Monday, August 26, 2013

Today 5,895.65 3,327.63 Point Change - 56.18 - 15.33 % Change -0.94 % q -0.46 % q

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

4.5% 7.9% 365.9 926.1 13.3 40.1 2,428.3 -99.0 97.8 196.8 18.1

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]

Bourse dipped sharply on selected large caps

CSE Diary for 26.08.2013

ASPI dropped sharply again with slips in selected counters: The Colombo bourse further tumbled today due to high capped counters. ASPI closed at 5,895.65 with a 56 points dip. Significant price dips in Nestle Lanka (-7.7%) followed by Dialog Axiata (-2.4%) and Commercial Leasing and Finance (-5.1%) contributed to the overall negative performance of the index. However, S&P SL20 dipped marginally by 4 points to end at 3,339.24. COMB and JKH supported daily turnover: Commercial Bank topped the off-board transaction list with a single 500k block which changed hands at LKR116.1. The counter denoted on-board interest too backed by a 200k share trade at LKR117.0. COMB closed flat at LKR117.0. John Keells Holdings denoted some off-board interest with a 90k transaction which was dealt at

LKR240.0. JKH spearheaded the daily turnover heavily backed by notable on-board interest, largest transaction being the 33k shares which traded at LKR240.1. The counter closed at 240.1 with a dip of 0.08%. Diverse investor interest On-Board: On-Board activities were prominent in Tokyo Non-Voting with two on-board blocks of totaling to 600k shares which traded at LKR20.1. The counter ended flat at LKR20.1. Overseas Reality too denoted some on-board interest, largely backed by a single 394k share transaction at LKR17.0. The counter settled at LKR17.0 with a dip of 3.4%. Retailers concentrated on CFVF: Retail activity was concentrated on First Capital Holding with the recent LKR2.0 dividend announcement. The counter displayed some momentum during the day and closed at LKR18.7 with a gain of 5.7%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 26.08.2013 YoY Change Annual Avg Week ending 23.08.2013 8.61 9.65 10.55 11.88 -3.03 6.1 8.3

6300 6200 6100

Index

6000
5900 5800 5700

ASPI
3550 3500 3450 3400 3350 3300 3250 3200

Turnover LKR ('mn)

2,500 2,000 1,500

100.0 80.0 60.0

Volume ('mn)

Index

1,000 500
0

40.0 20.0
0.0

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 5,895.7 3,327.6 365.9 2.8 13.3 239 2,428.3 97.8 196.8 -99.0 16.7 2.2 2.6 Today 12,759.3 19,695.7 2,771.8 1,824.2 640.8 3,166.8 538.1 2,939.6 703.0 154.3

Pre Day 5,951.8 3,343.0 978.0 7.4 20.5 230 2,451.4 405.5 478.0 -72.5 16.9 2.3 2.6 Pre Day 12,799.6 20,099.1 2,793.9 1,835.6 646.0 3,171.8 548.9 2,969.3 703.6 156.9

Change % -0.94% q -0.46% q -62.58% -62.58% -35.27% 3.91% -0.94% -75.88% -58.82% 36.58% -0.94% -0.94% 0.00% % Change -0.31% -2.01% -0.79% -0.62% -0.80% -0.16% -1.97% -1.00% -0.09% -1.68% q q q q q q q q q q

Last Week 6,224.3 3,494.2 1,130.5 8.6 27.2 240 2,563.6 956.1 106.8 849.3 17.6 2.4 2.5 Last Week 13,033.2 22,780.1 2,891.3 1,912.2 658.6 3,216.6 573.6 3,027.9 720.2 157.9

% WoW Change -5.28% -4.77% -67.63% -67.63% -51.13% -0.42% -5.28% -89.77% 84.37% -111.66% -5.28% -5.28% 4.00% % WoW Change -2.10% -13.54% -4.13% -4.60% -2.70% -1.55% -6.20% -2.92% -2.38% -2.30% 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 8.5% 8.5% 3.1% 4.5% 2.9% 3.8% 2.9% 2.8% 2.0% 2.0% 2.4% 1.0% 1.4% 1.4% 1.3% 1.2%

