Daily Trade Journal - 20.05.2013

7/30/2019 Daily Trade Journal - 20.05.2013

1/8

p

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]

14.6%

18.3%

ASPI

S&P SL 20 Index

+ 85.97

+ 60.09

6,466.67

3,649.35

ASPI

Monday, May 20, 2013

881.5

% ChangePoint ChangeToday

44.0

1,282.7

1.35 %

1.67 %

2,483.2

YTD Performance

S&P SL 20 Index

40.5

288.4

11.3

350.9

62.5

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 20.05.2013Indices extending its upward drive: The bourse

sustained its rally today with notable buying pressure

across the board. During the early morning session,

ASPI rushed on the rally to reach 103 points. However

it lost momentum during the mid-day to denote a

market correction and eventually picked up in the

latter session ending at 6,466.67 points (+86 points).

Major contributors to the daily gains were John Keells

Holdings (+4.3%), Nestle Lanka (10.2%) and Chevron

Lubricants (11.3%). S&P SL20 too journeyed a similar

path and ended with a gain of 60 points at 3,649.35

points.

Commercial Bank on a rally with heavy volume:

Commercial Bank spearheaded the daily-turnover

with notable off-board interest where the counter

denoted four crossings totaling c.1.3mn shares which

were transacted at LKR122.0. Much interest was also

seen on-board on Commercial bank with severallarge blocks, largest being 112k shares which was

traded at LKR122.0. COMB witnessed a healthy price

rally today where it ended at a 52-week high of

LKR122.1 with a 2.6% gain. The tile manufacturerRoyal

Ceramic Lanka too reported two crossings

accumulating to 500k shares at LKR109.0.Investor eye on BFI sector; JKH continued its upward

climb: John Keells Holdings further neared its next

psychological level LKR300.0 with heavy volume,

topping the on-board turnover list. The counter

witnessed a single large on-board transaction of 44k

shares at LKR295.0 and ended the day with a gain of

4.2% at LKR297.1. Counters on the BFI sectorSampath

Bank, Nations Trust Bank and National Development

Bank too attracted notable investor interest during

the day.Retail interest continued moderately: Retail interest

surrounded Seylan Development, Overseas Reality

and Colombo Fort Land & Building.

Bourse further extended i ts

gain s nearing 6,500

points


2/8

Statistical Look Up

Treasury Bill (%) 17.05.2013

8.75

9.91

10.84

13.12

Inflation (%) Apr-13 6.4

8.8

All Share Price Index p

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 p

Beverage, Food & Tobacco p

Construction & Engineering p

Diversified p

Healthcare q

Hotels & Travels q

Land & Property p

Manufacturing p

Plantation q

Telecom q

715.6 717.0 -0.19% 717.6 -0.27%

843.6 849.1 -0.65% 825.2 2.23%

3,010.8

3,578.4

1.84%

3,627.7

635.2

2.44%3,067.6

3 months

6 months

12 months

YoY Change

Annual Avg

AWPLR

Excess Liquidity (LKR 'bn) as at 20.05.2013

Today

-2.04

178.7

2.1

3,142.5

18,589.2

3,004.5

2,178.8

14,300.5

Pre Day

0.00%

179.1 174.0-0.22%

14,095.7

17,926.2

2,136.0

3,653.8

623.7

-0.71%

2,981.9

2,074.8

0.12%

3.70%

1.53%

2.00%

2,959.3

17,444.7

602.7

434.8

99.5

335.3

Change %

6,380.7

3,589.3

2.1

1.35% 16.9

Pre Day

Week ending

0.76%

78.72%

3.25%

3.84%

3.71%

3.65%

246

2,391.3

6,239.0

3,518.9

24.6

3.92%

0.00%

1.67%

2,483.2

2.1

350.9

-8.48%

-8.48%-24.78%

2.42%

10.244.0

254

3,649.4

1,401.5

11.1

248

1,282.7

1.35%

-19.30%

-37.16%

Today

288.4

2.4

62.5

17.6

6,466.7

2,450.2

58.5

139.73%

139.73%

% WoW

ChangeLast Week

535.0

4.2

1.45%

6.56%

1.35%

2.67%

5.01%

1.38%

5.38%

% WoW

ChangeLast Week

4.09%

98.31%

161.12%

88.48%

176.9

4.37%

2.3

23.9

153.0

14,283.0

% Change

1.35%2.4

-14.00%

17.3

5400

5600

5800

6000

6200

6400

6600

Index

ASPI

3100

3200

3300

3400

3500

3600

3700

Index

S&P SL20

0.0

50.0

100.0

150.0

0

1,000

2,000

3,000

4,000

5,000

Volume('mn)

