Daily Trade Journal - 30.04.2013 (1).pdf

7/30/2019 Daily Trade Journal - 30.04.2013 (1).pdf

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

39.4

85.8

8.6

204.0

118.2

Tuesday, April 30, 2013

823.3

% ChangePoint ChangeToday

32.2

876.0

-0.24 %

0.08 %

2,280.8

ASPI

S&P SL 20 Index

- 14.43

+ 2.65

5,953.19

3,365.79

ASPI 5.5%

9.1%

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 30.04.2013ASPI stepped into the red territory: The benchmark

index fluctuated between marginal gains and losses

as it touched 5,979.27 points (+11 points) during early

trading hours led by gains in key dividend players of

the bourse. However the uptrend was not sustained

as the index dipped 14 points at its close denoting

losses in Ceylon Tobacco Company (-1.0%),

Commercial Leasing & Finance (-4.0%) and Nation

Lanka Finance (-1.0%) outweighing gains in Chevron

Lubricants (+4.1%), Lanka IOC (+8.5%) and Dialog

Axiata (+1.1%). The S&P SL20 index ended trading with

a marginal gain carrying its YTD gain to 9.1%.

Colombo Land & Development topped the turnover:

A counter which witnessed considerable gainsduring

the recent rally, Colombo Land & Development

spearheaded the turnover supported by 3 off-board

blocks accumulating to c.3 mn shares at a 52-week

high (off-board) price of LKR56.0. On-board activity inthe counter depicted some selling pressure as it

dipped 4.4% to LKR50.4 at its close. Tokyo Cement

and Commercial Bank registered one crossing each

at LKR24.0 and LKR114.5 respectively. The latter

witnessed strong on-board interest with 2 large blocks

which were transacted at a similar price.

BFI sector added 32% to the turnover; several

counters at 52-week high levels: Banking sector

interest was largely driven by Commercial Bank

(+0.3%) and National Development Bank (-0.2%).

Both Seylan Bank Voting and Non-Voting gained

focus as each traded at 52-week high prices of

LKR70.0 and LKR38.2. John Keells Holdings recorded

a peak of LKR250.0 backed by strong on-board

activity today while key dividend players of the

bourse; Nestle Lanka and Chevron Lubricants

touched new 52-week levels of LKR1,820.0 and

LKR250.0 respectively. Lanka IOC was among the 52-

week high list trading at LKR25.2.

Retailers continued on an active streak: Strong retail

activity surrounded SMB Leasing, TouchwoodInvestments, Colombo Land & Development and

Central Investments & Finance.

