Tuesday, April 22, 2014

Today 6,191.83 3,397.42 Point Change + 4.80 + 2.48 % Change 0.08 % p 0.07 % p

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

No.06, 37th Lane, Queens Road, Colombo - 03, Sri Lanka Tel: +94 11 727 7000, Fax: +94 11 727 7099 Email: research@equity.softlogic.lk

4.7% 4.1% 547.2 826.9 28.6 40.6 2,592.9 179.3 226.1 46.8 -7.7

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 settled broadly flat amidst moderate turnover

CSE Diary for 22.04.2014

Indices ended flat: Indices depicted a volatile

LKR127.5. Banking sector interest was also prominent in Sampath Bank and Seylan Bank [Non-Voting].
GLAS underscored activity levels: Manufacturing sector gathered continued interest as Piramal Glass emerged to the top turnover slot followed by its dividend announcement of LKR0.38. GLAS witnessed a 8.1% gain at its intra-day high level while several sizeable blocks changed hands with a c.621k share block at LKR3.9 being the largest. The counter settled at LKR3.9 (+5.4%). John Keells Holdings spearheaded the days turnover backed by an on-board block of c.177k shares which changed hands at LKR239.9. Retail activity spiked up in GLAS: Retailers primarily focused on Piramal Glass as it surfaced as the most traded counter for the day. Orient Garments (+24.4%) and Seylan Developments (+2.1%) also saw some activity.

momentum as the ASPI touched 6,208.38 (+21points) at its intra-day high before settling broadly flat at 6,191.83. Gains recorded in high caps; Ceylon Tobacco Company (+1.9%) and John Keells Holdings (+0.4%) marginally outweighed the losses made in Carson Cumberbatch (-2.9%) and Chevron Lubricants (1.8%). The S&P SL20 index followed a similar path closing flat at 3,397.42. Turnover denoted a moderate level boosted by one off-board transaction while several counters traded at 52week high levels. Sole crossing in Commercial Bank: Commercial Bank witnessed active on-board and off-board buying interest as it saw an intra-day gain of 0.4% at LKR128.0 before closing at LKR127.9. The counter saw c.455k shares being crossed off at

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 22.04.2014 Inflation (%) Mar-14 YoY Change Annual Avg Week ending 11.04.2014 6.61 6.79 7.03 8.79 -22.06 4.2 5.7

6300 6200 6100 6000

Index

5900
5800 5700

ASPI
3450 3400 3350 3300 3250 3200 3150 3100

Turnover LKR ('mn)

6,000 5,000

Index

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

70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Volume ('mn)

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 6,191.8 3,397.4 547.2 4.2 28.6 228 2,592.9 226.1 46.8 179.3 16.5 2.0 2.8 Today 13,822.3 19,941.6 2,908.5 1,862.2 843.6 3,235.4 621.0 3,018.1 715.6 175.8

Pre Day 6,187.0 3,394.9 814.5 6.2 35.9 230 2,590.9 181.1 21.4 159.6 16.5 2.0 2.8 Pre Day 13,788.2 19,811.4 2,885.9 1,869.6 845.2 3,227.7 619.6 3,032.8 725.6 175.8

Change % 0.08% p 0.07% p -32.82% -32.82% -20.37% -0.87% 0.08% 24.85% 118.11% 12.32% 0.08% 0.08% 0.00% % Change 0.25% 0.66% 0.78% -0.39% -0.19% 0.24% 0.23% -0.48% -1.37% 0.00% p p p q q p p q q p

Last Week 6,092.3 3,346.9 540.6 4.1 25.5 224 2,551.3 228.6 45.7 182.8 16.3 2.0 2.9 Last Week 13,606.9 19,302.9 2,830.2 1,838.4 832.9 3,212.6 610.3 2,947.8 716.2 179.8

% WoW Change 1.63% 1.51% 1.21% 1.21% 12.43% 1.79% 1.63% -1.10% 2.20% -1.93% 1.63% 1.63% -3.45% % WoW Change 1.58% 3.31% 2.76% 1.30% 1.28% 0.71% 1.75% 2.39% -0.08% -2.19%

