a Moody’s report saying Sri Lanka could face significantly tighter external refinancing conditions in the next five years, also dented investor appetite for riskier assets, analysts said.

A local daily reported on Friday that a number of changes proposed in the Finance Act will impose new levies on several sectors including telecom, vehicle imports and tourism.

“Confidence level is the issue. There is confusion over new taxes and the market still is confused about the proposed taxes,” said Jaliya Wijeratne, CEO, First Capital Equities.

“Foreigners have been selling since last week and that has been a concern for the market.”

Foreign investors sold shares worth a net 11.7 million rupees ($72,965.4) on Monday, extending the foreign outflow to a net 840 million rupees in the last four sessions, and a net 3.48 billion rupees worth of equities so far this year.

The Colombo stock index edged down 0.11 percent to 6,044.23, its lowest close since July 4. It has declined about 5 percent so far this year.

Turnover stood at 193.2 million rupees on Monday, less than a quarter of year’s daily average of 827 million rupees.

Most Asian share markets, however, crept cautiously higher as investors awaited developments on proposed Sino-U.S. trade talks and the Chinese yuan rallied away from alarming lows.

Top mobile phone service provider Dialog Axiata fell 2.1 percent, while top lender Commercial Bank of Ceylon closed 0.8 percent weaker.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. ($1 = 160.3500 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 19.08.2018

Share Market 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 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.

Weekly Government Securities Market – 17-08-2018

Share Market Investment in Sri Lanka

 

Sri Lanka stocks down 0.5-pct, uncertainty over tax changes

Economy Next – 17.08.2018

By First Capital Research

ECONOMYNEXT – Sri Lankan stocks closed lower Friday near a five-week low with investor sentiment dampened by uncertainty over proposed changes to the Finance Act that could raise costs for businesses, brokers said.

The rupee was trading at 160.45/50 against the US dollar in the spot market in mid-afternoon trade before the close, dealers said.

The All Share Price Index closed at 6,051.10, down 32.49 points (0.53%) while the more liquid S&P SL20 index closed at 3,240.27, down 7.89 points (0.24%).

Turnover was Rs569 million, about 35% of which was accounted for by trading in John Keells Holdings.

The benchmark index was dragged down mainly by the fall in Ceylon Tobaccco Company, which closed at Rs.1,251.90, down Rs. 28.40 (2.22%). The stock was trading ex-dividend.

JKH, which also has a heavy weighting on the ASPI closed at Rs138.00, down 20 cents (0.14%).

Atchuthan Srirangan, assistant manager research at First Capital Holdings, said investors were mostly on the sidelines given uncertainty over proposed taxes in amendments to the Finance Act which were gazetted recently.

Among proposed changes is a  Debt Repayment Levy on banks and finance companies.

“The gazette is not clear and banks and finance companies are confused about the debt repayment levy,” Srirangan said.

Also, although the market is undervalued and has been seeing foreign selling, local buying has still not got activated owing to lack of confidence in government policy, he said.
(COLOMBO, 17 August, 2018)

Atchuthan Srirangan, Assistant Manager – Research at First Capital Holdings, with the Market Review on Ada Derana – 16.08.2018

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 shares edge down; foreign investors sell John Keells

ATCHUTHAN SRIRANGAN, ASSISTANT  MANAGER – RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

AUGUST 17, 2018

COLOMBO, Aug 16 (Reuters) – Sri Lankan shares ended marginally weaker on Thursday, marking their fifth straight session of losses, as foreign investors sold market heavyweight John Keells Holdings amid global worries.

Foreign investors sold shares worth a net 474.7 million rupees ($2.96 million) on Thursday, extending the foreign outflow to a net 3.24 billion rupees worth of equities so far this year.

Lacklustre corporate results also hit investor appetite for riskier assets, analysts said.

The Colombo stock index fell 0.05 percent to 6,083.59, its lowest close since July 10. It has declined about 4.5 percent so far this year.

“There was no catalyst to move the market and the recently released June quarter earnings are not that encouraging,” said Atchuthan Srirangan, assistant manager – research, First Capital Holdings Plc.

Turnover was 788.9 million rupees ($4.92 million) on Thursday, less than this year’s daily average of 832.8 million rupees.

Brokers have also said possible loose fiscal policies in the upcoming budget to woo voters ahead of next year provincial council and presidential polls also have hurt investor sentiment.

Emerging-market equities languished in bear territory on Thursday, shrugging off the prospect of new trade talks between China and the United States, while Turkey’s lira recovered.

Shares in John Keells, which accounted for 71.4 percent of the day’s turnover, fell 1.2 percent, while shares in Ceylinco Insurance slid 1.9 percent.

The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4 percent in 2018, falling short of an earlier estimate of 5 percent. ($1 = 160.4000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Vyas Mohan)

Amanda Lokugamage, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 15.08.2018

Stock Brokers 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.

Hiruni Perera, Senior Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 14.08.2018

Stock Brokers in Sri Lanka

First Capital’s Hiruni Perera 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.

 

Nisansala Kuruppumudali, Research Analyst at First Capital Holdings, with the Market Review on Ada Derana – 13.08.2018

Share Market Sri Lanka

First Capital’s Nisansala Kuruppumudali 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.