Index dipped amidst profittaking


2/7

Statistical Look Up

Treasury Bill (%) 03.05.2013

9.20

10.22

11.33

13.45

Inflation (%) Mar-13 7.5

8.8

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 q

Construction & Engineering q

Diversified q

Healthcare q

Hotels & Travels q

Land & Property q

Manufacturing p

Plantation q

Telecom p

5.00%

2.2

31.4

224.1

13,628.9

% Change

-0.24%2.2

-25.36%

16.1

0.65%

0.42%

2.22%

4.66%

% WoW

ChangeLast Week

1.18%

-20.16%

276.25%

-61.72%

255.6

2,286.3

65.3

23.63%

23.63%

% WoW

ChangeLast Week

708.5

5.6

0.58%

1.29%

-0.24%

Today

85.8

2.2

118.2

16.1

5,953.2

0.08%

2,280.8

2.3

204.0

3.56%

3.56%-50.69%

-4.03%

6.932.2

238

3,365.8

845.8

6.7

248

876.0

-0.24%

28.37%

168.74%

Week ending

0.93%

6.30%

-3.25%

1.18%

0.63%

1.18%

246

2,254.1

5,883.5

3,344.9

30.3

1.19%

0.00%

158.9

44.0

114.9

Change %

5,967.6

3,363.1

2.3

-0.24% 15.9

Pre Day

13,507.7

16,795.1

1,942.3

3,477.8

567.8

-0.06%

2,710.0

1,925.5

-0.32%

-0.34%

-1.12%

-0.45%

2,766.3

16,523.5

535.4

171.1 170.10.06%171.2

2.3

2,797.0

16,737.2

2,735.3

1,933.5

13,585.7

Pre Day

0.00%

3 months

6 months

12 months

YoY Change

Annual Avg

AWPLR

Excess Liquidity (LKR 'bn) as at 30.04.2013

Today

-18.52

680.0 685.2 -0.75% 671.6 1.26%

801.9 804.4 -0.31% 797.2 0.59%

2,663.9

3,400.4

-1.31%

3,475.9

560.4

0.84%2,773.8

5500

5600

5700

5800

5900

6000

Index

ASPI

3220

3240

3260

3280

3300

3320

3340

3360

3380

Index

S&P SL20

0.0

50.0

100.0

150.0

200.0

0

500

1,000

1,500

2,000

2,500

Volume('mn)

TurnoverLKR('mn)

Turnover Volume

Softlogic Equity Research Page | 2.


3/7

High Index Calibre USD350 Mn

Price Gainers Price Losers

Top 05 Performers for the Day

COLOMBO LAND

COMMERCIAL BANK

NAT. DEV. BANK

JKH

TOKYO CEMENT

Most Active

Close

250.00

806.80

249.50

829.00

162.80

122.00

710.00

9.40

Volume (mn)

11.4%

Turnover

(LKR)

3.2%

260,886,525

63,496,558

27,123,711

117,916,078

72,312,509

1.53

1.03

1.13

0.0% 209,176

260,886,525

5.2%

169.00

250.00

24.00

TOUCHWOOD 7.00

S M B LEASING 1.00

% Change

PC HOUSE[RIGHTS]

CIFL 2.70

2.00

4.79

2.07

2.70

0.26%114.50

0.43

0.250.04%

1.47

-4.36%

0.00%

-4.11%

2.8%

1.2%

0.1%

Contribution to

Total T/O

3,960,629

-4.38%

0.20

2,068,354

14,058,821

38.70

LANKA IOC

NATION LANKA [W 0021]

Pre Day

-4.36%52.70 11.4%4.79

Volume (mn)% Change

8.52%

+ 3.90 14.94%

50.40

CompanyContribution to

Total T/O

143.30

0.6%

0.2%

Turnover

(LKR)

154.00

2.45

5.58

114.00

56.20

153.00

42.00

8,332.02

69.90

216.00

162.00

42.40

710.00

69.10

700.00

4.70

TodayCompany

154.00

G S FINANCE

1.40

65.71

0.011.52

33.89

36.95

311.18

41.13

Today

8.37%

Turnover

USD ('000)

157.0016.32%

Intraday

Low (LKR)

Turnover

LKR ('000)

117,916.08

5,215.73

929.93

0.29

800.10

63,496.56

Intraday

High (LKR)

250.00

0.20

142.00

216.00

122.00

168.30

43.00

9.30

% Change

JOHN KEELLS HOLDINGS 254,036

SAMPATH BANK

ASIAN HOTELS & PROPERTIES 22

1.7%

11813,024

16,362

9.4%

6.6%CEYLON TOBACCO

CARSON CUMBERBATCHNESTLE LANKA

SRI LANKA TELECOM

COMMERCIAL BANK [V]

3.8%

3.2%BUKIT DARAH

DIALOG AXIATA

HNB [V]

DFCC BANK

CARGILLS

185.75

1,791.00

115.00

24.85

5.44

LOLC

AITKEN SPENCE 124.00

2.2% 38.55

689.64

165.00

52.5223,448.75

0.41184.93

445.00

715.00

9.40

1,800.50

114.80

450.001,820.00

4,297.51

4,888.06

4.0%

2.2%

1.2%

52

33,222

26,244

202

4.2%

170.00

57.90

3.4%

170.00

57.50

445.50

3.4%

114.80

-0.18%

1.6%

2.3%

Change

- 14.00

- 0.10

- 49.90

- 0.30

% Change

216.90

249.90

25.10

169.30

CEYLON LEATHER [W 0013]

