Friday, September 13, 2013

Today 5,749.46 3,176.74 Point Change + 4.96 - 8.16 % Change 0.09 % p -0.26 % q

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

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1.9% 3.0% 979.6 879.9 51.3 36.2 2,368.1 262.2 581.8 319.6 19.2

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]

Indices broadly flat; S&P SL20 players topped turnover

CSE Diary for 13.09.2013

Indices closed broadly flat: Indices depicted a volatile path as the benchmark index trimmed early gains before settling broadly flat at 5,749.46 points. Large caps; Ceylon Tobacco Company (0.5%) and Nestle Lanka (-0.7%) primarily weighed negatively on indices carrying the S&P SL20 to close with a marginally higher dip of 8 points at 3,176.74. S&P SL20 players dominated top turnover slot: John Keells Holdings spearheaded the days turnover adding 66% backed by four crossings which totaled 2.7 mn shares at LKR209.0 and LKR210.0. The counter closed marginally down at LKR209.6 amidst some selling pressure on-board. Among banking players that attracted interest were; Sampath Bank and Commercial Bank. The former recorded an off-board block of 120k shares at

LKR176.0 while its price touched a 52-week low price of LKR175.9 during the day before closing down 1.2% at LKR176.0. Chevron Lubricants and Aitken Spence entered the top turnover slot supported by single large on-board blocks each. Speculative counters were prominent in early trade: Speculative counters were prominent during the first half of trading. Touchwood Investments gathered focus following its trading suspension being lifted. The counter gained 46% at its close of LKR1.9. Blue Diamond Voting, NonVoting and PC House also traded among the top turnover slot during early trade. Notable interest in Lanka IOC led the counter to gain 0.8% at its close. Retail activity moderate: Retail activity was moderate in selected counters. Touchwood Investments, Blue Diamond Voting and NonVoting, PC House and Central Investments and Finance saw some interest.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 13.09.2013 YoY Change Annual Avg Week ending 13.09.2013 8.61 9.64 10.57 11.82 -12.04 6.3 8.0

6400 6200 6000

Index

5800
5600 5400 5200

ASPI
3600 3500 3400 3300 3200 3100 3000 2900 1,400 1,200 1,000 800 600 400 200 0

Turnover LKR ('mn)

100.0 80.0 60.0

Volume ('mn)

Index

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 5,749.5 3,176.7 979.6 7.4 51.3 218 2,368.1 581.8 319.6 262.2 16.4 2.2 2.7 Today 12,418.5 19,669.1 2,679.4 1,698.0 657.0 3,148.7 521.2 2,806.4 678.3 155.5

Pre Day 5,744.5 3,184.9 386.7 2.9 23.3 234 2,366.0 198.4 118.4 80.0 16.3 2.2 2.7 Pre Day 12,436.2 19,681.0 2,675.4 1,697.7 662.4 3,136.4 521.6 2,814.2 677.7 153.6

Change % 0.09% p -0.26% q 153.33% 153.33% 120.20% -6.84% 0.09% 193.27% 170.04% 227.62% 0.09% 0.09% 0.00% % Change -0.14% -0.06% 0.15% 0.02% -0.80% 0.39% -0.06% -0.28% 0.08% 1.25% q q p p q p q q p p

Last Week 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 Last Week 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

% WoW Change 1.35% -0.01% 309.36% 309.36% 140.74% -1.80% 1.35% 454.41% 195.08% -7851.52% 1.35% 1.36% -3.57% % WoW Change 0.33% 0.87% 1.91% 1.76% 3.39% 1.00% 3.34% 4.16% 0.78% 2.67% 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 7.6% 8.9% 3.1% 4.5% 3.1% 3.8% 2.8% 2.8% 2.0% 1.9% 2.3% 1.0% 1.4% 1.3% 1.2% 1.3%

Volume 3,075,477 1,837 417 271 200 211,711 619 21,020 23,501 300,722 1,138 7,930 0 204 394,729 1,341

Turnover LKR ('000) 644,796.64 2,065.22 158.01 543.42 8.10 24,141.85 408.55 169.32 3,514.28 34,071.81 206.43 398.47 0.00 24.12 69,797.42 88.80

Turnover USD ('000) 4,875.38 15.62 1.19 4.11 0.06 182.54 3.09 1.28 26.57 257.62 1.56 3.01 0.00 0.18 527.75 0.67

Intraday High (LKR) 212.00 1,140.00 400.00 2,015.00 41.00 114.80 660.10 8.20 151.00 113.50 183.00 50.50 0.00 118.30 180.00 68.90

Intraday Low (LKR) 209.00 1,120.00 370.00 2,000.00 40.00 113.50 660.00 8.00 148.00 113.30 180.00 50.00 0.00 118.20 175.90 66.00

Close 209.60 1,120.10 379.00 2,000.00 40.50 113.60 660.00 8.10 148.40 113.30 182.20 50.20 150.00 118.20 176.00 68.90

Price Gainers
Company
TOUCHWOOD BERUWALA RESORTS MULLERS PCH HOLDINGS SATHOSA MOTORS

Price Losers
Today 1.90 1.80 1.30 1.30 259.80 Change + 0.60 + 0.30 + 0.20 + 0.20 + 34.60 % Change Company 46.15% 20.00% 18.18% 18.18% 15.36%
S M B LEASING [X] ASCOT HOLDINGS SELINSING NANDA FINANCE RAMBODA FALLS

