Thursday, February 13, 2014

Today 6,083.39 3,325.76 Point Change - 1.09 - 11.2 % Change -0.02 % q -0.34 % 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

2.9% 1.9% 665.0 832.0 34.7 41.0 2,539.5 119.0 227.0 108.0 -3.1

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]

ASPI ends flat; S&P SL20 falls with liquid big caps

CSE Diary for 13.02.2014

Mid-day spike but ends flat: The bourse went through a minor spike during mid-day as the index touched the 6,100 mark before falling back to end flat for the day with a marginal dip of 1 point. Big caps Sri Lanka Telecom, Ceylon Tobacco and Dialog contributed positively to the index while dips in John Keells Holdings, Carsons and Distilleries off set the gains in the index. The S&P SL20 recorded a dip of 11 points primarily led by the dip in John Keells Holdings. 4 mid-sized crossings: Diversified sector counters John Keells Holdings and Vallibel One saw a crossing each with the former recording 204k shares dealt at LKR222.0. JKH saw considerable on-board selling pressure as well with a block of 156k shares and 74k shares changing hands at LKR222.0 as the counter closed at LKR222.0 with a dip of 1.5%. The latter recorded 2mn shares crossed off at LKR17.0. Further crossings were noted in Banking Sector counters Sampath Bank and Commercial Bank.

Heavy caps continue lead the turnover: John Keells Holdings Warrants 0022 and Warrants 0023 saw buying interest despite the selling pressure on the main share as 691k shares and 742k shares traded in volume today. The counters gained 0.6% and 1.5% respectively. Commercial Bank saw gained onboard investor attention as well while a block of 100k shares changed hands at LKR118.0. Dialog too entered the top turnover list with a number of large on-board deals of 400k, 500k and 1mn shares being dealt at LKR9.2. Limited retail participation: Retail activity continued to remain rather low however some retail interest was noted in Asia Asset Finance and Tokyo Cement.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 12.02.2014 Inflation (%) Jan-14 YoY Change Annual Avg Week ending 13.02.2014 6.77 7.10 9.38 -10.52 4.4 6.5 6.92

6300 6250 6200 6150 6100 6050 6000 5950

Index

ASPI
3450

Turnover LKR ('mn)

3500

4,000 3,000 2,000 1,000

200.0

Volume ('mn)

Index

3400
3350 3300 3250

150.0 100.0 50.0

3200

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 6,083.4 3,325.8 665.0 5.1 34.7 231 2,539.5 227.0 108.0 119.0 16.1 2.0 2.8 Today 13,498.9 21,220.7 2,797.9 1,762.3 779.7 3,177.6 579.6 2,954.3 728.7 169.6

Pre Day 6,084.5 3,337.0 548.6 4.2 68.6 218 2,540.0 172.2 182.8 -10.6 16.1 2.0 2.8 Pre Day 13,493.0 21,168.9 2,804.8 1,781.2 774.3 3,178.8 580.8 2,946.0 729.2 166.2

Change % -0.02% q -0.34% q 21.21% 21.21% -49.40% 5.96% -0.02% 31.80% -40.90% -1225.47% -0.02% -0.02% 0.00% % Change 0.04% 0.24% -0.25% -1.06% 0.70% -0.04% -0.22% 0.28% -0.07% 2.00% p p q q p q q p q p

Last Week 6,168.5 3,384.3 3,748.5 28.7 57.4 243 2,575.0 205.9 3,163.5 -2,957.6 16.4 2.0 2.8 Last Week 13,802.0 21,592.8 2,859.5 1,800.2 796.1 3,197.7 593.9 3,045.8 738.4 159.0

% WoW Change -1.38% -1.73% -82.26% -82.26% -39.47% -4.94% -1.38% 10.22% -96.59% -104.02% -1.44% -1.40% 0.00% % WoW Change -2.20% -1.72% -2.16% -2.10% -2.06% -0.63% -2.42% -3.00% -1.32% 6.67%

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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 8.7% 9.2% 2.7% 4.4% 3.0% 3.7% 2.4% 3.0% 2.0% 1.6% 2.5% 1.4% 1.3% 1.5% 1.1% 1.1%

Volume 805,484 13,137 13,792 1,364 127,530 480,874 404 3,449,536 18,179 46,700 6,710 6,200 1,060 5,261 182,824 109,234

Turnover LKR ('000) 179,209.67 16,423.52 4,827.20 2,864.42 5,382.49 56,781.78 242.60 31,735.85 2,836.00 4,791.13 1,442.66 465.00 156.88 766.16 30,695.91 6,771.70

Turnover USD ('000) 1,369.73 125.53 36.90 21.89 41.14 433.99 1.85 242.56 21.68 36.62 11.03 3.55 1.20 5.86 234.61 51.76

Intraday High (LKR) 225.00 1,265.00 350.10 2,105.00 42.70 118.50 604.00 9.30 156.50 103.00 217.00 75.00 148.00 146.00 168.00 63.00

Intraday Low (LKR) 221.20 1,245.00 350.00 2,100.00 41.30 118.00 600.00 9.20 156.00 102.50 215.00 75.00 147.00 145.10 167.00 61.00

Close 222.00 1,250.00 350.00 2,100.00 42.50 118.00 600.30 9.20 156.00 102.60 215.00 75.00 147.00 145.90 167.00 62.00

Price Gainers
Company
S M B LEASING [X] CEYLON LEATHER [W0014] TAPROBANE TESS AGRO ELPITIYA

