Tag Archives: trust certificates sri lanka

Finance & Leasing Companies Show Sharp Growth in Assets in FY16

Sunday, May 07, 2017

The licensed finance companies (LFCs) and specialised leasing companies (SLCs) sector showed a sharp 26.4 per cent growth in its total assets to Rs. 853 billion at FY16 with improved assets quality reflected in the NPL ration. Analysts said that its growth of assets was largely contributed by the increase in borrowing by 29 per cent YoY and deposits by 17 per cent YoY.

Funds mobilised were largely utilised in granting loans and advances. Throughout FY16 this sector experienced a strong demand for credit on vehicle leasing and other secured loans.

“There was a steady growth in deposits as the sector continued to attract depositors due to relatively high deposit rates offered by LFCs compared to banks. Total deposits grew by 17.22 per cent to Rs. 490 billion in FY16. The deposit mobilisations mainly through fixed deposits accounting for 95 per cent of the total deposits whilst a slight increase was shown in the savings deposit base. The capital elements of the sector increased by 8.44 per cent to Rs. 131.5 billion at end FY16, mainly on account of internally generated profits made during the year,” Atchuthan Srirangan, Senior Research Analyst First Capital Equities told the Business Times.

LFCs and SLCs sector total assets expanded by 7.51 per cent to Rs. 1,158 billion in the first six months of FY17. The increased appetite for credit at the grass-root level of the economy enabled the finance sector to grow their business volumes and increase profitability, analysts say. Increase in assets was largely funded through borrowings, Mr. Srirangan said, adding that 42 per cent of the assets increase during the period was funded through borrowings. The sector borrowings increased by 10.94 to Rs. 416.5 billion in the 6MFY17. In contrast, the deposits grew by 4.8 billion to Rs. 512.7 billion in 6MFY17.

Analysts say that private sector credit growth is to slow down against 2015 and 2016 but remain moderate at 12 per cent-14 per cent while finance sector credit which has always grown at a faster rate and therefore is likely to remain at 16 per cent -18 per cent compared to 27 per cent growth in 2016.Given the monetary tightening measures and the currency depreciation vehicle leasing segment is likely to register a slowdown while loans and advances segment record the bulk of the growth. IMF forecast for private sector credit growth stands at 14 per cent – 15 per cent levels between 2017E-2020E.

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 2017.04.27

First Capital’s Atchuthan Srirangan with the market update – between 14.33 mins to 15.20 mins

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 Post 1-yr closing High on Continued Foreign Buying

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

Fri May 5, 2017

May 5 Sri Lankan shares rose to a one-year closing high on Friday, led by banking and diversified stocks, on continued foreign buying.

The Colombo stock index ended 0.58 percent stronger at 6,640.57, its highest close since May 2016. It added 0.5 percent for the week, its sixth straight weekly gain.

Foreign investors net bought shares worth 82.4 million rupees ($541,215), extending their year-to-date investment in equities to 16.61 billion rupees.

They bought a net 14.1 billion rupees in the last 30 sessions, and out of these, the bourse saw net foreign buying in 29.

“The market is up with continued foreign buying and active participation of local retail and high net-worth investors, which was lacking for some time,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Analysts said the market would continue to be bullish amid mild profit-taking.

The IMF said on Wednesday its executive board is expected to consider a request from Sri Lanka to conclude the second review of a $1.5 billion loan, which could help the island nation to receive the third disbursement.

Shares of Commercial Bank of Ceylon Plc rose 0.3 percent, Dialog Axiata Plc climbed 1.7 percent, C T Holdings Plc gained 2.6 percent and Ceylinco Insurance Plc ended 2.19 percent firmer.

Conglomerate John Keells Holdings Plc rose 0.49 percent and Hatton National Bank Plc ended 0.48 percent firmer.

Turnover stood at 767.5 million rupees, less than this year’s daily average of 899 million rupees.

($1 = 152.2500 Sri Lankan rupees)

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

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 shrs gain; IMF may consider loan review request

FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

Thu May 4, 2017

Sri Lankan shares ended firmer on Thursday, helped by foreign buying in blue chips, after the International Monetary Fund said it may consider the country’s request for a second loan review.

