Daily Trade Journal -05.03

download Daily Trade Journal -05.03

of 7

Transcript of Daily Trade Journal -05.03

  • 7/29/2019 Daily Trade Journal -05.03

    1/7

    q

    p

    Today's Turnover (LKR mn)

    Annual Average Daily Turnover (LKR mn)

    Volume (mn)

    Annual Average Daily Volume (mn)

    Market Capitalization (LKR bn)

    Net Foreign Inflow / (Outflow) [LKR mn]

    - Foreign Buying (LKR mn)

    - Foreign Selling (LKR mn)

    YTD Net Foreign Inflow / (Outflow) [LKR bn]

    YTD Performance

    S&P SL 20 Index

    38.1

    282.0

    0.4

    292.9

    11.0

    Tuesday, March 05, 2013

    850.5

    % ChangePoint ChangeToday

    13.5

    602.8

    -0.09 %

    0.16 %

    2,161.8

    ASPI

    S&P SL 20 Index

    - 5.12

    + 5.14

    5,626.77

    3,208.92

    ASPI -0.3%

    4.0%

    Level 23, East Tower, World Trade Centre,

    Colombo 01

    Tel: +94 11 727 7000,

    Fax: +94 11 727 7099

    Email: [email protected]

    CSE Diary for 05.03.2013A stagnating trend persisted in the Colombo bourse as both indices

    closed broadly flat for the day. Banking & Finance and diversified

    sectors encountered significant prominence contributing 83% to

    the turnover while 5 crossings in large caps breathed in 60%. The

    benchmark index which traded between 5645.01 (+13 points) and

    5623.74 (-8 points) settled broadly flat at 5,626.77weighting heavilyon Commercial Leasing & Finance (-4.8%), LB Finance (-8.5%) and

    Commercial Bank (-1.0%). The S&P SL20 index closed flat in the

    green backed by gains in Bukit Darah (+2.9%), Ceylon TobaccoCompany (+0.7%) and Distilleries (+1.2%).Colombo bourse is currently witnessing a phase of stagnation as a

    result of macroeconomic uncertainty and negative investor

    sentiment clouding the direction of indices. It is notable that recent

    trend etched around prominence in banking and finance sector

    and a few selected large caps in specific dominating the market.

    The YTD net foreign outflow reversing to a YTD net inflow of LKR0.2

    bn yesterday, justifies the confidence foreigners have placed on

    the Colombo bourse thereby picking on the attractively priced

    companies with expected sustainable earnings growth potential.

    Local players in contrast are still bewildered by the downtrend with

    the echoing herd instinct. We reiterate pragmatic investors to step

    in at this point thus not missing out the possibility of healthy returnsstemming from a recovery.

    John Keells Holdings emerged as the front runner for the day

    supported by four off-board blocks accumulating to 995k shares

    transacted at LKR234.5. The counter traded between LKR234.0 and

    LKR234.8 before settling with a gain of 0.3% at LKR234.5.

    With attractive dividend payout announced, Hatton National Bank

    followed closely with significant contribution from a crossing which

    carried c.930k shares at LKR148.8 while on board interest on the

    counter weighed more towards the buying side as it settled with a

    marginal gain at LKR150.0. Its Non-Voting share too sustained

    interest with a block of c.42k shares being drawn up in the market

    at LKR120.0. The Non-Voting shares of Commercial Bank and

    Seylan Bank were among the top turnover slot with the former

    touching LKR92.5 at its peak and the latter depicting strong buying

    interest between LKR35.7 and LKR36.0.

    The spearhead in Sri Lankas tile market; Royal Ceramics continued

    its stance with a block of 49k drawn on-board at LKR98.10.

    Renewed interest gathered in S&P caliber players; Asian Hotels and

    Properties and Distilleries. Two blocks totaling 125k shares in the

    former were seen transacted at LKR70.0 while the latter witnessed

    buying interest at its intra-day high of LKR180.0. Penny stocks; Tess

    Agro, Browns Investments and Free Lanka Capital Holdings

    dominated retail play for the day as retailers continued to be

    sidelined with the pattern of indices searching for direction.

