daily trade journal - 06.06.2013

7/28/2019 Daily Trade Journal - 06.06.2013

1/7

q

q

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

41.0

552.3

15.2

744.3

192.0

Thursday, June 06, 2013

916.0

% ChangePoint ChangeToday

37.8

1,365.6

-0.79 %

-1.06 %

2,447.1

ASPI

S&P SL 20 Index

- 50.46

- 38.71

6,372.38

3,596.34

ASPI 12.9%

16.6%

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 06.06.2013Indices encountered a sharp dip: Bourse moved on a

volatile note today as the benchmark index gained 26

points during early trading before witnessing a steep

downtrend of 60 points to an intra-day low of 6,362.30.

Significant losses denoted in John Keells Holdings (-2.2%),

Ceylon Tobacco Company (-2.5%) and Chevron

Lubricants (-9.0%) weighed on the index as it closed 50

points down at 6,372.38. The S&P SL20 index primarilyconsisting of the heavyweights saw a similar dip losing 38

points at its close of 3,596.34 points.BFI sector takes the lead adding 50% to revenue: 7

crossings were recorded today taking up 62% of the

days turnover. Hatton National Bank topped the

turnover list with a crossing which carried 2 mn shares at

LKR169.5 while on-board activity in the counter weighed

heavily on the buying side as its price appreciated 0.7%

before closing at LKR169.3. Commercial Bank followed

closely with two blocks totaling 2 mn shares off-board

transacted at a price of LKR123.0 and LKR123.5. The

counter dipped 0.3% at its close of LKR122.9. Renewed

interest in Ceylon and Foreign Trades led a crossing of

c.12.5 mn shares being transacted off-market at LKR8.0.

John Keells Holdings, Ceylon Tobacco Company and

Kotmale Holdings also recorded one crossing each. The

latter saw strong on-board participation whilst having

touched a 52-week high at LKR58.0 (+25.0%).Significant price dips in key dividend players and JKH:

Key dividend players which saw considerable rallies

recently encountered steep price dips today as

Chevron Lubricants and Ceylon Tobacco weighedstrongly negative on the ASPI dipping to LKR310.0 (-

12.8%) and LKR960.0 (-4.0%) at their respective intra-day

low prices. John Keells Holdings recorded a notable dip

of 4.0% at its intra-day low of LKR268.0. Investor play was

observed in Nations Trust Bank which dipped 0.3% to

LKR66.5 leaving further opportunity to accumulate.

Retail activity remained moderate: Retailers remained

cautious of the correction in the index thereby focusing

on a few selected counters. Nation Lanka Finance,

Laugfs Gas and Tokyo Cement [Non-Voting] gathered

significant interest.