Price Losers
Today 0.50 1.50 2.90 1.30 18.30 Change + 0.10 + 0.20 + 0.30 + 0.10 + 1.30 % Change Company 25.00% 15.38% 11.54% 8.33% 7.65%
PRINTCARE PLC CEYLON LEATHER [W0013] SERENDIB ENG.GRP MACKWOODS ENERGY STANDARD CAPITAL

Today 29.00 0.80 89.60 6.40 64.00

Change - 4.80 - 0.10 - 10.50 - 0.60 - 4.80

% Change -14.20% -11.11% -10.49% -8.57% -6.98%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK JKH[WARRANTS] JKH[WARRANTS] VALLIBEL ONE

Today 222.00 118.00 66.00 63.00 17.00

Pre Day 225.30 118.30 65.00 62.60 17.10

% Change -1.46% -0.25% 1.54% 0.64% -0.58%

Volume (mn) 0.81 0.48 0.74 0.69 2.31

Contribution to Total T/O 7.1% 2.2% 1.9% 1.7% 1.5%

Turnover (LKR) 179,209,669 56,781,777 49,323,430 43,859,375 39,307,280

Most Active
Company
S M B LEASING[NON VOTING] ASIA ASSET DIALOG VALLIBEL ONE CITRUS LEISURE[WARRANTS]

Today 0.50 1.80 9.20 17.00 1.00

Pre Day 0.40 1.80 9.10 17.10 1.00

% Change 25.00% 0.00% 1.10% -0.58% 0.00%

Volume (mn) 5.98 4.70 3.45 2.31 2.28

Contribution to Total T/O 0.1% 0.3% 1.2% 1.5% 0.1%

Turnover (LKR) 2,984,379 8,453,957 31,735,848 39,307,280 2,308,006

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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 13.02.2014 116.95 21.57 178.08 2.11 1.28 217.38 130.84

CSE Announcements
Dividends
Company 0 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
0

Type of Security
-

Code
1/0/1900

Board
1/0/1900

Offer Price
0.00

1/0/1900

1/0/1900

0.00%

Key Corporate Diclosures

No announcements.

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 15,963.9 3,079.5 6,635.9 14,534.7

Change -30.8 -15.4 -39.1 -265.3

Change % -0.19% q -0.50% q -0.59% q -1.79% q

Time* 16:15 05:31 05:31 01:28

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 99.64 88.08 588.25 1,288.40 324.05

Change -0.73 -0.29 1.25 -6.60 -1.55

Change % -0.73% q -0.33% q 0.21% p -0.51% q -0.48% q

Time* 05:17 05:13 05:16 05:17 05:17

Source: www.bloomberg.com

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TOP STORIES
Local
JKH starts work on Waterfront project John Keells Holdings Group has started work on the $650 mn integrated resort Waterfront Properties Ltd. John Keells (JKL) and Ceylon Cold Stores (CCS) announced that Waterfront Properties Ltd has informed the companies that several of the requisite approvals for the project have been obtained and that a decision has been taken to commence work on the project. JKL and CCS have transferred the freehold land occupied by the companies at Glennie Street, to the project company in consideration of Rs. 1.916 billion and Rs. 5.393 billion respectively of equity in the project company . [Source: www.ft.lk] Anantaya Resorts and Spa opens Saturday Anantaya Resorts and Spa, the luxury resort of LAUGFS Holdings subsidiary LAUGFS Leisure, will be open on Saturday in Chilaw. With the opening of Anantaya Resorts and Spa, the diversified conglomerate LAUGFS Holdings will own a five-star hotel brand with myriad offerings that are certain to make the resort an irrefutable option for travellers on the lookout for luxury accommodation. [Source: www.dailynews.lk] Stock exchange targets $ 60-70 b market capitalisation in the next few years The Sri Lankan stock exchange is likely to hit $ 60-70 billion market capitalisation within the next few years, when the country reaches the anticipated $ 100 billion GDP in the economy. Having studied stock exchanges across the world, the Central Bank of Sri Lanka (CBSL) has come to learn that when a country reaches a total GDP of around $ 100 billion, the countrys stock exchange will also reach 60-70% in value of that GDP, i.e. $ 60-70 million in market capitalisation. [Source: www.ft.lk] Rupee steady amid continued foreign equity selloff The Sri Lanka rupee ended steady on Wednesday as outflows from foreign equity selling were offset by dollar sales by a private lender and exporters, dealers said. Dealers expect the currency to be under pressure due to lower interest rates that could result in higher imports in March and early April, ahead of the traditional new year in mid-April. The spot rupee closed at Rs. 130.82/85 per dollar. [Source: www.ft.lk]

Global
Budget Deficit in U.S. Shrinks Oct.-Jan. on Rise in Revenue The U.S. budget deficit narrowed by 37 percent in the first four months of the fiscal year compared with a year earlier as spending declined and a stronger economy helped increase revenue. Outlays exceeded receipts by $184 billion from October through January compared with a $290.4 billion shortfall in the same period a year earlier, the Treasury Department said today in Washington. Last months deficit was $10.4 billion, compared with a $2.9 billion surplus in January 2013. [Source: www.bloomberg.com] Malaysia's Budget Deficit Shrinks More Than Government Targeted Malaysia trimmed its fiscal deficit to 3.9 percent of gross domestic product last year, after cutting government spending and state subsidies to avert a credit-rating downgrade. Prime Minister Najib Razak narrowed the shortfall from 4.5 percent of GDP in 2012, beating the governments 4 percent deficit target for last year, according to data released on the central banks website. Malaysia wants to further reduce the budget gap to 3.5 percent this year and achieve a balanced budget by the end of this decade. [Source: www.bloomberg.com]

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Softlogic Equity Research

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