Friday, September 06, 2013

Today 5,672.64 3,177.17 Point Change - 14.35 - 0.95 % Change -0.25 % q -0.03 % 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

0.5% 3.0% 239.3 901.7 21.3 38.0 2,336.4 -3.4 104.9 108.3 18.3

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]

JKH added 52% to the daily turnover in a dormant market

CSE Diary for 06.09.2013

Colombo Bourse was dormant however fell to negative with CTC: The bourse remained stagnant during most of the trading today however in the latter trading session it dipped and ASPI ended at 5,672.64 with a loss of 14 points. Late hours dip was largely on account of the dip in Ceylon tobacco Company (-3.8%). Drop in prices in Commercial Leasing and finance (-7.9%) and Sri Lanka Telecom (2.0%) affected the index performance however on a marginal note. Turnover levels were lackluster at LKR239 mn and 52% contribution stemmed from John Keells Holdings.

BFI sector showed some interest: Some interest was shown on-board in the BFI sector led by Peoples Leasing and Finance, Central Finance Company, Union Bank and Sampath Bank. PLC recorded a single transaction of 490k shares which traded at LKR13.6. The counter closed at LKR13.5 with a dip of 1.5%. CFIN also recorded three transactions amounting to 25k shares at LKR183.0-183.1 and ended the day at LKR183.1 with a marginal gain of 0.1%.

Retailers on a dormant note: Retail interest was low and concentrated on Central Investment and Finance, Commercial Credit and Finance and SMB Leasing.

JKH topped turnover adding 52% to daily turnover: A single crossing was recorded for the day by John Keells Holdings amounting to 440k shares which changed hands at LKR210.0. The counter dominated the on-board activity supported by a single 50k block at LKR210.0. JKH settled at LKR209.4 with a dip of 0.6%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 06.09.2013 YoY Change Annual Avg Week ending 06.09.2013 8.61 9.64 10.56 11.84 -13.25 6.3 8.0

6400 6200 6000

Index

5800
5600 5400 5200

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 5,672.6 3,177.2 239.3 1.8 21.3 222 2,336.4 104.9 108.3 -3.4 16.1 2.2 2.8 Today 12,377.3 19,499.1 2,629.0 1,668.6 635.5 3,117.7 504.4 2,694.4 673.0 151.5

Pre Day 5,687.0 3,178.1 485.7 3.7 22.0 242 2,342.3 186.6 254.0 -67.4 16.2 2.2 2.7 Pre Day 12,311.4 19,850.8 2,633.8 1,676.0 632.8 3,107.6 504.8 2,702.0 673.4 152.2

Change % -0.25% q -0.03% q -50.73% -50.73% -2.90% -8.26% -0.25% -43.78% -57.36% -94.98% -0.25% -0.25% 3.70% % Change 0.53% -1.77% -0.18% -0.44% 0.43% 0.32% -0.08% -0.28% -0.05% -0.47% p q q q p p q q q q

Last Week 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 Last Week 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

% WoW Change -2.77% -2.58% -32.17% -32.17% -74.32% -8.64% -2.77% 7.70% 248.43% -105.10% -2.77% -2.77% 3.70% % WoW Change -1.76% -4.19% -2.32% -2.72% -2.21% -1.21% -4.59% -6.58% -1.37% -2.66% 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 7.7% 9.0% 3.0% 4.6% 3.0% 3.9% 2.9% 2.8% 2.1% 2.0% 2.4% 1.0% 1.4% 1.3% 1.3% 1.3%

Volume 598,350 1,489 53 431 3,103 3,850 99 5,579 2,646 1,850 17,736 5,500 1 866 19,778 1,000

Turnover LKR ('000) 125,636.83 1,676.63 18.97 866.33 119.37 441.34 66.58 45.02 398.22 210.90 3,277.97 275.07 0.15 102.77 3,660.37 68.87

Turnover USD ('000) 944.96 12.61 0.14 6.52 0.90 3.32 0.50 0.34 3.00 1.59 24.65 2.07 0.00 0.77 27.53 0.52

Intraday High (LKR) 212.00 1,190.00 358.00 2,040.00 40.00 114.90 675.00 8.10 151.00 114.00 188.00 50.10 150.90 119.90 188.00 68.90

Intraday Low (LKR) 209.00 1,090.00 358.00 2,002.00 38.00 114.50 669.00 7.90 146.50 114.00 184.00 50.00 150.90 117.50 185.00 68.80

Close 209.40 1,116.60 358.00 2,008.70 38.50 114.50 672.50 8.10 150.50 114.00 184.80 50.00 150.90 118.20 185.00 68.80

Price Gainers
Company Today Change + 0.30 + 9.80 + 124.60 + 0.10 + 0.20

Price Losers
% Change Company 75.00% 23.79% 11.83% 11.11% 9.52%
S M B LEASING RAMBODA FALLS PCH HOLDINGS FINLAYS COLOMBO COMM LEASE & FIN