    Indices conclude on a flatnote; Banks & large caps takethe lead

  • 7/29/2019 Daily Trade Journal -05.03

    2/7

    Statistical Look Up

    Treasury Bill (%) 01.03.2013

    9.10

    10.08

    11.10

    14.42

    Inflation (%) Feb-13 9.8

    8.6

    All Share Price Index q

    S&P SL20 Index p

    Turnover (LKR mn)

    Turnover (USD mn)Volume (mn shares)

    Traded Entities

    Market Capitalization (LKR bn)

    Foreign Purchases (LKR mn)

    Foreign Sales (LKR mn)

    Net Foreign Inflow (LKR mn)

    Market PER (X)

    Market PBV (X)

    Market Dividend Yield

    SECTOR INDICES

    Banks, Finance & Insurance q

    Beverage, Food & Tobacco p

    Construction & Engineering q

    Diversified p

    Healthcare p

    Hotels & Travels q

    Land & Property q

    Manufacturing q

    Plantation q

    Telecom q

    -0.80%

    2.1

    109.1

    361.0

    12,757.6

    % Change

    -0.09%2.1

    -67.15%

    15.2

    -0.66%

    -1.12%

    -0.32%

    -2.01%

    % WoW

    ChangeLast Week

    -0.75%

    -37.69%

    -89.92%

    -21.89%

    470.1

    2,163.7

    19.4

    -15.58%

    -15.58%

    % WoW

    ChangeLast Week

    714.0

    5.6

    -0.02%

    -1.07%

    -0.09%

    Today

    282.0

    2.1

    11.0

    15.2

    5,626.8

    0.16%

    2,161.8

    2.4

    292.9

    -43.99%

    -43.99%-30.44%

    3.52%

    4.713.5

    235

    3,208.9

    1,076.1

    8.4

    227

    602.8

    -0.09%

    -66.57%

    -39.27%

    Week ending

    -1.44%

    -52.14%

    -1.26%

    -0.75%

    0.21%

    -0.75%

    238

    2,178.1

    5,669.5

    3,202.2

    28.2

    -0.75%

    4.35%

    876.4

    18.1

    858.3

    Change %

    5,631.9

    3,203.8

    2.3

    -0.09% 15.3

    Pre Day

    12,668.4

    15,633.3

    1,847.3

    3,343.9

    462.9

    -0.13%

    2,792.4

    1,869.5

    -0.72%

    0.37%

    -1.26%

    0.06%

    2,787.2

    15,861.6

    468.8

    167.7 167.9-0.54%166.8

    2.4

    2,545.8

    15,691.2

    2,752.1

    1,848.5

    12,666.1

    Pre Day

    0.00%

    3 months

    6 months

    12 months

    YoY Change

    Annual Avg

    AWPLR

    Excess Liquidity (LKR 'bn) as at 05.03.2013

    Today

    -38.76

    598.4 595.9 0.41% 600.4 -0.34%

    769.0 771.1 -0.28% 781.1 -1.56%

    2,566.5

    3,350.2

    -0.76%

    3,339.6

    459.3

    -0.13%2,549.1

    5500

    5600

    5700

    5800

    5900

    Index

    ASPI

    3140

    3160

    3180

    3200

    3220

    3240

    3260

    3280

    3300

    Index

    S&P SL20

    0.0

    20.0

    40.0

    60.0

    80.0

    100.0

    120.0

    140.0

    0

    1,000

    2,000

    3,000

    4,000

    Volume('mn)

    TurnoverLKR('mn)

    Turnover Volume

    Softlogic Equity Research Page | 2.