The Colombo stock index ended 0.59 percent stronger at 6,602.44, near its one-year closing high hit on Friday, boosted by foreign buying in heavyweights such as John Keells , up 2.1 percent, and Ceylon Tobacco Company, up 1.2 percent.

“With the renewed foreign interest, we can see retail investors are slowly returning to the market. Fundamentally sound stocks moved the market today,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

“The positive IMF news also helped boost the market sentiment.”

Analysts said the market will continue to be bullish with mild profit-taking.

Turnover stood at 1.08 billion rupees ($7.09 million), more than this year’s daily average of 901 million rupees.

Foreign investors net bought shares worth 62.2 million rupees, extending their year-to-date investment in equities to 16.52 billion rupees.

They bought a net 14 billion rupees worth of equities in the last 29 sessions.

($1 = 152.2500 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 Fall on Profit-taking in Large Caps

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

Wed May 3, 2017

Sri Lankan shares fell on Wednesday, retreating further from a near 11-month closing high hit on Friday, as investors booked profits in large caps such as Ceylon Tobacco Co Plc and conglomerate John Keells Holdings Plc.

The Colombo stock index ended down 0.67 percent at 6,563.85 with Ceylon Tobacco shedding 1.7 percent and John Keells declining 0.9 percent. Meanwhile, Selinsing Plc dropped 23.5 percent with 235 shares changing hands.

“After a long time, we saw significant profit-taking in some counters,” said Dimantha Mathew, head of research, First Capital Holdings PLC. “The positive sign is that foreign interest is still there.”

Analysts said the market will continue to be bullish amid some profit-taking.

Turnover was 608.04 million rupees ($4.00 million), less than this year’s daily average of 898.8 million rupees.

Foreign investors net bought shares worth 60.1 million rupees, extending the year-to-date net foreign buying to 16.46 billion rupees worth of equities.

They bought a net 14 billion rupees worth of equities in the last 28 sessions with the bourse seeing inflows in 27 sessions.

($1 = 152.1000 Sri Lankan rupees)

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

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 flat; foreign investors turn sellers

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

Tue May 2, 2017

Sri Lankan shares were largely unchanged in thin trading, near an 11-month high on Tuesday, as foreign investors turned net sellers for the first time in 26 sessions while blue chips saw profit-booking after a prolonged rise.

Foreign investors net sold shares worth 29.8 million rupees on Tuesday, but remained net buyers of equities to the tune of 16.4 billion rupees so far this year.

Meanwhile, blue chip shares such as John Keells Holdings Plc , down 0.37 percent, and Commercial Bank of Ceylon justify, down 0.62 percent, witnessed profit-booking.

The Colombo stock index ended 0.03 percent weaker at 6,608.16, slipping from its highest close since May 20 hit on Friday.

“Short-term profit-taking was there today,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

“The market will continue to be bullish, but will see some profit-taking. The good thing is that we are seeing local investors coming back into the market.”

Turnover stood at 471.5 million rupees ($3.10 million), nearly half of this year’s daily average of 902 million rupees. ($1 = 151.9000 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 end higher as foreign investors pick blue chips

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

Wed Apr 26, 2017

Sri Lankan shares closed higher on Wednesday after two straight sessions of losses as foreign investors actively bought into blue chips, with the net stock buys touching nearly 15 billion rupees so far in the year.

Foreign investors bought shares for a 24th straight session, buying a net 318.6 million rupees ($2.10 million) worth of stocks on Wednesday.

They have snapped up a net 12.4 billion rupees worth equities during the period and a net 14.9 billion rupees worth year-to-date.

The Colombo stock index ended 0.36 percent firmer at 6,516.26.

The index has climbed 9.1 percent in the 19 sessions through Wednesday, having risen for 16 sessions in that period.

It added 2.1 percent last week, marking its fourth week of gains.

“Foreigners are very active and buying aggressively, while local investors are cautiously waiting to buy,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

Turnover stood at 1.44 billion rupees, higher than this year’s daily average of 882 million rupees.

Market heavyweight John Keells Holdings gained 1.1 percent, while Ceylon Tobacco Company rose 0.6 percent.