TurnoverLKR('mn)

Turnover Volume

Softlogic Equity Research Page | 2.


3/8

High Index Calibre USD350 Mn

Price Gainers Price Losers

Top 05 Performers for the Day

COMMERCIAL BANK

JKH

ROYAL CERAMIC

OVERSEAS REALTY

SAMPATH

Most Active

1,449.70 + 249.70 20.81% S M B LEASING [X] 0.40 - 0.10 -20.00%

-6.25%

-8.33%

-10.61%

-10.00%

16.70

286.10

158.60

+ 1.60

7.40

Today Pre Day

1.60

17.90

119.00

+ 32.70

DISTILLERIES

6,391

126,351

AMANA TAKAFUL 1.60

Company

93,267

63,596

37,813

CIT

CONVENIENCE FOOD

Company Today

1.6%

PEOPLE'S MERCH

SERENDIB LAND

2,008,187

969.31

6,578.53

3,391 2,974.34

1.3%

Change

232.70

Company% of

Mkt CapVolume

1,260.88

1.37%

-0.64%

297.10

-0.64%

1.5%

2.2%

Change

- 2.80

- 0.10

- 0.30

- 0.10

% Change

228.00

17.90

228.10

109.40

BLUE DIAMONDS [X]

+ 29.00

CITRUS HIKKADUWA

73.90

149.80

2,095.20

122.10

459.002,099.00

9,539.26

17,572.04

3.9%

2.2%

1.2%

9,534

1,019,072

55,250

28,252

4.5%

190.00

64.20

3.2%

189.50

64.00

450.00

3.2%

23.57

1,951.00

122.50

3,813.42

3.01

LOLC

AITKEN SPENCE 136.00

2.3% 139.26

379.54

173.00

4,066.662,901.14

32.2322.99

448.00

755.00

9.90

JOHN KEELLS HOLDINGS 541,234

SAMPATH BANK

ASIAN HOTELS & PROPERTIES 27,044

1.6%

9,0451,451

8,484

10.3%

6.7%CEYLON TOBACCO

CARSON CUMBERBATCHNESTLE LANKA

SRI LANKA TELECOM

COMMERCIAL BANK [V]

3.6%

2.9%BUKIT DARAH

DIALOG AXIATA

HNB [V]

DFCC BANK

CARGILLS

Turnover

USD ('000)

23.6016.35%

Intraday

Low (LKR)

Turnover

LKR ('000)

244,620.65

4,068.65

1,938.61

55.42

870.00

159,102.09

Intraday

High (LKR)

298.50

30.22

149.50

226.00

134.50

185.00

45.00

9.70

% Change

1,993.99

75.60

6,993.57

9,987.37

32.24

Today

10.60%

Turnover

(LKR)

172.50

79.15

52.13

119.00

63.20

172.50

44.00

28,595.80

79.00

226.00

171.10

44.30

715.00

71.20

3.30

1.50

TodayCompany

174.10

PC HOUSE

0.90

226.62

15.80

37,828,728

244,620,648

7.68

CHEVRON

S M B LEASING

Pre Day

2.61%119.00 9.9%2.01

Volume (mn)% Change

11.28%

+ 18.60 13.29%

122.10

CompanyContribution to

Total T/O

152.50

9.9%

5.6%

2.01

8.60

2.02

109.40

4.28%284.90

1.28

2.025.59%

1.28

0.00%

5.59%

2.61%

1.5%

1.2%

1.5%

Contribution to

Total T/O

139,027,128

-0.92%

7.30

ROYAL CERAMIC 108.70

108.70

18.90

226.00

COMMERCIAL BANK 122.10

OVERSEAS REALTY 18.90

% Change

EXPOLANKA

244,620,648

37,828,728

28,595,797

159,102,091

139,027,128

1.54

0.54

0.13

0.5% 11,378,393

14,614,959

6.4%

Volume (mn)

