28-Oct-216 Focus: End of a dull week Bourse depicted a mixed behavior during the week with indices depicting mix returns. Dull trading was witnessed without much active participation from the investors while market turnover recorded on Tuesday was the lowest for the year. Bank Finance & Insurance sector contributed mostly to the market turnover during the week while Oil Palms sector became the highest gainer (+3.23%) BUKI, CCS and GUAR moved up ASPI by only 12.33 points while COMB, JKH and COCR dragged down the index by 1.27 points. During the week ASPI was down by 23 points and S&P SL 2 down by 22 points respectively. Rupee depreciated during the week and closed at LKR 147.93 per USD. One-year T-bill rate slightly edged to closed at 1.25%. Gold prices increased slightly to close at 1266.84 $/Oz and oil price was declined by 3% to close at 49.33$/Barrel. Market Indicators This Week Last Week % Change YTD ASPI 6,425 6,448 -.35% -6.45% S&P SL 2 3,572 3,595 -.62% -.74% For. Pur(LKR Mn) 321 1,297-75.29% 53,881 For.Sales(LKR Mn) 236 779-69.66% 55,76 Mkt Cap.(LKR Mn) 2,739,38 2,748,632 -.35% -6.1% Turnover (LKR Mn) 1,242 2,681-53.66% Volume (Mn) 54.85 173.43-68.37% PE 13.14 13.19 -.35% PBV 1.46 1.47 -.35% Daily avg.turnover(lkr Mn) 248 536-53.66% Daily avg.for.pur(lkr Mn) 64 259-75.29% Daily avg.for.sales(lkr Mn) 47 156-69.66% YTD Net Foreign inflow/(outflow) - LKR Bn (1.74) Top 5 Turnover ASPI, S&P SL 2 and Volume Company This Week Last Week % Change Price (LKR) 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 67,751,493 38% 144.6 CTC.N 276,97,783 62,256,339 343% 85. LION.N 181,559,315 21,12,444 76% 41. HNB.N 121,469,26 177,155,766-31% 228. JKH.N 11,139,541 384,223,35-71% 115. Top 5 Gainers Company This Week Last Week % Change Volume VOLUME ASPI S&P SL 2 BLUE.X.6.5 2% 168,379 CHLN.N 18.7 98. 11% 882 UDPL.N 19.7 17.8 11% 716 ASPI Contributors for the Week HPWR.N 23.5 21.3 1% 926,887 Points CSEC.N 26. 23.7 1% 23,859 8 4-4 -8-12 -16-2 BUKI.N CCS.N GUAR.N CTC.N HAYL.N SLTL.N ASIR.N COCR.N JKH.N COMB.N Top 5 Losers Company This Week Last Week % Change Volume CPRT.N 6.8 73. -17% 1,779 CITH.N 12.5 14.5-14% 2,739 CFL.N 19. 21. -1% 18,84 REEF.N 1.5 11.5-9% 94,252 KDL.N 4.5 44.2-8% 3,328 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz +94 11 5889835 OIL PALMS 71,648.2 69,48.39 3.23% Gayan Rajakaruna +94 11 5889837 FOOTWEAR TEXTILE 944.85 921.74 2.51% Hiruni Perera +94 11 588989 INVESTMENT TRUST 13,82.55 13,687.71.97% BEV FOOD TOBACCO 21,14.28 2,893.82.58% Important Disclosure and Contact Details: Page 5 POWER & ENERGY 151.89 151.5.56%
LKR per kg LKR//US $ % Millions Sri Lanka Equity Turnover and Foreign Trading Local Market.35.3.25.2.15.1.5 ASPI S&P SL 2 AWPR (Weekly) USD:LKR JPY:LKR EUR:LKR % change 6,425 -.35% 3,584 -.29% 1.15% 1.5% 147.93.45% 1.41 -.97% 161.62.78% 1/24/216 1/25/216 1/26/216 1/27/216 1/28/216 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) 49.33-2.99% T-Bill and AWPLR Gold (USD/Ounce) 1266.84.3% 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 2133.4 -.38% MSCI AC Index 138.78 -.67% 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 1-Oct-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: Know what you own, and know why you own it. - Peter Lynch Page 2
Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Tuesday RAL 1 3.5 8,955,58 LWL 2. Interim 2/11/216 WATA.65 Interim 3/11/216 Wednesday JKH 1 15. 496,598 BFL 3.5 Interim 4/11/216 Friday HNB.X 1 19. 3, CARG 1 173. 187,78 Corporate Disclosure DFCC announced an initial issue of 4 Mn debentures with an option to issue up to a further 2 Mn debentures at the discretion of the bank. CSE CCorporate Announcements Page 3
Corporate News Sri Lanka s Piramal Glass Ceylon reported a net loss of Rs37 million in the September 216 quarter compared with a net profit of Rs14 million a year ago as it was affected by a production stoppage to upgrade its furnace. Sales fell marginally to Rs1.4 billion from Rs1.5 billion during the period, according to interim accounts filed with the stock exchange. The company, a unit of India s Piramal Glass Ltd., reported a loss per share of 4 cents in the quarter against earnings of 15 cents a year ago.for the six months ending September 216, the firm s net profit fell to Rs73 million from Rs287 million a year ago.a statement said the company had to supply the market while its factory was non-operational for a period of 2 months for the upgrade and capacity enhancement. economynext Sri Lanka s Trans Asia Hotels, which operates the 5-star Cinnamon Lakeside Hotel, said September 216 quarter net profit was Rs168 million compared with a loss of Rs38 million a year ago.sales of the firm, owned by John Keells Holdings group, rose 66% to Rs846 million over the period, interim accounts filed with the stock exchange showed.net profit for the six months to September 