3-Mar-2017 Focus: Hefty crossings boost the weekly turnover A mixed behavior was witnessed during the week while recording a negative closure for the week. However, hefty crossings boosted the turnover level with LKR 2.8 bn recording on Tuesday. Lowest turnover was recorded on Wednesday. Meanwhile foreign investors were net buyers for the week recording a net foreign inflow of LKR 1098 Mn while recording a YTD net foreign inflow of LKR 1.03 Bn. Diversified Holdings and Beverage, Food & Tobacco sector, contributed mostly to the market turnover during the week while trading sector became the highest gainer (+7.9%) Market Indicators This Week Last Week % Change YTD ASPI 6,102 6,138-0.60% -11.16% S&P SL 20 3,525 3,553-0.80% -2.06% For. Pur(LKR Mn) 2,864 830 245.10% 87,468 For.Sales(LKR Mn) 1,766 728 142.67% 85,650 Mkt Cap.(LKR Mn) 2,679,367 2,700,049-0.77% -7.67% Turnover (LKR Mn) 6,129 1,868 228.04% SINS, CTHR and LION moved up ASPI by 10.09 points while LION, COMB and LOLC dragged down the index by 11.96 points. During the week ASPI was down by 22 point while S&P SL 20 was down by 28 points. Rupee slightly appreciated during the week closed at LKR 151.31 per USD. One-year T-bill rate increased to close at 10.66%. Gold prices decreased to close at 1227.17$/Oz and oil price was slightly dropped to close at 52.74$/Barrel. Volume (Mn) 271.86 758.92-64.18% PE 12.48 12.52-0.38% PBV 1.43 1.43-0.21% Daily avg.turnover(lkr Mn) 1,226 467 162.43% Daily avg.for.pur(lkr Mn) 573 208 176.08% Daily avg.for.sales(lkr Mn) 353 182 94.14% YTD Net Foreign inflow/(outflow) - LKR Bn 1.03 Top 5 Turnover ASPI, S&P SL 20 and Volume Company This Week Last Week % Change Price (LKR) 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 JKH.N 1,590,164,920 124,404,067 1178% 141.70 EXPO.N 660,916,601 3,336,722 19707% 6.00 VLL.N 300,051,528 1,487 20178214% 5.40 LLUB.N 285,520,448 24,068,327 1086% 172.00 HNB.N 136,687,931 107,231,251 27% 115.00 Top 5 Gainers Company This Week Last Week % Change Volume ASPI S&P SL 20 SEMB.X 0.30 0.20 50% 375,794 CPRT.N 61.00 50.00 22% 266 SINI.N 144.70 122.10 19% 2,232 ASPI Contributors for the Week ATL.N 0.70 0.60 17% 402,235 Points 12 8 4 SINS.N CTHR.N CARS.N DIAL.N CINS.N SINS.N 144.90 126.70 14% 125,968 Top 5 Losers Company This Week Last Week % Change Volume CIFL.N 0.70 1.00-30% 874,871 0-4 -8 DFCC.N CARG.N LOLC.N COMB.N LION.N TFIL.N 2.40 2.90-17% 6,808 TFC.N 4.90 5.90-17% 32,092 TESS.N 1.00 1.20-17% 1,556,315 CSF.N 1.00 1.20-17% 899,091 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz +94 011 5889835 TRADING 16,747.71 15,507.95 7.99% Gayan Rajakaruna +94 011 5889837 IT 39.45 38.33 2.92% Hiruni Perera +94 011 5889809 OIL PALMS 67,067.15 65,865.69 1.82% SERVICES 16,729.09 16,611.80 0.71% Important Disclosure and Contact Details: Page 5 HEALTH CARE 981.18 978.18 0.31%
LKR per kg LKR//US $ % Millions Sri Lanka Equity Turnover and Foreign Trading Local Market 2.5 ASPI % change 6,102-0.60% 2 S&P SL 20 3,533-0.56% 1.5 AWPR (Weekly) USD:LKR 10.15% 1.50% 151.31-0.54% 1 JPY:LKR 1.32-2.30% 0.5 EUR:LKR 159.72-0.95% 0 2/25/2017 2/28/2017 3/1/2017 3/2/2017 3/3/2017 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) 52.74-2.32% T-Bill and AWPLR Gold (USD/Ounce) 1227.17-2.39% 13.0 11.0 12.0 10.5 10.0 11.0 9.5 10.0 9.0 9.0 8.5 8.0 8.0 7.5 7.0 7.0 6.0 6.5 3/3/2016 5/3/2016 7/3/2016 9/3/2016 11/3/2016 1/3/2017 3/3/2017 AWPLR (LHS) T Bill Rate- 12 months (RHS) S & P 500 2381.92 0.62% MSCI AC Index 144.91-0.62% Sector Multiples Sector PER(x) PBV(x) Banks, Finance and Insurance 7.50 1.20 Beverage, Food and Tobacco 17.20 3.80 Chemicals and Pharmaceuticals 10.70 0.90 Construction and Engineering 34.50 1.00 Diversified 14.20 1.10 Footwear and Textiles 24.00 0.60 Exchange Rate Healthcare 16.90 2.90 155.00 150.00 145.00 Hotels and Travels IT Investment Trust Land and Property 47.30 2.10-0.50 - - 9.20 0.90 140.00 135.00 130.00 8.10 1.50 7.70 0.80 54.40 1.40-0.60 9.30 1.40-1.30 15.00 0.70 Tea and Rubber Prices Telecommunication 15.70 1.30 630 580 530 480 430 380 330 280 230 180 1-Nov-15 1-Jan-16 1-Mar-16 1-May-16 1-Jul-16 1-Sep-16 1-Nov-16 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 13.00 0.90 Quote of the Week: "The key to making money in stocks is not to get scared out of them."-peter Lynch Page 2
Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Monday EXPO 5 5.80 113,229,773 INDO 21.63 Interim 8/3/2017 LLUB 3 172.00 1,058,999 SHAL 8.20 Interim 8/3/2017 UAL 10.50 Final 8/3/2017 Tuesday COMB 1 143.00 200,000 CTC 6.00 Final 25/04/2017 JKH 2 140.00 990,163 LHL 2.00 Interim 8/3/2017 CCS 1 745.00 55,000 NTB 2.10 Final 8/3/2017 LAMB 2 62.50 30,998,961 CARE 0.40 Interim 10/3/2017 Wednesday TKYO 1 61.00 600,000 LLUB 1 172.00 334,586 Thursday VLL 1 5.40 55,556,000 DIAL 2 11.50 4,300,000 Friday JKH 5 142.00 6,118,135 HNB 1 231.00 199,098 HNB.X 1 193.00 211,842 SAMP 1 271.00 100,000 Corporate Disclosure Swadwshi has decided to raise LKR 149 mn by way a right issue of a 18666 shares at LKR 8000 per share in the portion of 01:07 existing ordinary shares in the company. The proceeds shall be used for the purpose of reducing the interest bearing loans of the company. CSE CCorporate Announcements Metropolitant Resource Holdings PLC has acquired 9.3 mn shares of Bogawantalawa Tea Estates PLC at LKR 10/share. Adam Capital PLC has decided to issue shares to existing share holders by way of a right issue in the portion of 02 new shares:for 01 share at LKR 1.50/share. The objective of the issue is to utilise the proceeds as an investment into its subsidiaries to enhance working capital. Page 3
Corporate News Hatton National Bank Plc (HNB) said yesterday an outstanding performance throughout 2016 on every front culminated in the bank as a group posting the best financial results in its history. Group Profit Before VAT, NBT and Taxes grew by 41.3% to Rs. 27.1 billion while Profit Before Tax (PBT) reached Rs. 22.5 billion with a 39.2% growth. Group Profit After Tax (PAT) witnessed exceptional growth of 41.2% to be recorded at Rs. 15.7 billion. Group assets grew by 19.0% to cross the Rs. 900 billion mark, representing yet another historical milestone for HNB. The remarkable performance by the bank was the main contributor towards this exceptional performance by the group. -Daily Ft Ceylon Tobacco Company Plc (CTC) said yesterday that its contribution to Government revenue through excise tax fell to Rs. 87.4 billion during the year ending 31 December 2016. The company notes that the dip in its tax bill was a result of an unprecedented 43% price increase due to an excise increase in October and the introduction of 15% VAT in November. The company delivered record excise gains for the Government of Rs. 72.6 billion during the first nine months - a 16% increase compared to 2015.-Daily Ft Sri Lankan energy firm Mackwoods Energy said it is considering investments in more mature hydro power projects, which already have approval given continuing delays in getting approvals for its own projects. The firm is also exploring projects in other renewable energy segments such as solar, wind, bio-mass and bio-gas, and waste to energy projects in line with the company s objectives of diversifying into the renewable energy sector, a stock exchange filing said. In view of the persistent delay in implementation of mini hydro power projects, including transmission lines and grid availability issues, the company is exploring investments in more mature hydro power projects that already have approval, the statement said.-economynext Economic News Sri Lankan tea prices were generally lower at this week s auction despite some invoices continuing to hit new highs after sharp gains in recent weeks prompted international buyers to look at other origins. There was lower demand for teas from private company estates this week, while there was fair demand for low-grown teas that were on offer, brokers John Keells Ltd said. Among teas from the estate a limited selection of wellmade bright teas with seasonal character sold well but other good invoices were generally easier for BOP and BOPF grades while plainer sorts were irregular, and mostly lower, they said.-economynext A feasibility study on building a Light Rail Transit (LRT) system in the Sri Lankan capital Colombo starts today with expressions of interest and request for proposals to be called by year-end, an official said. An LRT system was needed to cater to anticipated transport demand in the planned Western Province Megapolis region, covering Colombo and its suburbs, said Dimantha De Silva, Senior Lecturer at the University of Moratuwa and a Megapolis transport planner. Japan will provide a US$1.25 billion soft loan to fund the LRT subject to the feasibilty study which is being kicked off (Tuesday), De Silva told a forum organised by the French embassy in collaboration with the French Agency for Development.