Volume 461,113 3,154 73 188 16,270 792,308 410 45,628 100 15,198 1,800 10,807 2 217 22,676 4,600

Turnover LKR ('000) 110,750.46 3,478.60 28.42 384.07 635.83 92,188.46 280.86 378.89 15.40 1,824.15 343.05 548.09 0.31 27.40 4,266.04 315.04

Turnover USD ('000) 839.49 26.37 0.22 2.91 4.82 698.79 2.13 2.87 0.12 13.83 2.60 4.15 0.00 0.21 32.34 2.39

Intraday High (LKR) 241.00 1,199.80 390.00 2,150.20 40.00 118.00 691.90 8.40 154.00 121.00 192.00 52.00 154.90 126.60 189.90 68.50

Intraday Low (LKR) 240.00 1,100.00 385.10 2,010.00 39.00 116.00 685.00 8.30 154.00 120.00 190.50 50.10 154.00 126.10 186.10 68.40

Close 240.10 1,108.00 385.10 2,035.00 39.00 117.00 685.10 8.30 154.00 120.20 190.50 50.90 154.00 126.10 188.10 68.50

Price Gainers
Company
CIFL HUEJAY PEOPLE'S MERCH ANILANA HOTELS LANKEM CEYLON

Price Losers
Today 0.80 68.90 12.50 8.00 133.80 Change + 0.10 + 6.90 + 1.00 + 0.50 + 7.60 % Change Company 14.29% 11.13% 8.70% 6.67% 6.02%
CEYLON LEATHER [W 0013] SHALIMAR AMF CO LTD SINHAPUTHRA FIN HARISCHANDRA

Today 0.90 773.90 300.50 90.00 2,005.50

Change - 0.30 - 175.60 - 66.40 - 18.00 - 364.50

% Change -25.00% -18.49% -18.10% -16.67% -15.38%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK TOKYO CEMENT[NON VOTING] OVERSEAS REALTY FIRST CAPITAL

Today 240.10 117.00 20.10 17.00 18.70

Pre Day 240.30 117.00 20.10 17.60 17.70

% Change -0.08% 0.00% 0.00% -3.41% 5.65%

Volume (mn) 0.46 0.79 0.98 0.66 0.53

Contribution to Total T/O 4.6% 3.8% 0.8% 0.5% 0.4%

Turnover (LKR) 110,750,461 92,188,464 19,689,637 11,211,558 10,003,306

Most Active
Company
FLC HOLDINGS TOKYO CEMENT[NON VOTING] COMMERCIAL BANK OVERSEAS REALTY FIRST CAPITAL

Today 2.20 20.10 117.00 17.00 18.70

Pre Day 2.30 20.10 117.00 17.60 17.70

% Change -4.35% 0.00% 0.00% -3.41% 5.65%

Volume (mn) 1.67 0.98 0.79 0.66 0.53

Contribution to Total T/O 0.2% 0.8% 3.8% 0.5% 0.4%

Turnover (LKR) 3,679,491 19,689,637 92,188,464 11,211,558 10,003,306

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 26.08.2013 119.10 21.56 176.53 2.09 1.34 205.38 131.93

CSE Announcements
Dividends
DPS (LKR) Company 2.00 J. L. Morison Sons & Jones (Ceylon) PLC 2.00 First Capital Holdings PLC 0.00 0 0.00 0 0.00 0
Company Description Proportion 0 0

XD Date 30-09-2013 03-09-2013 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 08-10-2013 12-09-2013 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

No Announcements. 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

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

No Corporate Disclosures

Material Dealings by Related Parties of Listed Companies

Company NO MATERIAL DEALINGS Name 0 0 Relationship 0 0 Transaction 0 0 Quantity 0 0 Price (LKR) 0.00 0.00 Date 0 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 15,010.5 2,806.3 6,492.1 13,636.3

Change 46.8 -19.8 45.2 -24.3

Change % 0.31% p -0.70% q 0.70% p -0.18% q

Time* 16:36 06:47 11:35 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 106.49 84.77 658.75 1,394.40 337.25

