Tag Archives: Sri Lanka

Lets Talk Delivery vs Payment (DVP)

Delivery vs Payment (DVP) System is an important change to the Sri Lankan Equity Market and will uplift the CSE to be on-par with regional Markets and also, elevate Sri Lanka to an Emerging Market status.
DVP is an efficient system that will not impact investors’ credit, day trading, and cost of trading, settlement will still be on T+3.
Additionally, this globally accepted practice will minimize settlement risk and strengthen the overall credibility and integrity of the CSE, making the Sri Lankan Equity market attractive to Foreign Investors.
The change will mainly be between the Stockbroker Backoffice system and the CSE and, will hopefully be implemented by end of July 2021.
Watch Jaliya Wijeratne CEO of First Capital Equities and President Colombo Stock Brokers Association together with officials from the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange answer questions sent by the investor community.
If you have any questions or concerns regarding the implementation of DVP, please email equities@firstcapital.lk

Potential of Corporate Debt Capital – Sri Lanka Investment Forum 2021

Sri Lanka Investment Forum Livestream, in which our Director, CEO, Dilshan Wirasekara moderated a discussion on the Potential of Corporate Debt Capital with Senaka Kakiriwaragodage – Director, Chief Executive Officer for NDB Capital Holdings Limited and Vishnu Balachandran – Executive Vice President for CAL.

View the session: https://m.youtube.com/watch?v=xmQCT4nyVjQ

 

TRADE THE RIGHT WAY – Online Trading

First Capital is home to one of the largest financial research capabilities of its kind.

When you are trading from home, make sure to choose First Capital as your stockbroker, so that you have access to plenty of insights and experts who’ll share with you the trends and analytics to make the right trading decisions in a snap of time.

Call us on +94112639888 or email info@firstcapital.lk and we will have our team reach out to you with more information.

First Capital Money Market Fund – Fastest to Reach LKR 20bn in Assets Under Management

The First Capital Money Market Fund has been the fastest fund in its category (Open-Ended Money Market Fund) to surpassed LKR 20 billion in Assets Under Management. The fund is managed by First Capital Asset Management Limited the wealth management arm and subsidiary of First Capital Holdings PLC (the Group).

The Fund is the best performing Unit Trust in its category, delivering a return of 11.98%, the highest Compounded Annual Growth Rate (CAGR) for the past 5 years, as of February 2021. The fund is licensed and regulated by the Securities and Exchange Commission of Sri Lanka with Bank of Ceylon acting as the Trustee.

“The fund is used as a de facto savings account yielding a higher rate compared to a one year FD ceiling rate of a Licensed Finance Company and over 250 basis points above a typical savings account,” said Kavin Karunamoorthy, AGM – Asset Management, First Capital Asset Management Limited.  “Leveraging on market opportunities, interest rate fluctuations and our industry expertise in fixed income securities we have been able to compete with the Bank based Savings segment with our Money Market Fund, offering clients an alternative investment product that offer better interest rates, flexibility to conveniently withdraw funds, and peace of mind,” concluded Karunamoorthy.

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

 

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Caption – In Photo Kavin Karunamoorthy, AGM – Asset Management, First Capital Asset Management Limited

Mid-year Outlook – 3rd Research Conference

First Capital presents “Mid-year Outlook – 3rd Research Conference” a follow-up to the hugely successful “Investment Strategy 2020 – 2nd Research Conference” held in February 2020, at the Oak Room, Cinnamon Grand.

The event is geared to provide participants of the investment community, an overview of our expectations on the economic front mainly on interest rates, AWPLR, exchange rate, bond expectations, GDP forecast etc.

Mid-year Outlook 2020 webinar will be held on Tuesday, 22nd September 2020 at 3.00 pm.

Presenters, Dimantha Mathew and Atchuthan Srirangan from our Research Team will take you through a recap of recommendations of Jan 2020 and post covid-19 revisions, in addition to discussing “Why W-Shaped Recovery?”.

Register today by clicking https://tiikm.zoom.us/webinar/register/WN_J5980arwT5GU3R4yJIPwLA

New Location – Negombo Branch

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Monetary Policy Review – Monthly Economic Watch – May 2017

Policy rates unchanged
Private sector credit growth decelerated gradually to 21.0% in February 2017 and 20.4% in March 2017. The Earlier tightening of monetary policy by central bank and resultant increase in interest rates impacted the credit growth.
Combined impact of the decline in export earning and increased expenditure on imports as a result of the drought conditions expanded Trade deficit to USD 1.7Bn till February 2017.
Gross official reserves dipped to USD 5.1Bn by end April 2017 from USD 6.0Bn by end 2016. Both the government securities market and the Colombo Stock Exchange experienced foreign inflows in recent months.