  • 7/29/2019 Daily Trade Journal -05.03

    3/7

    High Index Calibre USD350 Mn

    Price Gainers Price Losers

    Top 05 Performers for the Day

    JKH

    HNB

    HNB[NON VOTING]

    COMMERCIAL BANK[NON VOTING

    SEYLAN BANK[NON VOTING]

    Most Active

    Close

    234.50

    751.30

    234.00

    755.00

    150.00

    120.00

    726.20

    8.90

    Volume (mn)

    0.1%

    Turnover

    (LKR)

    1.0%

    250,077,425

    20,963,098

    18,730,892

    145,626,659

    21,349,247

    0.80

    0.98

    0.52

    0.1% 2,784,337

    2,935,877

    6.7%

    120.00

    92.10

    36.00

    HNB 150.00

    JKH 234.50

    % Change

    BROWNS INVSTMNTS

    FREE LANKA 2.40

    0.98

    1.44

    1.07

    2.50

    0.60%149.10

    0.18

    0.230.33%

    0.76

    -9.09%

    0.26%

    0.60%

    1.0%

    0.9%

    11.6%

    Contribution to

    Total T/O

    1,821,943

    0.84%

    3.50

    250,077,425

    145,626,659

    2.46

    CEYLON LEATHER

    PC PHARMA

    Pre Day

    0.26%233.90 11.6%1.07

    Volume (mn)% Change

    9.17%

    + 1.90 10.86%

    234.50

    CompanyContribution to

    Total T/O

    120.00

    6.7%

    0.1%

    Turnover

    (LKR)

    146.10

    5.08

    4.58

    108.50

    56.50

    145.00

    42.30

    4,369.73

    71.50

    233.00

    149.00

    42.50

    705.40

    70.00

    6.70

    40.60

    TodayCompany

    147.00

    PCH HOLDINGS

    8.80

    34.28

    86.6611,046.54

    1,142.49

    13,527.03

    647.30

    0.89

    Today

    7.76%

    Turnover

    USD ('000)

    13.7011.94%

    Intraday

    Low (LKR)

    Turnover

    LKR ('000)

    2,682.31

    114.01

    21.04

    106.12

    750.00

    250,077.42

    Intraday

    High (LKR)

    234.80

    20.55

    119.50

    233.00

    119.90

    179.50

    43.00

    8.90

    % Change

    JOHN KEELLS HOLDINGS 1,066,445

    SAMPATH BANK

    ASIAN HOTELS & PROPERTIES 157,802

    1.5%

    7741,852

    429

    9.3%

    6.5%CEYLON TOBACCO

    CARSON CUMBERBATCHNESTLE LANKA

    SRI LANKA TELECOM

    COMMERCIAL BANK [V]

    4.0%

    3.4%BUKIT DARAH

    DIALOG AXIATA

    HNB [V]

    DFCC BANK

    CARGILLS

    71.80

    1,620.00

    109.90

    2,619.80

    0.14

    LOLC

    AITKEN SPENCE 120.30

    2.5% 47.47

    18.34

    150.00

    341.073,010.39

    2.6823.62

    440.00

    730.00

    9.10

    1,631.40

    108.80

    444.001,640.00

    145,626.66

    6,050.29

    3.9%

    2.3%

    1.2%

    18,789

    72,113

    978,335

    21,835

    4.1%

    180.00

    57.00

    3.4%

    180.00

    56.70

    440.00

    3.5%

    150.00

    0.08%

    1.8%

    2.2%

    Change

    - 2.10

    - 1.20

    - 0.90

    - 4.70

    % Change

    237.00

    91.80

    35.70

    119.90

    RADIANT GEMS

    + 5.50

    RENUKA SHAW [X]

    70.00

    119.50

    Volume

    1,961.94

    0.00%

    -4.00%

    24,565

    313.68

    584.00

    12,195 9,152.15

    1.4%

    Change

    1,399.30

    Company% of

    Mkt Cap

    3.50

    Today Pre Day

    2.20

    233.90

    149.10

    + 149.30

    DISTILLERIES

    2,624

    18,647

    TESS AGRO 2.00

    Company

    33,613

    2,010

    4,000

    ENTRUST SEC

    NUWARA ELIYA

    Company Today

    1.5%

    CEYLINCO INS. [X]

    CEYLON PRINTERS 1,440.20 + 155.20 12.08% AGALAWATTE 26.60 - 6.60 -19.88%

    -10.38%

    -11.84%

    -13.29%

    -12.00%

    299.80

    65.50

    19.40

    + 21.60

    Softlogic Equity Research Page | 3.