+ 1.90

GESTETNER

69.90

143.00

Volume

500.76

-50.00%

0.00%

1,029,591

4,906.92

708.05

28,549 23,552.83

1.4%

Change

33.50

Company% of

Mkt Cap

0.10

Today Pre Day

52.70

1.00

7.30

+ 4.70

DISTILLERIES

34,324

38,571

COLOMBO LAND 50.40

Company

28,800

90,716

4,607

PRINTCARE PLC

ABANS FINANCIAL

Company Today

1.5%

ASCOT HOLDINGS

S M B LEASING [X] 0.50 + 0.10 25.00% HUNAS FALLS 51.70 - 9.30 -15.25%

-6.00%

-6.65%

-8.19%

-6.67%

167.00

24.20

30.00

+ 12.90



4/7

Currency Board Announcements

Local - Indicative Rate against LKR Dividends

Dollar Ceylon Tobacco Company PLC

Yuan Commercial Development Co

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

q

p

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

Commodit Markets

Crude Oil (Brent) q

Crude Oil (WTI) q

ICE Cotton #2 p

CBOT Wheat p

COMEX Gold p

COMEX Silver p

COMEX Copper q

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

00-Jan-00

21-05-2013

07-06-2013

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*

USd/bu.

86.11

Price

103.78

94.34

USD/bbl.

102.77

AGRICULTURE

Hong Kong Hang Seng Index

Nikkei 225

ASIA

FTSE 100 Index

EU

196.35

7.70

2.00 30-05-2013

10-05-2013

126.80

0.0033.81

Malaysia

4.09

131.17

20.57

2.34

1.29

41.83

India

Currency

166.03

Indicative Rate

30.04.2013

China

0

Payment DateDPS (LKR) XD Date

6,451.2

Singapore

Switzerland

Thailand

UK

-0.03

156.2

0

2,711.3

135.25

1/0/1900

1/0/1900

4.32

USA

02:28

-6.8

1/0/1900

Change

-0.24%

-23.3

04:01

0

00-Jan-00

1/0/1900

1/0/1900

06:49

06:48

-0.10%

00:01

Company

06:48

06:48

06:49

0-Jan

29-Apr

06:42

06:42

Time*

06:48

-0.11%

Change %

0.03%

0.89%

-0.03%

-0.17%

-0.17%

0.69%

0.14%

11.4

Change

0.43%0.37

0

-0.16

Change %

322.30

USD/t oz.

USD/t oz. 0.21

716.75

-0.35

24.38

Index

Dow Jones Industrial Average

S&P 500 Index

EUROPE

EURO STOXX 50 Price EUR

13,860.9

Value

14,818.8

1,593.6

USD/bbl.

USd/lb.

USd/lb.

AMERICA

0.25

METALS

ENERGY

Commodity

22,737.0

Units

0

-6.1

Proportion

00-Jan-00

00-Jan-00

0.00

0.00

0.72%

0.72%

106.2

Russia

Saudi Arabia

Japan

1,469.40 2.00

Australia



5/7

Softlogic Equity Research Page | 5

CSE Announcements

Aitken Spence [SPEN:LKR122.0]: Aitken Spence entered into anagreement with Fiji Ports Corporation Limited, an entity wholly owned by the

government of the Republic of Fiji to manage the cargo handling activities in the

Ports of Suva and Lautoka on a concession period of 15 years. Aitken Spence will

acquire a majority stake in Ports Terminal Ltd., a subsidiary of Fiji PortsCorporation Limited which will manage the operations. The investment of

approximately FJD 10.5 million will be subject to the approval of the Central

Bank of Sri Lanka and any other relevant regulatory authorities.

