Monday, July 01, 2013

Today 6,132.75 3,447.74 Point Change + 11.74 + 16.00 % Change 0.19 % p 0.47 % p

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: research@equity.softlogic.lk

8.7% 11.7% 561.8 904.0 20.7 40.0 2,355.3 160.9 296.9 136.0 15.2

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]

Late market recovery on CSE

CSE Diary for 01.07.2013

Bourse on a recovery path: The bourse remained dull in most part of the day however a sudden upsurge was witnessed in latter part of the day to remain positive at its close. ASPI settled at 6,132.75 with a gain of 12 points. Gains denoted in John Keells Holdings (3.5%), The Lion Brewery (4.9%) and C T Holdings (4.2%) weighted positively on the contributions to the index. S&P SL20 journeyed a similar path with a gain of 16 points and settled at 3,447.74. Nations trust bank spearheaded the daily turnover; Activities on the crossing board was minimal and was led by 4 off-board transactions in Nations Trust Bank amounting to 2mn shares which were dealt at LKR64-65. The counter witnessed low on board activity and closed at LKR63.6 with a 0.8% gain. Diversified and Banking sector gains attention: Diversified and the BFI sector continued to

dominate the on-board turnover during the day. Hatton National Bank topped the daily on-board turnover supported by a single 300k transaction which was trade at LKR160.0. HNB closed at LKR160.0 with a dip of 0.7%, Carson Cumberbatch too denoted heavy on-board interest backed by a single trade amounting to 200k shares which was transacted at LKR440.0. Other Diversified counters and banking counters Commercial Bank, John Keells Holdings and Sampath bank witnessed notable interest during the day. Retail Interest on selected counters: Retail interest regained on PC House, Ceylon Investments and Finance and Touchwood investments. PCH witnessed a single on-board transaction of 1.3mn shares which was traded at LKR1.60. The counter closed at a 52-week low of LKR1.50 with a dip of 16.7%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 01.07.2013 YoY Change Annual Avg Week ending 28.06.2013 8.66 10.66 12.09 -35.07 6.8 8.6 9.70

6500 6400 6300 6200 6100 6000 5900 5800

Index

ASPI

Turnover LKR ('mn)

3700 3600

4,000 3,000 2,000 1,000 0

120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

3500

3400 3300
3200

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 6,132.8 3,447.7 561.8 4.3 20.7 225 2,355.3 296.9 136.0 160.9 16.6 2.3 2.3 Today 13,260.2 19,179.7 2,802.1 1,991.5 684.2 3,443.2 608.0 3,079.5 778.7 156.8

Pre Day 6,121.0 3,431.7 265.9 2.0 12.7 191 2,350.7 152.0 53.6 98.5 16.6 2.3 2.3 Pre Day 13,337.9 19,081.4 2,817.8 1,958.4 679.1 3,430.8 611.2 3,089.0 793.1 159.9

Change % 0.19% p 0.47% p 111.26% 111.26% 62.54% 17.80% 0.19% 95.30% 153.97% 63.39% 0.19% 0.19% 0.00% % Change -0.58% 0.52% -0.56% 1.69% 0.74% 0.36% -0.53% -0.31% -1.82% -1.90% q p q p p p q q q q

Last Week 6,149.4 3,472.3 201.0 1.5 11.1 227 2,361.6 77.6 30.6 47.0 16.7 2.3 2.2 Last Week 13,290.3 19,226.2 2,829.9 2,014.0 661.9 3,407.6 601.5 3,045.9 786.9 159.1

% WoW Change -0.27% -0.71% 179.53% 179.53% 86.98% -0.88% -0.27% 282.70% 344.54% 242.43% -0.58% -0.18% 4.55% % WoW Change -0.23% -0.24% -0.98% -1.12% 3.37% 1.05% 1.08% 1.11% -1.05% -1.40% 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 9.5% 7.9% 3.7% 4.4% 3.0% 3.9% 3.0% 2.9% 2.2% 2.2% 2.5% 1.2% 1.6% 1.5% 1.4% 1.3%

Volume 91,839 180 200,001 1,097 1,005 240,867 1 44,257 559,073 6,716 128,194 370 635 21,297 98,326 10,014

Turnover LKR ('000) 23,388.94 179.64 88,000.45 2,127.51 40.20 27,732.78 0.70 375.61 89,449.64 866.36 24,919.89 22.24 107.92 2,867.53 19,940.27 710.01

