Tag Archives: share market investments sri lanka

First Capital Fixed Income Recommendation – July 2017

  • Economic Health Score

  • Recommendation

  • Recap of Dec 2016 Economic Wrap

Read the full report – First Capital Fixed Income Recommendation July 2017

 

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.

Sri Lankan shares fall to 1-mth low; Chevron Lubricants leads

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

JULY 19, 2017

COLOMBO, July 19 (Reuters) – Sri Lankan shares fell on Wednesday to a one-month closing low, marking their sixth losing session in seven, led by the decline in Chevron Lubricants Lanka after it reported a drop in the June-quarter earnings.

Chevron Lubricants stock lost 6.3 percent on Wednesday after the company reported a 34 percent fall in its second-quarter profit.

The Colombo stock index ended 0.59 percent lower at 6,695.23, its lowest since June 16, marking a third straight losing session.

“There was selling pressure after the Chevron Lubricants’ earnings. Some other blue chips also were under selling pressure,” said Dimantha Mathew, head of research, First Capital Holdings.

However, foreign investors continued to buy stocks. They were net buyers of shares worth 113.5 million rupees ($738,932)on Tuesday, extending the year-to-date net foreign inflow to 24.4 billion rupees worth of equities.

Turnover was 781.6 million rupees, less than this year’s daily average of 912.8 million rupees.

Shares of conglomerate Hemas Holdings fell 3.6 percent, while telecom company Dialog Axiata fell 1.7 percent. ($1 = 153.6000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Amrutha Gayathri)

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.<

Monthly Economic Watch – July 2017

Monetary Policy Review

Policy rates unchanged

  • Private sector credit growth decelerated gradually to 20.4% in March 2017 and 20.0% in April 2017. The Earlier tightening of monetary policy by central bank and resultant increase in interest rates impacted the credit growth.
  • Despite improved export performance, a sustained increase in import expenditure resulted in a trade deficit of 3.3Bn till April 2017.
  • Gross official reserves improved to above USD 7.0 Bn by mid-June from 5.1Bn by end April 2017. Both the government securities market and the Colombo Stock Exchange experienced foreign inflows in recent months.
  • Accordingly policy rates were decided to be maintained at,
    • Standing Deposit Facility Rate – 7.25%
    • Standing Lending Facility Rate – 8.75%
    • Statutory Reserve Ratio (SRR) – 7.50%

Read the full report here: Monthly Economic Watch – July 2017

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.

Sri Lankan shares slip from 18-month high on profit-taking

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

COLOMBO, July 11 (Reuters)

Sri Lankan stocks edged down on Tuesday from its 18-month closing high hit in the previous session as investors booked profits in blue chips, while concerns over a proposed tax bill weighed on overall sentiment.

The Colombo stock index ended 0.15 percent weaker at 6,748.15, slipping from its highest close since Jan 7, 2016 hit on Monday.

“The index is down on profit-taking, but the good thing is that retail participation has increased,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“There was less foreign participation today.”

Foreign investors net bought 42.3 million rupees ($275,391) worth of shares on Tuesday, extending their year-to-date net inflows to 22.9 billion rupees worth of equities.

Analysts said new foreign investors have been buying Sri Lankan shares since the Pakistani bourse was upgraded to emerging market status from frontier market.

The day’s turnover was 559.7 million rupees, less than this year’s daily average of 912.7 million rupees.

In May, index provider MSCI announced changes to its indexes as a result of its semi-annual market reclassification, including reclassifying Pakistan as an emerging market from frontier market, and the addition of 57 securities and removal of 28 securities from its All-Country World Index .

Brokers said local investors have been waiting for some clarity on a proposed inland revenue legislation, which a few companies expect will result in higher costs of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Ceylon Tea Services Plc dived 13.4 percent, Melstacorp Ltd ended 1.8 percent weaker, while conglomerate John Keells Holdings Plc closed 0.2 percent lower.

