Thursday, February 20, 2014

Today 5,956.16 3,257.53 Point Change - 30.08 - 24.24 % Change -0.50 % q -0.74 % 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

0.7% -0.2% 851.6 830.5 51.1 41.4 2,487.3 -158.2 311.2 469.4 -3.4

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 continued its bearish trend

CSE Diary for 20.02.2014

Indices remain bearish: Indices hovered around below the 6,000 mark as the ASPI encountered a gradual dip of 30 points to 5,956.16. Losses in index heavy players; Ceylon Tobacco Company (-2.4%), Commercial Bank (-1.7%) and Nestle Lanka (-0.9%) reflected on the downtrend. The S&P SL20 followed a downtrend as it ended with a 24 point dip at 3,257.53. 10 crossings added 48% to the turnover: Dialog Axiata led the crossings board with two blocks carrying 15 mn shares at LKR9.2. Nations Trust Bank recorded four blocks totaling 1.9 mn shares at a 52-week high (off-board) price of LKR66.0 while Sampath Bank saw continued interest followed by its dividend announcement and added two blocks amounting to 248k shares at LKR170.0. Commercial Bank and Lanka Century Investments recorded one crossing each. The 10 crossings amounted to 48% of the days turnover.

BFI sector took center stage: Sampath Bank witnessed continued interest however the counter closed flat at LKR170.0 amidst some selling pressure. Commercial Bank, Seylan Bank [NonVoting] and Nations Trust Bank also saw some interest. Renewed activity was seen in Kotmale Holdings and Central Finance. The former recorded two on-board blocks totaling c. 695k shares at LKR55.0 while the latter gained 3.5% at its close of LKR190.0. Several counters traded at their 52-week low levels amidst the downtrend in indices including S&P SL20 players; Carson Cumberbatch and Bukit Darah. Retail activity remained low: Retail activity surrounded a few selected counters; Expo Lanka Holdings, John Keells Holdings and its Warrant 0023, PC House and Sampath Bank.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 20.02.2014 Inflation (%) Jan-14 YoY Change Annual Avg Week ending 21.02.2014 6.75 7.08 9.38 -4.42 4.4 6.5 6.90

6300 6200

Index

6100 6000
5900 5800

ASPI
3500 3450 3400 3350 3300 3250 3200 3150 3100

Turnover LKR ('mn)

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

200.0

Volume ('mn)

150.0 100.0 50.0

Index

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 5,956.2 3,257.5 851.6 6.5 51.1 237 2,487.3 311.2 469.4 -158.2 15.8 2.0 2.9 Today 13,309.5 20,487.6 2,778.8 1,719.1 762.7 3,137.6 566.2 2,873.7 711.1 167.4

Pre Day 5,986.2 3,281.8 714.6 5.5 49.2 231 2,499.8 302.4 104.5 197.8 15.9 2.0 2.9 Pre Day 13,407.0 20,742.3 2,755.1 1,721.6 768.2 3,149.3 568.7 2,888.9 720.4 167.0

Change % -0.50% q -0.74% q 19.17% 19.17% 3.90% 2.60% -0.50% 2.93% 349.04% -179.98% -0.50% -0.50% 0.00% % Change -0.73% -1.23% 0.86% -0.14% -0.71% -0.37% -0.44% -0.53% -1.29% 0.24% q q p q q q q q q p

Last Week 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 Last Week 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

% WoW Change -2.09% -2.05% 28.06% 28.06% 47.31% 2.60% -2.06% 37.10% 334.55% -232.99% -2.06% -2.06% 3.57% % WoW Change -1.40% -3.45% -0.68% -2.45% -2.17% -1.26% -2.31% -2.73% -2.42% -1.25%

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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 8.5% 8.8% 2.8% 4.5% 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 319,220 1,184 308 3,327 7,864 816,206 812 15,145,438 8,210 5,060 2,954 12,499 0 9,800 506,036 7,437

Turnover LKR ('000) 68,524.75 1,385.85 107.31 6,986.59 328.47 94,692.25 474.98 139,336.95 1,248.72 506.72 615.40 934.93 0.00 1,396.00 86,029.84 453.86

Turnover USD ('000) 523.69 10.59 0.82 53.39 2.51 723.67 3.63 1,064.86 9.54 3.87 4.70 7.15 0.00 10.67 657.47 3.47

Intraday High (LKR) 216.00 1,177.00 350.00 2,100.50 43.00 118.00 599.90 9.20 152.10 101.50 209.50 75.00 0.00 144.00 170.50 61.20

Intraday Low (LKR) 214.00 1,155.00 340.00 2,055.00 41.40 115.80 583.00 9.10 152.00 100.10 208.00 74.00 0.00 141.00 169.70 61.00

Close 214.40 1,169.80 350.00 2,100.00 41.90 116.00 584.30 9.10 152.10 101.00 208.30 74.10 139.00 142.40 170.00 61.00

Price Gainers
Company
PC HOUSE SELINSING MERC. SHIPPING MORISONS [X] A I A INSURANCE