0.6%

Turnover

(LKR)

5.6%

172.30

135.00

716.70

9.80

885.00

Close

297.10

884.90

285.00



4/8

Currency Board Announcements

Local - Indicative Rate against LKR Dividends

Dollar No Annoucements

Yuan 0

Euro 0

Rupee 0

Yen 0

Ringgit 0

Rouble 0

Riyal 0

Dollar Rights Issues / Scrip Dividend / Sub division / Capitalization

Franc Company

Baht No Announcements

Pound 0

Dollar 0Source: www.cbsl.gov.lk

Global Markets

p

p

q

q

p

p

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

Commodit Markets

Crude Oil (Brent) p

Crude Oil (WTI) q

ICE Cotton #2 q

CBOT Wheat q

COMEX Gold q

COMEX Silver q

COMEX Copper q

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

Australia

1,349.80 -14.90

METALS

ENERGY

Commodity

23,493.0

Units

0

-0.2

Proportion

00-Jan-00

00-Jan-00

0.00

0.00

0.80%

1.03%

121.2

Russia

Saudi Arabia

Japan

330.35

USD/t oz.

USD/t oz. -0.81

682.75

-1.95

21.55

Index

Dow Jones Industrial Average

S&P 500 Index

EUROPE

EURO STOXX 50 Price EUR

15,360.8

Value

15,354.4

1,667.5

USD/bbl.

USd/lb.

USd/lb.

AMERICA

-0.50

17.0

Change

-0.08%-0.07

0

-0.47

Change %

-0.59%

Change %

-0.07%

-3.61%

0.12%

-0.49%

1.47%

1.78%

-1.09%

07:15

07:10

06:54

17-May

17-May

07:05

07:06

Time*

15:02

06:56

06:56

-0.12%

06:56

Company

00-Jan-00

1/0/1900

1/0/1900

6,715.2

Singapore

Switzerland

Thailand

UK

0.12

410.4

0

2,817.8

129.95

1/0/1900

1/0/1900

4.22

USA

02:28

-7.9

1/0/1900

Change

-0.01%

222.7

04:01

0

Payment DateDPS (LKR) XD Date

191.60

0.00

0.00 0

0

126.18

0.0033.65

Malaysia

4.01

123.29

20.55

2.30

1.23

41.78

India

Currency

161.93

Indicative Rate

20.05.2013

China

0

USd/bu.

86.34

Price

103.80

95.55

USD/bbl.

100.43

AGRICULTURE

Hong Kong Hang Seng Index

Nikkei 225

ASIA

FTSE 100 Index

EU

00-Jan-00

1/0/1900

1/0/1900

00-Jan-00

Description

0.00

0.00

0 1/0/1900

0

XR Date

00-Jan-00

00-Jan-00

00-Jan-0000-Jan-00

Renunciation

00-Jan-00

0.00

Time*

00-Jan-00



5/8

Softlogic Equity Research Page | 5

CSE Announcements

Hatton National Bank [HNB: LKR172.3, HNB.X: LKR126.3] The CSE hasapproved in principle an Application for listing the debt securities of the Bank.

The debt securities are to be listed on the Main Board of the CSE. Details of the

above issue are as follows. 20,000,000 Unsecured, Subordinated, Redeemable

Debentures at an issue price of LKR100.0 each (with an option to issue up to afurther 20,000,000 Debentures in the event the initial 20,000,000 Debentures

are oversubscribed). Date Of Opening Of The Subscription List is 6th June 2013.

Singalanka Standard Chemicals [SING: LKR76.0]: The Court Cases which had been filed against the Companyby M/s Penpals Ltd, a shareholder of the Company have been withdrawn by Penpals Ltd pursuant to the sale

of Its entire shareholding in the Company. Penpals Ltd was seeking by these cases inter alia to challenge the

Rights Issue of the company that was held in August 2011.

