Week I: 02nd – 06th March 2020 BRS Weekly Market Report

BRS Market Report

Weekly
Week I: 02nd – 06th March 2020

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Week I: 02nd – 06th March 2020 BRS Weekly Market Report

The Week at a Glance

SL Market Indices
Current Previous Change % Current Previous Change %
Week Week (Points) Change Week Week (Points) Change
ASPI 5,343.15 5,592.92 (249.77) -4.47% S&P SL20 2,479.61 2,631.99 (152.38) -5.79%

The market loses 4.47% WoW

The market ended on negative note owing to ongoing COVID-19 concerns, with
Global Market Indices
the benchmark ASPI and S&P SL20 index dipping 249.77 and 152.38 points WoW Current Previous %
respectively. Although the US Federal Reserve slashed key interest rate by 50bps to
a range of 1% - 1.25%, it failed to provide enough boost to investor sentiment Week Week Change
worldwide. Further, political uncertainty with the president dissolving the parlia-
ment on 2nd of March and fixing 25th of April for the next general election kept DOW JONES 26,121.28 25,766.64 1.38%
investors at bay.
On the macro front; CBSL kept policy rates unchanged with the aim of maintain- NASDAQ 8,738.59 8,566.48 2.01%
ing inflation at the range of 4%-6% to support economic growth with the GDP
growth anticipated at 3.5%-4.0% for 2020. Sri Lanka’s exports fell 7.4% YoY, backed FTSE 6,705.43 6,583.81 1.85%
by tea (-9.9%) and apparel (-50bps) with industry experts anticipating exports to
drop about 20%-25% in the next quarter amid supply chain constraints. Further, DAX 11,944.72 11,943.34 0.01%
tourist arrivals slid 17.7% in February forcing the government to extend the tenure
for tourism tax payment for another 4 months. The impact on tourism from the new NIFTY 10,913.85 11,201.75 -2.57%
pandemic is evident with China dropping out from the top 10 tourist generating
markets of Sri Lanka for the first time since 2012. Moreover, Sri Lanka has attracted HANG SENG 26,122.14 26,129.93 -0.03%
$ 370mn in FDI for new hotel projects during the last two months while the govern-
ment is expecting to finalise the negotiations for a $2bn loan from China. NIKKEI 20,749.75 21,142.96 -1.86%
As for the highlights in the corporate front during the week; SFCL acquired
Candor Asset Management, a Sri Lankan unit trust and portfolio management firm
while CALF received shareholder approval to raise LKR 701mn through right issues CSE Market Statistics
to meet regulatory capital requirements. Further, it has been decided to set up a
holding company owned by the Treasury, BOC and SLIC to control state-run hotels Current Week
such as Hilton, Grand Oriental and Grand Hyatt Hotel. Following December earn-
ings released during the week, Union bank grew 111% YoY (LKR 196mn) on lower
bad loan provisioning while SLT concluded the year on a high note with 28% YoY
Turnover LKR 2,565,042,285
(LKR 6.3bn) growth in PAT. Nestle, Sri Lanka’s number one F&B company, posted a
negative growth in earnings to LKR 717mn (-17.2% YoY) amid low sales. Volume Shares 130,949,716

Average daily turnover at LKR 331mn Foreign Purchases LKR 589,913,711

The cumulative market turnover for the week recorded at LKR 2.6bn, resulting in a
~2% WoW drop in average daily turnover. Pre negotiated deals accounted for 33% Foreign Sales LKR 1,262,789,516
and 11% the total weekly turnover and volume respectively. JKH and COMB
emerged as the top contributors to the cumulative turnover collectively represent- Net Inflow/(Outflow) LKR (672,875,805)
ing 34% of the total. Local interest was seen on counters like VLL and BIL during the
week with only 131mn shares changed hands during the course of the week.

Foreigners continue to be net sellers

Foreign participation remained moderate, continuing to be net sellers of LKR
673mn for the week. Foreign selling amounted to ~49% of total turnover. The high-
est foreign selling was seen on COMB with LKR 241mn while the highest net inflow
was on TJL (LKR 86mn).

