ACUITY STOCKBROKERS RESEARCH | SRI LANKA EQUITIES Weekly Market Review 21 Sep 2018 th st Sri Lankan Equities hit a 2-year low … 2Q’18 GDP Indices vs. Turnover (17 Sep – 21 Sep) growth rises to 3.7%. 6,050 3,400 ASPI 6,020 S&P SL20 3,320 S&P SL20 S&P ASPI ˅ 2.10% | S&P SL20 ˅ 3.92% 5,990 3,240 ASPI 5,960 3,160 The Bourse ended the week… Cont. P2 5,930 3,080 5,900 3,000 Foreign investors closed the week... Cont. P3 17-Sep 18-Sep 19-Sep 20-Sep 21-Sep 1.00 0.80 Sri Lankan Equities hit a 2-year ….… Cont. P4 0.60 0.40 LKR Bn) LKR (Turnover 0.20 Economic Snapshot………… P5 0.00 17-Sep 18-Sep 19-Sep 20-Sep 21-Sep KEY STATISTICS Week ending 21-Sep 14-Sep +/- ASPI 5,904.90 6,031.26 -2.10% S&P SL20 3,016.76 3,139.77 -3.92% Banking & Finance 15,621.15 16,136.84 -3.20% Food & Beverage 24,615.57 24,857.80 -0.97% Diversified 1,466.50 1,496.86 -2.03% Hotel & Travel 2,651.64 2,668.55 -0.63% Plantations 740.70 734.33 0.87% Manufacturing 2,791.80 2,884.97 -3.23% Turnover (LKR Bn) 3.50 4.40 -20.33% Foreign Buying (LKR Mn) 1,445.56 1,004.14 43.96% Foreign Selling (LKR Mn) 2,188.62 1,568.44 39.54% Daily Average Turnover (LKR Bn) 0.70 0.88 -20.33% Daily Average Foreign Buying (LKR Mn) 289.11 200.83 43.96% Daily Average Foreign Selling (LKR Mn) 437.72 313.69 39.54% TOP 10 GAINERS TOP 10 LOSERS Opening Closing WoW % Opening Closing WoW % Company Code Company Code Price Price Change Price Price Change ADAM CAPITAL PCHHN 0.4 0.5 25.0% ADAM INVESTMENTS AINVN 0.2 0.1 -50.0% BIMPUTH FINANCE BLI N 26.6 33.0 24.1% TESS AGRO TESSN 0.6 0.4 -33.3% SWADESHI SWADN 12812.5 14991.1 17.0% BLUE DIAMONDS[NV] BLUEX 0.3 0.2 -33.3% BERUWALA RESORTS BERUN 0.6 0.7 16.7% GOOD HOPE GOODN 1172.0 902.6 -23.0% CHEMANEX CHMXN 47.0 54.8 16.6% TESS AGRO[NV] TESSX 0.5 0.4 -20.0% RENUKA FOODS COCON 13.1 14.9 13.7% RENUKA HOTELS RCHN 50.0 41.0 -18.0% LAKE HOUSE PRIN. LPRTN 130.0 147.0 13.1% MTD WALKERS KAPIN 11.2 9.6 -14.3% SUNSHINE HOLDING SUN N 49.0 54.6 11.4% LUCKY LANKA[NV] LLMPX 0.7 0.6 -14.3% GESTETNER GESTN 99.0 110.0 11.1% LANKA TILES TILEN 94.7 81.4 -14.0% ALUFAB ALUFN 19.6 16.9 -13.8% PEOPLE'S MERCH PMB N 11.0 12.0 9.1% 1 ACUITY STOCKBROKERS RESEARCH | SRI LANKA EQUITIES Weekly Market Review 21 Sep 2018 Market Review Indices | Liquidity (in Volume Terms) | The Bourse ended the week on a negative note as the The Banks,Finance & Insurance sector dominated the ASPI increased by 126.36 points (or -2.10%) to close at market in terms of share volume, accounting for 44.78% 5,904.90 points, while the S&P SL20 Index also (or 45.85Mn shares) of total volume, with a value decreased by 123.01 points (or -3.92%) to close at contribution of LKR 1.25Bn. The Diversified sector 3,016.76 points. followed suit, adding 21.92% to total turnover volume as 22.44Mn shares were exchanged. The sector’s volume Turnover & Market Capitalization | accounted for LKR 1.47Bn of total market turnover JKH was the highest contributor to the week’s turnover value. The Manufacturing sector meanwhile, contributed 9.39Mn shares (or 9.17%), amounting to LKR 0.38Bn. value, contributing LKR 1.02Bn or 29.10% of total turnover value. Sampath Bank followed suit, accounting for 11.27% of turnover (value of LKR 0.39Bn) while Top Gainers & Losers | Melstacorp contributed LKR 0.39Bn to account for Adam Capital was the week’s highest price gainer; 11.09% of the week’s turnover. Total turnover value increasing 25.0% W-o-W from LKR0.40 to LKR0.50 amounted to LKR 3.50Bn (cf. last week’s value of LKR while Bimputh Finance(+24.1% W-o-W), 4.40Bn), while daily average turnover value amounted Swadeshi(+17.0% W-o-W) and Beruwala Resorts (+16.7% W-o-W) were also amongst the top gainers. to LKR 0.70Bn (-20.33% W-o-W) compared to last week’s average of LKR 0.88Bn. Market capitalization meanwhile, decreased by 2.10% W-o-W (or LKR Adam Investments was the week’s highest price loser; 59.34Bn) to LKR2,773.00Bn cf. LKR2,832.34Bn last declining 50.0% W-o-W to close at LKR0.10 while Tess week. Agro (-33.3% W-o-W), Blue Diamonds[NV] (-33.3% W-o-W) and Good Hope(-23.0% W-o-W) were