First Capital Research, releasing the third revision on its Investment Strategy 2020 for May recently (14), said that Sri Lanka’s economic outlook has further weakened due to the “failure” of the seven-week nationwide lockdown which is now being relaxed gradually.
It revised its Bond Yield Outlook with expectations for Q1 to Q3 adjusted downwards for one-year bonds by 150 bps and for five-year and 10-year bonds by 100 bps. It added that lacklustre Q2, Q3, and Central Bank of Sri Lanka intentions may push short-term rates down for a limited period.
First Capital’s outlook for Q4 2020 is bearish, maintaining its position that the yield curve may slide upwards by 50-100 bps.
It revised its Banking Rates Outlook saying that the Average Weighted Prime Lending Rate (AWPLR) may fall below 9.0% to c.8.5% amidst the lack of lending and may range between 8.5-9.0% towards Q4 2020. It has also downgraded its Exchange Rate target but forecasts broadly lesser depreciation up to end Q3 and a stronger dip for Q4 with a year-end target of Rs. 200 to the US dollar.
In terms of the Colombo Stock Exchange (CSE), First Capital has reversed its outlook to Negative, saying that a two-fold market risk has been created, namely risk due to the seven-week long market closure and the risk due to a further dip in earnings.
The All Share Price Index (ASPI) June 2020 target of 5,000 has been withdrawn by First Capital, saying that the ASPI may dip a further 15-20% to 3,750 on foreign selling and lower earnings. The December 2020 target has been downgraded to 4,750.Economic outlook weakens as lockdown fails: First Capital
19 May 2020
Economic outlook weakens as lockdown fails: First Capital
19 May 2020
First Capital Research, releasing the third revision on its Investment Strategy 2020 for May recently (14), said that Sri Lanka’s economic outlook has further weakened due to the “failure” of the seven-week nationwide lockdown which is now being relaxed gradually.
It revised its Bond Yield Outlook with expectations for Q1 to Q3 adjusted downwards for one-year bonds by 150 bps and for five-year and 10-year bonds by 100 bps. It added that lacklustre Q2, Q3, and Central Bank of Sri Lanka intentions may push short-term rates down for a limited period.
First Capital’s outlook for Q4 2020 is bearish, maintaining its position that the yield curve may slide upwards by 50-100 bps.
It revised its Banking Rates Outlook saying that the Average Weighted Prime Lending Rate (AWPLR) may fall below 9.0% to c.8.5% amidst the lack of lending and may range between 8.5-9.0% towards Q4 2020. It has also downgraded its Exchange Rate target but forecasts broadly lesser depreciation up to end Q3 and a stronger dip for Q4 with a year-end target of Rs. 200 to the US dollar.
In terms of the Colombo Stock Exchange (CSE), First Capital has reversed its outlook to Negative, saying that a two-fold market risk has been created, namely risk due to the seven-week long market closure and the risk due to a further dip in earnings.
The All Share Price Index (ASPI) June 2020 target of 5,000 has been withdrawn by First Capital, saying that the ASPI may dip a further 15-20% to 3,750 on foreign selling and lower earnings. The December 2020 target has been downgraded to 4,750.Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!