14-Oct-216 Focus: ASPI declines below 65 Market started the week on a red note and continued its negative sentiment throughout the week amidst low turnover levels which remained below LKR 1 Bn while investors remained cautious for the possible changes that will be implemented from the upcoming budget. Reflecting the uncertainty hovering the market, ASPI declined below a key psychological level of 65 with a decline of 1 points. However foreign investor interest continued recording a net foreign inflow of LKR 623 Mn for the week. Beverage Food & Tobacco sector contributed mostly to the market turnover during the week while IT sector became the highest gainer.(+3.62%) Market Indicators This Week Last Week % Change YTD ASPI 6,483 6,582-1.52% -5.61% S&P SL 2 3,615 3,664-1.35%.45% For. Pur(LKR Mn) 1,257 1,344-6.43% 51,326 For.Sales(LKR Mn) 634 1,362-53.42% 54,293 Mkt Cap.(LKR Mn) 2,763,459 2,85,967-1.51% -4.5% Turnover (LKR Mn) 2,49 3,296-24.45% Volume (Mn) 78.15 154.49-49.42% PE 13.23 13.43-1.52% ASIR, PDL and BIL moved up ASPI by only 3.25 points while JKH, CTC and SLTL dragged down the index by 31.95 points. During the week ASPI was down by 1 points and S&P SL 2 down by 49 points respectively. Rupee depreciated during the week and closed at LKR 146.84 per USD. One-year T-bill rate closed flat 1.11%. Gold prices declined to close at 1254.26 $/Oz and oil price increased to close at 5.95$/Barrel. PBV 1.48 1.5-1.51% Daily avg.turnover(lkr Mn) 498 659-24.45% Daily avg.for.pur(lkr Mn) 251 269-6.43% Daily avg.for.sales(lkr Mn) 127 272-53.42% YTD Net Foreign inflow/(outflow) - LKR Bn Top 5 Turnover ASPI, S&P SL 2 and Volume Company This Week Last Week % Change Price (LKR) (2.34) 7,5 7, 6,5 6, 5,5 5, 4,5 4, 3,5 3, 2,5 6, 5, 4, 3, 2, 1, COMB.N 325,5,954 75,386,366 331% 148. CTC.N 276,97,783 1,931,237 14196% 85. LION.N 181,559,315 27,113,32 57% 4.2 HNB.N 121,469,26 193,411,356-37% 229.3 JKH.N 11,139,541 33,135,6-64% 115. Top 5 Gainers Company This Week Last Week % Change Volume VOLUME ASPI S&P SL 2 CSD.N 16. 14.3 12% 3,447,253 TANG.N 67. 6. 12% 3,177 ACAP.N 1.5 9.6 9% 159,784 ASPI Contributors for the Week TSML.N 25. 23. 9% 8,24 Points PDL.N 9. 83.9 7% 152 8 4-4 -8-12 -16-2 ASIR.N PDL BIL.N HNB.N CSD.N VONE.N CCS.N SLTL.N CTC.N JKH.N Top 5 Losers Company This Week Last Week % Change Volume SEMB.X.3.4-25% 1,144,928 KOTA.N 9.6 11. -13% 48,359 HUNA.N 55. 62. -11% 14,9 TAJ.N 25.5 28.4-1% 24,749 TPL.N 32. 35.6-1% 1,3 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz +94 11 5889835 IT 47.8 46.13 3.62% Gayan Rajakaruna +94 11 5889837 SERVICES 19,265.79 19,71.67 1.2% Hiruni Perera +94 11 588989 LAND PROPERTY 655.9 648.63 1.% HEALTH CARE 1,17.42 1,18.63 -.11% Important Disclosure and Contact Details: Page 5 MOTORS 16,529.31 16,626.8 -.59%
LKR per kg LKR//US $ % Millions Sri Lanka Equity Turnover and Foreign Trading Local Market.7.6.5.4.3.2.1 ASPI S&P SL 2 AWPR (Weekly) USD:LKR JPY:LKR EUR:LKR % change 6,483-1.52% 3,615-1.34% 1.15% 1.5% 146.84.2% 1.41-1.35% 161.58-1.83% 1/1/216 1/11/216 1/12/216 1/13/216 1/14/216 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) 5.95 2.29% T-Bill and AWPLR Gold (USD/Ounce) 1254.26 -.22% 13. 12. 11. 1. 9. 8. 7. 6. 11. 1.5 1. 9.5 9. 8.5 8. 7.5 7. 6.5 S & P 5 2132.55 -.98% MSCI AC Index 137.93-1.9% 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 AWPLR (LHS) T Bill Rate- 12 months (RHS) Construction and Engineering Diversified 34.5 1. 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 5 475 45 425 4 375 35 325 3 275 25 225 2 1-Feb-16 1-Mar-16 1-Apr-16 1-May-16 1-Jun-16 1-Jul-16 1-Aug-16 1-Sep-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..9 Quote of the Week: The only way to avoid mistakes is not to invest which is the biggest mistake of all. -Sir John Templeton Page 2
Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Tuesday COMB 1 15. 1,238,213 OFEQ 1.25 Final 1/11/216 TILE 2.5 Interim 21/1/216 Wednesday LFIN 1 127. 1,6, LLUB 3.5 Interim 24/1/216 HNB 1 229. 259,51 Thursday CTC 1 58. 5, NDB 1 165. 3, COMB 1 148. 4, Firday LION 1 4. 421,35 CTC 1 85. 196,158 Corporate Disclosure KOTA announced that it has disposed its entire stake of 1.4% (6,26,5 shares) in LDEV on the trading floor of the CSE at the market prices prevailing on the date of transactions CSE CCorporate Announcements COMB announced an initial issue of 5 Mn debentures at an issue price of LKR 1 each with an option to issue up to a further 2 Mn debentures at the discretion of the bank. Page 3
