5-Aug-216 Focus: A week of recovery A gradual improvement was seen in investor sentiment during the week amidst expectations on better financials of listed counters and economic conditions. Turnover levels recorded above 1 Bn for three days pertaining to parcel of shares traded pertaining to certain counters. Foreign investor interest continued while foreign buying surpassed foreign selling to record a net foreign inflow of LKR 798 Mn. Trading sector became the highest gainer.(+5.36%) JKH, DIST and COMB moved up ASPI by 49.39 points while CTC, CTHR and DIAL dragged down the index by around 16.78 points. During the week ASPI was up by 123 points and S&P SL 2 was up by 117 points respectively. Rupee depreciated slightly during the week and closed at LKR 145.7 per USD. One-year T-bill rate increased to 1.73%. Gold prices increased to close at 1361.13 $/Oz while oil price increased to close at 41.62 $/Barrel. Market Indicators This Week Last Week % Change YTD ASPI 6,517 6,394 1.93% -5.1% S&P SL 2 3,531 3,414 3.43% -1.88% For. Pur(LKR Mn) 1,96 1,13 77.7% 36,472 For.Sales(LKR Mn) 1,162 895 29.85% 41,126 Mkt Cap.(LKR Mn) 2,777,293 2,724,765 1.93% -6.82% Turnover (LKR Mn) 4,869 2,353 16.92% Volume (Mn) 171.81 27.48-17.19% PE.4.4 1.84% PBV 1.49 1.47 1.92% Daily avg.turnover(lkr Mn) 974 471 16.92% Daily avg.for.pur(lkr Mn) 392 221 77.7% Daily avg.for.sales(lkr Mn) 232 179 29.85% YTD Net Foreign inflow/(outflow) - LKR Bn (3.69) 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 8/5/215 1/5/215 12/5/215 2/5/216 4/5/216 6/5/216 8/5/216 VOLUME ASPI S&P SL 2 JKH.N 654,98,115 64,759,263 911% 146.4 TJL.N 467,589,12 116,175,876 32% 39.1 DIST.N 436,885,34 123,183,44 255% 264.3 LLUB.N 339,112,349 44,486,537 662% 163. SINS.N 248,1,971 216,984 114199% 115. Top 5 Gainers Company This Week Last Week % Change Volume SEMB.X.4.3 33% 1,11,233 AGST.N 6.2 4.8 29% 3,59,593 BRR.N 11.5 9.2 25% 145,364 ASPI Contributors for the Week RPBH.N 33.5 28.6 17% 682 Points 2 18 16 14 12 1 8 6 4 2-2 -4-6 -8-1 -12 JKH.N DIST.N COMB.N LOLC.N SAMP.N DIMO.N COCR.N DIAL.N CTHR.N CTC.N ETWO.N 68.4 61. 12% 1,84 Top 5 Losers Company This Week Last Week % Change Volume CIFL.N.9 1.1-18% 2,619,345 BLUE.X.6.7-14% 1,145,645 TANG.N 62. 7.9-13% 252 SEMB.N.7.8-13% 894,616 CHOU.N 1. 11.2-11% 293,676 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz +94 11 5889835 TRADING 16,717.75 15,866.71 5.36% Gayan Rajakaruna +94 11 5889837 HEALTH CARE 1,99.52 1,45.23 5.19% Hiruni Perera +94 11 588989 POWER & ENERGY 165.83 16.46 3.35% BANK FINANCE INS 16,232.54 15,771.7 2.93% Important Disclosure and Contact Details: Page 5 DIVERSIFIED 1,663.89 1,623.26 2.5% LOLC Securities Limited,No.481,T.B.Jayah Mawatha, Colombo 1, Sri Lanka
LKR per kg LKR//US $ % Millions Turnover and Foreign Trading Local Market 1,6 1,4 1,2 ASPI S&P SL 2 % change 6,517 1.93% 3,511 2.83% 1, AWPR (Weekly) 1.15% 1.5% 8 USD:LKR 145.7.13% 6 JPY:LKR 1.44.94% 4 EUR:LKR 162.52 -.26% 2 8/1/216 8/2/216 8/3/216 8/4/216 8/5/216 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) 41.62.5% T-Bill and AWPLR Gold (USD/Ounce) 1361.13.73% 12. 1.6 11. 1.1 9.6 1. 9.1 9. 8.6 8.1 8. 7.6 7. 7.1 6.6 6. 6.1 8/5/215 1/5/215 12/5/215 2/5/216 4/5/216 6/5/216 8/5/216 AWPLR (LHS) T Bill Rate- 12 months (RHS) S & P 5 2164.25 -.43% MSCI AC Index 135.37 -.76% Sector Multiples Sector PER(x) PBV(x) Banks, Finance and Insurance 7.5 1.2 Beverage, Food and Tobacco 17.2 3.8 Chemicals and Pharmaceuticals 1.7.9 Construction and Engineering 34.5 1. Diversified 14.2 1.1 Footwear and Textiles 24..6 Exchange Rate Healthcare 16.9 2.9 155. 15. 145. Hotels and Travels IT Investment Trust Land and Property 47.3 2.1 -.5 - - 9.2.9 14. 135. 13. 8.1 1.5 7.7.8 54.4 1.4 -.6 9.3 1.4-1.3 15..7 Tea and Rubber Prices Telecommunication 15.7 1.3 475 45 425 4 375 35 325 3 275 25 225 2 2-Jul-15 2-Aug-15 2-Sep-15 2-Oct-15 2-Nov-15 2-Dec-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 13..9 Quote of the Week: "The key to making money in stocks is not to get scared out of them."-peter Lynch LOLC Securities Limited,No.481,T.B.Jayah Mawatha, Colombo 1, Sri Lanka Page 2
Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Monday TJL 2 38. 5,, DIST 3.35 Final 7/9/216 JKH 1 14.8 2, SIGV 4. First & Final 29/9/216 EBCR 3. First & Final 1/9/216 Tuesday TJL 1 38.2 1,39,641 KHC.25 Final 19/9/16 DIST 1 275. 2, VLL.1 Interim 15/8/216 PHAR 1. First and Final 5/9/216 Wednesday LLUB 4 165. 1,32, DIST 1 285. 73,77 JKH 2 145. 829, Friday SINS 1 125. 1,837,5 SEYB.X 1 66.5 58,43 LLUB 1 163. 134,848 HNB 1 217.5 99,5 EXPO 2 6.9 8,, CSE CCorporate Announcements Board of Directors of DIST have decided to esto establish MLST (Melstacrop Limited) as the ultimate holding company of the Group and DIST (DIST operates as the holding company currently) as a fully owned subsidiary of MLST. MLST will be listed subsequently and current shareholders of DIST will be received 4 MLST shares in exchange. LOLC Securities Limited,No.481,T.B.Jayah Mawatha, Colombo 1, Sri Lanka Page 3
Corporate News Via its strategic shift towards focus on growth sectors, Expolanka Holdings PLC has achieved revenue growth of 7% year-on-year (YoY) amidst challenges, thereby increasing its revenue for the first quarter of the 216/17 financial year (1Q 216/17) to Rs. 14,956 million. According to unaudited figures released to the Colombo Stock Exchange (CSE), driven by good performances in its Logistics and Leisure sectors (with Ventures beings its other area of operations), the company also improved its operating profit (which excludes other incomes and finance cost) by 2% YoY to Rs. 4 million, for the three months which ended on 3 June 216. - Daily Ft The SBI Group is to acquire a strategic 25% stake in Sri Lankan brokerage First Guardian Equities through an investment via a private placement. The MOU was signed by SBI Holdings Representative Director, President and CEO Yoshitaka Kitao and First Guardian Equities Ltd. Managing Director/CEO Rohan Goonewardene. The SBI Group will be offered two representatives on the Board of First Guardian Equities. This transaction is due to be concluded shortly after obtaining the required regulatory approvals. -Daily Ft Economic News The Central Bank yesterday announced a series of key measures to improve efficiency, transparency, governance and regulation of the Government securities market.it said as a further policy measure to develop the government securities market, the Central Bank from yesterday has commenced releasing summary trading statistics on actual trading of Government securities in the secondary market. It said from 1 August, all primary dealers have been required to undertake inter-primary dealer trades in the trading platform arranged by the Central Bank through Bloomberg, which is a major international financial trading and information electronic platform.further, all primary dealers will report all outright sales of Government securities of value in excess of Rs. 5 m to investors to this platform within 3 minutes of each transaction. -Daily Ft Tourist arrivals crossed the 1 million mark in July reflecting a near 17% growth year on year. This year s end July performance is the best ever with 1.17 million tourists visiting, up by 16.7% from 1. million a year earlier. India remains the largest source market with 2,58 arrivals, up 18% in the first seven months, followed by China with 168,473, up by 37%.UK came third with 11,649 arrivals up by 18% over the first seven months of 215. Tourist arrivals in July rose by 19% t 29,351.- Daily Ft The Government will ink a revised agreement with Chinese construction firm China Communication Construction Company (CCCC) to resume work on the Colombo Port City with the company agreeing to drop its $ 125 million compensation claim in exchange for additional land in the reclaimed city. The Colombo Port City project to create a 5-acre city built entirely on land reclaimed from the ocean was suspended in March 215 after President Maithripala Sirisena s Government raised concerns about the terms of the agreement inked between the Chinese company and the Rajapaksa administration as well as the environmental impact of the reclamation project. Cabinet Spokesman Rajitha Senaratne announced yesterday that a revised tripartite agreement would be signed in September between the Ministry of Western Development, the Urban Development Authority and the CCCC. Our opposition was to the fact that land in our country was going to be owned in full by another state, Minister Senaratne told the Cabinet briefing last morning. -Daily Ft Prime Minister Ranil Wickremesinghe says the National Government comprising the two main political parties under the leadership of President Maithripala Sirisena is committed towards not merely Political Stability, but also Economic Stability. The Premier delivering the keynote