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First Capital navigates market volatility in first quarter of financial year 2026/27

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First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s capital markets landscape, navigated a challenging first quarter of financial year 2026/27 amid heightened global economic uncertainty, geopolitical tensions and significant movements in interest rates. While market conditions placed pressure on fixed income trading activities, the Group’s diversified business portfolio continued to deliver positive contributions across its Corporate Finance Advisory, Corporate Dealing Securities, Wealth Management and Stock Brokering businesses.

First Capital Holdings PLC (the Group) recorded a Loss after Tax of Rs. 726Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 2.15Bn in the corresponding period of the previous year.

The Group’s Net Trading Loss before Operating Expenses for the first quarter of 2026/27 was Rs. 565Mn, compared to Net Trading Income before Operating Expenses of Rs. 3.43Bn in the corresponding quarter of the previous year.

During the quarter under review, the Group’s financial performance was impacted by heightened global economic uncertainties, primarily driven by geopolitical tensions arising from the conflict in the Middle East. The Central Bank of Sri Lanka increased its policy rate by 100 basis points during the quarter to address rising inflationary pressures. Against this backdrop, trading opportunities were substantially restrained, while adverse mark-to-market movements were experienced across trading portfolios.

The Primary Dealer division reported a Loss after Tax of Rs. 741Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 1.55Bn in the first quarter of 2025/26. The results included net interest income of Rs. 351Mn and a trading loss on government securities amounting to Rs. 1.80Bn, compared to net interest income of Rs. 503Mn and trading gains on government securities of Rs. 2.06Bn in the corresponding quarter of the previous year.

The Corporate Finance Advisory and Corporate Dealing Securities divisions reported a Profit after Tax of Rs. 22Mn for the quarter ended 30 June 2026, compared to Rs. 587Mn in the first quarter of 2025/26.

The Wealth Management division reported a Profit after Tax of Rs. 6Mn for the quarter ended 30 June 2026, compared to Rs. 27Mn in the corresponding quarter of the previous year. The division continued to maintain a strong asset base, with Assets Under Management standing at Rs. 93.3Bn as at 30 June 2026, compared to Rs. 96.2Bn as at 31 March 2026.

The Stock Brokering division recorded a Profit after Tax of Rs. 24Mn for the quarter ended 30 June 2026, compared to Rs. 32Mn in the first quarter of 2025/26.

Commenting on the performance, Rajendra Theagarajah, Chairman of First Capital Holdings PLC, said, “First Capital has built a strong foundation across multiple areas of the capital markets, enabling us to navigate different market cycles with discipline and perspective. While the quarter presented a challenging environment for fixed income markets, the continued performance of our advisory, dealing, wealth management and securities businesses reflect the strength of our broader platform. We remain focused on strengthening our market position, deepening our capabilities and creating sustainable value for our clients and stakeholders.”

Commenting on the outlook, Dilshan Wirasekara, Managing Director/CEO of First Capital Holdings PLC, said, “The quarter reinforced the importance of maintaining a balanced and diversified business model in an evolving market environment. While movements in interest rates affected fixed income trading activities, our other core businesses continued to deliver positive contributions. We remain focused on strengthening execution, expanding our capabilities and identifying opportunities across the capital markets as conditions evolve. Our established platforms and client relationships provide a strong foundation as we move forward.”



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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