Accordingly policy rates were increased,

  • Standing Deposit Facility Rate – 7.25%
  • Standing Lending Facility Rate – 8.75%
  • Statutory Reserve Ratio (SRR) – 7.50%
Read the full report –

https://www.firstcapital.lk/storage/2015/06/Monthly-Economic-Watch-May-2017.pdf

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.

Changes to the Board of Directors of Dunamis Capital PLC and its listed subsidiaries First Capital Holdings PLC and Kelsey Developments PLC

Colombo, 02nd May 2017 – The Executive Chairperson of Dunamis Capital PLC and its listed subsidiaries First Capital Holdings PLC and Kelsey Developments PLC, Mrs. Manjula Mathews has retired from her post with effect 30th April 2017.

Mrs. Mathews, a Fellow Member of the Chartered Institute of Management Accountants (UK) and an Alumnus of the University of Cambridge (UK), assumed duties as the Group’s Executive Chairperson in October 2014. Prior to this she served as Group Managing Director from 2007-2014. Her decision to step down from her leadership role was in line with plans made a considerable while ago.

Mrs. Mathews is succeeded as Chairman of Dunamis Capital PLC and Kelsey Developments PLC by Mr. Eardley Perera, who has been an Independent Non-Executive Director of the company since 2012. Mr. Perera a Chartered Marketer, is a Graduate of the Chartered Institute of Marketing (UK), with over 40 years of experience in management. He is also a member on the Board of Study of the Postgraduate Institute of Management, University of Sri Jayewardenepura (PIM) and is actively engaged in management education and consultancy.

Mr Eardley Perera

The role Chairman of First Capital Holdings PLC is assumed by Mr. Nishan Fernando, who has been an Independent Non-Executive Director of the company since 2012. He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka, an Associate Member of the Chartered Institute of Management Accountants (UK) and holds an MBA from the Postgraduate Institute of Management of the University of Sri Jayewardenepura. Mr. Fernando is a past president of the Institute of Chartered Accountants of Sri Lanka and was a Board Member of the Securities and Exchange Commission of Sri Lanka.

Mr. Nishan Fernando

Mr. Eardley Perera and Mr. Nishan Fernando are respected business professionals with impressive track records. Their appointments further increase the independence and transparency of the Board of both Companies.

The Board of Directors has appointed Mr. Dilshan Wirasekara, incumbent Chief Executive Officer of First Capital Holdings PLC as Executive Director of First Capital Holdings PLC with effect from 1st May 2017.  He is an alumnus of INSEAD Business School, with over 20 years of experience in financial services.

Sri Lankan shares fall for third straight session; John Keells down

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

Sri Lankan shares fell for a third straight session on Thursday, posting their lowest close in a month, dragged down by diversified stocks such as John Keells Holdings Plc as investor sentiment continued to remain low on concerns about rising interest rates.

The Colombo stock index ended down 0.1 percent at 6,088.80, its lowest since Feb. 6. It shed 0.6 percent last week in its second straight weekly decline.

Foreign investors were net buyers for the seventh straight session on Thursday, purchasing shares worth 63.6 million rupees ($420,495.87), and extending the year-to-date net foreign inflow to 1.95 billion rupees worth of equities.

Turnover was 875.6 million rupees, more than this year’s daily average turnover of 689.7 million rupees.

“The market is mainly down because of John Keells. It is slowly coming down with rising rates and economic uncertainty,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“Foreigners seem to be the only buyers at the moment.”

Traders said there were concerns after the International Monetary Fund urged Sri Lanka’s central bank to be ready to tighten monetary policy if credit growth or inflation does not abate.

Shares of John Keells Holdings fell 1.06 percent while Commercial Bank of Ceylon Plc, the country’s biggest listed lender, declined 1.29 percent and Carson Cumberbatch Plc dropped 2.91 percent.

Sri Lanka Telecom Plc dropped 1.41 percent and Hatton National Bank Plc ended 1.16 percent weaker.

Yields on treasury bills have risen to a more than four-year high since October, while the central bank has kept key policy rates on hold.

($1 = 151.2500 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)