Dealings by Directors

Local News

Sri Lanka's inflation eases to 6.4% in April: Inflation in Sri Lanka's capital Colombo rose 6.5% in April 2013,from a year earlier, easing down from 7.5% in March, the state statistics office said. The Colombo Consumer

Price Index fell 0.5% or 0.8 points during the month to 170 points during the month helped by a 1.4% fall in

the food component of the index. Non-foods rose 0.4%. Sri Lanka's central bank has expected the inflation to

ease off from March, as the base effect of currency depreciation in early 2012 wore off. Sri Lanka's consumer

price index is now unchanged from the January level of 170 points. Past experience has shown that that it is

normal in Sri Lanka for inflation to ease. The index can even fall in absolute terms with prudent Central Bank

policies which allow exchange rate appreciation. (Sri Lanka inflation spike could be one-off: IMF)

[Source: www.lbo.lk]

China overtakes Japan as Sri Lanka's top tourist market in East Asia: China has overtaken Japan as SriLanka's top tourist market in East Asia generating more tourists from around September 2012, official data

show. In February 2013, arrivals from China rose 57.9% to 6,145 compared to a growth of 12.2% to 4,724 by

Japan. Japan has been Sri Lanka's top generating market in East Asia in the past, but from around September

2012 China has tended to generate more tourists than Japan. In the six months to February 2013 China

generated 17,978 arrivals compared to 14,938 from Japan. In the 12 months to Japan Chinese arrivals rose

58% to 25,781 compared to rise of 26.7% to 26,085 in Japan. Sri Lanka is targeting 60,000 visitors from

China, or an ambitious 100% plus increase in 2013 amid an overall target of 1.2 mn tourists which is a 20%

expected annual increase.


Sri Lanka's Hemas group to grow with acquisitions: Sri Lanka's Hemas Holdings [HHL: LKR28.8]said it hadhired a capitalist market specialist to advise on mergers and acquisitions as part of a growth strategy. Steven

Enderby, who has spent 12 year in India and 5 in Sri Lanka working for Actis Capital, an emerging market

fund has been hired as advisor to chief executive on mergers acquisitions and growth, the Hemas group said.

"The new appointment is in line with the companys strategy to accelerate the pace of growth through

M&A," the group said in a statement. "Steven will be leading the business development team of Hemas as

the company looks to deepen its market leading presence in personal care and healthcare, and grow

significantly in leisure, transportation, power and hospitals."


Sri Lanka's BB- sovereign rating confirmed: Fitch: Sri Lanka's 'BB-' sovereign rating has been confirmed witha stable outlook by Fitch on tighter monetary policy and corrective measures to stem balance of paymentstroubles but warned of rising foreign debt. "Persistence with tighter monetary and fiscal policies should help

improve Sri Lanka's external liquidity position," Fitch Ratings said. Fitch said Sri Lanka's rating balances the

country's resilient growth performance, healthy level of human development and strong payment record

against weakness in fiscal and external balances. Fitch also warned against rising foreign loan repayments.

Company Name Relationship Transaction Quantity Price (LKR) Date

Pan Asia Banking Coporation [PABC: LKR21.0] Mr. W.D.N. H. Perera Director Purchase 1,140,112 20.8-21.0 29.04.13


6/7


Sri Lanka's external debt repayments remained "quite heavy" Fitch said with USD1.9 bn dollars of debt

projected to mature from 2013 to 2015 compared to USD1.3 bn dollars in 2012. "This may not only limit Sri

Lanka's ability to rebuild foreign exchange reserves to a much higher level, but it also means that the

country's external finances will remain vulnerable to any spike in global risk aversion," the rating agency said.


