Tuesday, June 11, 2013
Today 6,303.79 3,560.47 Point Change - 37.49 - 13.98 % Change -0.59 % q -0.39 % q
ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index
Level 23, East Tower, World Trade Centre, Colombo 01 Tel: +94 11 727 7000, Fax: +94 11 727 7099 Email:
[email protected]11.7% 15.4% 750.6 921.7 31.7 41.0 2,420.7 213.1 358.6 145.5 16.0
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]
Indices relapsed to the red as selected heavy caps dipped
CSE Diary for 11.06.2013
Indices reverted to the red amidst stagnation: Bourse depicted a rather stagnating pattern where the early uptrend in the benchmark index failed to sustain as it fluctuated between marginal gains and losses during mid-day to close down 34 points. The key dividend players which saw considerable rallying recently; Ceylon Tobacco Company (-1.3%) and Chevron Lubricants Lanka (-5.2%) weighed negatively on the indices outweighing gains in John Keells Holdings, Lanka Orix Leasing Company and Hemas Holdings. The S&P SL20 index adopted a similar trend as it settled at 3,562.55 (11 points). John Keells Holdings dominated the turnover: Investor focus stayed in John Keells Holdings depicting strong onboard activity weighing largely on the selling side while off-board activity highlighted a block of 126k shares at LKR275.0. The counter closed with a gain of 0.8% at LKR275.0. United Motors Lanka added a block of 1 mn shares to the crossings board at LKR119.0 however onboard participation remained insignificant.
Interest stayed in large banks and diversified sector: Sampath Bank and Commercial Bank continued to gather focus with their strong valuation status as they dipped 0.1% and 0.3% during the days trading enabling opportunity for further accumulation. The former saw a block of c.231k shares being transacted on-board at LKR217.0 while the latter encountered significant buying interest as several mid-sized blocks traded between LKR119.5 and LKR121.5. The BFI and diversified sectors collectively added 61% to the turnover. Hemas Holdings sustained interest with a few large blocks being picked between LKR36.5 and LKR37.0 while renewed interest in Aitken Spence was noted as two blocks totaling c.170.5k shares were collected on-board at LKR135.0. Some renewed interest was also observed in Lanka Orix Leasing Company. Retail activity extended in penny stocks: Selected retail favourites gathered attention amidst the consolidation phase of the bourse. Interest continued in Kelsey Developments and Nation Lanka Finance while Blue Diamond [Non-Voting] and FLC Holdings also saw notable activity.
Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) May-13 as at 11.06.2013 YoY Change Annual Avg Week ending 07.06.2013 8.70 9.81 10.85 12.71 -12.03 7.3 8.8
6600 6500 6400
Index
6300
6200 6100 6000
ASPI
3650
Turnover LKR ('mn)
3700 3600 3550 3500 3450 3400
3,000 2,500 2,000 1,500 1,000 500 0
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0
Volume ('mn)
Index
S&P SL20
Turnover
Volume
Today All Share Price Index S&P SL20 Index 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 Beverage, Food & Tobacco Construction & Engineering Diversified Healthcare Hotels & Travels Land & Property Manufacturing Plantation Telecom 6,303.8 3,560.5 750.6 5.9 31.7 235 2,420.7 358.6 145.5 213.1 17.1 2.3 2.1 Today 13,789.2 19,117.6 2,904.0 2,073.4 688.2 3,534.7 624.3 3,137.9 809.3 166.5
Pre Day 6,341.3 3,574.5 825.9 6.5 26.6 244 2,435.1 470.1 112.5 357.6 17.2 2.3 2.1 Pre Day 13,846.1 19,349.3 2,912.6 2,067.4 695.2 3,571.6 638.7 3,198.5 819.5 166.7
Change % -0.59% q -0.39% q -9.11% -9.11% 19.13% -3.69% -0.59% -23.72% 29.31% -40.40% -0.59% -0.59% 0.00% % Change -0.41% -1.20% -0.29% 0.29% -1.00% -1.03% -2.25% -1.90% -1.25% -0.12% q q q p q q q q q q
Last Week 6,449.7 3,645.9 1,037.5 8.2 23.3 259 2,476.7 541.9 102.9 439.0 17.5 2.4 2.1 Last Week 13,959.2 19,613.8 2,943.7 2,098.9 708.9 3,641.1 663.5 3,398.2 835.0 170.9
% WoW Change -2.26% -2.34% -27.65% -27.65% 36.10% -9.27% -2.26% -33.83% 41.35% -51.46% -2.26% -2.26% 0.00% % WoW Change -1.22% -2.53% -1.35% -1.22% -2.92% -2.92% -5.90% -7.66% -3.07% -2.55% Page | 2.