Sector gainers and losers

Transportation sector (-13%) lost the most during the week with no gainers re-
corded for the week.

All Share Price Index

5,700 SL FX Rates
5,600 Current Previous %
5,614.29
5,500 5,618.41 Value Week Change
5,535.45
5,484.25 USD 183.85 183.64 0.11%
5,400
POUND 237.84 237.85 -0.01%
5,300 5,343.15
EURO 206.12 203.08 1.50%
5,200
2-Mar-20 3-Mar-20 4-Mar-20 5-Mar-20 6-Mar-20 YEN 1.73 1.69 1.92%

2
Week I: 02nd – 06th March 2020 BRS Weekly Market Report

The Week at a Glance

Weekly Summary
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

All Share Index 5,614.29 5,618.41 5,535.45 5,484.25 5,343.15

S&P SL 20 Index 2,646.97 2,656.75 2,586.31 2,548.31 2,479.61
Equity Turnover (LKR) 256,427,244 323,415,932 398,184,018 759,345,571 827,669,520
Domestic Purchases (LKR) 176,932,420 272,081,907 321,233,580 549,294,468 655,586,199
Domestic Sales (LKR) 161,028,980 185,119,973 269,370,067 350,860,099 335,873,650
Foreign Purchases (LKR) 79,494,825 51,334,025 76,950,438 210,051,103 172,083,320
Foreign Sales (LKR) 95,398,264 138,295,959 128,813,951 408,485,472 491,795,870
Vol of Turnover 14,155,961 31,956,547 14,497,571 23,425,883 46,913,754
Foreign Volume 1,600,434 11,265,042 916,418 6,324,400 12,673,683
% Vol of Foreign Turnover 11% 35% 6% 27% 27%
Total no. of Trades 4,364 3,993 6,299 5,692 8,557
% of Foreign Trades 7% 5% 5% 7% 6%
Market Capitalization (LKR) 2,609,085,257,337 2,611,706,527,639 2,573,144,247,517 2,549,345,586,316 2,483,753,436,762

Foreign Purchases vs Sales Net Position on Foreign Holdings

LKR '000 LKR mn
Foreign Purchases Foreign Sales
0
6,000
-50
5,000
-100
4,000
-150
3,000
-200
2,000

1,000
-250

0 -300
2-Mar 3-Mar 4-Mar 5-Mar 6-Mar -350
2-Mar 3-Mar 4-Mar 5-Mar 6-Mar

ANNOUNCEMENTS

Dividend

Company CODE DPS (LKR) Final/Interim XD PD

NESTLE LANKA PLC NEST 30.00 First Interim 11.03.2020 20.03.2020
NESTLE LANKA PLC NEST 17.50 Final 06.05.2020 17.05.2020
PEOPLE'S INSURANCE PLC PINS 1.10 Second Interim 11.03.2020 20.03.2020

CEYLINCO INSURANCE PLC CINS N & (X) 38.00 First and Final 15.04.2020 23.04.2020

Rights Issue
Company CODE Proportion Price per share (LKR) XR

PEOPLE`S MERCHANT FINANCE PLC PMB 12 for every 25 issued 8.00 Subject to approval

3
Week I: 02nd – 06th March 2020 BRS Weekly Market Report

The Week at a Glance

Weekly Crossings
Code No of Crossings Total Shares Price (LKR)
Monday LION 1 100,000 600.00
Tuesday VLL 1 20,000,000 4.20 Crossings
accounted for
SDB 1 1,500,000 55.20 ~33%
Wednesday COF.U 1 10,000,000 8.00 of the
cumulative
LION 1 100,000 600.00 market
turnover.
COMB 1 379,000 80.50
Thursday JKH 1 300,000 145.00
MELS 2 3,622,710 33.00
JKH 4 1,475,000 140.00
Friday
VLL 1 20,000,000 4.10

