Tag Archives: government securities sri lanka

FIRST CAPITAL POSTS PAT OF LKR 136MN FOR THE FIRST QUARTER OF 2021/22

Colombo 16th August 2021:  First Capital Holdings PLC (the Group), a member of the Janashakthi Group recorded a Profit after Tax of LKR 136Mn for the first quarter of 2021 (1st Quarter of 2021/22) compared to LKR 1.46Bn in the corresponding period of the previous year. The results are attributed to lower contribution of trading income of the Group’s Primary Dealer division, whereas the substantial easing of monetary policy measures was experienced during the corresponding period of the previous year.

The Group’s Primary Dealer arm reported a Profit after Tax of LKR 54Mn for the quarter ended 30th June 2021 (1st Quarter of 20/21– LKR 1.36Bn). The results include net interest income of LKR 129Mn and a trading loss on sale of government securities amounting to LKR 24Mn (1st Quarter of 20/21– Net interest income of LKR 163Mn and a trading gain of LKR 1.62Bn).

The Corporate Finance division recorded a Profit after Tax of LKR 35Mn for the quarter ended 30th June 2021 (1st Quarter of 20/21 – LKR 188Mn). The results include fee income on structuring and placement of corporate debt securities of LKR 16Mn and trading gain on sale of corporate debt/equity securities of LKR 36Mn.

The Wealth Management division showed a growth in its fee-based income and reported a Profit after Tax of LKR 22Mn for the quarter ended 30th June 2021 (1st Quarter of 20/21– LKR 15Mn). The assets under management of the division stood at Rs. 45.6Bn as of 30th June 2021 (1st Quarter of 20/21– Rs. 27.9Bn).

Furthermore, the Group’s Stock Brokering division showed a strong performance recording a Profit after Tax of LKR 24Mn for the quarter ended 30th June 2021 (1st Quarter of 20/21– LKR 5Mn).

Rated [SL]A with a Stable outlook by ICRA Lanka Ltd, First Capital maintains its strong financial position with a total capital base of LKR 5Bn as of 30th June 2021.

-End-

About First Capital

First Capital is a member of the Janashakthi Group focused on delivering ‘Performance First’ through its operations as primary dealer, corporate finance advisory, wealth management and stock brokering.

With over three decades of expertise in providing capital market solutions, First Capital Holdings PLC is the only listed full-service investment institution in Sri Lanka. First Capital Holdings PLC is rated [SL]A with Stable outlook by ICRA Lanka Ltd.

The Board of Directors of First Capital Holdings PLC comprises of Nishan Fernando (Chairman), Dinesh Schaffter (Managing Director), Dilshan Wirasekara (Director / Chief Executive Officer), Prakash Schaffter, Ramesh Schaffter, Eardley Perera, Minette Perera, Chandana de Silva and Nishan de Mel.

First Capital Partners with Habitat for Humanity Sri Lanka to Build Homes and Transform Communities

First Capital Holdings PLC launches a three-year CSR programme by partnering with Habitat for Humanity Sri Lanka to build homes for families in need. Through this partnership, First Capital will pledge LKR 15 million to implement the ‘First Capital Housing Project’ in the Galle District; providing deserving low-income families with safe and stable homes.

Caption – The First Capital Housing Project was launched through an MOU signing ceremony held virtually between First Capital Holdings PLC and Habitat for Humanity Sri Lanka.

First Capital, a member of the Janashakthi Group, provides capital market solutions, through its operations as a primary dealer, stockbroker, corporate advisory, debt structuring, and wealth management, delivering on its brand promise ‘Performance First’.

Habitat for Humanity Sri Lanka, an international housing and shelter non-profit is a member of the Habitat for Humanity International network and has been in operation in Sri Lanka for over 27 years. Having implemented numerous large-scale housing projects such as the Indian Housing Project and the Homes, not Houses Project funded by the European Union, Habitat Sri Lanka has assisted more than 27,000+ families across the country to build homes and improve their shelter conditions.

Moving beyond the typical CSR initiative, the First Capital Housing Project will focus on constructing homes that are not only durable and safe, but also environmentally sustainable. Promoting eco-friendly and climate-appropriate construction practices, Habitat for Humanity Sri Lanka will construct the homes of the First Capital Housing Project using Compressed Stabilized Engineered Blocks (CSEB).

Experts claim earth-based construction materials such as CSEB, surpass conventional construction methods as they are more energy-efficient due its low carbon footprint and use of locally sourced materials, providing an alternative to mining river sand. These earth-based blocks also have the ability to absorb atmospheric moisture allowing the walls to be much cooler and more thermally efficient when compared with conventional brick and mortar homes. Habitat for Humanity Sri Lanka has currently constructed nearly 1,000 homes using earth-based construction materials for resettled families in the North and East of Sri Lanka, funded by the European Union.

