Market Summary Colombo equities demonstrated positive investor sentiment today. The Benchmark Index, ASPI closed the day at 6,419.61 points, gaining 7.54 points. This was mainly due to price gains in counters such as CARS.N (LKR152.10,+4.40%), COMB.N (LKR139,+0.72%), CCS.N (LKR839.90,+1.%), JKH.N (LKR162.70,+0.37%) & PLC.N (LKR17.50,+2.94%). The Blue Chip Index S&P SL20 increased by 5.71 points or +0.2% to close at 3,685.41. Foreigners took the position of net sellers for the day, recording a net foreign outflow of LKR 54mn for the day. SAMP.N recorded the highest turnover for the day of LKR 134.2mn, followed by DIAL.N (LKR 62.9mn) and HHL.N (LKR 25.8mn). The day saw turnover decrease by 32.9% to LKR 532mn compared to the last trading day. Bank Finance and Insurance Sector managed to record the highest turnover of LKR 153.1mn for the day, followed Plantation Sector and Telecommunications Sector with daily turnovers of LKR 75.5mn and LKR 63.1mn respectively. Year to date ASPI Performance stood at +3.1%, while Year to date Blue Chip Index increased by 5.4%. Out of the 257 counters traded today, 78 companies declined while 72 companies closed higher. Sri Lanka's economic growth may be around 4.0 to 4.5 percent of gross domestic product in 2017, with higher growth in the second half, Central Bank Governor Indrajit Coomaraswamy said (Economynext) Sri Lanka is expecting private credit growth to slow to 15-16 percent, acting director of the Central Banks' economic research department, Chandranath Amarasekera said (Economynext) Sri Lanka has raised the liquefied petroleum gas price of a domestic 12.5 kilogram cylinder by 110 rupees from midnight yesterday, the first since the current administration re-politicised gas pricing in 2015 (Economynext) World stocks and the euro fell for a fourth day on Tuesday, as investors that had piled into both all year took a step back as the list of global uncertainties began to lengthen again (Reuters) ASPI Vs. S&P SL20 Turnover Vs. ASPI September 26, 2017 September 26, 2017 Price Indices Index Change % ASPI 6,419.61 7.54 0.1% S&P SL20 3,685.41 5.71 0.2% Return Indices TRI on ASPI 8,517.76 10.15 0.1% TRI on S&P SL20 5,240.05 8.12 0.2% Today Previous Day Market Turnover LKR 532mn LKR 794mn -32.9% Market Cap. (In LKR) LKR 2,911bn LKR 2,908bn 0.1% Market Cap. (In USD) $ 19bn $ 19bn 0.1% Foreign Purchases LKR 103mn LKR 401mn -74.2% Foreign Sales LKR 157mn LKR 460mn -65.8% Net Foreign Flow -LKR 54mn -LKR 59mn -8.5% Market P/E 10.7x Market P/B 1.4x Market D/Y 2.9% Key Market Statistics YTD Performance YTD S&P SL20 Performance 5.4% YTD ASPI Performance 3.1% 3,620 3,630 3,640 3,650 3,660 3,670 3,680 3,690 3,700 3,710 3,720 3,730 6,320 6,340 6,360 6,380 6,400 6,420 6,440 6,460 ASPI S&P SL20 ASPI S&PSL20 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 6,320 6,340 6,360 6,380 6,400 6,420 6,440 6,460 Turnover ASPI ASPI S&PSL20
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Market Cap. (In USD) $ 19bn $ 19bn 0.1% ASPI S&PSL20 ...sampathsecurities.lk/wp-content/uploads/2018/09/SC... · 9/26/2017 · go up to 1,431 rupees from 1,341 rupees, and to 1,509
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Market Summary
Colombo equities demonstrated positive investor sentiment today. The Benchmark Index, ASPI closed the day at 6,419.61 points,
gaining 7.54 points. This was mainly due to price gains in counters such as CARS.N (LKR152.10,+4.40%), COMB.N (LKR139,+0.72%),
CCS.N (LKR839.90,+1.%), JKH.N (LKR162.70,+0.37%) & PLC.N (LKR17.50,+2.94%). The Blue Chip Index S&P SL20 increased by 5.71
points or +0.2% to close at 3,685.41.