Today 0.30 11.50 0.90 252.40 3.50

Change - 0.10 - 1.40 - 0.10 - 27.70 - 0.30

% Change -25.00% -10.85% -10.00% -9.89% -7.89%

CENTRAL INVESTMENTS & FINANCE0.70 MIRAMAR 51.00 CEYLINCO INS. 1,178.10 CEYLON LEATHER 1.00 BROWNS INVSTMNTS 2.30

Top 05 Performers for the Day

Company
JKH CHEVRON PEOPLES LEASING CENTRAL FINANCE UNION BANK

Today 209.40 254.90 13.50 183.10 15.50

Pre Day 210.60 257.80 13.70 183.00 15.50

% Change -0.57% -1.12% -1.46% 0.05% 0.00%

Volume (mn) 0.60 0.03 0.55 0.04 0.39

Contribution to Total T/O 5.4% 0.3% 0.3% 0.3% 0.3%

Turnover (LKR) 125,636,829 8,152,956 7,467,035 6,568,738 6,019,638

Most Active
Company
S M B LEASING CIFL PANASIAN POWER JKH PEOPLES LEASING

Today 0.60 0.70 2.40 209.40 13.50

Pre Day 0.60 0.40 2.40 210.60 13.70

% Change 0.00% 75.00% 0.00% -0.57% -1.46%

Volume (mn) 7.40 4.90 0.65 0.60 0.55

Contribution to Total T/O 0.2% 0.1% 0.1% 5.4% 0.3%

Turnover (LKR) 4,437,282 2,998,787 1,553,849 125,636,829 7,467,035

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 06.09.2013 121.45 21.72 174.58 2.01 1.33 207.54 132.96

CSE Announcements
Dividends
Company No Announcements. 0 0 0 0
Company Description

DPS (LKR) 0.00 0.00 0.00 0.00 0.00

Proportion 02 for 13 0

XD Date 0 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 1/0/1900 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

John Keells Holdings PLC Right Issue 0 0 0 0 3-10-2013 1/0/1900 1/0/1900 24-10-2013 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

Estate Management Services (Pvt) Ltd (EMSPL) have increased their holdings in Watawala Plantations Plc further by acquiring 2.5mn shares at LKR14.0 from Messers

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 14,937.5 2,773.8 6,523.0 13,860.8

Change 6.6 -0.4 -9.4 -204.0

Change % 0.04% p -0.01% q -0.14% q -1.45% q

Time* 16:35 06:51 06:51 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 108.54 82.39 644.00 1,368.90 327.15

Change 0.17 0.09 3.75 -4.10 2.75

Change % 0.16% p 0.11% p 0.59% p -0.30% q 0.85% p

Time* 06:36 06:33 06:55 06:35 06:36 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka opposition warns on weak finance companies Sri Lanka's main opposition has warned that several finance companies are taking public deposits without meeting minimum statutory requirements, saying action was needed prevent disasters. "It is well known to the regulators and financial analysts that several finance companies who are still taking public deposits are on the verge of collapse and unable to meet even the minimum statutory requirements, " [Source: www.lbo.lk] Sri Lanka and India in link to boost textile sector India and Sri Lanka will sign a deal to promote handloom, powerloom and textile as a delegation visits the island during a fabric exhibition to be held next week. Zohra Chatterji, secretary of the ministry of textiles will lead a business and official delegation to the island and sign a memorandum of understanding with Anura Siriwardene, Sri Lanka's commerce secretary, India's High Commission in Colombo said. She is expected to meet economic development minister Basil Rajapaksa, commerce minister Rishad Bathiudeen and Treasury secretary P B Jayasundera. [Source: www.lbo.lk] Rupee ends weaker; further fall likely The rupee ended weaker on Thursday on importer demand for dollars, and dealers expect the local currency to fall further in the coming days in the absence of strong foreign inflows.However, the Central Bank expected the currency to stabilise due to $209 million in inflow raised through Sri Lanka development bonds from a number of Middle East banks. The rupee spot next or one-day forward, which was active in the market in the absence of spot trade, fell to 133.05/25 per dollar, compared with Wednesdays close of 133.05/15. [Source: www.ft.lk] Sri Lanka offered hi-tec dairy farm by Dutch firm A Netherlands based company has offered to set up a hi-tec dairy farm with processing facilities with high yield milch cows, provided suitable land with fresh water is made available, officials said. Velema Holdings, a Netherland based investment firm, is offering to put together a turnkey dairy facility if about 1,500 hactares of land with fresh water facilities is made available. [Source: www.lbo.lk]

Global
German Industrial Output Dropped in July After June Surge German industrial production fell more than expected in July after surging in June, adding to signs that growth in Europes biggest economy is moderating. Output, adjusted for seasonal swings, fell 1.7 percent from June, when it jumped a revised 2 percent, the Economy Ministry in Berlin said today. Economists forecast a decline of 0.5 percent, according to the median of 41 estimates in a Bloomberg News survey. Production slid 2.2 percent from a year earlier when adjusted for working days. [Source: www.bloomberg.com] U.K. Factories Boost Output Amid Signs of Economic Recovery U.K. manufacturing production rose for a second month in July, adding to signs of an accelerating economy that has led investors to bet the Bank of England will increase interest rates earlier than it has projected. Factory output rose 0.2 percent from June, when it gained 2 percent, the Office for National Statistics said today in London. The increase was in line with the median forecast of 23 estimates in a Bloomberg News survey. Industrial output was unchanged as warm weather reduced demand for energy. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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+94 11 7277032

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