Commenting on the significance of this new partnership with Habitat for Humanity Sri Lanka, First Capital Holdings PLC Director / CEO Dilshan Wirasekara said, “As a group, we have taken the route of community building as an extension to our long-standing legacy and reputation of contributing to nation-building initiatives. We are delighted to partner with Habitat for Humanity Sri Lanka, as we believe this partnership holds strong synergies with our corporate values and brand promise. The three-year collaboration enables us to witness far-reaching impacts of this initiative considering the long-term benefits of supporting low-income families with safe housing.”

Echoing Wirasekara’s sentiments, Habitat for Humanity Sri Lanka National Director, Yu Hwa Li said, “We are grateful to First Capital Holdings for its commitment to building homes and transforming communities through the First Capital Housing Project. Habitat Sri Lanka has constructed affordable homes for more than 110,000 individuals across the country. These efforts have been possible through the generous donations we have received from institutional and corporate donors like First Capital. We look forward to enriching the lives of the low-income families who will benefit from this project by providing them with decent, stable, and safe places to call home.”

Caption –

The First Capital Housing Project was launched through an MOU signing ceremony held virtually between First Capital Holdings PLC and Habitat for Humanity Sri Lanka.

Pictured Left to Right:

Dilshan Wirasekara – Director/CEO, First Capital Holdings PLC; Yu Hwa Li – National Director, Habitat for Humanity Sri Lanka; Melissa Jayasuriya – Senior Manager, Corporate Relations and Resource Development, Habitat for Humanity Sri Lanka, and Nisansala Munasinghe – Senior Manager, Branding and Marketing Services, First Capital Holdings PLC.

PLATINUM BOND – Aug 2020

August 2020 – Platinum Bond – A medium to long-term Repurchasing (Repo) investment with a guaranteed return, backed by Government Securities.

  • Period 5 Years – Annual Interest 7%
  • Period 10 Years – Annual Interest 7.5%

Liquidity on your investment with 90% reverse-repo facility. Minimum investment Rs. 1,000,000.00

Conditions apply

In May of 2014 First  Capital Treasuries, was the first primary dealer to offer repo investment option beyond one year backed by Government securities with maturity beyond one year.

The First Capital Treasuries Platinum Bond will offer annual interest of 7%, and 7.5% respectively on maturities of five and ten years on a minimum investment of Rs. 1 million.

The investment is backed by Sri Lanka Government securities (Treasury bills/bonds), where the respective collateral will be logged in a Central Depositary System (CDS) account opened under the name of the investor.

Premature withdrawals and loan facilities are also available with this product in order to facilitate any urgent cash requirements of the investor, the company said.

For details : Tel No: +94 11 2 639 882, +94 11 2 639 898 | Email: anushi@firstcapital.lk | Web: www.firstcapital.lk

 

First Capital Treasuries PLC, is a primary dealer regulated by the Central Bank of Sri Lanka.

The Company is a subsidiary of First Capital Holdings PLC an investment bank with an impressive history of over 35 years, and is the only listed investment bank in Sri Lanka,

ICRA Lanka reaffirms the ratings of First Capital Treasuries PLC

ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has reaffirmed the issuer rating of [SL]A- (pronounced SL A minus) with stable outlook for First Capital Treasuries PLC (FCT or “the Company”). ICRA Lanka has also reaffirmed the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the LKR 500Mn Subordinated Unsecured Redeemable Debenture programme of the company. Further, ICRA Lanka has assigned the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the proposed LKR 750Mn Subordinated Unsecured Redeemable Debenture programme of FCT.

Click for Detailed Report

Exposure in low-yield Bonds must be reduced

CEYLON TODAY | 05.08.2019

Stock Market in Sri Lanka

By First Capital Research

Maintain in Bond Yield bands: In our last fixed income report on 24 June 2019, we upgraded our expectation in the First Capital Economic Health Score, primarily supported by the successful issuance of US$ 2.0 billion sovereign Bond and possible further issue of additional Bonds amounting to US$ 2.5 billion to manage debt in 2020.

A surge in foreign currency reserves and stability in all other indicators may significantly strengthen macro economic conditions and reduce volatility of interest rates. Accordingly, we maintain our yield curve expectations in the Bond market for the next couple of months.

One-year yield at 3½-year low breaks FCR lower bands: Dips in the one-year yield have broken First Capital Research’s lower band by touching 8.38 per cent, a 3½-year low.

Yields dipped during the last few weeks, primarily led by Sri Lanka’s successful International Sovereign Bond (ISB) issuance of US$ 2.0 billion, offering tenors of five- and 10-year.

Following the issuance, foreign reserves exhibited a significant improvement, reaching US$ 8.8 billion as at end of June 2019. We expect reserves to be maintained above US$ 7.5 billion during August to December 2019.

Reduce exposure in low-yield Bonds: We recommend investors reduce overall portfolio exposure to 45 per cent from 60 per cent.

We recommend to cut 2021 and 2022 maturities of the carrying portfolio amidst the significant reduction in yields, while we also recommend an increase in 2023 and 2024 maturities in the trading portfolio amidst the slight rise in yields.

Additionally, we recommend the carrying portfolio be decreased from 50 per cent to 30 per cent, and the trading portfolio be increased to 15 per cent from 10 per cent.