Correct ion p hase sets in

wi th ind ices extending a

steep downtrend


2/7

Statistical Look Up

Treasury Bill (%) 31.05.2013

8.70

9.81

10.85

12.75

Inflation (%) May-13 7.3

8.8

All Share Price Index q

S&P SL20 Index q

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 p

Hotels & Travels q

Land & Property q

Manufacturing q

Plantation p

Telecom q

1.47%

2.4

158.8

165.0

13,919.2

% Change

-0.78%2.4

75.78%

17.4

-1.18%

-2.46%

-1.08%

-3.74%

% WoW

ChangeLast Week

-1.28%

129.82%

20.87%

234.68%

323.9

2,466.4

27.2

-46.61%

-46.61%

% WoW

ChangeLast Week

2,557.9

20.2

-1.44%

-0.55%

-0.79%

Today

552.3

2.4

192.0

17.3

6,372.4

-1.06%

2,447.1

2.1

744.3

66.88%

66.88%38.86%

-5.47%

10.837.8

242

3,596.3

818.3

6.5

256

1,365.6

-0.78%

72.16%

62.53%

Week ending

0.19%

-22.27%

-3.59%

-1.28%

-1.20%

-1.28%

251

2,478.8

6,455.1

3,640.0

48.7

-1.28%

0.00%

432.3

118.1

314.2

Change %

6,422.8

3,635.1

2.1

-0.79% 17.5

Pre Day

14,067.5

19,548.8

2,089.2

3,604.3

657.5

-0.18%

2,935.2

2,119.2

-0.39%

-1.04%

-0.63%

-1.06%

2,959.5

19,452.0

673.3

170.1 171.5-0.36%169.5

2.1

3,272.4

19,344.8

2,940.8

2,067.1

13,864.9

Pre Day

0.00%

3 months

6 months

12 months

YoY Change

Annual Avg

AWPLR

Excess Liquidity (LKR 'bn) as at 06.06.2013

Today

-21.23

705.4 700.7 0.67% 709.4 -0.56%

828.6 827.1 0.17% 828.6 0.00%

3,224.9

3,637.1

-1.44%

3,597.8

648.1

-3.04%3,375.2

6000

6100

6200

6300

6400

6500

6600

Index

ASPI

3400

3450

3500

3550

3600

3650

3700

Index

S&P SL20

0.0

20.0

40.0

60.0

80.0

0

500

1,000

1,500

2,000

2,500

3,000

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

HNB

COMMERCIAL BANK

JKH

CFT

KOTMALE HOLDINGS

Most Active

Close

273.20

975.00

268.00

982.00

169.30

134.50

710.00

9.30

Volume (mn)

4.1%

Turnover

(LKR)

4.5%

352,115,889

100,922,907

96,754,193

263,089,581

110,568,008

2.01

2.13

1.77

0.4% 9,648,026

100,922,907

10.8%

273.20

7.30

53.50

HNB 169.30

COMMERCIAL BANK 122.90

% Change

MALWATTE

NATION LANKA[WARRANTS] 0.70

2.08

12.63

2.13

0.80

-0.32%123.30

0.41

12.632.82%

1.84

2.82%

-0.32%

0.30%

4.1%

4.0%

10.8%

Contribution to

Total T/O

1,252,814

15.80%

4.70

263,089,581

352,115,889

0.45

AGSTARFERTILIZER

ENVI. RESOURCES [W 0003]

Pre Day

0.30%168.80 14.4%2.08

Volume (mn)% Change

5.48%

+ 6.70 6.56%

169.30

CompanyContribution to

Total T/O

143.90

14.4%

0.1%

Turnover

(LKR)

180.60

19.90

1.30

122.60

59.10

180.50

42.00

5,090.60

75.50

219.30

167.00

42.00

705.20

75.00

452.00

4.80

TodayCompany

184.90

N D B CAPITAL

1.20

40.26

13.671,728.04

2,784.49

103.02

2,516.10

0.43

Today

4.52%

Turnover

USD ('000)

323.706.67%

Intraday

Low (LKR)

Turnover

LKR ('000)

263,089.58

55.00

2,080.48

0.81

960.00

110,568.01

Intraday

High (LKR)

280.00

1.70

142.70

218.20

134.40

196.80

43.00

9.00

% Change

JOHN KEELLS HOLDINGS 406,503

SAMPATH BANK

ASIAN HOTELS & PROPERTIES 23,038

1.5%

34,545

2,500

9.6%

7.5%CEYLON TOBACCO

CARSON CUMBERBATCHNESTLE LANKA

SRI LANKA TELECOM

COMMERCIAL BANK [V]

3.5%

3.0%BUKIT DARAH

DIALOG AXIATA

HNB [V]

DFCC BANK

CARGILLS

434.24

1,980.00

124.00

215.52

0.83

LOLC

AITKEN SPENCE 134.90

2.4% 0.26

105.26

170.00

1.339,048.16

0.0171.55

440.00

710.00

9.40

1,980.10

122.90

448.002,000.00

352,115.89

33.49

4.0%

2.2%

1.2%

146

272,859

2,077,500

1,601

4.3%

197.10

59.60

3.1%

196.90

59.50

440.00

3.1%

122.90

-2.22%

1.5%

2.2%

Change

- 32.00

- 0.10

- 36.50

- 0.30

% Change

220.00

7.10

46.20

279.40

PC PHARMA

+ 0.40

CHEVRON

75.00

142.80

Volume

874.36

2.13%

-12.50%

2,132,724

57.25

164.15

55,027 54,912.84

1.4%

Change

399.80

Company% of

Mkt Cap

4.80

Today Pre Day

7.10

123.30

168.80

+ 25.00

DISTILLERIES

401

23,243

CFT 7.30

Company

170

927

903

ARPICO

CEYLINCO INS. [X]