Foreigners took the position of net sellers for the day, recording a net foreign outflow of LKR 54mn for the day.
SAMP.N recorded the highest turnover for the day of LKR 134.2mn, followed by DIAL.N (LKR 62.9mn) and HHL.N (LKR 25.8mn).
The day saw turnover decrease by 32.9% to LKR 532mn compared to the last trading day.
Bank Finance and Insurance Sector managed to record the highest turnover of LKR 153.1mn for the day, followed Plantation Sector
and Telecommunications Sector with daily turnovers of LKR 75.5mn and LKR 63.1mn respectively.
Year to date ASPI Performance stood at +3.1%, while Year to date Blue Chip Index increased by 5.4%.
Out of the 257 counters traded today, 78 companies declined while 72 companies closed higher.
Sri Lanka's economic growth may be around 4.0 to 4.5 percent of gross domestic product in 2017, with higher growth in the second
half, Central Bank Governor Indrajit Coomaraswamy said (Economynext)
Sri Lanka is expecting private credit growth to slow to 15-16 percent, acting director of the Central Banks' economic research
department, Chandranath Amarasekera said (Economynext)
Sri Lanka has raised the liquefied petroleum gas price of a domestic 12.5 kilogram cylinder by 110 rupees from midnight yesterday,
the first since the current administration re-politicised gas pricing in 2015 (Economynext)
World stocks and the euro fell for a fourth day on Tuesday, as investors that had piled into both all year took a step back as the list of
global uncertainties began to lengthen again (Reuters)
MERCANTILE INVESTMENTS AND FINANCE PLC Company ID:- MERC Date of Announcement:- 22.Sep.2017 Rate of Dividend:- Rs.7.00 per share / Interim Dividend Financial Year: 2017/2018 Shareholder Approval:- Not Required XD:- 03.Oct.2017 Payment:- 06.Oct.2017
VIDULLANKA PLC Company ID: - VLL Date of Announcement: - 15.Sep.2017 Rate of Dividend: - Rs. 0.10 per share / Interim Dividend Financial Year: - 2017/2018 Shareholder Approval: - Not Required XD: - 26.Sep.2017 Payment: - 04.Oct.2017
C T LAND DEVELOPMENT PLC Company ID: - CTLD Date of Announcement: - 13.Sep.2017 Rate of Dividend: - Rs. 1.50 per share / Interim Dividend Financial Year: - 2017/2018 Shareholder Approval: - Not Required XD: - 22.Sep.2017 Payment: - 28.Sep.2017
HIKKADUWA BEACH RESORTS PLC Company ID:- CITH Date of Announcement:- 11.Sep.2017 Rate of Dividend:- Rs. 0.09 per share / First & Final Dividend Financial Year:- 2016/2017 Shareholder Approval:- Not Required XD:- 20.Sep.2017 Payment:- 28.Sep.2017
CARGILLS (CEYLON) PLC Company ID:- CARG Date of Announcement:- 11.Sep.2017 Rate of Dividend:- Rs. 1.90 per share / Interim Dividend Financial Year:- 2017/2018 Shareholder Approval:- Not Required XD:- 20.Sep.2017 Payment:- 29.Sep.2017
Economic Update
Sri Lanka may grow 4.5 percent in 2017, deficit 5.0-pct: CB Governor Sri Lanka's economic growth may be around 4.0 to 4.5 percent of gross domestic product in 2017, with higher growth in the
second half, Central Bank Governor Indrajit Coomaraswamy said. In the first half growth slowed to 3.5 percent, with a drought
slowing agriculture. Governor Coomaraswamy said exports from GSP+ trade concessions will contribute in the fourth quarter.