- economynext The Colombo port has improved its ranking by three notches to be placed at 23 in 2016. The ranking has been compiled by Alphaliner, a global specialist in liner shipping. In 2014 the Colombo port was ranked 27th. The Colombo port handled 5.2 million TEUs in 2015 while last year it rose by 9.6% to 5.7 million TEUs. Ports and Shipping Minister Arjuna Ranatunga attributed the improvement to positive measures taken by the new Government to develop the overall Port of Colombo which includes terminals by the private sector as well. With ongoing measures, we hope to improve Colombo port s ranking to 20th place in the future, the Minister added. -Daily Ft Global Buzz Stocks in Asia fell while the yen strengthened at the start of a week in which Donald Trump will stand before Congress and Janet Yellen will also speak. Investors will be hoping for detail on the U.S. president s spending plans as lingering concern about the timing of U.S. fiscal stimulus weighed on the dollar this year, testing its post-election surge. Equities in Japan, Australia and South Korea slumped. Oil was steady, trading near $54 a barrel, while the yen advanced for a fourth day. We are not sure what Trump s policies are going to be and whether he s going to implement them at all, Kumar Palghat, a portfolio manager at Kapstream Capital, told Bloomberg TV in Sydney Monday. We should get some detail from Trump s speech Tuesday, he said. -Bloomberg Page 4
Head Office Branches LOLC Securities Limited Kurunegala Branch No.481, No 06, 1st Floor, T.B.Jayah Mawatha Union Assurance Building, Colombo 10, Sri Lanka Tel: +94 11 5 889 889 Rajapilla Mawatha Kurunegala, Sri Lanka Fax: +94 11 2 662 883 Tel: +94 377 201221 Fax: +94 372 225511 Matara Branch 1 st floor, E.H. Cooray Towers, No 24, Anagarika Dharmapala Mw. Matara, Sri Lanka Tel: +94 414 936079 Contact Us Sriyan Gurusinghe Manjula Kumarasinghe Sales Head Office Maniesh Rodrigo Samadhi Jayasinghe Imesh Fernando Naleen Sadeesh Damith Chaminda Dushan Rajaguru Dinuka Niwantha Niraj Jayamanne John Ravindu Isuri Ruwanka Ushan De Silva CEO/Managing Director 011 5889888/ 077 7891871 COO - Sales & Marketing 011 5889808 / 077 7874310 Assistant General Manager- Sales 011 5889805/ 077 7896064 Manager Institutional Sales 011 5889806 / 077 3954993 Assistant Manager Sales 011 5889814 / 077 3954992 011 5889839/ 077 2383209 011 5889819/ 077 3367313 011 5889834/ 077 9090511 011 5889838 / 077 7769461 011 5889813 / 077 5965645 Trainee Investment advisor 011 5889842/ 0717101805 Business Development Associate 011 5889842/ 076 8545047 011 5889842 / 077 1927998 sriyang@lolcsecurities.com manjulak@lolcsecurities.com manieshr@lolcsecurities.com samadhij@lolcsecurities.com imeshf@lolcsecurities.com naleensa@lolcsecurities.com damithc@lolcsecurities.com dushanr@lolcsecurities.com dinukan@lolcsecurities.com nirajj@lolcsecurities.com johnr@lolcsecurities.com isurisab@lolcsecurities.com ushand@lolcsecurities.com Kurunegala Branch Rohana Chandrasiri Assistant General Manager 037 7201221 / 077 3623001 rohanac@lolcsecurities.com Anurudda Rajakaruna 037 7201221 / 077 3409464 anuruddhar@lolcsecurities.com Bandula Senarathne Investm 037 7201221 / 076 8743157 bandulase@lolcsecurities.com Nuwan Fernando 037 7201221 / 077 8365921 nuwanfe@lolcsecurities.com Matara Branch Bimal Malinda Branch Head 041 4936079 / 077 3409243 bimalm@lolcsecurities.com Ahamed Aadil 041 4936079 / 077 7538986 aadila@lolcsecurities.com Thilina Sameera 041 4936079 / 077 8894968 thilinawa@lolcsecurities.com RESEARCH Shehan Bartholomeuz Head of Research 011 5889835 / 077 7699148 Gayan Rajakaruna Senior Research Analyst 011 5889837 / 077 4469070 shehanb@lolcsecurities.com gayanraj@lolcsecurities.com Hiruni Perera Associate Research Analyst 011 5889809 / 077 4805784 hirunipe@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 email 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. OLC SEC Research Reports are also available at Bloomberg LOLC <GO> Page 5