Today 0.30 115.70 1,000.60 7.90 13.70

Change - 0.10 - 13.10 - 83.00 - 0.60 - 0.70

% Change -25.00% -10.17% -7.66% -7.06% -4.86%

Top 05 Performers for the Day

Company
JKH SAMPATH CHEVRON AITKEN SPENCE COMMERCIAL BANK

Today 209.60 176.00 271.90 113.30 113.60

Pre Day 209.90 178.10 275.00 113.00 114.30

% Change -0.14% -1.18% -1.13% 0.27% -0.61%

Volume (mn) 3.08 0.39 0.13 0.30 0.21

Contribution to Total T/O 27.2% 2.9% 1.5% 1.4% 1.0%

Turnover (LKR) 644,796,638 69,797,422 35,096,719 34,071,806 24,141,855

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

Today 1.90 0.90 1.30 1.10 209.60

Pre Day 1.30 0.80 1.10 1.10 209.90

% Change 46.15% 12.50% 18.18% 0.00% -0.14%

Volume (mn) 9.19 7.86 4.12 3.61 3.08

Contribution to Total T/O 0.7% 0.3% 0.2% 0.2% 27.2%

Turnover (LKR) 15,957,146 7,110,162 5,281,664 4,181,876 644,796,638

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 13.09.2013 122.36 21.62 175.64 2.09 1.33 208.87 132.26

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 0 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

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

No Announcements

Material Dealings by Related Parties of Listed Companies

Company KOTMALE HOLDINGS Name Relationship Transaction Cargills Quality Foods Common Directors Purchase 0 0 0 Quantity 327,898 0 Price (LKR) 55.00 0.00 Date 12.09.2013 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 15,300.6 2,862.5 6,577.7 14,404.7

Change -26.0 0.4 -11.3 17.4

Change % -0.17% q 0.01% p -0.17% q 0.12% p

Time* 16:37 08:08 08:08 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 107.82 84.79 647.50 1,312.90 320.65

Change -0.78 0.04 -5.50 -17.70 -0.35

Change % -0.72% q 0.05% p -0.84% q -1.33% q -0.11% q

Time* 07:53 07:53 08:12 07:53 07:52 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka's economy grows 6.8-pct in 2013 June quarter: Statistic office Sri Lanka's economy grew 6.8 percent in the June 2013 quarter from a year earlier, the state statistics office said. The agriculture sector shrank 1.1 percent; industry grew 10.1 percent and services 6.6 percent. In agriculture tea had contracted 0.5 percent, rubber had grown 2.0 percent, coconut had shrunk 25.4 percent and paddy was up 2.1 percent. Fishing contracted 5.3 percent. In industry manufacturing was up 5.3 percent with textile and apparel up 6.2 percent. Mining was up 12.6 percent. [Source: www.lbo.lk] Rupee up on dollar sales by banks, exporters The rupee ended a tad firmer on Thursday as dollar sales by banks and exporters offset early importer dollar demand, with the recent strong selling pressure on the local currency continuing to ease, dealers said. The rupee spot, which had been inactive for several weeks, was actively traded on Thursday for the second straight session and closed at 132.20/30 per dollar, firmer from Wednesdays close of 132.25/35. Dealers expected the rupee to appreciate once inflows from a five-year bond by State-owned National Savings Bank (NSB) come in. [Source: www.ft.lk] Sri Lanka Dialog Axiata 'AAA(lka)' rating confirmed: Fitch Sri Lanka based Dialog Axiata's 'AAA(lka)' rating has been confirmed by Fitch Ratings with a stable outlook. "Dialog's rating reflects Fitch's expectations that its 83 percent-parent, Axiata Group Berhad of Malaysia (Axiata), is likely to provide support if required, given operational and strategic linkages between the companies," the rating agency said. "Linkages include a common brand name and common creditors which can result in reputation risk to Axiata if Dialog fails." [Source: www.lbo.lk] Sri Lanka NSB raises 750mn at 8.875-pct Sri Lanka's state-run National Savings Bank has raised 750 million US dollars at 8.875 percent, international capital market sources said. Price guidance for the bond was initially set at 9.25 percent amid volatile global conditions but narrowed to 8.875 percent amid stronger orders. The bank went to the market for 500 million US dollars and had collected orders worth 2.0 billion US dollars, sources said. Some investors who had bought Bank of Ceylon bonds earlier had sold out to buy into NSB. The yield on BOC bond had widened as a result, they said. [Source: www.lbo.lk]

Global
IEA sees oil market improving, but emerging markets face rough ride An increase in output should help cushion oil markets seized by tension over a possible conflict in the Middle East, the IEA said Thursday, with emerging market nations facing difficulties due to their falling currencies. The slow pace of the global economy led the International Energy Agency to keep its forecast for oil demand growth for this year unchanged, while rising it slightly in 2014. Excluding the threat of a Middle East conflict the IEA said the outlook for growth of non-OPEC supplies is generous for the remainder of the year, edging up its supply forecast to 55.5 mbd in the 4th quarter. [Source: www.lbo.lk] Fed Message Muddled as Misunderstood Taper Meets Slowing Growth Federal Reserve Chairman Ben S. Bernanke and his colleagues meeting next week are poised to take two steps that appear inconsistent. They will probably lower their estimates for growth for this year and next for the third consecutive time. Simultaneously, they are forecast to start scaling back the $85 billion in monthly bond purchases they have been relying on to stoke the recovery. [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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