Rains have also started which may help agricultures. "Overall there will be some pick up," he said. "Overall growth will be
between 4.0 and 4.5 percent (of GDP)". Sri Lanka budget deficit may overshoot the target of 4.6 percent to reach 5.0 percent,
due to drought related spending, he said. Sri Lanka's budget deficit last year was 5.4 percent and a 5.0 percent gap would also be
an improvement.The government has raised value added taxes and there has been no salary hike this year.
Source: Economynext/26th
September 2017
Sri Lanka raises LP gas price Sri Lanka has raised the liquefied petroleum gas price of a domestic 12.5 kilogram cylinder by 110 rupees from midnight yesterday,
the first since the current administration re-politicised gas pricing in 2015. The LPG price in Colombo from state-run Litro gas would
go up to 1,431 rupees from 1,341 rupees, and to 1,509 rupees from 1,399 rupees in Hambantota and to 1,643 rupees from 1,533
rupees in Jaffna. Sri Lanka's LPG prices were de-politicised and changed to match global prices during the ousted Mahinda
Rajapaksa regime, but was taken under the control of politicians from 2015. Privately owned Laugfs Gas and state-run Litro were
hit as global prices of butane and propane moved up. Analysts also warn that leaving price changes in the hands of politicians will
increase opportunities for corruption.
Source: Economynext/26th
September 2017
Sri Lanka Hambantota Port JV to be operational from November Sri Lanka is expecting to commence operations of the Hambantota Port joint venture from November, Chairman of Ports Authority
Parakrama Dissanayake said. China Merchants Port Holdings (CMPort), a listed blue chip company in the Hong Kong Stock
Exchange has a 99-year lease to handle commercial operations of Southern Hambantota port. “Assuming that the financial closure
will take place in end of October, and then we can start from the 1st of November,” Dissanayake said. Dissanayake, however, said
on the date from which the concession agreement was concluded; technically the parties have been given six months to complete
the condition precedence. “But we are fairly confident that we should be able to start the joint venture operation from 1st of
November if all goes well, that’s the intention.” Initial business plan for Hambantota port comprises of five elements; port services,
vessel supply & service, port related industry, integrated logistics and business incubator. Meanwhile, Sri Lanka is currently in talks
with two Chinese companies about investing up to 3 billion US dollars to build in a new refinery at Hambantota Industrial Zone
(HIZ). Laugfs LPG will invest 80 million dollars into Hambantota establishing the largest LPG terminal in South Asia. Source: LBO/25
th September 2017
Sri Lanka inflation up 7.9-pct in August 2017 Sri Lanka’s year on year inflation based on the National Consumer Price Index (NCPI) increased to 7.9 percent in August 2017 from
6.3 percent in July 2017, the department of Census and Statistics said. This month on month change was due to the decrease of
expenditure value of food items by 0.25 percent and increase of expenditure value of non-food items by 0.16 percent, the data
showed. Contributions to the inflation from food group and non-food group in August 2017 are 5.3 percent and 2.7 percent
respectively, whilst contributions of these two groups to the inflation in August 2016 were 1.8 percent and 2.6 percent respectively
reflecting comparatively lower price levels especially in food prices in August 2016. However, when compared to month on month
changes, NCPI in August 2017 has decreased to 122.3 from 122.4 reported in July 2017. This shows a decrease of 0.1 index points
or 0.1 percentage points in August 2017 compared to July 2017.The increase in expenditure value of non food items in August 2017
compared to the previous month was due to the expenditure value increases in groups of ‘Health’, ‘Alcoholic beverages, Tobacco
and Narcotics’, ‘Miscellaneous Goods and Services’, ‘Furnishing, Household equipment and Routine household maintenance’
‘Transport’, ‘Clothing and Footwear’ and ‘Education’. Source: LBO/22
nd September 2017
Local Market Update
Sri Lanka expects credit growth to slow to 16-pct in 2017 Sri Lanka is expecting private credit growth to slow to 15-16 percent, acting director of the Central Banks' economic research
department, Chandranath Amarasekera said. In the 12-months to August, credit growth has slowed to 18.0 percent, from 18.6
percent in June, he said. Private credit in the first eight months was down in absolute terms. A total of 404 billion rupees was
loaned to the private borrowers in 2017, compared to 456 billion rupees last year Credit growth was around 20 plus levels seen last
year. This was in line with central bank's expectations, he said. State enterprises borrowings were positive at only 7.8 billion
rupees, compared to negative levels seen in 2016, Amarasekera said. Government borrowings rose to 265.4 billion rupees, higher
than 212.6 billion rupees. But central bank credit (printed money) has declined by 166.6 billion rupees.