Softlogic Equity Research
High Index Calibre USD350 Mn
Company
JOHN KEELLS HOLDINGS CEYLON TOBACCO CARSON CUMBERBATCH NESTLE LANKA SRI LANKA TELECOM COMMERCIAL BANK [V] BUKIT DARAH DIALOG AXIATA HNB [V] AITKEN SPENCE DISTILLERIES LOLC CARGILLS DFCC BANK SAMPATH BANK ASIAN HOTELS & PROPERTIES
% of Mkt Cap 9.7% 7.5% 3.6% 4.4% 3.1% 3.9% 3.0% 3.0% 2.2% 2.3% 2.4% 1.2% 1.6% 1.6% 1.5% 1.3%
Volume 523,001 1,729 0 3,504 11,915 272,414 427 34,755 4,700 205,164 14,347 268,114 1,210 20,924 509,215 9,659
Turnover LKR ('000) 143,832.09 1,677.50 0.00 6,972.97 500.58 32,703.96 299.20 314.27 791.49 27,697.15 2,801.08 16,084.91 212.26 3,039.16 110,500.94 704.59
Turnover USD ('000) 1,135.28 13.24 0.00 55.04 3.95 258.13 2.36 2.48 6.25 218.62 22.11 126.96 1.68 23.99 872.19 5.56
Intraday Intraday High (LKR) Low (LKR) 276.00 989.00 0.00 1,999.00 42.50 121.50 710.00 9.20 171.00 136.10 199.00 60.00 180.00 145.80 218.00 73.00 274.50 970.00 0.00 1,990.00 41.90 119.50 700.00 9.00 167.00 135.00 195.00 58.60 175.00 144.80 216.60 72.00
Close 275.00 972.00 440.10 1,990.00 41.90 119.70 706.20 9.00 167.00 135.00 195.00 60.00 175.00 145.00 217.00 72.00
Price Gainers
Company
KELSEY MIRAMAR CONVENIENCE FOOD BERUWELA WALKINN SOFTLOGIC FIN
Price Losers
Today 24.10 75.00 230.00 87.00 33.90 Change + 4.40 + 10.80 + 15.00 + 5.00 + 1.90 % Change Company 22.34% 16.82% 6.98% 6.10% 5.94%
NATION LANKA [W 0021] HUEJAY ASCOT HOLDINGS ENVI. RESOURCES [W 0003] CEYLON LEATHER [W 0014]
Today 0.30 67.30 145.00 1.10 3.40
Change - 0.20 - 11.20 - 15.00 - 0.10 - 0.30
% Change -40.00% -14.27% -9.38% -8.33% -8.11%
Top 05 Performers for the Day
Company
JKH UNITED MOTORS SAMPATH HEMAS HOLDINGS COMMERCIAL BANK
Today 275.00 117.50 217.00 37.00 119.70
Pre Day 272.80 117.50 217.20 36.00 120.00
% Change 0.81% 0.00% -0.09% 2.78% -0.25%
Volume (mn) 0.52 1.00 0.51 1.10 0.27
Contribution to Total T/O 5.9% 4.9% 4.6% 1.7% 1.4%
Turnover (LKR) 143,832,087 119,024,680 110,500,942 40,445,300 32,703,961
Most Active
Company
NATION LANKA[WARRANTS] PC HOUSE S M B LEASING[NON VOTING] NATION LANKA BLUE DIAMONDS[NON VOTING]
Today 0.30 2.70 0.40 10.60 1.40
Pre Day 0.50 2.70 0.40 11.40 1.40
% Change -40.00% 0.00% 0.00% -7.02% 0.00%
Volume (mn) 5.72 5.25 2.69 2.23 1.52
Contribution to Total T/O 0.1% 0.6% 0.0% 1.0% 0.1%
Turnover (LKR) 1,996,577 14,681,064 1,074,962 24,576,316 2,131,531
Softlogic Equity Research
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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan Malaysia Russia Saudi Arabia Singapore Switzerland Thailand UK USA Dollar Yuan Euro Rupee Yen Ringgit Rouble Riyal Dollar Franc Baht Pound Dollar Indicative Rate 11.06.2013 119.20 20.66 167.94 2.18 1.28 40.27 3.92 33.78 100.54 135.64 4.10 197.23 126.69
Announcements
Dividends
Company No Announcements 0 0 0 0 0 0 0
Company Description
DPS (LKR) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proportion 0
XD Date 0 0 0 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
XR Date
Payment Date 00-Jan-00 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Renunciation
Rights Issues / Scrip Dividend / Sub division / Capitalization
No Announcements 0 0 0 0 0 1/0/1900 1/0/1900 1/0/1900 1/0/1900 1/0/1900 1/0/1900
Source: www.cbsl.gov.lk
Global Markets
Index AMERICA Dow Jones Industrial Average S&P 500 Index EUROPE EURO STOXX 50 Price EUR FTSE 100 Index ASIA Nikkei 225 Hong Kong Hang Seng Index
* Time is as at ET
Value 15,238.6 1,642.8 2,665.1 6,292.9 13,317.6 21,354.7
Change -9.5 -0.6 -54.3 -107.6 -196.6 -260.4
Change % -0.06% q -0.03% q -2.00% q -1.68% q -1.45% q -1.20% q
Time* 10-Jun 0-Jan 07:07 07:06 02:28 04:01
Source: www.bloomberg.com
Commodity Markets
Commodity ENERGY Crude Oil (Brent) Crude Oil (WTI) AGRICULTURE ICE Cotton #2 CBOT Wheat METALS COMEX Gold COMEX Silver COMEX Copper
* Time is as at ET
Units USD/bbl. USD/bbl. USd/lb. USd/bu. USD/t oz. USD/t oz. USd/lb.
Price 102.80 94.79 86.80 689.25 1,372.20 21.59 319.45
Change -1.15 -0.98 0.15 -0.50 -13.80 -0.34 -4.65