Sector
Multipl
SECTOR A&C BNK CG CPS CDA CS DF EGY FSR FBT HES HPP INS MAT PBL RE RET TEL TRP UTI

PER (x) 6.22 4.83 12 N/A 12.85 236.5 8.19 N/A 24.35 14.6 15.17 12.85 2.88 10.62 16.5 6.8 15.93 6.86 5.24 6.53

PBV (x) 0.62 0.58 0.69 0.84 0.95 1.51 0.82 0.65 2.02 2.17 1.54 1.64 0.87 0.87 1.5 0.63 0.46 0.95 0.55 2.07

Weekly Sector Gainers and Losers

RET CS MAT TEL TRP

No gainers for
the week, while
Transportation
and Telecommu-
-6.6% -6.8% -7.0% -7.2% nication lost the
most.
-12.9%

Ab breviat ions
• B A NK S FI NA NCE & INSURA NCE B FI • CHE M I CA LS & P HA RM A C&P • DI V E RSI FIE D DI V • HE A LT HCA RE HLT • INV E ST M E NT T RUST I NV

• B E V E RAGE FOOD & T OB A CCO B FT • CONST RUCT ION & E NG C&E • FOOT WE A R & T E X T ILE S F&T • HOT E LS A ND T RA V E L H&T • IT IT

• LA ND A ND P ROP E RT Y L&P • M OT ORS MTR • P LA NT A T IONS P LT • SE RV I CES SRV • T E LE CO T EL

• M A NUFACT URI NG M FG • OIL P A LM S OI L • P OWE R A ND E NE RGY P &E • ST ORE S A ND SUP P LIE S S&S • T RA DING T RD

4
Week I: 02nd – 06th March 2020 BRS Weekly Market Report

BRS Stocks in Focus

MPS MTD YTD Historical Historical Forecasted Forward DPS Dividend NAV PBV
(LKR) change % Change % EPS (LKR) PER (x) EPS (LKR) PER (x) (LKR) Yield (%) (LKR) (x)