Watawala Plantations [WATA: LKR13.1]: Mr. Sunil Gamini Wijesinha succeeds Mr. Govindasamy Sathasivamfor the post of Chairman w.e.f 20th May 2013.

Dealings by Directors

Local News

LOLCs Green Paradise gets LKR100 mn facelift: LOLC Leisure [Subsidiary of Lanka Orix Leasing Company[LOLC: LKR64.0]] plans to invest LKR100 mn to further develop the luxury Green Paradise Agro Eco Hotel,

said Susantha Bandara, Resident Manager, Green Paradise Hotel. In an exclusive interview with Daily News

Business, he said that under the LOLC management, the hotel could soon look to a bright future with many

developments in store. LOLCs Browns Investments, recently acquired a 51% stake of the previously Italian

owned luxury Green Paradise Hotel, situated in a strategic location close to the historic Kaludiya Pokuna,

surrounded by the Kandalama tank, Sigiriya, Polonnaruwa and Anuradhapura. Bandara said the LOLC

management had planned to further develop the hotel to international standards in a bid to bring the luxury

hotel under the umbrella of a renowned international brand chain and convert it into a flagship Eco luxury

hotel in the region. He said plans were afoot to accomplish the tasks within a period of six months. Under

this development, the hotels landscape would receive a facelift and the villas and suites would be further

upgraded. More agro eco features too would be added to the existing facility.

[Source: www.dailynews.lk]

PEOI: New Year uptick of optimism gone: The Perceived Economic Opportunity Index (PEOI) lost thewelcome uptick in optimism in anticipation of the traditional New Year. The only positive change recorded

for 2013 in March turned negative soon after the holidays. During the period of the survey there was some

significant bad news on the economic front; an increase in electricity tariffs. It is very likely that this

pending increase had an impact on the perceptions of the people.Whether the fall in optimism would turn

around post the assurance of the President in his May Daymessage that the poorest consumers would be

exempted for the hike or whether it would continue to fall will be seen next month. Indications, however,

are that people are expecting cost of living to worsen. With the PEOI well below the midpoint of 2.0 and on

a downward trend, it is time that policymakers take necessary steps to improve the confidence of the

people, without which economic performance itself will suffer.[Source: www.ft.lk]

Listed debt market heads for record year: Boosted by a specific 2013 Budget move, the countrys listeddebt market is set for a record year in 2013, judging by value of issues already completed and those in the

Company Name Relationship Transaction Quantity Price

(LKR)

Date

Cargills (Ceylon) [CARG: LKR172.5] Anthony A. Page Director Sale 670,796 165.0 15.05.2013


6/8


pipeline. The year so far has seen four firms raising LKR10.5 bn, whilst issues worth a further near LKR15 bn

are in the offing. The best year for the listed corporate debt market was in 2010 with LKR15 bn raised and if

most of the planned ones come through, 2013 will be a record high. As per value of issues done and slated,

the figure stands at LKR25 bn. Analysts linked the resurgence in listed debt market to the Governments

2013 Budget exempting income tax on the interest income of corporate debt securities. This was to fast-

track the development of the corporate debt market. In the first quarter four issuers raised LKR10.5 bn, with

Peoples Leasing and Finance coming with a mega issue of LKR6 bn. Others were Seylan Bank and MerchantBank of Sri Lanka (LKR2 bn each) and Commercial Credit and Finance (LKR500 mn).

[Source: www.ft.lk]

IMF calls for second generation tax reforms: With the first generation of tax reforms failing to generateintended revenues, International Monetary Fund has urged authorities to bring about second generation of

tax reforms focused on broadening the tax base through improved administration. Revenue growth has not

responded as envisaged to a first round of tax reforms, undermining capital investment plans; despite recent

appropriate price adjustments, state-owned enterprises remain prone to large losses; and the current

account deficit remains elevated and financed mainly through debt-creating flows, IMF staff report noted.