Source: Economynext/26th
September 2017
Harry Jayawardena reappointed to Distilleries as Melstacorp nominee Sri Lanka’s business tycoon Harry Jayawardena has been reappointed to the board of Distilleries as a nominee of Melstacorp.
Distilleries said in a stock exchange filing that Harry Jayawardena, Cedric Royle Jansz, and Hasitha Stassen Jayawardena resigned
from the Distilleries Board after the conclusion of the AGM held today. However, in a board meeting held after the conclusion of
the AGM, they have been reappointed as directors of the company as nominees of Melstacorp PLC. “Harry Jayawardena was also
appointed as the Chairman and Managing Director of the company as per the Articles of Association of the Company,” Distilleries
said. “None of the above directors hold any shares of Distilleries Company.” Source: LBO/25
th September 2017
Sri Lanka's Aitken Spence to sell Hotel Hilltop Sri Lanka's Aitken Spence Hotel Holding said it was selling MPS Hotels (Pvt) Ltd for 740 million rupees. The buyer was not disclosed.
MPS Hotels owns Hotel Hilltop in Kandy in central Sri Lanka. MPS Hotels is carried in the books of Aitken Spence Hotels at 307
million rupees. The stock closed at 37.00 rupees Friday.
Source: Economynext/22nd
September 2017
Sri Lanka's Siyapatha Finance 5-year bond coupon hiked by 50bp Siyapatha Finance Plc, a non-bank lender said the coupon of its upcoming listed 5-year bond has been raised to 12.5 percent from
12.0 percent, amid tax changes to government and private bonds. The bond offer opens on September 25, 2017 seeking
subscription of a billion rupees. Sri Lanka is set to tax corporate bond interest at 5 percent for individual and standard application
corporate income tax rates for companies from 2017. The term sheet issued a few days earlier said that if "any income tax being
payable by way of withholding on the interest on the Debentures and an Interest Rate Gross up Event is applicable, the Company
shall gross up the Rate of Interest such that a Debenture Holder receives an interest of 12.00% p.a. after the deduction of such
withholding tax provided however that the interest so grossed up shall not exceed twelve 12.63% p.a. " When interest is grossed
up, the grossed up rate shall apply to all the Debenture Holders. In government bonds rates are now quoted net of a 10 percent
final withholding tax which will also be removed from April 2016.
Source: Economynext/22nd
September 2017
Japan's SBI Holdings buys into Sri Lanka's Wealth Trust Securities SBI Holdings, a Japan based investment group said it is buying a 20 percent state in Sri Lanka's Wealth Trust Securities (WTS), a
licensed primary dealer in government bonds. "The SBI Group is planning to distribute bonds, such as Sri Lanka n government
bonds and corporate bonds, as high- yield bond products , toward Japanese individual investors through SBI SECURITIES , by
purchasing those products in collaboration with WTS," the firm said in a Tokyo stock exchange filing. Wealth Trust ranks amongst
the top five primary dealers in Sri Lanka and has a broad customer network, the statement said. SBI said it already had an
investment in First Guardian Equities (Pvt) Ltd in Sri Lanka, which is a share broking firm."…By investing in WTS, the SBI Group will
be able to access to both the equity and bond markets of Sri Lanka, " the firm said. Sri Lanka's bond markets are expected to grow
fast as the sector is comparatively small SBI said.