Liquidity (in Value Terms) | also amongst the top losers over the week. The Diversified sector was the highest contributor to the week’s total turnover value, accounting for 41.90% (or TOP 10 TURNOVERS LKR 1.47Bn) of market turnover. Sector turnover was driven primarily by JKH & Melstacorp which accounted Opening Closing Value (Rs. Company Code for 95.93% of the sector’s total turnover. The Banks, Price Price Mn) Finance & Insurance sector meanwhile accounted for JKH JKH N 133.7 129.5 1,019.68 35.55% (or LKR 1.25Bn) of the total turnover value, SAMPATH SAMPN 265.0 238.6 394.91 with turnover driven primarily by Sampath Bank, MELSTACORP MELSN 50.0 50.0 388.69 Commercial Bank, Union Assurance & Seylan Bank CHEVRON LLUBN 71.7 68.0 327.50 which accounted for 80.46% of the sector turnover. The COMMERCIAL BANK COMBN 119.8 114.1 287.73 Manufacturing sector was also amongst the top sectorial HNB HNB N 222.4 214.0 126.56 contributors, contributing 10.81% (or LKR 0.38Bn) to UNION ASSURANCE UAL N 321.0 320.0 112.61 SEYLAN BANK SEYBN 71.0 67.8 80.55 the market driven by Chevron Lubricants which LION BREWERY LIONN 645.0 639.0 65.65 accounted for 86.44% of the sector turnover. DISTILLERIES DISTN 17.9 16.6 57.46 2 ACUITY STOCKBROKERS RESEARCH | SRI LANKA EQUITIES Weekly Market Review 21 Sep 2018 Market Review (Cont’d) Net Foreign Sales (14 Sep-21 Sep) Net Foreign Purchases (14 Sep-21 Sep) VALLIBEL EXPOLANKA Volume Change ('000s) Volume Change ('000s) HEMAS HOLDINGS JANASHAKTHI INS. HNB ELPITIYA LION BREWERY SIERRA CABL HNB[X.0000] SAMPATH NATIONS TRUST BERUWALA RESORTS UNION ASSURANCE COMMERCIAL BANK LANKEM DEV. DIALOG RICHARD PIERIS DISTILLERIES CHEVRON* JKH - 70 140 210 280 350 (5,500) (4,400) (3,300) (2,200) (1,100) - *Volume change of Chevron Lubricants(2.58Mn shares)from 14th Sep – 21st Sep not displayed. Foreign investors closed the week in a net selling position with total net outflow amounting to LKR 0.74Bn relative to last week’s total net outflow of LKR 0.56Bn (-31.7% W-o-W). Total foreign purchases increased by 43.96% W-o-W to LKR 1.45Bn from last week’s value of LKR 1.00Bn, while total foreign sales amounted to LKR 2.19Bn relative to LKR 1.57Bn recorded last week (+39.5% W-o-W). In terms of volume, Chevron & Richard Pieris led foreign purchases while JKH & Distilleries led foreign sales. In terms of value, Chevron & Union Assurance led foreign purchases while JKH & Commercial Bank led foreign sales. Net Foreign Purchases (By Transaction Value) Net Foreign Sales (By Transaction Value) Foreign Holding (%) Value* Foreign Holding (%) Value* Company Net Change Company Net Change 21/09/18 14/09/18 (LKR. Mn) 21/09/18 14/09/18 (LKR. Mn) CHEVRON 22.08% 21.01% 2,581,315 175.53 JKH 55.66% 56.05% (5,423,638) (702.36) UNION ASSURANCE 0.74% 0.31% 254,719 81.51 COMMERCIAL BANK 33.73% 33.85% (1,081,646) (123.42) LION BREWERY 37.52% 37.40% 93,997 60.06 SAMPATH 22.39% 22.53% (378,502) (90.31) HNB[X.0000] 47.12% 46.99% 124,490 20.40 HNB 35.97% 36.03% (226,619) (48.50) NATIONS TRUST 24.49% 24.44% 129,902 11.44 DISTILLERIES 1.75% 1.81% (2,801,032) (46.50) RICHARD PIERIS 73.92% 73.90% 321,560 3.31 NESTLE 95.47% 95.50% (20,352) (33.58) COMMERCIAL BANK[X.0000] 24.31% 24.27% 24,046 2.21 DIALOG 94.33% 94.34% (1,560,514) (18.73) HAYCARB 6.00% 5.94% 17,254 2.07 HEMAS HOLDINGS 30.32% 30.34% (131,181) (11.69) ELPITIYA 1.48% 1.36% 86,775 1.65 ROYAL CERAMIC 11.34% 11.36% (29,398) (2.35) NAT. DEV. BANK 14.16% 14.15% 15,517 1.62 UNITED MOTORS 5.74% 5.77% (26,800) (2.29) Note: *Value based on closing price and not on actual traded price Foreign Purchases Vs. Sales Week Ending Net Position of Foreign Holdings 100 1,000 Foreign Purchases Foreign Sales -100 800 600 -300 LKR. MnLKR. LKR. Mn LKR. 400 -500 200 -700 0 -900 17-Sep 18-Sep 19-Sep 20-Sep 21-Sep 31-Aug 07-Sep 14-Sep 21-Sep 3 ACUITY STOCKBROKERS RESEARCH | SRI LANKA EQUITIES Weekly Market Review 21 Sep 2018 Announcements for the Week Dividend Announcements No Dividend Announcements for the Week Point of View 2Q’18 GDP growth rises to 3.7% Y-o-Y.