Friday, August 30, 2013

Today 5,834.04 3,261.33 Point Change + 8.98 - 3.63 % Change 0.15 % p -0.11 % q

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

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3.4% 5.7% 352.8 915.9 83.0 40.0 2,402.9 66.4 97.4 31.1 18.4

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]

Indices moved on a stagnant path...

CSE Diary for 30.08.2013

Indices closed on marginal ground: The indices moved on a relatively stagnant pattern as the ASPI closed on marginal grounds at 5,834.04 (+8.59 points). Gains recorded in Carsons Cumberbatch (+3.14%), Nestle Lanka (+1.64%), Commercial leasing & Finance (+5.56%) and Sri Lanka Telecom (+1.26%) weighed positively on the performance of the benchmark index. Price dip in heavy cap; Ceylon Tobacco Company (-2.5%) contributed to the negative performance of the S&P SL20 index which dipped marginally by 3.63 points to end at 3,261.33. LFIN only crossing: LB Finance recorded the sole crossing for the day with 225k shares changing hands at LKR120.0 while the crossing contributed only 7.6% to the days turnover. On board activity in Diversified players: John Keells Holdings, PCH Holdings and Hemas Holdings

displayed notable on board activity which together contributed 43% to the turnover. John Keells Holdings traded at an intra-day high price of LKR217.0 and settled at LKR214.80 with a marginal gain of 0.09%. PCH Holdings edged up to the top turnover slot backed by a several large blocks which were transacted at price levels between LKR0.8 and LKR1.0. Hemas Holdings also gathered some interest. The counter dipped 3.23% to LKR30.0 at its close. Renewed interest was seen in Lanka Ventures where a few mid-sized blocks were traded at LKR37.0 and LKR38.0. Retailers focused on selected counters: Retailer focus surrounded a few selected counters; Touchwood Investments, First Capital Holdings and Vallibel One.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 30.08.2013 YoY Change Annual Avg Week ending 30.08.2013 8.61 10.56 11.84 -30.04 6.3 8.0 9.64

6400 6200

Index

6000 5800 5600 5400

ASPI
3500

Turnover LKR ('mn)

3600 3400 3300 3200 3100 3000

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 5,834.0 3,261.3 352.8 2.7 83.0 243 2,402.9 97.4 31.1 66.4 16.6 2.2 2.7 Today 12,599.6 20,351.9 2,691.4 1,715.2 649.9 3,155.9 528.7 2,884.2 682.4 155.6

Pre Day 5,825.1 3,265.0 511.4 3.8 21.4 241 2,399.2 151.5 39.1 112.5 16.6 2.2 2.7 Pre Day 12,500.6 20,556.2 2,720.5 1,706.8 638.3 3,165.9 524.4 2,872.2 681.7 154.6

Change % 0.15% p -0.11% q -31.02% -31.02% 287.81% 0.83% 0.15% -35.69% -20.43% -40.99% 0.15% 0.15% 0.00% % Change 0.79% -0.99% -1.07% 0.49% 1.81% -0.32% 0.82% 0.42% 0.10% 0.65% p q q p p q p p p p

Last Week 5,951.8 3,343.0 978.0 7.3 20.5 230 2,451.4 405.5 478.0 -72.5 16.9 2.3 2.6 Last Week 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

% WoW Change -1.98% -2.44% -63.93% -63.93% 304.40% 5.65% -1.98% -75.97% -93.50% -191.52% -1.57% -2.13% 3.85% % WoW Change -1.56% 1.26% -3.67% -6.56% 0.60% -0.50% -3.68% -2.86% -3.02% -0.84% Page | 2.