  • 7/29/2019 Daily Trade Journal -05.03

    4/7

    Currency Board Announcements

    Local - Indicative Rate against LKR Dividends

    Dollar Seylan Developments PLC

    Yuan The Nuwara Eliya Hotels Comp

    Euro Commercial Bank of Ceylon PL

    Rupee 0

    Yen 0

    Ringgit 0

    Rouble 0

    Riyal 0

    Dollar Rights Issues / Scrip Dividend / Sub division / Capitalization

    Franc Company

    Baht Commercial Bank of

    Pound Commercial Bank of Ceylo

    Dollar 0Source: www.cbsl.gov.lk

    Global Markets

    p

    p

    p

    p

    p

    p

    * Time is as at ET Source: www.bloomberg.com

    Commodit Markets

    Crude Oil (Brent) p

    Crude Oil (WTI) p

    ICE Cotton #2 p

    CBOT Wheat p

    COMEX Gold p

    COMEX Silver p

    COMEX Copper p

    * Time is as at ET Source: www.bloomberg.com

    00-Jan-00

    09-04-2013

    22-03-2013

    01-04-2013

    00-Jan-00

    Description

    0.00

    0.00

    Scrip Dividend 28-03-2013

    01-04-2013

    XR Date

    00-Jan-00

    00-Jan-00

    00-Jan-0000-Jan-00

    Renunciation

    00-Jan-00

    2.00

    Time*

    USd/bu.

    86.64

    Price

    110.51

    90.30

    USD/bbl.

    102.41

    AGRICULTURE

    Hong Kong Hang Seng Index

    Nikkei 225

    ASIA

    FTSE 100 Index

    EU

    192.75

    0.25

    10.00 13-03-2013

    01-04-2013

    127.46

    0.0033.99

    Malaysia

    4.15

    130.05

    20.48

    2.32

    1.37

    41.11

    India

    Currency

    166.06

    Indicative Rate

    05.03.2013

    China

    Scrip Dividend

    Payment DateDPS (LKR) XD Date

    6,388.9

    Singapore

    Switzerland

    Thailand

    UK

    0.42

    22.7

    V-01 for 59.72222

    2,655.1

    135.47

    28-03-2013

    1/0/1900

    4.28

    USA

    01:28

    43.3

    1/0/1900

    Change

    1.37%

    31.2

    03:01

    NV-01 for 50

    00-Jan-00

    09-04-2013

    01-04-2013

    06:39

    06:39

    0.68%

    06:39

    Company

    06:36

    06:38

    06:39

    0-Jan

    0-Jan

    06:29

    06:28

    Time*

    06:39

    0.64%

    Change %

    0.25%

    1.58%

    0.39%

    0.19%

    0.27%

    0.10%

    0.69%

    7.0

    Change

    0.46%0.40

    0

    0.25

    Change %

    352.40

    USD/t oz.

    USD/t oz. 0.44

    704.25

    2.40

    28.95

    Index

    Dow Jones Industrial Average

    S&P 500 Index

    EUROPE

    EURO STOXX 50 Price EUR

    11,683.5

    Value

    14,127.8

    1,525.2

    USD/bbl.

    USd/lb.

    USd/lb.

    AMERICA

    1.75

    METALS

    ENERGY

    Commodity

    22,560.5

    Units

    0

    36.0

    Proportion

    00-Jan-00

    00-Jan-00

    0.00

    0.00

    0.27%

    0.46%

    38.2

    Russia

    Saudi Arabia

    Japan

    1,583.60 9.90

    Australia

    Softlogic Equity Research Page | 4.

  • 7/29/2019 Daily Trade Journal -05.03

    5/7

    Softlogic Equity Research Page | 5

    CSE Announcements

    Commercial Credit and Finance (COCR:LKR12.2): Debenture issue ofLKR500mn will be listed on 6th March 2013 on the debt securities second

    board of the CSE .

    Lankem Development (LDEV:LKR5.7): The company informs that Mr. ARajaratnam has resigned from the office of Chairman and M.R S.D.R

    Arudpragasam has been elected as the new chairman of the company with

    effect from 1st March 2013.

    Dealing by Directors:

    Local News

    Performance-based wages for plantation workers: As the current two-year collective agreement lapsesthis month, negotiations for another wage increase in the plantation sector are expected to begin soon.