Banks, Finance & Insurance

CFIN 90.00 -14.29% 1.47% 23.06 3.90 18.49 4.87 2.70 3.00% 196.97 0.46

CINS 1,970.00 -0.85% -1.01% 323.45 6.09 N/A N/A 35.00 1.78% 2,008.60 0.98

CINS(X) 810.70 -3.49% -14.66% 323.45 2.51 N/A N/A 35.00 4.32% 2,008.60 0.40

COMB 79.70 -13.37% -30.70% 16.80 4.74 N/A N/A 6.50 8.16% 130.83 0.61

COMB(X) 69.40 -15.37% -26.95% 16.80 4.13 N/A N/A 6.50 9.37% 130.83 0.53

DFCC 75.50 -9.58% -18.82% 7.62 9.91 N/A N/A 3.00 3.97% 184.45 0.41

PLC 14.10 -11.32% -13.50% 2.80 5.04 2.73 5.16 1.25 8.87% 20.16 0.70

HNB 135.90 -15.64% -36.50% 29.32 4.64 N/A N/A 8.00 5.89% 290.78 0.47

HNB(X) 120.00 -10.31% -28.78% 29.32 4.09 N/A N/A 8.00 6.67% 290.78 0.41

NTB 74.00 -5.13% -17.04% 13.08 5.66 N/A N/A 2.30 3.11% 110.61 0.67

NDB 84.70 -13.57% -20.69% 20.53 27.87 N/A N/A 7.00 8.26% 195.60 0.43

PABC 11.20 -8.20% -24.32% 3.96 2.83 N/A 3.64 - 0.00% 30.12 0.37

SAMP 152.50 -6.56% -35.11% 34.36 4.44 N/A N/A 11.75 7.70% 292.19 0.52

SEYB 43.20 -13.43% -44.62% 9.12 4.74 N/A N/A 2.00 4.63% 92.09 0.47

SEYB(X) 27.20 -13.65% -38.88% 9.12 2.98 N/A N/A 2.00 7.35% 92.09 0.30

JINS 26.00 -16.13% -13.33% 6.39 4.07 N/A N/A - 0.00% 42.10 0.62

Beverage, Food & Tobacco

BFL 91.40 -13.85% -26.70% 25.20 3.63 (8.96) NM 8.00 8.75% 230.90 0.40

CCS 775.90 -1.78% 8.06% 13.79 56.27 17.67 43.91 15.00 1.93% 167.57 4.63

CTC 1,048.50 -4.68% -25.90% 90.77 11.55 92.57 11.33 92.13 8.79% 24.68 42.48

KFP 109.50 -4.78% -18.28% 10.48 10.45 7.63 14.36 6.00 5.48% 76.23 1.44

NEST 1,199.90 -4.01% -29.42% 47.76 25.12 - - 50.00 4.17% 102.55 11.70

Chemicals & Pharmaceuticals

CIC 45.00 -18.18% 13.64% 1.23 36.59 3.67* 12.27 1.00 2.22% 105.63 0.43

HAYC 175.00 -5.41% 34.62% 32.16 5.44 42.95 #DIV/0! 8.00 4.57% 316.61 0.55

CIC(X) 35.00 -26.47% 16.67% 1.23 28.46 3.67* 9.55 1.00 2.86% 105.63 0.33

Construction & Engineering

DOCK 45.40 -20.21% -18.35% (23.38) NM (6.93) NM 1.50 3.30% 118.05 0.38

AEL 17.20 -16.50% 21.99% 2.15 8.00 1.48* 11.62 0.50 0.03 21.81 0.79

Diversified

CARS 170.00 -7.21% -0.12% 0.90 188.89 6.54* 25.99 0.75 0.44% 177.55 0.96

HAYL 142.70 -12.51% -23.69% 3.54 40.31 2.45* 58.24 5.00 3.50% 523.00 0.27

HHL 65.00 -12.75% -26.80% 5.65 11.50 1.69* 38.46 1.85 2.85% 46.96 1.38

JKH 140.10 -13.57% -12.27% 11.13 10.61 4.98* 28.13 5.00 3.57% 144.20 0.88

SPEN 37.40 -10.53% -21.76% 10.04 3.73 4.47* 8.37 2.50 6.68% 122.55 0.31

SUN 44.00 -6.78% -18.22% 3.86 11.40 5.84 7.53 1.25 2.84% 55.45 0.79

MELS 30.70 -20.67% -38.97% 4.82 4.51 3.52* 8.72 2.00 6.51% 70.68 0.43

RICH 9.30 -14.68% -11.43% 0.99 9.39 1.05* 8.86 0.85 9.14% 7.39 1.26

EXPO 3.30 -32.65% -17.50% 0.74 4.46 0.61 5.41 0.15 4.55% 7.18 0.46

1 Please note that the historical EPS represents the EPS reported for the last financial year, adjusted for non-recurring items, share splits,
bonuses and share consolidations.
2 * Annualized EPS
3 ** Companies who have paid both cash and scrip dividends during the last FY. However, DPS here only represents cash dividend
4 DPS figures represent per share dividend paid during the last FY and are adjusted for splits, bonus issues and share repurchases
5
Week I: 02nd – 06th March 2020 BRS Weekly Market Report

BRS Stocks in Focus

MPS MTD YTD Historical Historical Forecasted Forward DPS Dividend NAV PBV
(LKR) change % Change % EPS (LKR) PER (x) EPS (LKR) PER (x) (LKR) Yield (%) (LKR) (x)