Turnover USD ('000) 179.49 1.38 675.35 16.33 0.31 212.83 0.01 2.88 686.47 6.65 191.24 0.17 0.83 22.01 153.03 5.45

Intraday Intraday High (LKR) Low (LKR) 264.90 998.00 450.00 1,945.00 41.60 116.00 700.00 8.60 164.80 129.00 195.00 60.50 170.00 136.20 205.00 71.80 251.10 998.00 440.00 1,920.00 39.50 114.50 700.00 8.40 158.50 129.00 193.00 60.00 169.90 130.30 202.50 70.00

Close 260.40 998.00 440.00 1,942.10 39.80 116.00 700.00 8.40 160.00 129.00 194.90 60.00 170.00 130.30 202.50 71.80

Price Gainers
Company
E - CHANNELLING COMMERCIAL DEV. S M B LEASING SIGIRIYA VILLAGE MIRAMAR

Price Losers
Today 6.30 69.90 0.90 75.30 70.50 Change + 2.60 + 8.30 + 0.10 + 7.90 + 5.70 % Change Company 70.27% 13.47% 12.50% 11.72% 8.80%
PC HOUSE SERENDIB LAND PCH HOLDINGS KELSEY PC PHARMA

Today 1.50 1,230.00 2.60 20.20 3.40

Change - 0.30 - 220.20 - 0.40 - 2.00 - 0.30

% Change -16.67% -15.18% -13.33% -9.01% -8.11%

Top 05 Performers for the Day

Company
NATIONS TRUST HNB CARSONS COMMERCIAL BANK DISTILLERIES

Today 63.60 160.00 440.00 116.00 194.90

Pre Day 63.10 161.10 435.20 115.30 193.00

% Change 0.79% -0.68% 1.10% 0.61% 0.98%

Volume (mn) 2.10 0.56 0.20 0.24 0.13

Contribution to Total T/O 5.8% 3.8% 3.7% 1.2% 1.1%

Turnover (LKR) 135,474,386 89,449,643 88,000,450 27,732,783 24,919,891

Most Active
Company
PC HOUSE NATIONS TRUST BLUE DIAMONDS[NON VOTING] CIFL TOUCHWOOD

Today 1.50 63.60 1.30 1.90 4.90

Pre Day 1.80 63.10 1.30 1.90 4.90

% Change -16.67% 0.79% 0.00% 0.00% 0.00%

Volume (mn) 5.77 2.10 1.53 1.49 1.28

Contribution to Total T/O 0.4% 5.8% 0.1% 0.1% 0.3%

Turnover (LKR) 8,851,328 135,474,386 1,985,108 2,812,415 6,377,565

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 01.07.2013 119.50 21.26 169.68 2.19 1.31 41.07 3.97 34.74 102.84 137.87 4.20 198.21 130.30

Announcements
Dividends
Company DPS (LKR) 1.00 0.50 1.00 0.20 0.00 0.00 0.00 0.00 XD Date 06-08-2013 19-07-2013 12-08-2013 To be Notified 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Proportion 0 XR Date

Payment Date 15-08-2013 30-07-2013 21-08-2013 To be Notified 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Renunciation

Colombo Fort Investments PLC Peoples Leasing & Finance PLC Tokyo cement Company (Lanka)PLC Orient Finance PLC 0 0 0 0
Company Description

Rights Issues / Scrip Dividend / Sub division / Capitalization

No Annoucements 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 14,909.6 1,606.3 2,624.4 6,273.1 13,852.5 20,803.3

Change -114.9 -6.9 21.8 57.7 175.2 363.2

Change % -0.76% q -0.43% q 0.84% p 0.93% p 1.28% p 1.78% p

Time* 0-Jan 0-Jan 07:07 07:08 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 102.76 97.06 83.70 660.50 1,240.40 19.62 312.65