Change 0.07 0.69 12.75 -1.40 1.65

Change % 0.07% p 0.82% p 1.97% p -0.10% q 0.49% p

Time* 06:32 06:28 06:51 06:32 06:32 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka's aims high in becoming easier place for business: CB Governor Sri Lanka aims to be among the 30 easiest places to do business in the world by 2016 and maintain stable economic conditions comparable to advanced nations, Central Bank Governor Nivard Cabraal said.Sri Lanka which was at one time ranked around 100 in a ease of doing business indicator compiled by International Finance Corporation and World Bank has improved its place to 81."At the next assessment we will probably be able to reach 70th rank," Cabraal told a visiting delegation of Israeli businessmen. [Source: www.lbo.lk] Sri Lanka's Sanasa Bank outlook cut, 'BBB' rating confirmed: RAM RAM Ratings has cut outlook on a 'BBB' rating of Sri Lanka's Sanasa Development Bank Plc, a micro-financier based on a cooperative concept, to 'stable' from 'positive'."The revision reflects a trend of weakening asset quality amidst an accretion in non-performing loans (NPLs) as well as the Banks moderated performance," the rating agency said. NPLs had risen to 5.41 percent by end March 2013 from 4.6 percent in December 2012.The rating agency said the bank had Tier I capital adequacy of 16.35 percent, which would help support delinquencies. [Source: www.lbo.lk] Hambantota Port sees increase in ship traffic this year The second international sea port in Sri Lanka, Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) in Hambantota has received 100 vessels since it opened for berthing in November 2010, Sri Lanka Ports Authority (SLPA) said. This would mean, at least 76 vessels would have called at the new port during the first 7-8 months this year. Based on SLPA statistics, this is s significant improvement as the port had received only 24 vessels by the end of last December, according to the Committee on Public Enterprises (COPE) Annual Report. [Source: www.dailymirror.lk] Debt market sees overall yield curve in upward parallel shift Foreign selling on rupee bonds coupled with a spike in the yield of the 3.5-year maturity were seen as the two main reasons for the parallel shift upwards of the overall yield curve for the week ending 23 August. This was despite weighted averages (WAvg) of the 182-day and 364-day bills dipping by one basis point each at its weekly Treasury bill auction. [Source: www.ft.lk]

Global
Euro-Area Economic Confidence Seen Up to 17-Month High Economic confidence in the euro area probably rose to the highest level in 17 months in August, adding to signs that the currency blocs recovery from a record-long recession is gathering pace. An index of sentiment rose to 93.8 from 92.5 in the previous month, according to the median of 26 economists estimates in a Bloomberg News survey. The European Commission said Aug. 23 that consumer sentiment in the 17-nation euro zone increased to a 25-month high in August. Unemployment probably held at a record 12.1 percent in July, a separate Bloomberg survey shows. [Source: www.bloomberg.com] China Growth Can Sink Closer to 6% on Waning Job Needs: Economy Chinese officials shifting the economy away from exports and investment can allow growth to sink closer to 6 percent within the next five years without triggering a destabilizing jump in unemployment. The pace of expansion needed to absorb new entrants to the labor force will slip to 6.4 percent in 2018 from 7.3 percent this year, according to the median forecast in a Bloomberg News survey of 12 economists last month. Premier Li Keqiang is targeting a 7.5 percent expansion in 2013. [Source: www.bloomberg.com] Softlogic Equity Research 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

Branches Softlogic Equity Sales

Dihan Dedigama dihan.dedigama@equity.softlogic.lk +94 11 7277010, +94 77 7689933 Eardley Kern Horana Madushanka Rathnayaka No. 212, 1st Floor, Panadura Road, Horana madushanka.rathnayaka@equity.softlogic.lk +94 34 7451000, +94 77 3566465 Negombo Krishan Williams No. 121, St. Joseph Street Negombo 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 No.8A, 2nd Floor, FN Building, Station Road, Matara +94 41 7451000

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