Healthcare
ASIR 18.70 -9.66% -18.70% 1.48 12.64 0.89* 20.93 0.80 4.28% 8.32 2.25

AMSL 9.70 -5.83% -2.02% 0.69 14.06 0.87* 11.19 0.50 5.15% 7.49 1.30

LHCL 36.00 -9.77% -15.49% 2.60 13.85 - - 1.75 4.86% 29.63 1.21

NHL 3.60 -7.69% -23.40% (0.20) (18.00) 0.04* 90.00 0.05 1.39% 2.59 1.39

CHL 85.00 8.97% 19.55% 9.56 8.89 16.07* 5.29 3.60 4.24% 175.16 0.49

CHL(X) 73.00 7.99% 5.80% 9.56 7.64 16.07* 4.54 3.60 4.93% 175.16 0.42

Hotels & Travels

AHPL 30.20 -18.38% -29.60% 1.83 16.48 (2.87) NM 2.00 6.62% 73.46 0.41

AHUN 19.00 -29.89% -29.63% 2.37 8.02 (3.12)* NM 1.00 5.26% 59.10 0.32

CONN 30.50 -14.08% -23.75% 5.55 5.50 (2.48)* NM 5.50 18.03% 66.83 0.46

KHL 8.00 -19.19% 2.56% 0.56 14.29 (0.53) NM 0.15 1.88% 19.18 0.42

Manufacturing
GLAS 4.00 -11.11% 5.26% 0.36 11.11 0.47 8.51 0.18 0.05 4.86 0.82

TILE 68.40 -7.57% -6.43% 9.95 6.87 13.38 5.11 3.15 0.05 146.11 0.47

ALUM 10.00 -25.93% -25.93% 0.42 23.81 0.13 75.00 0.80 0.08 7.94 1.26

PARQ 41.10 -20.50% 0.24% 0.60 68.50 0.33* 124.55 2.00 0.05 76.02 0.54

MGT 11.80 -31.40% 29.67% 0.87 13.56 2.53 4.66 - - 17.07 0.69

ACL 44.70 -17.22% 20.81% 4.67 9.57 3.44 12.99 1.50 3.36% 92.10 0.49

LLUB 65.00 -12.04% -10.71% 8.75 7.43 - - 8.75 13.46% 17.23 3.77

LWL 52.90 -19.85% -25.49% 11.30 4.68 7.62 6.94 3.00 5.67% 211.72 0.25

TJL 33.10 -16.20% 1.85% 2.65 12.49 3.72 8.90 2.30 6.95% 22.17 1.49

RCL 73.60 -12.38% -1.34% 23.75 3.10 22.19 3.32 4.00 5.43% 220.95 0.33

TKYO 31.90 -28.31% 26.59% (1.23) nm 5.36 NA 0.30 0.94% 41.16 0.78

TKYO(X) 27.80 -22.56% 20.87% (1.23) nm 5.36 NA 0.30 1.08% 41.16 0.68

Telecommunications
DIAL 11.00 -12.00% 8.91% 1.32 9.40 1.37* 8.01 0.43 4.82% 9.12 1.21

SLTL 27.00 -11.48% 15.38% 3.50 7.71 3.68* 7.34 - 0.00% 43.33 0.62

Plantations
ELPL 15.90 -6.47% -19.70% 6.02 2.64 5.19* 3.07 1.25 7.86% 63.10 0.25

KGAL 55.00 -4.84% 0.00% 15.92 3.45 9.45* 5.82 - 0.00% 141.65 0.39

NAMU 82.00 -0.61% 28.53% 10.79 7.60 12.99* 6.31 8.50 10.37% 121.91 0.67

WATA 20.60 -17.60% 7.85% 4.17 4.94 5.09* 4.04 2.00 9.71% 22.19 0.93

Power & Energy

LIOC 16.30 -9.44% -33.74% 0.76 21.45 1.92* 8.49 0.75 4.60% 37.18 0.44

HPWR 21.00 -12.50% -0.47% 2.72 7.72 3.69* 5.69 2.50 11.90% 12.61 1.67

VPEL 5.90 -7.81% -7.81% 1.12 5.27 1.18 5.00 0.30 5.08% 4.02 1.47

VLL 4.40 -6.38% -4.35% 0.60 7.33 0.43* 10.23 0.13 2.84% 3.48 1.26

LGL 12.10 -23.42% -35.29% (3.45) nm -2.89* NM - 0.00% 0.10 121.00

LGL (X) 7.10 -39.83% -53.90% (3.45) nm -2.89* NM - 0.00% 0.10 71.00

1 Please note that the historical EPS represents the EPS reported for the last financial year, adjusted for non-recurring items, share splits,
bonuses and share consolidations.
2 * Annualized EPS
3 ** Companies who have paid both cash and scrip dividends during the last FY. However, DPS here only represents cash dividend
4 DPS figures represent per share dividend paid during the last FY and are adjusted for splits, bonus issues and share repurchases
6
Week I: 02nd – 06th March 2020 BRS Weekly Market Report

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