Change 0.60 0.50 -0.31 2.75 16.70 0.15 6.90

Change % 0.59% p 0.52% p -0.37% q 0.42% p 1.36% p 0.74% p 2.26% p

Time* 06:56 06:56 06:51 07:16 06:56 06:56 06:56

Source: www.bloomberg.com

Softlogic Equity Research

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TOP STORIES
Local
Monetary Board appoints Peoples Leasing & Finance PLC as the Managing Agents of Central Investments and Finance PLC: The Monetary Board has appointed Peoples Leasing & Finance [PLC: LKR14.7] as the Managing Agent of Central Investments and Finance [CIFL: LKR1.9] w.e.f 01.07.2013 considering the prevailing liquidity and management issues of the CIFL. The Managing Agent will be expected to improve the financial status of CIFL within a reasonable period of time, and Central Bank will closely monitor the progress. [Source: www.cbsl.lk] Govt. gets USD500 mn boost from ADB: USD300 mn multi-tranche credit line from ADB for non-revenue water management was activated. First tranche of USD84 mn is to be released shortly. USD200 mn budget support from ADB for education sector development was finalized while first-tranche of USD40 mn is to be released before end of 2013. [Source: www.ft.lk] Sri Lanka kills some liquidity ahead of cash flood: Sri Lanka's central bank has killed LKR13 bn in excess liquidity ahead of a flood of new cash into the interbank money markets from a reserve ratio cut on July 01. On Friday the Central Bank sold a LKR5.0 bn tranche of Treasury bills from its balance sheet at 8.42% and another LKR5.0 bn tranche at 8.47% on Friday for settlement on July 01. Market liquidity went down from a LKR13.4 bn excess on Friday to LKR9.1 bn short on Friday. [Source: www.lbo.lk] Softlogics automobile arm to set up LKR200 mn facility in Pelawatta: Softlogic Holdings [SHL: LKR9.9] auto subsidiary Future Automobiles (Pvt) Ltd, sole distributor for Ford Motor Company in Sri Lanka, is to set up a LKR200 mn sales and service facility in Pelawatta, an official stated. The new plant is a 3S facility where the sale, services and after sales services all will be carried out from one location and will offer the customers the best industry standards, Future Automobiles Chief Operating Officer (COO), said. [Source: www.dailymirror.lk]

Global
Chinese Manufacturing Gauges Fall as Slowdown Persists: An official Purchasing Managers Index dropped to 50.1 from 50.8, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. Weaker gains in manufacturing and a cash squeeze in the banking system add to odds that Li Keqiang will become the first premier to miss an annual growth target since the Asian financial crisis in 1998. [Source: www.bloomberg.com] US suspends GSP trade benefits for Bangladesh over safety: The US move does not directly affect Bangladeshs multi-billion-dollar clothing exports, since garments are not eligible for US duty cuts. But it could prompt the European Union into similar action, which would have a bigger impact as Bangladeshs clothing and textiles exports to the EU are duty-free. Suspending Bangladesh from the GSP program will increase US duties on an array of products the country exports to the United States, such as tobacco, sporting equipment, porcelain china, plastic products and a small amount of textile products. [Source: www.ft.lk]

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Dimantha Mathew dimantha.mathew@equity.softlogic.lk +94 11 7277030 Kavindu Ranasinghe kavindu.ranasinghe@equity.softlogic.lk +94 11 7277031 Imalka Hettiarachchi imalka.hettiarachchi@equity.softlogic.lk +94 11 7277032

Softlogic Equity Sales

Dihan Dedigama dihan.dedigama@equity.softlogic.lk +94 11 7277010, +94 77 7689933 Chandima Kariyawasam chandima.kariyawasam@equity.softlogic.lk +94 11 7277058, +94 77 7885778 Sonali Abayasekera sonali.abayasekera@equity.softlogic.lk +94 11 7277051, +94 77 7736059 Thanuja De Silva thanuja.desilva@equity.softlogic.lk +94 11 7277059, +94 77 3120018

Branches
Horana Madushanka Rathnayaka st No. 212, 1 Floor, Panadura Road, Horana madushanka.rathnayaka@equity.softlogic.lk +94 34 7451000, +94 77 3566465 Negambo Krishan Williams No. 121, St. Joseph Street Negambo krishan.williams@equity.softlogic.lk +94 31 2224714-5, +94 77 3569827 Kurunegala Bandula Lansakara No.13, Rajapihilla Mawatha, Kurunegala bandula.lansakara@equity.softlogic.lk +94 37 2232875, +94 77 3615790 Matara Lalith Rajapaksha nd No.8A, 2 Floor, FN Building, Station Road, Matara lalith.rajapaksha@equity.softlogic.lk +94 41 7451000, +94 77 3031159

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 i ntended 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 t o make a purchase and/or sale of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principal or agent. S oftlogic Stockbrokers may make markets in securities or other financial instruments described in this publication, in securities of issuers described here in or in securities underlying or related to such securities. Softlogic Stockbrokers (Pvt) Ltd may have recently underwritten the securities of an issuer mentioned herein. This document may not be reproduced, distributed, or published for any purposes.

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