$1 = 153.6000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips

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.<

Sri Lankan shares hit one-week closing high on foreign buying

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

Fri Jul 7, 2017

Sri Lankan stocks on Friday ended at their highest in a week, underpinned by manufacturing and diversified shares while offshore investors continued to be net buyers.

Local investors, however, cautiously acquired shares amid concerns over a proposed tax bill.

Foreign investors net bought 179.9 million rupees ($1.17 million) worth of shares on Friday, extending their year-to-date net inflows to 22.7 billion rupees worth of equities.

The Colombo stock index ended 0.34 percent higher at 6,737.50, its highest close since June 30. The bourse lost 0.14 percent for the week.

“There were a lot of retail activities, and with that the mid-cap counters got activated other than the blue chips,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“Foreign segment remained active and it added on to the turnover.”

Analysts said new foreign investors are buying Sri Lankan shares since the Pakistan bourse was upgraded to emerging market from frontier market.

In May, index provider MSCI announced changes to its indexes as a result of its semi-annual market reclassification, including reclassifying Pakistan as an emerging market from frontier market status, and the addition of 57 securities and removal of 28 securities from its All-Country World Index .

The day’s turnover was 937.4 million rupees, more than this year’s daily average of 919.4 million rupees.

Brokers said local investors have been waiting for some clarity on the proposed inland revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Richard Pieris Plc ended 9.6 percent higher, while conglomerate John Keells Holdings Plc closed 0.6 percent higher.

($1 = 153.5500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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.<

Sri Lankan shares fall on profit-taking

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

Wed Jul 5, 2017

Sri Lankan stocks fell to a near one-week closing low on Wednesday as investors booked profits in diversified and telecom shares while concerns over a proposed tax bill weighed on overall investor sentiment.

The Colombo stock index ended 0.36 percent down at 6,709.76, its lowest close since June 29. The bourse hit 18-month high and climbed 0.47 percent last week.

However, foreign investors net bought 56.1 million rupees ($365,353.31) worth of shares on Wednesday, extending their year-to-date net inflows to 22.5 billion rupees worth of equities.

Gross foreign buying accounted for around 77 percent of the day’s turnover of 854.7 million rupees, which was less than this year’s daily average of 922.4 million rupees.

“Foreigners are running the show and taking bulk of the turnover. The local participation is low due to uncertainty over taxes,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Brokers said local investors have been waiting for some clarity on the proposed inland revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Carson Cumberbatch Plc lost 7.7 percent while Dialog Axiata Plc fell 1.7 percent, Conglomerate John Keells Holdings Plc fell 0.5 percent and Sri Lanka Telecom Plc ended 1.9 percent weaker. ($1 = 153.5500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

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.<

Sri Lankan shares slip from 18-month high; John Keells drags

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

Mon Jul 3, 2017

Sri Lankan stocks ended slightly weaker on Monday, down from an 18-month high hit in the previous session, as investors sold blue chip shares such as John Keells Holdings Plc, brokers said.

Analysts said concerns over a proposed tax bill weighed on overall investor sentiment. But foreign investors continued to snap up the island nation’s risky assets.

The Colombo stock index ended down 0.21 percent at 6,733.06, slipping from its highest close since Jan. 7, 2016, hit on Friday.

The bourse climbed 0.47 percent last week, and gained 1.09 percent in June.

Foreign investors, however, net bought 189.1 million rupees ($1.23 million) worth of shares on Monday, extending their year-to-date net inflow to 22.4 billion rupees worth of equities.

“A few selected big caps brought the market down, especially the selling in Keells,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“Local participation is still low, but foreign investors are seen to continue and drive up the volumes.”

Brokers said local investors have been waiting for some clarity on the proposed inland revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Turnover was 640.9 million rupees, less than this year’s daily average of 926.4 million rupees.

Shares of conglomerate John Keells ended 0.17 percent weaker, while Sri Lanka Telecom Plc closed down 1.87 percent.