Hiruni Perera, Senior Research Analyst, at First Capital on the bond market performance – 27.06.2019

Government Securities Sri Lanka

Hiruni Perera, Senior Research Analyst, at First Capital on the bond and equity market forecast – 27.06.2019

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.

1-Yr T-bill rallies on its downward spiral

CEYLON TODAY | 24.06.2019

Treasury Bills and Bonds in Sri Lanka

By First Capital Research
Weekly Yield movement & Volume

The secondary market yield curve remained relatively unchanged, however, closing the week with a slight downward shift on the back of buying interest that stemmed mainly from local counterparties. On the back of continued buying interest, the short end of the curve dipped by 5-10bps, while the belly-end of the curve dipped by 10-20bps and the long end of the curve fell by 11-12bps.
At the primary bill auction, the three-month and six-month were accepted at a weighted average of 8.38 per cent and 8.60 per cent respectively, while the one-year was accepted at a weighted average of 8.86 per cent. The total offered amount of Rs 19.0 billion was fully subscribed with a bid-to-offer ratio of 3.22:1, recording a four-week high. In the forex market, the rupee appreciated marginally to close at
Rs 176.68 on 19 June, relative to
Rs 176.71 at the beginning of the week.

 
Liquidity and CBSL
Holdings

Market liquidity remained positive throughout the week to close at Rs 24.3 billion, while CBSL continued to drain out liquidity by way of term repo auctions during the week. CBSL holdings marginally declined to Rs 129.1 billion, relative to Rs 130.1 billion held at the beginning of the week.

 
Foreign Holdings
Foreign holdings in Government securities increased by Rs 311.0 million to record Rs 143.0 billion, while foreign holding percentage for the week was maintained at 2.6 per cent.

 
Maturities for next Week
The Government Security Market has a Treasury Bill maturity amounting to Rs 16.5 billion that needs to be settled during the week ending 28 June 2019.

 
Daily Summary
Friday (14.06.19): The secondary market yield curve remained mostly unchanged while overall market witnessed thin volumes. Limited activity was seen on selected maturities, with short end of the curve [01.05.20], [15.10.21] and [15.12.21] trading at 8.80 per cent, 9.80 per cent and 9.82 per cent-9.79 per cent levels respectively, while mid tenure maturities, [01.10.22], [15.03.23] and [15.03.24] traded at 10.00 per cent, 10.20 per cent and 10.33 per cent. In addition, on the long end of the curve, [01.08.26] traded at 10.50 per cent, [15.01.27] at 10.58-10.55 per cent levels, [15.06.27] at 10.64 per cent and [01.05.29] at 10.68 per cent.

 
Monday (17.06.19): The secondary market witnessed moderate volumes with limited activity, resulting in the overall yield curve remaining unchanged. Buying was mainly centred on short-tenor [15.10.21] and [15.12.21], resulting in yields dipping to day’s lows of 9.75 per cent and 9.76 per cent respectively. Furthermore, [01.10.22] traded at 10.00 per cent, while [15.06.27] changed hands in the range of 10.65-10.63 per cent. In the long end of the curve, [01.05.29] traded at 10.68 per cent.

 
Tuesday (18.06.19): The secondary market yield curve remained relatively unchanged with greater number of market participants remaining on the sideline ahead of the primary T-bill auction. Buying interest with limited activity was seen primarily centred on the following maturities, short-tenor [01.05.20], [15.10.21] and [15.12.21] traded at day’s low of 8.75 per cent, 9.74 per cent and 9.75 per cent respectively. Mid- to long-tenor maturities traded at their intraday lows with [15.03.22] trading at 9.92 per cent, [15.03.23] at 10.14 per cent, [15.03.24] at 10.26 per cent; in addition, [15.01.27] traded at 10.57 per cent, while overall market witnessed thin volumes.

 
Wednesday (19.06.19): The secondary market witnessed moderate activity levels and volumes, while the yield curve witnessed a slight downward shift with continued buying interest.

 

On the shorter end of the curve, [01.05.21] and [15.10.21] maturities saw yields dipping to day’s lows of 9.50 per cent and 9.63 per cent, while [15.03.22] traded at 9.90 per cent. Mid-tenor [15.03.23] and [15.03.24] traded at 10.02 per cent and 10.17 per cent. Furthermore, [15.01.27] traded at intra-day low of 10.49 per cent. Meanwhile, at the primary bill auction, the six-month and one-year bill declined to 8.60 per cent and 8.86 per cent respectively, while the three-month bill remained steady.

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 12.06.2019

Treasury Bills and Bonds in Sri Lanka

Dimantha Mathew, Head of Research, at First Capital on the bond and equity market performance – 12.06.2019

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.

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.

Atchuthan Srirangan, Assistant Manager – Research, at First Capital on the Bond and equity Market performance – 11.06.2019

Treasury Bills and Bonds in Sri Lanka

Atchuthan Srirangan, Assistant Manager – Research, at First Capital on the bond and equity market performance – 11.06.2019

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research delivers a 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.

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.