address at the opening session of the 12th Islamic Economic Forum in Jakarta today said with the hope of becoming the economic hub of the Indian Ocean, Sri Lanka s action plan is to introduce to a large database of products and large-scale economic reforms for infrastructure. Prime Minister Wickremesinghe said the government will forge ahead with the plan to ensure free trade and will take effective steps in future with regard to open market policy.. -Daily Ft Global Buzz A storm s about to hit the global copper market, according to Goldman Sachs Group Inc., which forecasts that the price may slump to $4, a metric ton over 12 months as mine supply picks up, producers enjoy lower costs and demand growth softens. Company guidance and our estimates suggest that copper is entering the eye of the supply storm, analysts including Max Layton and Yubin Fu wrote in an e-mailed report received on Friday. A drop to $4, would be a 17 percent slump from Thursday s close on the London Metal Exchange. Copper has lagged gains seen in other raw materials so far this year, especially zinc and nickel, which have benefited from forecasts for global shortages. For copper, there s been solid growth in global mine supply in the first half and that trend is expected to pick up in the coming quarters, according to Goldman. - Bloomberg On Tuesday, Bitfinex disclosed that hackers stole 119,756 bitcoin, or about $68 million at current values, from the exchange. It closed down trading, withdrawals and deposits and said it was cooperating with law enforcement and would update the public after its investigation. The attack sent bitcoin s price plunging more than 2 percent, before the virtual currency recovered some of its losses. Bitcoin traded at $572 per dollar as of 3:24 p.m. in Tokyo, down 13 percent for the week.-bloomberg LOLC Securities Limited,No.481,T.B.Jayah Mawatha, Colombo 1, Sri Lanka Page 4
Head Office Branches LOLC Securities Limited Kurunegala Branch Galle Branch Matara Branch No.481, No 6, 1st Floor, No 18, 1 st floor, T.B.Jayah Mawatha Union Assurance Building, Sri Dewamitta Mawatha, E.H. Cooray Towers, Colombo 1, Sri Lanka Rajapilla Mawatha Galle, Sri Lanka No 24, Tel: +94 11 5 889 889 Kurunegala, Sri Lanka Tel : +94 91 72852 Anagarika Dharmapala Mw. Fax: +94 11 2 662 883 Tel: +94 377 21221 Matara, Sri Lanka Fax: +94 372 225511 Tel: +94 414 93679 Contact Us Sriyan Gurusinghe CEO/Managing Director 11 5889888/ 77 7891871 sriyang@lolcsecurities.com Manjula Kumarasinghe COO - Sales & Marketing 11 588988 / 77 787431 manjulak@lolcsecurities.com Sales Head Office Maniesh Rodrigo Assistant General Manager- Sales 11 588985/ 77 789664 manieshr@lolcsecurities.com Samadhi Jayasinghe Imesh Fernando Naleen Sadeesh Manager Institutional Sales Assistant Manager Sales 11 588986 / 77 3954993 11 5889814 / 77 3954992 11 5889839/ 77 238329 samadhij@lolcsecurities.com imeshf@lolcsecurities.com naleensa@lolcsecurities.com Damith Chaminda 11 5889819/ 77 3367313 damithc@lolcsecurities.com Dushan Rajaguru 11 5889834/ 77 99511 dushanr@lolcsecurities.com Dinuka Niwantha 11 5889838 / 77 7769461 dinukan@lolcsecurities.com Niraj Jayamanne 11 5889813 / 77 5965645 nirajj@lolcsecurities.com Asendra Wijesiri 11 5889833 / 77 341627 asendraw@lolcsecurities.com Rehan Ariyaratne Business Dev. Associate 11 5889842 / 76 5446255 rehana@lolcsecurities.com Kurunegala Branch Rohana Chandrasiri Assistant General Manager 37 721221 / 77 36231 Anurudda Rajakaruna 37 721221 / 77 349464 Bandula Senarathne 37 721221 / 76 8743157 Nuwan Fernando 37 721221 / 77 8365921 rohanac@lolcsecurities.com anuruddhar@lolcsecurities.com bandulase@lolcsecurities.com nuwanfe@lolcsecurities.com Galle Branch Bimal Malinda Branch Head 91 72852 / 77 349243 Thilina Sameera 91 72852 / 77 8894968 Ushan De Silva 91 72852 / 77 1927998 bimalm@lolcsecurities.com thilinawa@lolcsecurities.com ushand@lolcsecurities.com Matara Branch Lalinda Liyanapathirana Ahamed Aadil Malitha Jayawardena 41 493679 / 77 3692257 41 493679 / 77 7538986 41 493679 / 76 6843569 lalindal@lolcsecurities.com aadila@lolcsecurities.com malithj@lolcsecurities.com RESEARCH Shehan Bartholomeuz Head of Research 11 5889835 / 77 7699148 Gayan Rajakaruna Senior Research Analyst 11 5889837 / 77 44697 Hiruni Perera Associate Research Analyst 11 588989 / 77 485784 shehanb@lolcsecurities.com gayanraj@lolcsecurities.com 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