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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 7.7% 9.1% 3.0% 4.8% 3.0% 3.8% 2.9% 2.8% 2.0% 2.0% 2.3% 1.0% 1.5% 1.4% 1.3% 1.3%

Volume 431,725 565 12 141 8,125 13,995 1 41,106 4,400 2,917 63,875 32,960 51 7,625 16,489 1

Turnover LKR ('000) 92,770.34 664.27 4.38 300.93 322.31 1,615.36 0.68 335.42 670.00 340.89 12,007.84 1,649.13 8.01 931.06 3,101.08 0.07

Turnover USD ('000) 697.22 4.99 0.03 2.26 2.42 12.14 0.01 2.52 5.04 2.56 90.25 12.39 0.06 7.00 23.31 0.00

Intraday High (LKR) 217.00 1,200.00 366.00 2,150.00 41.50 115.90 680.00 8.40 152.50 117.00 188.00 51.00 159.80 122.50 189.00 69.00

Intraday Low (LKR) 213.00 1,170.00 365.00 2,100.00 38.60 115.00 680.00 8.00 150.00 116.00 185.50 50.00 157.00 122.00 186.10 69.00

Close 214.80 1,170.00 365.10 2,134.70 40.10 115.40 680.00 8.20 152.30 116.90 185.50 50.10 157.00 122.40 187.60 69.00

Price Gainers
Company
PCH HOLDINGS PC HOUSE CEYLON LEATHER [W 0014] PC PHARMA G S FINANCE

Price Losers
Today 1.10 0.80 1.40 1.50 680.00 Change + 0.40 + 0.20 + 0.30 + 0.30 + 130.00 % Change Company 57.14% 33.33% 27.27% 25.00% 23.64%
TOUCHWOOD ACL PLASTICS KELSEY PARAGON PALM GARDEN HOTL

Today 2.30 77.40 19.40 850.10 71.50

Change - 0.70 - 12.50 - 2.80 - 99.90 - 8.40

% Change -23.33% -13.90% -12.61% -10.52% -10.51%

Top 05 Performers for the Day

Company
JKH PCH HOLDINGS LB FINANCE LANKA VENTURES TOUCHWOOD

Today 214.80 1.10 108.80 37.00 2.30

Pre Day 214.60 0.70 110.10 36.10 3.00

% Change 0.09% 57.14% -1.18% 2.49% -23.33%

Volume (mn) 0.43 58.85 0.23 0.71 5.56

Contribution to Total T/O 3.9% 2.0% 1.1% 1.1% 0.6%

Turnover (LKR) 92,770,340 48,065,942 27,355,508 26,926,873 14,136,803

Most Active
Company
PCH HOLDINGS PC HOUSE TOUCHWOOD FLC HOLDINGS BLUE DIAMONDS[NON VOTING]

Today 1.10 0.80 2.30 2.20 0.80

Pre Day 0.70 0.60 3.00 2.20 0.80

% Change 57.14% 33.33% -23.33% 0.00% 0.00%

Volume (mn) 58.85 6.21 5.56 1.08 0.76

Contribution to Turnover Total T/O (LKR) 2.0% 48,065,942 0.2% 5,058,279 0.6% 14,136,803 0.1% 2,325,506 0.0% 608,840

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan UK USA Dollar Yuan Euro Rupee Yen Pound Dollar Indicative Rate 30.08.2013 118.94 21.74 176.23 2.00 1.36 206.43 133.06

CSE Announcements
Dividends
Company Panasian Power PLC Hemas Power PLC Serendib Land PLC Lake House Printers & Publishers PLC 0
Company Description

DPS (LKR) 0.10 0.75 25.00 0.75 0.00

Proportion 0 0

XD Date 09-09-2013 09-09-2013 27-09-2013 27-09-2013 00-Jan-00

XR Date

Payment Date 18-09-2013 18-09-2013 03-10-2013 07-10-2013 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

0 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

MBSL informs that MCSL Financial Services have been amalgamated with Ceylease Limited SHAW has resolved to sell property situated at 418, R.A. de Mel Mw, Col-3 for LKR1.24bn and sales agreement was signed on 24.08.2013

