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Fixed Income Portfolio Recommendation: New Recommendation – 31st Jul 2017

  • Recommend to SELL all mid tenors (4y, 5y, 6y, 8y) as the securities fall sharply below our lower band of 11%.
  • We already remain on a SELL on all longer tenors (10y, 15y, 20y, 30y) securities as at 18th Jul 2017.
  • Portfolio exposure: REDUCE
  •  Capacity Utilization to be reduced to 60%

 We believe the bond market is ignoring the future risk beyond Dec 2017 where Government Borrowing Requirement again starts to increase while 4Q2017 may experience possible inflationary pressure due to supply side shortages from the floods

Read the full report here: Fixed Income Portfolio Recommendation


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 proving services to invest in Sri Lanka through fixed income securities such as investments 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.