Market Indicators. Mkt Cap.(LKR Mn) 3,021,056 3,019, % 7.32% Volume (Mn) % 350, , ,000.

Transcription

1 25-Sep-215 Focus: Week ends in red Bourse closed the week with a bearish investor sentiment while the significant depreciation of LKR against USD and uncertainty hovering the world markets were major topics of the week. However during the week investor interest was seen pertaining to poultry stocks. Highest turnover was recorded on Friday while foreign investors were net buyers for most of the days of the week. Bank Finance and Insurance and Beverage Food and Tobacco sectors contributed mostly to the market turnover while Stores and Supplies sector became the highest gainer (+2.43%). Market Indicators This Week Last Week % Change YTD ASPI 7,111 7,18.4% -3.23% S&P SL 2 3,887 3,886.4% -5.43% For. Pur(LKR Mn) 1,558 1, % 53,789 For.Sales(LKR Mn) 1, % 56,345 Mkt Cap.(LKR Mn) 3,21,56 3,19,776.4% 7.32% Turnover (LKR Mn) 3,342 3, % JKH, BLI and LOLC lifted up the ASPI by points while CTC dragged down the index by around 4.2 points. ASPI and S&P SL2 up by 3 points and 1 points respectively. Rupee depreciated during the week and closed at LKR per USD. One year T-bill rate increased and closed at 7.18%. Gold prices increased to close at 1,143.8$/Oz while oil prices increased slightly to close at 45.14$/Barrel. Volume (Mn) % PE % PBV % Daily avg.turnover(lkr Mn) % Daily avg.for.pur(lkr Mn) % Daily avg.for.sales(lkr Mn) % YTD Net Foreign inflow/(outflow) - LKR Bn (2.37) Top 5 Turnover ASPI, S&P SL 2 and Volume Company This Week Last Week % Change Price (LKR) 8, 45, 7,5 4, 7, 6,5 35, 6, 3, 5,5 25, 5, 2, 4,5 15, 4, 3,5 1, 3, 5, 2,5 1/1/214 1/1/215 4/1/215 7/1/215 VOLUME ASPI S&P SL 2 JKH.N 552,859,82 269,431,5 15% HNB.N 278,711,866 12,265,13 173% 216. PLC.N 25,675,253 94,235, % 22.1 GRAN.N 181,1,98 122,389,117 48% 9.3 TAFL.N 18,971,592 6,57,424 21% Top 5 Gainers Company This Week Last Week % Change Volume BLI.N % 415,85 SFLP.N % 2,58,95 SFL.N % 2,466,371 ASPI Contributors for the Week SING.N % 1,283 Points BLUE.X.6.5 2% 13, JKH.N BLI.N LOLC.N OSEA.N COCR.N Top 5 Losers Company This Week Last Week % Change Volume 2 PCH.N.1.2-5% 456,3 VLL.N % 683, PLC.N COMB.N NEST.N CTHR.N CTC.N AGAL.N % 265 SHOT.X % 2,216 UDPL.N % 2,966 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz STORES SUPPLIES 25, , % Gayan Rajakaruna LAND PROPERTY % Hiruni Perera PLANTATIONS % TRADING 18, , % Important Disclosure and Contact Details: Page 5 CHEMICALS PHARMS 7, , %

2 LKR per kg LKR//US $ % Millions Sri Lanka Equity Turnover and Foreign Trading Local Market 1,2 1, ASPI S&P SL 2 % change 7,111.4% 3,892.16% 8 AWPR (Weekly).% -1.% 6 USD:LKR % 4 2 JPY:LKR EUR:LKR % % 18/9/215 21/9/215 22/9/215 23/9/215 25/9/215 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) % T-Bill and AWPLR Gold (USD/Ounce) % S & P 5 MSCI AC Index % % /12/215 7/3/215 7/24/215 8/14/215 9/4/215 T Bill Rate- 12 months AWPLR Sector Multiples Sector PER(x) PBV(x) Banks, Finance and Insurance Beverage, Food and Tobacco Chemicals and Pharmaceuticals Construction and Engineering Diversified Footwear and Textiles Exchange Rate Healthcare Hotels and Travels IT Investment Trust Land and Property /3/215 8/13/215 8/27/215 9/1/ Tea and Rubber Prices Telecommunication Apr Apr May-15 7-Jun Jun Jul-15 6-Aug-15 Latex Rubber Low Grown Tea Source: Rubber Development Department of Sri Lanka/Forbes & Walker Tea Brokers Manufacturing Motors Oil Palm Plantations Power and Energy Services Stores and Supplies Trading Quote of the Week: "Risk can be greatly reduced by concentrating on only a few holdings. - Warren Buffett Page 2