    Profitability and productivity of an industry always become key issues whenever worker wages are

    discussed, inflation takes a back seat and the plantation industry is no exception. It appears that at the last

    collective agreement, workers' wages were increased by 30%, resulting in a monthly take home pay for

    example of a tea plucker becoming LKR 13,390. Both tea and rubber are enjoying a buoyant market now

    although production is an issue. Tea and rubber prices are at attractive levels and profits up by 45% to 50%in rubber. In this background, it may be useful to re-examine the concept of Performance-linked wages, as

    numerous debates are likely to emerge around this concept when the wage issue is discussed. However, this

    concept was discussed two years ago when the last wage increase negotiations were on.

    [Source: www.dailymirror.lk]

    Three more capital market road shows in the pipeline: Following the conclusion of the capital market roadshow in Mumbai in February which drew over 150 foreign fund managers, the Colombo Stock Exchange

    (CSE) is currently planning three more road shows in major commercial hubs in the Asian region. According

    to CSE Chairman, Krishan Balendra, the three destinations earmarked are Hong Kong, Singapore and Middle

    East. When asked of the possible time frames of each of those major events, he said that the road show in

    Hong Kong will take place in June-July. This will be followed by the road shows in Singapore which isexpected to be held by October and in Middle East around November, he said.

    [Source: www.dailymirror.lk]

    Dialogs parent arm Axiata keen to buy Airtel Lanka: Malaysian based Axiata, the firm which owns SriLankas Dialog Axiata [DIAL: LKR8.9], is trying to buy Airtel Lanka, a media report said. According to the

    report, the firm has approached Bharati Airtel, the parent arm of the Airtel Lanka to express its interest. The

    report says, Axiatas Sri Lankan unit Dialog accounts for 40% share of the local market, while Airtel Lanka

    owns a market share of around 8% to 9% in the Island. Airtel Lanka has its services spread across the Island

    and offers 3.5G services and is armed with a distribution network of 42,000 retail traders across the country.

    [Source: www.news360.lk]

    Blocked Sri Lanka tea pouring in to Iraq: trade ministry: Shipments of Sri Lanka tea detained at the Iraqiborder have been allowed into the country from March 04, two weeks after a meeting between ministers of

    the two countries, the commerce ministry said. Sri Lanka's commerce ministry said more than 100

    Company Name Relationship Transaction Quantity Price (LKR) Date

    Royal Ceramic Lanka [RCL:LKR98.1] Mrs. A.M Weerasinghe Chairman Sale 114,442 99.0 01.03.13

    Tokyo Cement [TKYO:LKR24.0] South Asian Investment (Pvt) Ltd Common Directors Purchase 1,113,750 24.1 28.02.13

    Tokyo Cement [TKYO:LKR24.0] Nippon Coke & Engineering Company JV Collaborator Sale 1,113,750 24.1 28.02.13

    John Keells Holdings [JKH:LKR234.5] MR. A.D Gunewardene Director Sale 320,000 234.5 05.03.13

    http://www.dailymirror.lk/http://www.news360.lk/http://www.news360.lk/http://www.dailymirror.lk/
  • 7/29/2019 Daily Trade Journal -05.03

    6/7

    Softlogic Equity Research Page | 6

    containers of tea had been detained at the Iraq-Kuwaiti border, Aqaba Free Trade Zone of Jordan and Umm

    Qasr port of Iraq from February 19 due to a change in testing parameters. Iraq had bought 83 million Us

    dollars of tea from Sri Lanka becoming the fifth largest buyer after Russia, Iran, Syria and Turkey. In 2012,

    60% of tea imports to Iraq were from Sri Lanka and 91% in 2011, the commerce ministry said.