Comprehensive tax reforms were introduced in 2010 and 2011 to simplify the tax structure and broad basethe tax system, under which corporate income tax was brought down from 35% to 28%; the VAT rate was

unified at 12%; and certain other taxes were abolished. However, the pace and quality of fiscal adjustment

fell short of ambitious plans, and tax rate reductions generally took precedence over base broadening, while

costrecovery pricing at state-owned energy companies has yet to emerge,IMF staff report remarked.

[Source: www.dailynews.lk]

Nepal billionaire plans to set up USD75mn cement plant in Jaffna: Nepal's first Forbes billionaire, BinodChaudhary has submitted a proposal worth of USD75 mn to the Sri Lankan government to set up a state-of-

the-art cement plant in Jaffna Peninsula, a statement issued by Chaudhary's office said. In Sri Lanka,

Chaudhary has an estimated USD 200 mn investments, including projects underway and proposed.

[Source: www.dailymirror.lk]

Tourism to earn USD3 bn by 2016 : Four years after the 30-year anti-terrorist war tourism has become oneof Sri Lankas biggest foreign exchange-earners with average annual revenue of USD1 bn at present. The

number of tourist arrivals last year was 1,005,605 while in January this year 97,411 tourists visited the

country. The country is expected to earn an annual income of USD3 bn by 2016. The government has set a

target of attracting 2.5 mn high spending tourists by that year. Sri Lanka Tourism Chairman Bhashwara

Gunarathna explained the rationale behind launching Get Sri Lankened campaign in India and how Sri

Lanka Tourism plans to achieve maximum influx of Indian tourists from Indian market. He said Sri Lankas

target is to attract 400,000 Indian tourists by year 2016 thus helping to reach the goal of 2.5 mn arrivals by

year 2016.

[Source: www.ft.lk]

Global News

China, India to be worlds two biggest investors by 2030: World Bank: The percentage of global investmentthat goes to developing countries should triple in the next two decades as emerging economies catch up to

richer nations and become more integrated into financial markets, the World Bank predicted in a report last

week. These nations and their comparatively younger and bigger populations are also set to become the

largest sources of capital, with China and India turning into the worlds two biggest investors by 2030, the

global development lender said. The shifting landscape of saving and investment has profound implications

for everything from which currencies will dominate global markets to the rise of new financial centres,

patterns of capital flows and investment priorities. But policymakers are still woefully unprepared for the

changes, fixating instead on what will happen in the next three to six months, Kaushik Basu, the World

Banks Chief Economist, said. Standard & Poors earlier this week predicted that Chinese non-financial

companies will overtake US companies in their borrowing needs over the next two years. By 2030, for every

dollar invested in the world, 60 cents will flow into developing countries, a dramatic change from 20 cents to


7/8


the dollar in 2000. China will make up 30% of all investment activity, while the United States will have 11%

and India, 7%. The numbers assume the world will grow on average 2.6% to 3% a year in the next two

decades, while emerging economies will grow 4.8 to 5.6% a year.

[Source: www.ft.lk]

China Home-Price Gains Signal Growth Challenge for Li: Chinas new-home prices rose last month in 68 of70 cities tracked by the government, indicating Premier Li Keqiang will need to maintain efforts to cool theproperty market even as economic growth slows. Chinas policy makers are trying to avoid property bubbles

and make homes more affordable while bolstering an economy that lost steam in the first quarter.

Expanding a campaign against housing speculation could choke off real-estate development that is helping

counter a slowdown in manufacturing investment and supporting demand for steel, cement and household

goods. The government faces a dilemma, said Zhang Zhiwei, chief China economist at Nomura Holdings

Inc. in Hong Kong. They have to make a choice between property prices and economic growth.

[Source: www.bloomberg.com]


8/8


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. 212, 1st

Floor, Panadura 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

MataraLalith Rajapaksha

No.8A, 2nd

Floor, FN Building, Station Road, Matara

[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

Sonali Abayasekera

[email protected]

+94 11 7277051, +94 77 7736059

Thanuja De Silva

[email protected]

+94 11 7277059, +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 a ny 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 customeLKRNot 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 be

reproduced, distributed, or published for any purposes.

Daily Trade Journal - 20.05.2013

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Transcript of Daily Trade Journal - 20.05.2013