Company Today

1.7%

KAHAWATTE

KOTMALE HOLDINGS 53.50 + 7.30 15.80% NATION LANKA [W 0021] 0.70 - 0.10 -12.50%

-5.88%

-7.47%

-9.00%

-7.69%

37.00

7.70

108.90

+ 1.60



4/7

Currency Board Announcements

Local - Indicative Rate against LKR Dividends

Dollar No Announcements

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

q

q

p

p

q

q

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

Commodit Markets

Crude Oil (Brent) p

Crude Oil (WTI) p

ICE Cotton #2 q

CBOT Wheat q

COMEX Gold p

COMEX Silver p

COMEX Copper q

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

00-Jan-00

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*

USd/bu.

83.51

Price

103.05

94.21

USD/bbl.

101.17

AGRICULTURE

Hong Kong Hang Seng Index

Nikkei 225

ASIA

FTSE 100 Index

EU

194.69

0.00

0.00 0

0

126.46

0.0033.72

Malaysia

3.93

119.98

20.62

2.23

1.27

40.92

India

Currency

165.58

Indicative Rate

06.06.2013

China

0

Payment DateDPS (LKR) XD Date

6,427.6

Singapore

Switzerland

Thailand

UK

0.01

-230.8

0

2,723.6

134.11

1/0/1900

1/0/1900

4.14

USA

02:28

8.2

1/0/1900

Change

0.53%

-110.9

04:01

0

00-Jan-00

1/0/1900

1/0/1900

06:44

06:45

0.13%

06:44

Company

06:47

06:43

06:44

0-Jan

0-Jan

06:55

06:54

Time*

06:44

-1.17%

Change %

-0.04%

0.59%

0.01%

0.50%

-0.85%

-1.05%

0.41%

-22.5

Change

-0.01%-0.01

0

0.47

Change %

333.20

USD/t oz.

USD/t oz. 0.13

701.25

-3.95

22.61

Index

Dow Jones Industrial Average

S&P 500 Index

EUROPE

EURO STOXX 50 Price EUR

12,904.0

Value

14,960.6

1,608.9

USD/bbl.

USd/lb.

USd/lb.

AMERICA

-0.25

METALS

ENERGY

Commodity

21,838.4

Units

0

14.3

Proportion

00-Jan-00

00-Jan-00

0.00

0.00

-1.43%

-1.38%

-217.0

Russia

Saudi Arabia

Japan

1,404.20 5.70

Australia



5/7

Softlogic Equity Research Page | 5

CSE Announcements

Hatton National Bank [HNB : LKR169.3]Debenture Issue: In relationto the debentures issue the company informs that it has received applications

worth over LKR4 bn and as a result of the over-subscription the issue will close

at 4.30pm on 6th June 2013.

Material Dealing by Directors:

Local News

Sri Lanka's Bank of Ceylon to finance Rs3.9bn road: Sri Lanka's state-run Bank of Ceylon will finance 48.2kilometre road at a cost of LKR3,915 mn, the state information office said. The cabinet of minister had giventhe nod for the proposal by the ministry of finance to enter into a loan agreement with the bank. The road

will be built by Road Development Authority. The RDA has borrowed from both state and private banks to

finance road building under a Treasury guarantee.

[Source: www.dailymirror.lk]

Sri Lanka Tea Smallholder Factories expands leaf suppliers: Sri Lanka's Tea Smallholder Factories Ltd, a unitof John Keells Holdings, which produces tea from green leaf bought from independent growers said it had

expanded suppliers during the past year. The company runs a network of eight factories. Last year it had

increased suppliers by 2,714 to 11,532 direct suppliers and 12,777 indirect ones. The ability of your company

to increase the supplier base is attributed to the extension services whilst meeting the needs of the growers,financially as well," chairman Susantha Ratnayake told shareholders. He said 89 growers were helped to

cultivate 61 acres. A set of 51 growers were now being helped to replant 32 acres. Suppliers had been paid

LKR1.75 bn in the year to March 2013, up 21% from LKR1.45 bn a year earlier. A so-called 'bought leaf'

factory buys green leaf from growers and collectors to make into tea. They are paid on a formula based on

an auction price of the final product. The practice also partly hedges the company against global price

changes.