Sri Lanka may reduce electricity tariff increase: Sri Lanka may moderate an increase in electricity tariffimposed from April 2013 amid growing opposition, a media reports said. Sri Lanka's privately owned TheDaily Mirror newspaper quoted power ministry secretary M M C Ferdinando as saying there may be

possibility of cutting the tariffs. The Lankadeepa newspaper said there was speculation of a 20% reduction in

the increase for users below 150 units. The report said President Mahinda Rajapaksa was unhappy at the

increase amid rising opposition. Sri Lanka has an established tariff methodology, which has been observed in

the breach, but following a public hearing the island's power regulator did not make any changes to the final

proposed tariffs of the power utility as expected. Opposition legislator Harsha de Silva slammed the

regulator accusing it of bowing to pressure by agreeing to meet the President and key officials on the eve of

the tariff decision, saying users below 48 units who were 'electricity poor' should be insulated.


IMF forecasts stable growth in Sri Lanka: The International Monetary Fund (IMF) yesterday predictedbroadly stable growth for Sri Lanka in the next two years with improvement in GDP pinned at a 6% range.

Releasing the Asia Pacific Regions Economic Outlook, the IMF projects Lankan economy to grow by 6.3% this

year and 6.7% in 2014. The growth forecast for this year is 0.5 lower than that was predicted in IMFs

October 2012 World Economic Outlook. For 2014, it is 0.3 higher than the October 2012 assessment. The

estimate of 6.3% for 2013 is far below Central Banks forecast of 7.5%.In Sri Lanka, growth is expected to

remain broadly stable, as continued macroeconomic stabilisation should restrain domestic demand, while

export growth is projected to remain tepid, the IMF said. Latest forecast also puts Sri Lankas growth above

the average of South Asia, the GDP of which is estimated to grow by 5.7% in 2013 and 6.3% next year. Noting

that 2012s growth was 6.4%, the IMF said in Sri Lanka, tighter policies in early 2012 to rein in credit and

import growth contributed to slowing activity last year.

[Source: www.ft.lk]

Global News

Euro-Area 1.2% Inflation Adds Pressure for ECB Rate Cut: Economy: Euro-area inflation at a three-year lowand record unemployment increased pressure on the European Central Bank to cut interest rates later this

week to spur lending and growth. The annual inflation rate dipped to 1.2% in April, the lowest since February

2010, from 1.7% month earlier, the European Unions statistics office in Luxembourg said today. The rate has

been below the ECBs 2% ceiling since February. The March jobless rate advanced to 12.1%, the highest since

the data series began in 1995. The ECBs Governing Council will cut its benchmark rate to a record low 0.50 %

on May 2 from 0.75%, according to the median of 70 economists estimates in a Bloomberg News survey. If

itwerent for the ECBs usual reluctance to make large changes, there would be a strong case to cut by 50basis points, and I think the likelihood is perhaps higher than the market expects, Frederik Ducrozet, an

economist at Credit Agricole SA (ACA), said by telephone from Paris. Its probably around 20%, because with

inflation that low its really the best time to do such things and maximize the impact on the market.

[Source: www.bloomberg.com]

Spain's economy contracts for seventh consecutive quarter: Spain's economy shrank for a seventhconsecutive quarter between January and March as domestic demand slumped. The country's gross

domestic product fell by 0.5% compared with the previous quarter, according to the National Statistics

Institute. On an annual basis, Spain's economy shrank 2% in the quarter - the worst fall since the end of

2011. Last week, Spain's government cut its forecast for 2013, saying it now expected the economy to shrink

by 1.3%. Its previous estimate had put the rate of contraction at 0.5%. "We don't see Spain returning togrowth until sometime next year,"said Nomura analyst Silvio Peruzzo. Spain has struggled since the onset of

the financial crisis in 2008 when its property bubble burst. As a result banks were left holding hundreds of

billions of euros in bad debts, eventually needing government bailouts to survive.

[Source: www.bbc.co.uk]


7/7


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

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 veri fied and no guaranty, representation

or warranty, express or implied is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change w ithout 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 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 to make a purchase and/or sale of any

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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

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Daily Trade Journal - 30.04.2013 (1).pdf