Tag Archives: GSP+ Sri Lanka

Sri Lankan shares end at 2-wk high on proposed EU trade concession

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Sri Lankan stocks ended at their highest level in two weeks on Friday, led by beverage and manufacturing shares, as sentiment improved after a European Union executive proposed that the bloc reinstates a trade concession to Sri Lanka.

The European Commission on Wednesday said in a statement that it has proposed increased market access or Generalised Scheme of Preferences Plus (GSP+) for Sri Lanka as a reform incentive. Markets were closed on Thursday on account of a religious holiday.

The Colombo stock index ended 0.54 percent firmer at 6,217.72, its highest close since Dec. 30.

“The regain of GSP plus boosted the market. Investors were positive over the news, but we wont think it will last long because of the rising market interest rates,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

The 6-7 percent concession earlier offered by the GSP Plus had brought substantial benefits to the garment industry, Sri Lanka’s second-biggest foreign exchange earner after remittances.

Sri Lanka lost the EU concession in 2010 after then-president Mahinda Rajapaksa rejected demands from the international community to address human rights abuses allegedly committed during a 2009 offensive to crush a Tamil insurgency.

The day’s turnover stood at 519.9 million rupees ($3.47 million).

Foreign investors were net buyers of 2.6 million rupees worth of equities on Friday, but they have been net sellers of 1.7 billion rupees worth of shares so far this year.

Shares in Sri Lanka Telecom Plc rose 2 percent while Carson Cumberbatch Plc rose 1.8 percent.

($1 = 149.6500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

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.

Sri Lankan shares end marginally lower; T-bill yields hit 4-mth high

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Sri Lankan shares erased early gains to end marginally lower on Tuesday as yields on short-term government securities rose in a weekly auction amid uncertainty over government’s monetary and budget policies.

Yields on treasury bill auctions rose 9-19 basis points at a weekly auction on Tuesday to its four-month high, rising for the second straight session after the central bank governor signalled reduced intervention to defend the currency.

The Colombo stock index ended 0.05 percent down at 6,152.59, slightly above its lowest closing since April 4, hit on Thursday. Last week, the index fell 0.64 percent and was down 9.7 percent for 2016, its second straight annual decline.

The day’s turnover was at 344.5 million rupees.

“Interest in the market was very low as the current uncertainty is keeping investors away from equities,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“There was no huge selling pressure. Because of rising market interest rates, new buyers won’t be coming in while the existing investors will hold on.”

Foreign investors bought a net 18.5 million rupees ($123,333) worth of equities on Tuesday. However, foreign investors have been net sellers to the tune of 798.5 million rupees so far this year.

They were net buyers for a third straight session on Tuesday, after offloading shares for five sessions through Thursday.

Shares in biggest listed lender, Commercial Bank of Ceylon Plc, fell 1.34 percent while DFCC Bank Plc fell 1.90 percent and Teejay Lanka Plc fell 3.11 percent.

Conglomerate John Keells Holdings Plc fell 0.64 percent.

($1 = 150.0000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

INSIDE SRI LANKA: First Capital Sees Volatile Rates During 1H

Wire: Bloomberg First Word (BFW) Date: Jan 10 2017 8:40:25

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By Anusha Ondaatjie
(Bloomberg) — “Dangerously low” foreign reserves around $6b, foreign debt payments of over $4.7b, along with maturing rupee bonds and Sri Lanka Development Bonds may lead to volatile rate conditions, says Dimantha Mathew, head of research at First Capital.

* LKR477b of rupee bond mature during Jan–Jul 2017, $1.8b Sri Lanka Development Bond mature from Jan-Aug 2017, he wrote in e-mail Monday
* Rupee little changed at 149.90/dollar; USD/LKR’s MACD, signal line both above zero
* Yield on 11% govt bonds due August 2021 rose 1bp to 12.1% Jan. 9, data compiled by Bloomberg show, after government sold LKR55b of treasury bonds
* Central bank plans to auction LKR24b of treasury bills Tuesday
To contact the reporter on this story:
Anusha Ondaatjie in Colombo at anushao@bloomberg.net
To contact the editor responsible for this story:
Tan Hwee Ann at hatan@bloomberg.net

 

INSIDE SRI LANKA: First Capital Sees LKR Weakening Through 2017

Wire: Bloomberg First Word (BFW) Date: Dec 28 2016 9:32:12

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By Anusha Ondaatjie
(Bloomberg) — Reduced political, economic uncertainty and an external environment supportive of inflows are factors required to amend expected weakness, Dimantha Mathew, head of research at First Capital, writes in report.

* Says foreign reserves dangerously low
* Rupee down 0.1% to 149.65/dollar; USD/LKR’s MACD above zero and signal line
* Yield on 10.75% govt bonds due March 2021 fell 7bps to 12.08% on Dec. 27, data compiled by Bloomberg show, ahead of Wednesday’s govt sale of 11.5b rupees of treasury bills
* Sri Lankan interest rates to be volatile “within 150bps-200bps strip” over Jan.-July 2017: First Capital
* Recommends investing in shorter tenors of debt to counter risk in the system and prevent capital erosion

To contact the reporter on this story:
Anusha Ondaatjie in Colombo at anushao@bloomberg.net
To contact the editors responsible for this story:
Tan Hwee Ann at hatan@bloomberg.net Shikhar Balwani