[Source: www.lbo.lk]

Sri Lanka on US sanction exemption list for Iran oil: Sri Lanka has been included in a list of exempt countriesreleased by the United States on sanctions imposed on crude oil purchases from Iran, a media report said.

The US had exempted China, India, Malaysia, South Korea, Singapore, South Africa, Turkey and Taiwan, and

some European nations following significant cuts in their purchases. The United States and the international

community stand shoulder to shoulder in maintaining pressure on the Iranian regime until it fully addresses

concerns about its nuclear program," US Secretary of State John Kerry was quoted as saying by AFP a news

agency. He had said in a statement that Beijing and New Delhi were among 20 countries which "have again

qualified for an exception to sanctions" due to "significant reductions in the volume of their crude oil

purchases from Iran or for reducing those purchases to zero and remaining there." Sri Lanka's sole state-run

refinery has been built to use Iranian light crude and it had been forced to use other crudes which give lower

light distillate yields.


Sri Lanka' Cinnamon Lakeside sees more 'emerging market' guests: Cinnamon Lakeside, a unit of Sri Lanka'sJohn Keells group said it saw more 'emerging market' guests in the past year, while facing competition from

luxury apartments. The company said in the past year occupancy had risen to an average of 60% from 55%

and room rates had been upped to an average of USD135 from 130. "During the financial year under review,

40% of our rooms were occupied by guests from emerging markets - a marked increase from the previous

Company Name Relationship Transaction Quantity Price

(LKR)

Date

Kotmale Holdings [LAMB: LKR53.5] Mr P S Mathavan Director Sale 281,800 55.0 06.06.201


6/7


years composition of 30%," Chairman Susantha Ratnayake told shareholders in an annual review. "While we

are mindful of the competition posed by the entry of many international brands to Sri Lanka and the

availability of alternate accommodation such as luxury apartments, we are confident that the excellent

service associated with the Cinnamon brand and the positioning of the hotel will enable it to overcome these

challenges."


Post-war rebound lures Damro to diversify into tourism sector: The post-war rebound in tourism sectorlong triggered rapid expansion by existing players in addition to luring a range of new entrants. The latest to

join the latter group is Sri Lankas famous furniture brand Damro.The company will today break ground on a

one and half acre site in Colpetty to build a 270-room star class city hotel named Marino Sands Hotel with

an investment of $ 40 million. Alongside the hotel, which has access from both Galle Road and Marine Drive,

will be a modern department store spanning 100,000 square feet as well. The hotel will be a 12-storey

building with a total space of more than 400,000 square feet. There will be three basements for parking and

two floors dedicated to a department store. Piling has already commenced by Nawaloka Piling and with a

target period of three years for construction, Marino Sands will open in 2016.

[Source: www.ft.lk]

Global News

EU proposals would take control of Libor from London: European authorities are to propose bringingcontrol of the inter-bank lending rate, Libor, under the supervision of a Paris-based regulator. The draft

regulation proposes moving oversight of the scandal-hit benchmark from London to the European Securities

and Markets Authority (ESMA). Libor is used to price trillions of pounds worth of financial contracts,

including loans and mortgages. A Treasury source said the government was "relaxed" about the plans. The

wide-ranging European Commission proposal, due to be published in the summer, would see financial

markets regulator ESMA overseeing and authorising a raft of key financial benchmarks at a European level,

including Libor. It aims to establish "particular rules of good governance to ensure greater transparency,

manage conflicts of interest and to ensure the representativeness of the benchmarks".

[Source: www.bbc.co.uk]

Federal Reserve: Recovery still 'modest' and 'moderate': Those are the words the Federal Reserve is stillusing to describe the U.S. recovery, four years after the recession officially ended. "Overall economic activity

increased at a modest to moderate pace since the previous report," the Federal Reserve said in its latest

Beige Book report, released Wednesday afternoon. The Beige Book stems from anecdotal information

collected by each of the Federal Reserve's 12 regional districts. For example, two shopping malls in upstate

New York said that business was sluggish in April, partly due to cool weather, but then picked up again in

May. Auto dealers in Philadelphia reported strong sales. A trucking company in the Cleveland region said it

will have to order more trucks to keep up with rising shipping volumes. And in Southern California, several

companies said tourism has declined.[Source: www.money.cnn.com]


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. 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

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 verified 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 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 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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daily trade journal - 06.06.2013

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