($1 = 151.9000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lankan shares hit 6-mth closing high on foreign buying in Keells

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

Fri Apr 21, 2017

Sri Lankan shares gained on Friday to hit a more than six-month closing high on foreign buying in market heavyweight John Keells Holdings, helping boost the overall sentiment.

Foreign investors net bought equities worth 1.35 billion rupees ($8.88 million) on Friday, extending the week’s net foreign buying to 6.56 billion rupees.

Foreign investors have been net buyers for the last 21 sessions, acquiring equities worth a net 11.77 billion, taking the year-to-date net foreign inflow into equities to 14.27 billion rupees.

The Colombo stock index ended 0.5 percent firmer at 6,535.54, its highest close since Oct. 11. It has climbed 9.4 percent in the 16 sessions through Friday, having risen for 15 sessions in that period.

The index added 2.1 percent on the week, marking its fourth week of gains.

“Foreign investors see extremely attractive valuation in the blue chips and growing earnings. They also see some political stability and stabilisation of the economy,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“But local investors are still waiting for some kind of strong direction by the government. The bullish run will prevail in the near future with local investors also starting to buy into equities.”

Stockbrokers also said the market was also encouraged by comments made by President Maithripala Sirisena on making the government effective, as reported in the local media.

Turnover stood at 3.27 billion rupees ($21.51 million), more than three times of this year’s daily average of 877.8 million rupees.

John Keells Holdings, which accounted for 81 percent of the day’s turnover, jumped 2.2 percent, while top lender Commercial bank of Ceylon rose 1.7 percent.

($1 = 152.0000 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.

Sri Lanka foreign reserves fall to 7-year low in March

Published by LBO | Posted on

Apr 19, 2017 (LBO) – Sri Lanka’s external reserves have fallen to a 6.9 year low after country’s reserves dropped almost 9 percent to 5.12 billion US dollars in March 2017, a research note showed.

Central Bank has purchased 192.23 million dollars of foreign exchange from commercial banks at market rates in March while selling just 13 million dollars in the month.

Foreign currency reserves dipped 11 percent to 4.16 billion US dollars and reserves in Gold were 0.89 billion US dollars.

Central Bank’s Treasury bill holdings were up from 211.32 billion rupees in February to 233.32 billion rupees in March.

First Capital said in a research note that the sudden increase in the market liquidity towards the latter part of the month and renewed foreign and local buying interest resulted in yields dipping by 10-25bps specifically in the 2 year to 15 year bonds.

“Amidst the increasing activity, some selling pressure was observed during the last week of the month creating an overall net foreign outflow of 0.42 billion rupees in March 2017.”

“In spite of mid-long tenure yields dipping, a jump in the short tenure was observed.”

During the year up to 12 April 2017, Sri Lanka rupee has depreciated against the US dollar by 1.2 percent.

First Capital Holdings further highlighted that the money market continued to stay in deficit due to heavy foreign debt repayments.

reserves-march-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 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 rise on foreign buying; blue chips gain

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

Tue Apr 18, 2017

Sri Lankan shares rose on Tuesday as foreign investors bought blue chips, with the market seeing overseas fund inflows for 18 consecutive sessions.

Foreign investors net bought shares worth 172.8 million rupees on Tuesday. They have bought equities worth a net 5.4 billion rupees ($35.57 million) in 18 straight sessions, taking the year-to-date net foreign inflow into equities to 7.9 billion rupees.

The Colombo stock index ended 0.5 percent firmer at 6,382.37 after falling on Monday for the first time in 12 sessions on profit taking.

The index had climbed 7.2 percent over 11 sessions up to Wednesday. The market was closed for Sri Lanka’s traditional new year holidays on Thursday and Friday.

“Foreign buying is very strong at the moment which is a very good sign. Foreigners are bullish,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“We expect short-term profit taking, but the market will gain after some strong inflows from sovereign bond (as it will lend support to the rupee).”

Sri Lankan authorities are in the process of raising up to $1.5 billion through sovereign bonds in the near future.

Turnover stood at 836.1 million rupees, more than this year’s daily average of 775.6 million rupees.

Shares in top mobile phone operator Dialog Axiata gained 2.7 percent, while conglomerate John Keells Holdings Plc rose 1.1 percent.

($1 = 151.8000 Sri Lankan rupees) (Reporting by 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.