Source: Economynext/22nd
September 2017
Foreign Market Update
North Korea war cries stifle stocks, euro still groggy World stocks and the euro fell for a fourth day on Tuesday, as investors that had piled into both all year took a step back as the list
of global uncertainties began to lengthen again. The list included a new low in U.S. and North Korean relations, a jolt to the right in
German politics, rising oil prices, falling tech stocks and the prospect of signals later from the ECB and Federal Reserve on their next
moves. Asian stocks wilted in line with Wall Street overnight and European bourses struggled too, despite solid French data and a
new one-month low for the euro which has been helping the bloc’s stocks in recent days. The yen, which traditionally performs
strongly in jittery markets, was beginning to fade meanwhile having gone as high as 111.550 yen to the dollar as gold also dropped
off a 1-week high it had hit on Monday. That came after North Korea’s foreign minister said a tweet by U.S. President Donald
Trump that “little Rocket Man” might not be around for too long amounted to a declaration of war. “I think we have a classic case
of risk-on, risk-off across markets,” said Saxo Bank’s head of FX strategy, John Hardy“There is a lot being attributed to North Korea
but I think there are a lot of other factors here,” he added, citing the drop in Apple and big U.S. tech stocks and the weekend
German elections that saw a far-right party enter parliament. Support for Chancellor Angela Merkel’s conservatives, which won the
election, unexpectedly slumped too to its lowest level since 1949. The euro slipped as far as $1.1811 in morning trade in London,
its weakest since Aug. 25, after falling around 0.9 percent on Monday - its heaviest one-day loss since December. French President
Emmanuel Macron, who wants to overhaul the European Union’s single currency zone and whose ideas include creating a euro
zone budget and finance minister, will lay out his plans in Paris later. Source: Reuters/26
th September 2017
Futures flat as investors await Fed speakers U.S. stock index futures were little changed on Monday, the wait for a speech by U.S. Federal Reserve chief Janet Yellen later in the
week helping cool any lift from a handful of positive stock recommendations.Gains for the far-right in German elections that make
government-forming more complicated for Chancellor Angela Merkel weighed on European markets.The U.S. central bank left
interest rates unchanged in its September policy meeting, as expected, but signaled it still expects one more increase by the end of
the year, despite a recent bout of low inflation.Investors will look for more guidance on monetary policy from a list of speakers on
Monday including New York Fed President William Dudley, Chicago Chief Charles Evans and their Minneapolis counterpart, Neel
Kashkari. A team of Republican policy makers is expected to release a plan on Wednesday targeting tax cuts for businesses, but
offer few clues about how to replace reduced federal revenues, according to sources. General Motors (GM.N) rose 1.65 percent in
premarket trading after Deutsche Bank upgraded the automaker’s stock to “buy” from “hold”. Source: Reuters/25
th September 2017
North Korea jitters ease as focus moves to Brexit speech Jitters over a fresh exchange of barbs between North Korea and the United States eased in Europe on Friday as strong economic
data supported European stocks, and investors’ focus turned to a planned speech by Britain’s prime minister on Brexit. Europe’s
main stock index recovered from early losses following a sell-off in Asian stocks and a rush to safe-haven currencies after North
Korea said it might test a hydrogen bomb in the Pacific Ocean. Risk aversion drove investors into the Swiss franc and Japanese yen,
with the Swiss currency up 0.3 percent to 0.9681 francs per dollar , while the yen firmed 0.5 percent. Safe-haven gold rose 0.4
percent. European benchmarks swung into positive territory, though the mining sector .SXPP still showed signs of strain as metals
prices were battered by the heightened geopolitical risk in Asia. U.S. stock futures indicated a 0.2 percent fall for the S&P 500 ESc1,
though markets were showing growing signs of fatigue over the belligerent U.S.-North Korea rhetoric. “North Korea poses such a
binary risk that it’s very hard to price, and at the moment investors just have to look through it,” said Mike Bell, global market
strategist at JP Morgan Asset Management. European investors were shifting focus from North Korea to a keenly anticipated
speech by British Prime Minister Theresa May in Florence, in which she was expected to update her vision of the Brexit
negotiations. Brexit bellwether sterling hovered at a two-month high against the euro EURGBP=D3, having firmed against both
euro and dollar this week as traders anticipated May would strike a softer tone on negotiations for Britain’s exit from the EU. Source: Reuters/22