3 Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Monday HNB ,525 BOGA.6 Interim 6/1/215 HNB , JKH ,79 PLC ,887,743 LLUB , Tuesday JKH ,2 TAFL ,77 Wednesday HNB ,44 JKH ,1 JKH ,5 JKH ,4 Friday HHL ,, HNB ,873 HNB ,525 NTB ,5, PLC ,887,743 PLC ,549,92 LLUB , CSE Corporate Announcements Ordinary Voting Shares of HAPU have been transferred from the Main Board to the Diri Savi Board of the CSE, with effect from 21st September 215, at the request of the company. CSEC has been assigned with the Issuer rating of BBB+ and the company's Debenture rating has been upgraded to BBB+ by ICRA Lanka Limited. SIRA has carried out a recent survey in Nairobi, Kenya on the feasibility of a cable manufacturing plant to supply transmission and distribution cables to East African countries. The feasibility study had indicated favorable financial outcomes and a formal project report have now been approved by the Board of Directors of the company for implementation in the forthcoming months. The Kenyan economy is expected to grow by 6% in 215 and a significant contributor would be the infrastructure development. Page 3

4 Corporate News Sri Lanka s blue-chip John Keells Holdings said that its 85 million US dollar mixed development project Cinnamon Life has already started selling apartments in its integrated resort under the concept of live, work and play. We call it a city-within-a-city which will have office space, shopping, dining, entertainment, playing area, apartment and a 5-star hotel, Ajit Gunewardene, deputy chairman of John Keells Holdings, said. They can live eat and work within this. Locals and tourists need a destination to gather and enjoy themselves when they work, live or play and Cinnamon Life will be their playground. -LBO Economic News Sri Lanka needs to be aware of and concerned about the dangers of the environmental impact when developing its future electricity generation plans, a recent CEB report shows. Green House Gas emissions in Sri Lanka from fuel combustion, both in absolute as well as in per capita terms are low even in comparison to other countries in South Asia, the Ceylon Electricity Board said in its long-term generation plan, now open for public discussion. - LBO The Airport Express Air and Rail Co. Ltd. (AEARC) of Malaysia will start an electric train system between Negombo and Colombo whilst a mega township is also planned with a combined investment of $ 45 million. The company recently signed a contract with investors for the project. The contract was signed by Premiere Global Assets Ltd. President Dr. Shawana Khdir Ali, AEARC Managing Director Dr. Parimalan Rajo Iso Michael and Newport Global Group Ltd. of the US. Finance Minister Ravi Karunanayake was also present at the occasion. -Daily Ft The Ceylon Chamber of Commerce and the Beijing Chamber of International Commerce signed an MOU yesterday to work together to promote trade and commercial ties between the two countries. Ceylon Chamber of Commerce CEO/Secretary General Mangala P.B. Yapa and Beijing Chamber of International Commerce Deputy Director General Yu Haibo signed the MOU. It will enable both parties to work together to promote trade and investment by sharing information with regard to trade, technical transfer, economic cooperation and also exchange of important publications. Daily Ft Sri Lanka s 12-month Treasury bill yields were up at Tuesday s auction while the 3-month yields were down, data from the state debt office showed. The 3-month yields were down by one basis point to 6.78 percent, and the 12-month yields rose one basis point to 7.18 percent. The 6-month yields were flat at 7.7 percent. The Central Bank sold 28.3 billion rupees of bills after offering 22. billion rupees for auction. LBO Global Buzz The U.S. Justice Department is investigating Volkswagen AG over its admission that it cheated on federal air pollution tests, according to two U.S. officials familiar with the inquiry. That adds the specter of criminal proceedings to challenges the world s biggest automaker already faces from regulators, lawmakers and vehicle owners in the three days since it admitted that it had rigged diesel vehicles to pass emissions tests in the lab. The vehicles emitted as much as 4 times the legal limit of pollutants when they were on the road, the Environmental Protection Agency alleges. -Bloomberg Malaysia s ringgit headed for its biggest weekly decline since a dollar peg was imposed in 1998 as investigations into a state investment company spread to the U.S., exacerbating losses driven by a slowdown in China and tumbling commodity prices. The currency weakened beyond 4.38 against the greenback on Friday for the first time since the Asian financial crisis prompted Malaysia s central bank to implement capital controls. - Bloomberg Page 4

