Monday, July 08, 2013

Today 5,995.64 3,351.49 Point Change - 52.54 - 31.97 % Change -0.87 % q -0.94 % q

ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index

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6.2% 8.6% 413.7 908.1 22.2 40.0 2,302.6 70.5 124.8 54.3 15.6

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]

ASPI racing down towards 6,000 support

CSE Diary for 08.07.2013

ASPI racing down to the psychological barrier 6,000: The bourse was on a steep down trend majority of the days trading however clustering of the ASPI was witnessed near a major support line 6,000. At the end of the day ASPI ended at 5,995.64 with a loss of 53 points. Heavy losses recorded in John Keells Holdings (-3.2%) notably affected the negative performances of the indices along with Carsons Cumberbatch (2.3%) and Ceylon Tobacco Company (-0.9%). S&P SL20 too follow- suited however on a subdued note and ended at 3,351.49 with a loss of 32 points. Lackluster activities in the crossing board; Activities on the crossing board were lackluster with Nations Trust Bank denoting a single 543k off-board transaction which changed hands at LKR65.0. The counter witnessed notable on-board activity supported by a single on-board transaction of 672k shares which was traded at LKR65.0. The counter closed at LKR65.0 with a gain of 0.8%.

Heavy selling pressure on JKH: John Keells Holdings denoted heavy selling pressure with notable turnover during the day dragging down overall index performance backed by a single on-board transaction of 129k which was traded at LKR245.0. JKH settled at LKR241.0 with a dip of 3.2%. Interest was seen in BFI counters; Nations Trust Bank, Central Finance Company, Commercial Bank and Sampath Bank. CFIN heavily contributed to the on-board turnover with a single trade which amounted to 100k shares at LKR182.0. COMB too dominated the turnover with a single on-board transaction of 95k shares at LKR114.0. Retailers on Touchwood Investments: Retail interest was concentrated on Touchwood Investments, PC House and Blue Diamond [Non-Voting]. TWOD denoted heavy on-board turnover levels supported by a single transaction of 2.9mn shares which was traded at LKR3.9. The counter settled at LKR3.9 with a gain of 8.3%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 08.07.2013 YoY Change Annual Avg Week ending 05.07.2013 8.65 9.70 10.66 11.94 -34.16 6.8 8.6

6400 6300 6200

Index

6100
6000 5900 5800

ASPI Turnover LKR ('mn)

3600 3500 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

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 5,995.6 3,351.5 413.7 3.2 22.2 232 2,302.6 124.8 54.3 70.5 16.1 2.2 2.3 Today 13,094.1 18,984.3 2,804.8 1,896.3 644.4 3,358.1 587.1 3,054.8 750.5 155.1

Pre Day 6,048.2 3,383.5 570.2 4.4 19.6 235 2,322.8 340.3 61.4 278.9 16.3 2.2 2.3 Pre Day 13,166.3 19,112.4 2,795.6 1,933.3 654.1 3,384.3 590.3 3,073.0 756.0 155.7

Change % -0.87% q -0.94% q -27.43% -27.43% 13.12% -1.28% -0.87% -63.34% -11.59% -74.74% -0.87% -0.87% 0.00% % Change -0.55% -0.67% 0.33% -1.91% -1.49% -0.77% -0.53% -0.59% -0.73% -0.39% q q p q q q q q q q

Last Week 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 Last Week 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

% WoW Change -2.24% -2.79% -26.35% -26.35% 7.04% 3.11% -2.24% -57.98% -60.08% -56.21% -2.95% -2.92% 0.00% % WoW Change -1.25% -1.02% 0.09% -4.78% -5.82% -2.47% -3.43% -0.80% -3.63% -1.10% 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 9.0% 8.1% 3.6% 4.5% 3.1% 3.9% 3.0% 2.9% 2.2% 2.2% 2.5% 1.2% 1.6% 1.5% 1.4% 1.4%

Volume 413,913 229 111 2,114 1,219 183,040 2,161 128,872 3,450 8,453 522 4,264 449 4,421 80,216 3,315

Turnover LKR ('000) 100,442.70 226.63 47.18 4,115.91 47.99 20,833.07 1,481.22 1,071.25 545.53 1,056.78 99.09 255.38 73.97 574.60 15,526.90 237.02