216 was Rs259 million against a loss of Rs7 million the year before.for the six months Trans Asia Hotels declared earnings per share of Rs1.29 compared with a loss per share of Rs.35 the year before. Trans Asia Hotels also derives rental income from the investment property adjoining the hotel. economynext The Rs. 5 billion debenture issue of Commercial Bank of Ceylon Plc closed within minutes of opening yesterday after it was oversubscribed twice over, the bank has announced.the bank received a substantial amount of applications and has decided to exercise its option of enlarging the issue to Rs. 7 billion, the bank notified the Colombo Stock Exchange (CSE).The basis of allotment of the debentures will be decided by the Board of Directors of the bank and will be notified to the CSE in the near future, the bank said. We thank our customers and investors for this emphatic vote of confidence in the strength, stability and growth prospects of the bank, Commercial Bank s Managing Director/CEO Jegan Durairatnam said, commenting on the issue s oversubscription. Daily Ft Economic News The rupee ended weaker on Friday due to dollar demand from importers but moral suasion by the Central Bank discouraged trading in the spot currency market, dealers said.rupee forwards were active, with the spot-next ending at 147.95/148.5 per dollar, weaker than its previous close of 147.6/7.The spot rupee was quoted at 146.9/95 per dollar, but there were hardly any trades. We see the Central Bank s instruction on the spot rupee. But the spot-next was traded without any intervention, a currency dealer said, asking not to be named.the spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.-daily Ft After months of uncertainty the Value Added Tax (VAT) Amendment Bill was passed in parliament yesterday, increasing taxes from 11% to 15% with several amendments that included Finance Minister Ravi Karunanyake pledging to bring fresh regulations to ensure exemptions applicable to health services raised by opposition members. The controversial Bill was deemed unconstitutional by the Supreme Court in July but the latest draft was cleared by the court on Tuesday. Voting by name was taken at the 2nd reading where 112 voted in favour while 46 members were against. The vote taken after the third reading brought in only 76 votes in favour of the amendments while 23 voted against the Bill, mostly due to members leaving the well of the House. The 15% increase in VAT exempts certain services in healthcare, housing and smart phones while increasing postal charges, call charges, tobacco and liquor prices, Finance Minister Ravi Karunanayake highlighted. DailyFt Despite Sri Lanka making progress in two reform areas, this was not enough to stop a decline in the country s overall rank from 19 in 216 to 11 in 217 in the latest ease of doing business index released by the World Bank yesterday as competitive peer economies pushed ahead faster. The World Bank Sri Lanka office, releasing a statement on Wednesday, noted that Sri Lanka had slipped in the rankings by just one rung, which was not necessarily an indicator that the country has slipped down in rank, but is more a reflection that other peer economies have undertaken a larger number of reforms in the business environment during the same period. The two key reforms implemented by Sri Lanka in 216 that are covered by the Doing Business report are under the categories of Starting a Business and Protecting Minority Investors. -DailyFt Global Buzz Samsung Electronics Co. reported a 17 percent slump in third-quarter profit after the demise of its fire-prone Note 7 line threw the world s largest smartphone maker into disarray.scores of reports about battery fires and explosions forced Samsung to kill its most profitable model this month, punctuating its worst corporate crisis to date. Net income fell to 4.41 trillion won ($3.9 billion) in the September quarter as the company dealt with a debacle that may ultimately cost more than $6 billion.-bloomberg The dollar strengthened versus the bulk of its peers amid growing confidence that the Federal Reserve will raise interest rates this year. Asian shares declined following a mixed batch of earnings reports and oil steadied near a three-week low.the Bloomberg Dollar Spot Index climbed to a seven-month high after U.S. data showed pickups in new home sales and services activity. The MSCI Asia Pacific Index fell for a second day, with Canon Inc., Cnooc Ltd. and Posco all losing ground after announcing results. Crude oil traded near $49 a barrel amid doubts about whether OPEC will implement its first output cuts in eight years and get producers outside the group to join in. Bonds retreated across most of Asia following declines in U.S. Treasuries.-Bloomberg Page 4
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