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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 9.2% 8.1% 2.9% 4.1% 3.2% 4.0% 2.2% 2.9% 1.9% 1.5% 2.4% 1.4% 1.2% 1.6% 1.2% 1.1%

Volume 431,181 1,425 6 997 0 696,391 10 44,348 52,033 258,814 1,840 20,000 0 63,862 107,097 12,974

Turnover LKR ('000) 103,443.28 1,574.78 2.31 1,992.13 0.00 88,831.89 5.72 406.48 8,112.14 25,208.78 377.51 1,529.27 0.00 10,043.92 20,058.71 844.81

Turnover USD ('000) 792.01 12.06 0.02 15.25 0.00 680.14 0.04 3.11 62.11 193.01 2.89 11.71 0.00 76.90 153.58 6.47

Intraday High (LKR) 240.10 1,130.00 390.00 2,000.00 0.00 128.00 571.50 9.20 157.90 98.00 206.00 77.00 0.00 158.80 188.10 67.00

Intraday Low (LKR) 239.10 1,100.00 375.10 1,985.00 0.00 127.00 571.50 9.10 155.00 96.70 205.00 76.20 0.00 157.00 186.10 64.50

Close 239.90 1,118.20 378.40 1,988.50 45.60 127.90 571.50 9.20 157.00 97.00 205.50 76.40 144.00 157.40 188.00 65.10

Price Gainers
Company
PC HOUSE ORIENT GARMENTS SIGIRIYA VILLAGE HAYLEYS FIBRE CEYLON LEATHER

Price Losers
Today 0.30 14.80 59.90 29.60 60.30 Change + 0.10 + 2.90 + 4.90 + 1.60 + 3.20 % Change Company 50.00% 24.37% 8.91% 5.71% 5.60%
CEYLON LEATHER [W0013] S M B LEASING [X] ANILANA HOTELS SINHAPUTHRA FIN [P] G S FINANCE

Today 0.20 0.40 5.90 45.00 35.50

Change - 0.10 - 0.10 - 0.70 - 5.00 - 3.80

% Change -33.33% -20.00% -10.61% -10.00% -9.67%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK PIRAMAL GLASS AITKEN SPENCE SAMPATH

Today 239.90 127.90 3.90 97.00 188.00

Pre Day 239.00 127.50 3.70 97.90 187.80

% Change 0.38% 0.31% 5.41% -0.92% 0.11%

Volume (mn) 0.43 0.70 6.59 0.26 0.11

Contribution to Total T/O 4.0% 3.4% 1.0% 1.0% 0.8%

Turnover (LKR) 103,443,280 88,831,888 25,555,560 25,208,776 20,058,713

Most Active
Company
PIRAMAL GLASS PC HOUSE PCH HOLDINGS SEYLAN DEVTS PEOPLES LEASING

Today 3.90 0.30 0.80 9.70 15.50

Pre Day 3.70 0.20 0.80 9.50 15.30

% Change 5.41% 50.00% 0.00% 2.11% 1.31%

Volume (mn) 6.59 4.79 2.39 0.99 0.95

Contribution to Total T/O 1.0% 0.1% 0.1% 0.4% 0.6%

Turnover (LKR) 25,555,560 1,433,214 1,861,196 9,971,974 14,594,084

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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 22.04.2014 122.18 20.96 180.16 2.16 1.27 219.36 130.61

CSE Announcements
Dividends
Company Piramal Glass Ceylon PLC Printcare PLC 0 0 0
Company Description

DPS (LKR) 0.38 0.50 0.00 0.00 0.00

Proportion 01 for 09 0

XD Date 01-07-2014 02-05-2014 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 09-07-2014 12-05-2014 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

Senkadagala Finance PLCCapitalization 0 0 0 0 30-04-2014 1/0/1900 1/0/1900 02-05-2014 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 ROYAL CERAMICS ROYAL CERAMICS Name Relationship Transaction Mr. A M Weerasinghe Chairman Sale Mr. Nimal Perera Managing Director Purchase Quantity 2,000,000 2,568,747 Price (LKR) 95.00 85.0-95.0 Date 21.04.2014 21.04.2014