($1 = 153.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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.<

Sri Lankan shares at 18-month high on foreign buying

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

Fri Jun 30, 2017

Sri Lankan shares closed slightly lower on Tuesday as banking shares fell, but foreign buying capped losses while local investors waited for more clarity on a new tax bill.

Sri Lankan stocks rose to an 18-month high on Friday led by blue-chips as foreign buying continued, brokers said.

Analysts said concerns over a proposed tax bill weighed on overall investor sentiment.

The Colombo stock index ended up 0.66 percent at 6,747.07, its highest close since Jan. 7. The bourse rose 0.47 percent during the week.

Foreign investors net bought 432.9 million rupees ($2.82 million) worth of shares on Friday, extending their year-to-date net inflow to 22.2 billion rupees worth of equities.

“Market is up with the continued foreign buying in big-cap shares,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Brokers said local investors have been waiting for some clarity on the proposed inland revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Turnover was 1.2 billion rupees, well below this year’s daily average of 928.8 million rupees.

Shares of Ceylon Tobacco Company Plc rose 3.07 percent, while Dialog Axiata Plc ended 3.45 percent higher and Hemas Holdings Plc rose 2.82 percent. ($1 = 153.4500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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.<

Sri Lankan shares end slightly higher on foreign buying; tax bill weighs

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

Thu Jun 29, 2017

Sri Lankan stocks edged higher on Thursday led by shares of diversified companies as foreign buying continued, while concerns over a proposed tax bill weighed on overall investor sentiment.

The Colombo stock index ended 0.08 percent firmer at 6,702.53, edging up from its lowest close since June 19 hit on Wednesday.

Foreign investors net bought 22.1 million rupees ($144,161.77) worth of shares, extending their year-to-date net inflow to 21.7 billion rupees worth of equities.

“The overall market is stagnating at the same levels as the investors are awaiting specially the local investors are awaiting clarity on the inland revenue act,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

It will take a few weeks for the uncertainty to settle, he added.

Brokers said local investors have been waiting for some clarity on the proposed inland revenue act, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Turnover was 539.3 million rupees, well below this year’s daily average of 926.5 million rupees.

Shares of C T Holdings Plc rose 5.96 percent, while Melstacorp Ltd gained 1.49 percent and Hemas Holdings Plc ended 0.61 percent higher. ($1 = 153.3000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

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.<

Sri Lankan stocks end marginally lower; foreign buying caps fall

FIRST CAPITAL’S JALIYA WIJERATNE SPEAKS TO REUTERS

Tue Jun 27, 2017

Sri Lankan shares closed slightly lower on Tuesday as banking shares fell, but foreign buying capped losses while local investors waited for more clarity on a new tax bill.

The Colombo stock index ended 0.18 percent weaker at 6,703.18, its lowest close since June 19. The bourse fell 0.05 percent last week.

Foreign investors net bought 395.4 million rupees worth of shares, extending their year-to-date net inflow to 21.5 billion rupees worth of equities.

“Foreign investors are buying select shares. But local investors are still waiting for some direction, especially on new inland revenue act,” said Jaliya Wijeratne, CEO, First Capital Equities (Pvt) Ltd.

In a disclosure to the bourse, Lanka Securities (Pvt) Limited said its client Ube Singapore Holdings Pte. Ltd bought 10.69 million shares in Tokyo Cement Company (Lanka) at 72 rupees each.

Subsequent to this transaction, the client has acquired 10 percent of the Tokyo Cement, it added. Shares in Tokyo Cement rose 5.7 percent.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Turnover was 1.7 billion rupees ($11.10 million), nearly two times this year’s daily average.

Shares of Hatton National Bank Plc fell 1.92 percent while Ceylon Theatres Plc lost 5.63 percent and Nestle Lanka Plc closed 1.18 percent lower.

The markets were closed on Monday for Id-Ul-Fitr or the Ramzan Festival Day. ($1 = 153.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

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.<