Price Losers
Today 0.40 1,287.00 128.00 200.00 299.00 Change + 0.10 + 251.80 + 17.80 + 20.00 + 29.00 % Change Company 33.33% 24.32% 16.15% 11.11% 10.74%
TANGERINE S M B LEASING [X] PC PHARMA LANKA CENTURY [W 0006] CITRUS LEISURE [W 0019]

Today 61.00 0.40 1.00 0.60 1.00

Change - 19.00 - 0.10 - 0.20 - 0.10 - 0.10

% Change -23.75% -20.00% -16.67% -14.29% -9.09%

Top 05 Performers for the Day

Company
DIALOG NATIONS TRUST COMMERCIAL BANK SAMPATH JKH

Today 9.10 66.10 116.00 170.00 214.40

Pre Day 9.10 66.00 118.00 170.00 215.00

% Change 0.00% 0.15% -1.69% 0.00% -0.28%

Volume (mn) 15.15 2.11 0.82 0.51 0.32

Contribution to Total T/O 5.6% 5.6% 3.8% 3.5% 2.8%

Turnover (LKR) 139,336,949 139,221,237 94,692,253 86,029,837 68,524,746

Most Active
Company
DIALOG PC HOUSE LANKA CENTURY EXPOLANKA NATIONS TRUST

Today 9.10 0.40 13.80 8.00 66.10

Pre Day 9.10 0.30 14.60 8.50 66.00

% Change 0.00% 33.33% -5.48% -5.88% 0.15%

Volume (mn) 15.15 6.54 3.40 3.37 2.11

Contribution to Total T/O 5.6% 0.1% 2.0% 1.1% 5.6%

Turnover (LKR) 139,336,949 2,616,357 50,337,696 27,136,406 139,221,237

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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 20.02.2014 117.13 21.51 179.86 2.10 1.28 218.07 130.85

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

0

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 16,040.6 3,098.7 6,776.1 14,449.2

Change -89.8 -22.1 -20.6 -317.4

Change % -0.56% q -0.71% q -0.30% q -2.15% q

Time* 16:15 05:51 05:52 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 103.19 87.78 610.75 1,313.60 326.55

Change -0.12 -0.13 -2.75 -6.80 -2.00

Change % -0.12% q -0.15% q -0.45% q -0.51% q -0.61% q

Time* 05:39 05:42 05:41 05:42 05:41

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka prosperity up by revised index: Central Bank Sri Lanka's prosperity has risen by 6.8 percent over 2012 according to an index compiled by the Central Bank, which has been revised with additional parameters being added. The Sri Lanka Prosperity Index started in 2008 rose to 66.8 points in 2012 from 62.5 in 2011, the Central Bank said. It tracked 26 variables through three sub-indices on economy and business climate, well-being of the people and socio economic infrastructure up to 2011 and another 16 parameters had been added for 2012. [Source: www.lbo.lk] Sri Lanka passes law on graphical tobacco warnings Sri Lanka's parliament has passed a law on pictorial health warnings on tobacco packs, after a British American Tobacco unit in the island went to court against an earlier health ministry regulation. The state information office said parliament unanimously passed the law requiring pictorial health warnings to cover 80 percent of cigarette packs Wednesday. Similar laws are in effect in several other countries. [Source: www.lbo.lk] "Sri Lanka set for Tourism Boom" says China Daily The latest issue of leading Chinese newspaper, China Daily Asia Weekly has carried an article on Sri Lanka Tourism stating that "Sri Lanka is all set to transform its tourism sector and make it the largest foreign exchange earner by attracting 2.5 million tourists in year 2016.On its path for expanding tourism sector a heavy focus has been given to attract Chinese tourists and investors alike". The cover story of the has highlighted that Sri Lanka is becoming one of the most sought after new holiday destinations for Chinese travelers. [Source: www.dailynews.lk] New tax concessions for integrated resorts The Cabinet of Ministers of Sri Lanka once again appears to have approved investment concessions for three super luxury integrated resort projects, the recent gazette notification published showed. The approval of Cabinet of Ministers has been obtained in terms of Sub-section (3) of Section 3 to declare the project as a Strategic Development Project and such a project attracts strategic importance and the national interest of attracts highest priority in Economic Development as per the Development Strategy of the Government, the government gazette said. [Source: www.dailymirror.lk]

Global
China Factory Gauge Falls Amid Risks of Credit Souring: Economy A Chinese manufacturing index fell to the lowest level in seven months, adding to challenges for Communist Party officials grappling with risks to the financial system from trust defaults and soured loans. The preliminary February reading of 48.3 for a Purchasing Managers Index released today by HSBC Holdings Plc and Markit Economics compares with Januarys final figure of 49.5 and the 49.5 median estimate in a Bloomberg News survey of 17 economists. A number below 50 indicates contraction. [Source: www.bloomberg.com] Japan Trade Deficit Swells to Record as Import Costs Surge Japans trade deficit widened to a record in January as surging import costs weigh on Prime Minister Shinzo Abes campaign to drive a sustained recovery. The 2.79 trillion yen ($27.3 billion) shortfall reported by the Ministry of Finance in Tokyo today exceeded the 2.49 trillion yen median estimate in a Bloomberg News survey of 28 economists. Imports rose 25 percent from a year earlier and outbound shipments gained 9.5 percent [Source: www.bloomberg.com]

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