5 Head Office Branches LOLC Securities Limited Kurunegala Branch Galle Branch Matara Branch Level 18, West Tower, No 6, 1st Floor, No 18, 1 st floor, World Trade Center Union Assurance Building, Sri Dewamitta Mawatha, E.H. Cooray Towers, Colombo 1, Sri Lanka Rajapilla Mawatha Galle, Sri Lanka No 24, Tel: Kurunegala, Sri Lanka Tel : Anagarika Dharmapala Mw. Fax: Tel: Matara, Sri Lanka Fax: Tel: Contact Us Sriyan Gurusinghe Manjula Kumarasinghe Sales Head Office Maniesh Rodrigo Samadhi Jayasinghe Imesh Fernando Balendran Janegan Naleen Sadeesh Damith Chaminda Dushan Rajaguru Dinuka Niwantha Niraj Jayamanne CEO/Managing Director COO - Sales & Marketing Assistant General Manager Manager Institutional Sales Senior Senior / sriyang@lolcsecurities.com / manjulak@lolcsecurities.com / manieshr@lolcsecurities.com / samadhij@lolcsecurities.com / imeshf@lolcsecurities.com / janeganb@lolcsecurities.com / naleensa@lolcsecurities.com / damithc@lolcsecurities.com / dushanr@lolcsecurities.com / dinukan@lolcsecurities.com / nirajj@lolcsecurities.com Kurunegala Branch Rohana Chandrasiri Assistant General Manager / rohanac@lolcsecurities.com Anurudda Rajakaruna / anuruddhar@lolcsecurities.com Nuwan Fernando / nuwanfe@lolcsecurities.com Galle Branch Bimal Malinda Branch Head / bimalm@lolcsecurities.com Matara Branch Lalinda Liyanapathirana Ahamed Aadil / / lalindal@lolcsecurities.com aadila@lolcsecurities.com RESEARCH Shehan Bartholomeuz Head of Research / shehanb@lolcsecurities.com Gayan Rajakaruna Senior Research Analyst / gayanraj@lolcsecurities.com Hiruni Perera Associate Research Analyst / hirunip@lolcsecurities.com Rehan Ariyaratne Business Dev. Associate / rehana@lolcsecurities.com General Disclaimer: LOLC Securities Limited is a company incorporated in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka to operate as a stockbroker/stock dealer in Sri Lanka. LOLC Securities Limited is a trading member of Colombo Stock Exchange. This research is based on information from sources that LOLC Securities Limited believes to be reliable. Whilst reasonable care has been taken to ensure accuracy of the information presented in the research, LOLC Securities Limited does not give a guarantee on the accuracy of the information presented in the paper nor will take the responsibility on investment decisions taken based on the information provided by the research and hence LOLC Securities Limited nor its employees accepts any liability whatsoever for any loss arising from investments decisions taken using the information provided in this paper. The reader also should note this paper does not give recommendations to any particular category of investors and investor should consult investment advisors for further clarifications regarding risks involved in investing in equity market. Investing in securities has inherent risks with no guaranteed return and price may be subjected to significant volatilities. No part of this report should be considered as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. LOLC Securities Limited or its employees may or may not hold positions in the securities discussed in the research and the information provided in the research should not be construed as a buy or sell instruction for any securities mentioned in the research, Unless otherwise specifically mentioned. This research is intended for general use for clients of LOLC Securities Limited and must not be copied in whole or in part or distributed to any third party for commercial use without permission from LOLC Securities Limited. If the reader is not the intended recipient please inform LOLC Securities Limited immediately by return to research@lolcsecurities.com. LOLC Securities Limited s other staff including sales people, traders and other professionals may provide oral or written market commentaries or trading strategies to our clients which reflect opinions which are contrary to the opinions expressed in this research which may be influenced by different circumstances. LOLC SEC Research Reports are also available at Bloomberg LOLC <GO> Page 5