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 16,449.3 3,185.9 6,693.2 14,388.8

Change 40.7 30.1 67.9 -123.6

Change % 0.25% p 0.95% p 1.03% p -0.85% q

Time* 16:15 06:50 06:50 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 104.05 93.18 680.75 1,291.10 301.75

Change -0.25 0.97 5.25 -2.80 -1.65

Change % -0.24% q 1.05% p 0.78% p -0.22% q -0.54% q

Time* 06:39 06:34 06:38 06:39 06:39

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka rates unchanged; lower state borrowings to boost credit: Central Bank Sri Lanka's central bank held policy rates unchanged in April saying reduced central government and state enterprise borrowings has created conditions for private credit to pick up. The central bank held the rate at which money is drained from banks at 6.5 percent and the rate at which cash is injected at 8.0 percent. With excess liquidity in markets and money being drained daily amid weaker credit, the 6.5 percent standing repo rate is now active and overnight risk free bank rates is 6.50 percent and the un-backed rate at 6.90 percent. [Source: www.lbo.lk] Sri Lanka's Adam Investments plans Rs400mn IPO Sri Lanka based Adam Investment Plc, has been given the nod to raise 400 million rupees through a public offer, the Colombo Stock Exchange said. The company has interests in apparel, consumer goods and information technology, according to its website. The firm will offer 133 million shares at 3 rupees a share and will be listed on the 'Diri Savi' second board of the exchange. The firm said it has a 39 percent stake in Orient Garments Plc, 21 percent in Adam Apparels (Pvt) Ltd and 8.9 percent in Ceylon and Foreign Trades Plc as well stakes in other unlisted firms. [Source: www.lbo.lk] Perceived Economic Opportunity Index picks up in March The Perceived Economic Opportunity Index for March picked up slightly; from 1.68 to 1.71, its compiler the Foundation for Economic Freedom in Sri Lanka said. The good news however, is that the trend line indicates that after hitting its lowest level in the first quarter of last year the PEOI has slowly turned upwards, albeit marginally, it added. FEFSL said perhaps the non-event of feared imposition of economic sanctions at the UNHRC and the expected victory of the ruling coalition at the provincial council election even with a reduced majority may have helped the index move up. [Source: www.ft.lk] Price declines and industry challenges crimp Sri Lankan Rubber Despite rubber being one of our key productive assets there is growing concern of the continual price declines experienced since 2012. Although enjoying a boom for nearly a decade, Sri Lankas rubber prices have seen considerable declines in recent times. Colombo Rubber Traders Association (CRTA) Chairman, M.S. Rahim said, The price drop in the world reflected on us too. With lower prices in the current period costs of production will increase and we will be faced with losses. [Source: www.dailynews.lk]

Global
Japan Urged to Start Cutting Corporate Tax Next Year: Economy Japan could cut its corporate tax rate as early as next fiscal year by 2 to 3 percentage points, gradually lowering the levy toward 25 percent in later years to boost the nations competitiveness, a tax panel member said. The first step will make businesses inside and outside the country believe Japan is serious, said Norio Sasaki, Toshiba Corp. vice chairman and member of a government panel subcommittee on corporate tax reform. Cuts can be gradual as long as the direction is clearly set toward levels around 25 percent -- matching those in Asia. [Source: www.bloomberg.com] Improving Job Market Driving Rebound in U.S. Growth An improving job market and increasing factory production in March contributed to a jump in the U.S. index of leading indicators that signals the pace of economic growth is poised to snap back. The Conference Boards index, a gauge of the outlook for the next three to six months, rose 0.8 percent, the most since November, after a 0.5 percent gain in February, the New York-based group said today. The measures 6.1 percent advance over the past year is the biggest since July 2011. [Source: www.bloomberg.com]

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Kavindu Ranasinghe kavindu.ranasinghe@equity.softlogic.lk +94 11 7277031 Imalka Hettiarachchi imalka.hettiarachchi@equity.softlogic.lk +94 11 7277032

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