    [Source: www.lbo.lk]

    Global News

    Euro-Area Services Output Contracts Less Than Estimated: Euro-area services output shrank less thaninitially estimated in February, adding to signs the currency blocs economy may be beginning to emerge

    from a recession.An index based on a survey of purchasing managers in the euro-area services industry fell

    to 47.9 from 48.6 in January, London-based Markit Economics said in a report today. Thats above an initial

    estimate of 47.3 published on Feb. 21. A reading below 50 indicates contraction. Euro-area retail sales rose

    the most in three years in January, separate data showed. The currency blocs recession deepened in the

    fourth quarter, as the economy recorded its worst performance in almost four years with a contraction of

    0.6 percent. Gross domestic product will decline again in the first three months of this year before returningto growth in the second quarter, according to the median of 21 economists estimates in a Bloomberg

    survey.

    [Source: www.bloomberg.com]

    U.K. February Retail Sales Rise Most Since 2009, BRC Says: U.K. retail sales rose at the fastest pace in morethan three years in February as demand for clothes and home furnishings increased, the British Retail

    Consortium said. Sales at stores open at least 12 months, measured by value, increased 2.7%YoY, the

    London-based trade group said in an e-mailed report today. Excluding distortions caused by the timing of the

    Easter holidays, thats the biggest increase since December 2009 . The report follows a survey by GfK last

    week that showed U.K. consumer confidence held steady in February as optimism about personal finances

    rose to the highest in almost two years. While the Bank of England has forecast a slow but sustained

    recovery for the economy, consumer-spending growth may be restrained by rising energy bills and

    accelerating inflation .

    [Source: www.bloomberg.com]

    http://www.lbo.lk/http://www.lbo.lk/
  • 7/29/2019 Daily Trade Journal -05.03

    7/7

    Softlogic Equity Research Page | 7

    Softlogic Equity ResearchDimantha Mathew

    [email protected]

    +94 11 7277030

    Kavindu Ranasinghe

    [email protected]

    +94 11 7277031

    Imalka Hettiarachchi

    [email protected]

    +94 11 7277032

    Softlogic Equity SalesBranches

    Horana

    Madushanka Rathnayaka

    No. 101, 1/1, Aguruwathota Road, Horana

    [email protected]

    +94 34 7451000, +94 77 3566465

    Negambo

    Krishan Williams

    No. 121, St. Joseph Street Negambo

    [email protected]

    +94 31 2224714-5, +94 77 3569827

    Kurunegala

    Bandula Lansakara

    No.13, Rajapihilla Mawatha, Kurunegala

    [email protected]

    +94 37 2232875, +94 77 3615790

    Matara

    Lalith Rajapaksha

    No.8A, 2nd Floor, FN Building, Station Road, [email protected]

    +94 41 7451000, +94 77 3031159

    Dihan Dedigama

    [email protected]

    +94 11 7277010, +94 77 7689933

    Chandima Kariyawasam

    [email protected]

    +94 11 7277058, +94 77 7885778

    Shafraz Basheer

    [email protected]

    +94 11 7277054, +94 77 2333233

    Sonali Abayasekera

    [email protected]

    +94 11 7277059, +94 77 7736059

    Thanuja De Silva

    [email protected]

    +94 11 7277053, +94 77 3120018

    The report has been prepared by Softlogic Stockbrokers (Pvt) Ltd. The information and opinions contained herein has been compiled or arrived at based upon

    information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation

    or warranty, express or implied is made as to its accuracy, completeness or correctness. All such information and opinions ar e subject to change without notice. This

    document is for information purposes only, descriptions of any company or companies or their securities mentioned herein are not intended to be complete and

    this document is not, and should not be construed as, an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments.

    Softlogic Stockbrokers (Pvt) Ltd may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which

    they are based before the materialized disseminated to their customers. Not all customers will receive the material at the same time. Softlogic Stockbrokers, their

    respective directors, officers, representatives, employees, related persons and/or Softlogic Stockbrokers, may have a long or short position in any of the securities or

    other financial instruments mentioned or issuers described herein at any time and may make a purchase and/or sale, or offer t o make a purchase and/or sale of any

    such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principal or agent. Softlogic Stockbrokers

    may make markets in securities or other financial instruments described in this publication, in securities of issuers described here in or in securities underlying or

    related to such securities. Softlogic Stockbrokers (Pvt) Ltd may have recently underwritten the securities of an issuer mentioned herein. This document may not bereproduced, distributed, or published for any purposes.