Turnover USD ('000) 769.13 1.74 0.36 31.52 0.37 159.53 11.34 8.20 4.18 8.09 0.76 1.96 0.57 4.40 118.90 1.81

Intraday High (LKR) 249.00 999.00 430.00 1,950.00 39.90 114.00 695.00 8.40 159.50 128.00 193.00 59.90 166.10 131.50 199.50 71.50

Intraday Low (LKR) 240.00 986.00 425.00 1,925.00 39.00 113.00 685.00 8.20 155.20 125.00 189.00 57.50 164.00 129.00 191.00 71.50

Close 241.00 990.00 425.10 1,947.20 39.40 113.50 686.10 8.30 158.10 125.00 190.00 57.50 164.00 130.00 191.80 71.50

Price Gainers
Company
SERENDIB LAND TOUCHWOOD CONVENIENCE FOOD KURUWITA TEXTILE VIDULLANKA

Price Losers
Today 1,500.00 3.90 200.00 22.50 3.70 Change + 274.80 + 0.30 + 14.80 + 1.30 + 0.20 % Change Company 22.43% 8.33% 7.99% 6.13% 5.71%
BLUE DIAMONDS [X] S M B LEASING KEELLS FOOD MADULSIMA LAKE HOUSE PRIN.

Today 1.00 0.70 65.80 12.20 94.00

Change - 0.20 - 0.10 - 9.20 - 1.50 - 10.90

% Change -16.67% -12.50% -12.27% -10.95% -10.39%

Top 05 Performers for the Day

Company
JKH NATIONS TRUST TOUCHWOOD CENTRAL FINANCE COMMERCIAL BANK

Today 241.00 65.00 3.90 182.00 113.50

Pre Day 249.00 64.50 3.60 183.00 113.30

% Change -3.21% 0.78% 8.33% -0.55% 0.18%

Volume (mn) 0.41 1.35 6.38 0.12 0.18

Contribution to Total T/O 4.4% 3.8% 1.1% 1.0% 0.9%

Turnover (LKR) 100,442,701 87,946,639 24,772,302 22,054,997 20,833,069

Most Active
Company
TOUCHWOOD RENUKA AGRI PC HOUSE NATIONS TRUST PANASIAN POWER

Today 3.90 4.00 1.10 65.00 2.30

Pre Day 3.60 4.00 1.20 64.50 2.40

% Change 8.33% 0.00% -8.33% 0.78% -4.17%

Volume (mn) 6.38 1.58 1.37 1.35 1.02

Contribution to Total T/O 1.1% 0.3% 0.1% 3.8% 0.1%

Turnover (LKR) 24,772,302 6,450,740 1,534,919 87,946,639 2,449,886

Softlogic Equity Research

Page | 3.

Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan UK USA Dollar Yuan Euro Rupee Yen Pound Dollar Indicative Rate 08.07.2013 118.23 21.28 167.47 2.17 1.29 194.32 130.59

CSE Announcements
Dividends
Company Chilaw Finance PLC Elpitiya Plantations PLC 0 0 0
Company Description

DPS (LKR) 0.50 0.50 0.00 0.00 0.00

XD Date To be Notified To be Notified 0 00-Jan-00 00-Jan-00

XR Date

Payment Date To be Notified To be Notified 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

Proportion 0 0

Source: www.cbsl.gov.lk

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

New Listing
Company No New Listings 0 Type of Security Code 1/0/1900 1/0/1900 Board 1/0/1900 1/0/1900 Offer Price 1/0/1900 1/0/1900

Key Corporate Diclosures

Hayleys- The Board of Directors decided to exercise the option to accept a further 500,000 debentures in addition to the initial issue of 1,500,000 debentures.

