ArpicoAtaraxia Asset Management (Pvt) Ltd.

Praveen Balendran
[email protected]araxia.com
www.arpicoataraxia.com
ArpicoAtaraxia
Asset Management (Pvt) Ltd.
Fixed Income Newsletter: 06 February 2015
This Week
 Inflation January 2015 and Treasuries
Remains Flat
 Sri Lanka’s total public debt ratio
increased to 88.9 pct - Finance Minister
 Janashakthi buys Bartleet Finance for
Rs. 984 m
 Sri Lanka to generate revenue though
taxes, not by printing money: Deputy
Minister of Economy
 Rupee forwards end weaker; seen
falling
Arpico Ataraxia S&P SL20 Index
Fund
06 February 2015
Date
Bid Price
Offer Price
08.3601
08.5719
Inflation (CCPI) January 2015 YOY 3.2%
05 Feb 2015
T-Bill Auction
As at 02 February 2015
This Week
Last Week
91 Days
5.82
5.80
182 Days
5.90
5.90
365 Days
6.05
6.05
AWPLR (%)
*AWPLR – Average Weighted Prime Lending Rate
AWDR (%)
*AWDR – Average weighted Deposit Rate
Jan 2015
6.43
3
6.38
.
6.36
5.94
Dec 2014
6.35
6.20
30 Jan 2015
Weekly
23 Jan 2015
Monthly
-
ArpicoAtaraxia Cash Management
Trust Fund
Date
05 Feb 2015
Year to date
13.3060
13.00%
SLIBOR (%) as at 06.02.2015
07 Days
06.22
30 Days
06.39
91 Days
06.65
LIBOR
International T-Bill Rates
2 Year Yield
5 Year Yield
USA
0.52%
1.30%
UK
0.39%
Australia
1.92%
ARPICOATARAXIA
NAV Price
10 Year Yield
30 Days
0.17
1.81%
91 Days
0.25
1.04%
1.53%
182 Days
0.36
1.99%
2.44%
365 Days
0.62
Treasury bill Yields
6.5
91 Days
6.4
182 Days
365 Days
6.3
6.2
6.1
6
5.9
5.8
5.7
5.6
6-Aug-14
6-Sep-14
6-Oct-14
6-Nov-14
Sri Lanka Inflation Movements
Annual Avg…
8.1
8.8
8
7.6
7
5
SDFR
9.0%
8.0%
6.9
6-Jan-15
Sri Lanka Policy Rates
11
6 5.7
5.3 4.7
4.5 3.5
3
7.0%
8.0%
6.5%
SLFR
8.0%
8.0%
6.5%
6.5%
6.0%
3.3
1-Nov-14
1-Sep-14
1-Jul-14
1-May-14
1-Mar-14
1-Jan-14
1-Nov-13
1-Sep-13
1-Jul-13
1-May-13
1-Mar-13
1-Jan-13
5.0%
1-Jan-15
9
6-Dec-14
Sri Lanka Inter Bank Offer Rates (SLIBOR)
8.5
Over Night
7 days
1 month
8
7.5
7
6.5
6
7-Aug-14
7-Sep-14
ARPICOATARAXIA
7-Oct-14
7-Nov-14
7-Dec-14
7-Jan-15
6.5%
8.0%
6.5%
Inflation January 2015and Treasuries Remains Flat
Inflation computed by the department of census and statics increased to 3.2 %in January 2015 from 2.1% in December 2014
this mainly due to the increase in food prices. However the annual average inflation declined to 3.2% in January 2015 from
3.3% in December 2014.
The Colombo Consumer Price Index recorded a monthly increase of 1.7% in January 2015 this mainly attributed to the increase
in food prices. Food items such as onions, potatoes, eggs, coconuts and vegetables prices increased. Non food category such as
clothing, foot wear and recreational and Miscellaneous Goods recorded an increase in the average price. While the
Furnishings, Household Equipment and Routine Household Maintenance; Health and Communication remained unchanged, but
the prices of fuels and transport declined due to the downward revision of fuel prices. Overall the prices in the non food
category declined.
Core inflation declined to 2.1% in January 2015 from 3.2% in December 2014.
Treasuries Flat
Auction held on 2nd February saw the yields remained the flat with, 6 month and 1 year bills at 5.90 and 6.05 respectively but
3 month bill moved up by 2 basis points to 5.82. The auction received bids totaling Rs 31,749 Mn but CBSL accepted only Rs
9,869 Mn thus the auction oversubscribed by Rs 21,880 Mn.
Sri Lanka’s total public debt ratio increased to 88.9 pct - Finance Minister
Sri Lanka’s Total Debt to Gross Domestic Product (GDP) ratio would increase to 88.9 percent from reported 74.4 percent of the
government debt in the end 2014, the Finance Minister has said.
According to the provisional data, the outstanding debt of the government as at end 2014 was LKR 7,373 billion, which reflects
a per capita debt of LKR 357,233? The new government says the total debt will increase to LKR 8,817 billion and the per capita
debt will also increase to about LKR 427,220 for the last year.
Janashakthi buys Bartleet Finance for Rs. 984 m
Janashakthi Ltd. has acquired a 99.78% stake in Bartleet Finance Plc for Rs. 984 million, thereby further consolidating the
former’s position in the financial services industry. The acquisition has been in two stages whilst it was approved in principle by
the Monetary Board in August last year. Janashakthi Ltd. said on 22 January acquired 86.79% stake in Bartleet Finance Plc for
Rs. 874.8 million or around Rs. 131 per share. The stake amounting to 6,639,998 shares was bought from Bartleet Transcapital
Ltd. (BTCL). At the time of the acquisition, Janashakthi Ltd., already held 0.9 million shares accounting for a 13% stake. This
was bought between 2 and 10 January at a total price of Rs. 109.3 million. With these acquisitions, Janashakthi now holds 7.633
million shares or 99.78% stake as of 22 January and Bartleet Finance will be a subsidiary.
Sri Lanka to generate revenue though taxes, not by printing money: Deputy Minister of Economy
Sri Lanka’s Deputy Policy Planning and Economic Affairs Minister Dr.Harsha de Silva, said that the new government would not
print money to raise revenue to deliver election promises but would tax selected industries as a revenue generation measure.
“These must be look at not as individual effects or rather targeting certain individual companies, but as a collective way of
raising revenue on a one time basis in order to ensure that we have the ability to ensure the delivery of what we have promised
to the people,” De Silva said.
Rupee forwards end weaker; seen falling
Rupee forwards closed weaker on Thursday as policy uncertainty weighed on the currency, discouraging exporter selling of
dollars amid importer demand, dealers said. One-month forwards ended at 133.80/95 per dollar compared with Monday’s close
of 133.67/70. Markets were closed for local holidays on Tuesday and Wednesday. Currency dealers said the rupee may
depreciate because of an expected increase in consumption after a raft of tax reductions on key commodities in last week’s
supplementary budget.
ARPICOATARAXIA