Material Dealings by Related Parties of Listed Companies

Company LB FINANCE PC HOUSE Name W D N H Perera PCH Holdings Relationship Transaction Director Purchase Common Directors Sale Quantity 22,165 50,000 Price (LKR) 111.10 0.70 Date 29-08-2013 22-08-2013

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 14,841.0 2,744.1 6,458.1 13,388.9

Change 16.4 -14.2 -24.9 -70.9

Change % 0.11% p -0.51% q -0.38% q -0.53% q

Time* 16:40 06:36 06:36 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 107.73 83.52 653.75 1,394.80 324.70

Change -1.07 0.28 -0.50 -18.10 -1.35

Change % -0.98% q 0.34% p -0.08% q -1.28% q -0.41% q

Time* 06:25 06:23 06:43 06:24 06:23 Page | 4.

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka tightens rules on car imports amid currency pressure Sri Lanka has imposed a 100 percent cash margin on letters of credit to import cars to slow the imports of cars, the Central Bank said as the rupee came under pressure in forex markets.The central bank said currencies of several trading partners have weakened against the Sri Lanka rupees as both the Indian rupee and the Japanese yen fell. "As a consequence, there has been a growing possibility that the importation of motor vehicles into Sri Lanka could accelerate in the period ahead," the monetary authority said in a statement. [Source: www.lbo.lk] Rupee rebounds The rupee rose on Thursday from an all-time low in the previous session as a State bank, through which the Central Bank directs the market, sold dollars to stabilise a panicked market, dealers said. However, they said the rupee cannot be defended for a long time without strong dollar inflows. The rupee spot next or one-day forward, which was active in the market in the absence of spot trade, closed at 133.40/60 compared with Wednesdays close of 133.70/134.00. [Source: www.ft.lk] China FTA should be handled with care: Expert A Free Trade Agreement (FTA) between Sri Lanka and China, which is in the pipeline, will be a massive disadvantage to local manufacturers, a top local economist warned yesterday. Institute of Policy Studies (IPS) Executive Director Dr. Saman Kelegama told a gathering of businessmen at the Sri Lanka-Italy Business Council organised by the Ceylon Chamber of Commerce that while Sri Lankas exports would benefit from access to Chinas emerging middle classes, imports would decimate the fledgling local manufacturers. [Source: www.ft.lk] End of the road for Colonial Motors vehicle biz Colonial Motors Plc has decided to phase out its motor vehicle-related business activities and focus on being a property holding and investment company, as CM Holdings Plc. After that the Colonial Motors will cease to undertake any new business in relation to repairing, and servicing of motor vehicles and the importation and sale of vehicle spare parts. However, KIA Motors (Lanka) Ltd., which will remain a subsidiary of Colonial Motors, will continue to import and market the KIA range of vehicles. [Source: www.ft.lk]

Global
Emerging market woes: Contained or contagion? Policymakers are working to halt the rapid depreciation of their currencies by raising interest rates and tightening monetary policy. But that may risk slower economic growth in the years ahead and threaten to drag down the global economic recovery. This week, Indonesia's central bankers held an emergency meeting where they hiked interest rates to stop the sharp fall in the rupiah versus the U.S. dollar. Central bankers in Brazil and India are also moving to prop up their currencies, with Brazil launching a surprise $60 billion program last week to halt the slide in the real. [Source: www.money.cnn.com] GDP growth beats forecasts; may boost case for Fed move The U.S. economy accelerated sharply in the second quarter thanks to a surge in exports, bolstering the case for the Federal Reserve to wind down a major economic stimulus program. Other economic data on Thursday showed the number of Americans filing new claims for jobless benefits fell last week, a potential sign of faster hiring in August. U.S. gross domestic product grew at a 2.5 percent annual rate in the April-June period, according to revised estimates released by the Commerce Department. That was more than double the pace clocked in the prior three months. [Source: www.reuters.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

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