Material Dealings by Related Parties of Listed Companies

Company FIRST CAPITAL HOLDINGS 0 Name Dunamis Capital 0 Relationship Transaction Common Directors Purchase 0 0 Quantity 791,523 0 Price (LKR) LKR19.0-LKR19.2 0 Date 25.6.2013-26.6.2013 0

Global Markets
Index AMERICA Dow Jones Industrial Average EUROPE EURO STOXX 50 Price EUR FTSE 100 Index ASIA Nikkei 225
* Time is as at ET

Value 15,135.8 2,650.5 6,441.5 14,109.3

Change 147.3 54.5 66.0 -200.6

Change % 0.98% p 2.10% p 1.03% p -1.40% q

Time* 16:34 06:37 06:37 02:28

Source: www.bloomberg.com

Commodity Markets
Commodity ENERGY Crude Oil (WTI) AGRICULTURE ICE Cotton #2 CBOT Wheat METALS COMEX Gold COMEX Copper
* Time is as at ET

Units USD/bbl. USd/lb. USd/bu. USD/t oz. USd/lb.

Price 102.91 85.40 661.75 1,228.90 307.55

Change -0.31 0.37 1.75 16.20 1.05

Change % -0.30% q 0.44% p 0.27% p 1.34% p 0.34% p

Time* 06:40 06:11 06:40 06:20 06:20 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka IPP puts 48MW of expired power plants on sale Aitken Spence Power, a unit of Sri Lanka's Aitken Spence has put two 24 MegaWatt plants for which power purchase agreements have expired for sale. Aitken Spence in a web notice said it invited offers for the plants, each of which had four Wartsila Vaasa Engines running on heavy fuel oil. The plants were on a 10-year PPA with state-run Ceylon Electricity Board. There were some expectations that they would get a temporary extension if 2013 was a dry year but sector experts had said they are unlikely to be needed after a second 300 MW coal power plant comes on stream later in the year. [Source: www.lbo.lk] Sri Lanka firm to bid for oil block: report eylan Energy, a Sri Lanka based start-up oil firm will bid for an exploration block, partnering with international operators, a media report said. Sri Lanka's The Sunday Times newspaper quoted Harry Kulasinghe, chairman as saying that the firm has a team of people with over 100 years collective oil and gas experience. Sri Lanka's second bidding round is to close in November. India's Cairn Energy, which bought a block in the first bidding round has already found traces of petroleum deposits off Mannar in the northeast of the island and is assessing the commercial viability of the find. [Source: www.lbo.lk] Sri Lanka Jetwing group private equity raising on track private equity raisin for four greenfield hotels is underway with local investors and a foreign investor coming on board, but the matching investor needs with a new project has been challenging, an official said. Sri Lanka's Jetwing group set up a separate vehicle Jetwing Symphony, to raise about a million US dollars in equity. The firm went to private markets because they were looking for strategic partners who could wait for some time, and go public later when they were giving results. [Source: www.lbo.lk] Massive 357% trade increase with Pakistan Bilateral trade between Sri Lanka and Pakistan received a sudden boost as Pakistan declared its intentions to push current volumes to a new threshold of $ 1 b. Bathiudeen, said: As a result of last years strong delegation from Sri Lanka, new export orders for Pure Ceylon Tea as well as pharmaceutical products were received. Pakistani construction firms also strengthened their ties with Sri Lanka. Also during 2012 Pakistan Expo, the OBS Group, a top pharmaceutical firm in Pakistan, had intimated that it was looking to increase its pharma investments in Sri Lanka. [Source: www.ft.lk]

Global
IMF May Cut Global Growth Forecast as Emerging Markets Slow The International Monetary Fund may cut its global growth forecast because the expansion of emerging market economies is slowing, Managing Director Christine Lagarde said. The Washington-based fund predicted in April that the world economy would expand 3.3% this year. I fear, given what were seeing in particular in emerging countries, not the developing and lowincome countries but emerging countries, that we will be slightly below that, Lagarde told a conference in Aix-en-Provence, France. [Source: www.bloomberg.com] German Industrial Production Decreased in May German industrial production dropped more than economists predicted in May, adding to signs that Europes sovereign debt crisis is weakening a recovery in the regions largest economy. Production fell 1% from April, when it gained a revised 2%, the Economy Ministry in Berlin said today. Thats the first decline since January. German exports unexpectedly fell in May, the Federal Statistics Office said today, and factory orders dropped for a second month. [Source: www.bloomberg.com] Page | 5.

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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

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