Change % -1.11% q -1.02% q 0.17% p -0.07% q -1.00% q -1.55% q -1.43% q
Time* 07:12 07:13 06:51 07:11 07:13 07:13 06:52
Source: www.bloomberg.com
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CSE Announcements
Debenture Issue: The debentures issues of Central Finance [CFIN: LKR190.5], Lion Brewery [LION: LKR390.0] has been oversubscribed.
Conversion of Warrants:
Company Nation Lanka Finance [CSF: LKR10.6] Cut-off date 14.06.2013 Expiration Date 01.07.2013 Exercise Price (LKR) 12
Dealing by Directors:
Company Name Richard Pieris and Company [RICH: LKR7.4] Dr. Sena Yaddehige Nation Lanka Finance [CSF: LKR10.6] Mr. V R Ramanan Relationship Chairman Director Transaction Purchase Purchase Quantity 18,850,005 7,600,000 Price (LKR) 5.2 11.4-12.0 Date 10.06.2013 10.06.2013
Local News
Sri Lanka rupee weakens below 127 to dollar: Sri Lanka's rupee weakened below 127 to the US dollar in the spot market in mid-morning trade Tuesday, amid excess liquidity, dealers said. The spot US dollars weakened as much as 127.10/15 to the US dollar from levels of around 126.50 seen Friday. In late April the Central Bank sold down its Treasury bill stock on a net basis, an action that drain rupee reserves from the banking system and reduces credit and import demand. In May liquidity a term repo auction also locked up liquidity temporarily, which was unwound on May 31. The bill stock has also climbed slightly in the period. The Central Bank has been encouraging greater domestic credit to boost economic activity. Many Asian currencies which operate close to floating rates have weakened in the past few months as the US dollar tended to strengthen. [Source: www.lbo.lk] Mixed aroma over 2013 tea crop: Upturn in Sri Lankas, as well as global, tea crop has evoked mixed sentiments over the industrys fortunes with some taking heart from a likely record output whilst others expressed that it could hurt prices. With positive growth in tea crop witnessed in the first four months this year, top tea industry analysts predict that Sri Lanka would see a record year in tea production for 2013. While the tea production for April 2013 exceeded the previous best of 32.2 mn kilograms achieved in 2005, analysts hinted that 2013 will end with the highest ever tea yield of 335 mn kilograms. Attributing the increase in tea production to the favourable weather conditions that was witnessed so far this year, Forbes and Walkers Tea Brokers Managing Director Yshan Fernando told the Daily FT that since cumulative production for January to April in 2013 was 9.5% higher than the corresponding period of last year, the chances of having a record high is possible. With a production of 115 mn kilograms for the first four months this year, we have noted that this is approximately 10 mn kilograms higher than the production of 2011. Based on this, we predict the annual production for 2013 to be around 335 mn kilograms, Fernando said. [Source: www.ft.lk] Secondary market Treasury bond yields edge up marginally: Secondary market Treasury yields reflected an upward trend as selling pressure resulted in yields closing the day marginally higher in comparison to Fridays closing levels. The two liquid five-year maturities (i.e. 1 April 2018 and 15 August 2018) increased to intraday highs of 11.08% and 11.15% respectively while the four-year maturity was offered at 11.02%. In the meantime the eight year maturity was quoted at levels of 11.43/50% and the 364-day maturity within the range of 10.75/10.85%. However, the volumes traded were marginal. In the money markets, overnight call Softlogic Equity Research Page | 5