Corporate News elecommunications industry giant Axiata yesterday insisted it was in Sri Lanka for the long term with no plans for exit, but called for consolidation in the mobile telecom market for the benefit of all stakeholders. We don t have a desire to leave any market. Indeed on Sri Lanka we are there for the long term and will continue to maintain majority stake, Axiata Group President and CEO Jamaludin Ibrahim said. We may only consider shedding a nominal stake to increase the public float in Sri Lanka and raise cash for further reinvestment, Ibrahim said in response to a Daily FT question about its future in Sri Lanka at Axiata s first three-day Regional Media Summit, which kicked off in Kuala Lumpur yesterday. Daily Ft The sole agents of Renault cars Associated Motor Ways (AMW) insisted that the recall initiated by the French carmaker Renault SA will not affect the cars sold in Sri Lanka. The manufacturer on Wednesday announced that they would be recalling some of its top-selling, entry-level cars in India, called Kwid, to inspect the fuel system, the company s local arm has announced. According to international media reports on the matter Renault India will recall select units of the.8-litre variant of the Kwid produced up to 18 May 216. The company did not immediately say how many cars would be affected. Daily Ft Seventeen Malaysian companies will be in Colombo this week to explore investment opportunities on the sidelines of the World Export Development Forum (WEDF). Malaysia External Trade Development Corporation (MATRADE) the export promotion agency of Malaysia will organise an Export Acceleration Mission (EAM) to Colombo, Sri Lanka from 11-14 October. The companies consist of manufacturers of automotive products, building materials, detergents, electronic parking meters, electrical hardware and wiring accessories food and beverages, furniture, and service providers for engineering services and industrial automation system. Daily Ft Economic News Sri Lanka's forex reserves fell 138.8 million dollars from a month earlier to 6.46 billion rupees in September 216, from 6.598 million dollars, official data shows.official reserve assets include central bank's monetary reserves and also fiscal reserves held by the Treasury.Since monetary policy was tightened from around the first quarter of 216 and the central bank stopped printing money to generate excess liquidity in money markets (finally sterilizing interventions more than 1 percent), the rapid haemorrhaging of forex reserves stopped.the central bank has instead finally sterilized interventions less than 1 percent by providing overnight liquidity -economynext Despite buoyant confidence, Sri Lanka Tourism yesterday revised down the 216 arrival target to 2.2 million from 2.5 million, and changed track on rolling back the minimum room rate policy saying it could continue for the next two years, contrary to an earlier announcement it would end in March 217. Tourism Development, Christian Religious Affairs and Lands Minister John Amaratunga remained upbeat over the industry s progress, which is expecting revenue of $ 3.5 billion by the end of the year. As of August, earnings stood at $ 2.5 billion, retaining its spot as the third-highest foreign exchange earner. However, the Minister acknowledged the closure of the Bandaranaike International Airport and Sri Lankan Airlines pulling out from key European destinations would have a negative impact on arrivals next year. Daily Ft Sri Lanka's unemployment rate ticked up to 4.6 percent in the second quarter of 216, from 42 percent in the first quarter, amid a drop in agricultural workers, but non-farm sectors continued to generate jobs, data from the state statistics office showed. The total employment population which grew from 7.88 million the second quarter of 215 to 7.98 million in the first quarter of 216 dropped to 7.968 million in the second quarter. Agriculture workers were down to 1.96 million in the second quarter from 2.27 million a year earlier. Whether this is related to a drought or partly due to a longer term trend is not yet clear. In order for labour productivity to go up and living standards to improve, workers have to move out of agriculture to better paying industry or services sector jobs. -economynext Global Buzz Asian stocks swung as investors weighed the health of the region s biggest economy after data showing China s producer prices rose for the first time since 212 countered disappointing trade figures Thursday. Commodity-linked currencies jumped as the Thai baht extended gains. Equities in Japan and Australia fluctuated as those in Hong Kong and South Korea rallied. The Australian and New Zealand dollars rose. The Thai baht strengthened after selling off earlier in the week amid prospects for a smooth transition following the death of King Bhumibol Adulyadej. The Singaporean dollar slipped as the city state s central bank leftpolicy unchanged and growth slowed. U.S. crude extended gains back above $5 a barrel.-bloomberg Oil may need to rally further before China s producers make enough money to reverse a drop in output to the lowest in more than six years.production by the world s biggest consumer after the U.S. will stabilize with prices around $5 a barrel and may not rebound until they are above $6, according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein. China, the world s fifth-largest producer in 215, pumped 5.7 percent less crude in the first eight months of the year as state-run companies shut fields too expensive to operate amid the worst price crash in a generation. -Bloomberg Page 4
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