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money and repo rates remained steady at 8.50% and 8.09% respectively with surplus liquidity increasing to LKR12.35 bn. The Open Market Operations (OMO) department of Central Bank drained an amount of LKR 8.73 bn at a weighted average of 7.69% by way of an overnight Repo auction. Furthermore, the CBSL also drained a further LKR5 bn by way of a term Treasury bill auction with durations of 17 and 31 days, value 11 June. The 17-day bill fetched a weighted average of 8.25%, while the weighted average of the 31-day bill was 8.49% [Source: www.ft.lk] Hemas - Thailands Minor in USD70 mn hotel project: Sri Lankas Hemas Holdings [HHL:LKR37.0] , a familyrun conglomerate with a strong presence in FMCG and healthcare sectors has embarked on to develop 3 new hotel properties in partnership with Thai-based Minor Group, a top official of the firm said. Hemas Holdigns Chief Executive Husein Esufally told shareholders that the 3 properties located in Southern Sri LankaTangalle, Kalutara and Ambalangoda will be developed at a cost of USD70 mn and branded under Avani and Anantara brands of Minor Group. Hemas portfolio of hotel properties includes Club Hotel Dolphin, Hotel Sigiriya, Avani Bentota Resort and Spa and Avani Kalutara Resort and has a room strength of 410. [Source: www.dailymirror.lk]
Global News
U.K. Industrial Output Increased on Mining in April: Economy: U.K. industrial production unexpectedly rose in April, boosted by increased output at oil and water companies. Manufacturing fell after gains in February and March. Output at factories, utilities and mines rose 0.1% from March, the Office for National Statistics said today in London. The median forecast of 28 economists in a Bloomberg News survey was for no change. Manufacturing dropped 0.2% after gains averaging 0.9% in the previous two months. Industrial output posted its strongest quarterly performance in almost three years through April, adding to signs the economy is gaining momentum after returning to growth in the first quarter. Surveys by Markit Economics published this month showed services and manufacturing were at the highest in 14 months in May. The euro area, Britains largest trading partner, is also showing signs of improvement, with European Central Bank President Mario Draghi saying last week the regions economy will return to growth by the end of the year. The U.K. economy can and will get better, said Rob Wood, an economist at Berenberg Bank in London. Todays industrial production data suggest the sector will contribute positively to growth in the second quarter. [Source: www.bloomberg.lk] U.K. RICS House-Price Index Reaches 3-Year High on Buyer Revival: A U.K. house-price gauge rose in May to a three-year high as government credit-easing programs revived buyer interest across the country, the Royal Institution of Chartered Surveyors said. A price index increased to 5 from 1 in April, London-based RICS said in an e-mailed report today, citing a monthly poll of property surveyors. A positive number means more respondents saw values increase rather than decline. Measures of new buyer enquiries and newly agreed sales reached levels last seen in 2009. The improvement largely reflects the Bank of Englands expanded Funding for Lending Scheme, which is designed to ease the flow of credit by lowering bank funding costs. Chancellor of the Exchequer George Osbornes Help to Buy initiative to help people struggling to raise a deposit is also contributing, RICS said. Mortgage approvals are still about half of what they were before the financial crisis struck the U.K. in 2007. There is still a very long way to go until we see a full-scale recovery but green shoots are beginning to sprout, Peter Bolton King, global residential director at RICS, said in the report. A measure of new buyer enquiries rose to 30 from 27 and newly agreed sales jumped to 30 from 21, adding to the improved picture of buyer interest, RICS said. A three-month price expectation measure increased to 20 from 12. Respondents expect house prices to rise 1.4% over the next 12 months, up from expectations of 1.1% last month and 0.1% in December. [Source: www.bloomberg.lk] Softlogic Equity Research Page | 6
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