Tuesday, September 03, 2013

Today 5,752.36 3,210.89 Point Change - 30.36 - 18.2 % Change -0.53 % q -0.56 % 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: [email protected]

1.9% 4.1% 295.0 910.4 35.8 39.6 2,369.2 64.3 92.2 27.9 18.5

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 down-trended on a stagnant note...

CSE Diary for 03.09.2013

Indices on a downtrend with low activity: The Colombo Bourse trended down for the second consecutive day extending its overall down trend, however on a stagnant note with low activity. ASPI ended at 5,752.36 with a loss of 30 points. Drop in prices in Sri Lanka Telekom (-5.3%), Hatton National Bank (-3.1%) and Carson Cumberbatch (-2.0%) negatively affected the market performances. S&P SL20 journeyed a similar path however on a subdued manner and closed at 3,210.89 with a 18 points dip. Lower activity off-board: Off-board transactions were low and primarily led by HNB Assurance and John Keells Holdings where the former recorded a single crossing of 475k shares which changed hands at LKR55.0 and the latter crossed a single 100k block at LKR215.0. John Keells Holdings denoted on-board interest too led by two transactions totaling 95k shares which traded at

LKR212.5-213.0. The counter posted a gain of 0.9% and settled at LKR214.8. COMB attracts on-board interest supported by a single transaction: Commercial Bank denoted onboard interest largely backed by a single transaction of 226k shares which traded at LKR115.0. The counter closed at LKR114.3, with a dip of 0.3%. Notable retail participation on TWOD: Heavy retail participation was seen in Touchwood Investments and Access Engineering. TWOD saw notable intraday volatility where the counter hit a low of LKR0.9 in the morning trading session and rallied to a high of LKR2.2, yielding more that 100% in absolute terms, closed at LKR1.90 with a gain of 5.6%. AEL also witnessed on-board retail participation backed up two transactions amounting to 250k shares which traded at LKR20.3. The counter settled the day flat at LKR20.3.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 02.09.2013 YoY Change Annual Avg Week ending 30.08.2013 8.61 10.56 11.84 -31.48 6.3 8.0 9.64

6400 6200

Index

6000 5800 5600 5400

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 5,752.4 3,210.9 295.0 2.2 35.8 231 2,369.2 92.2 27.9 64.3 16.4 2.2 2.7 Today 12,415.8 20,069.4 2,656.7 1,695.7 637.3 3,133.6 514.3 2,799.4 668.2 152.9

Pre Day 5,782.7 3,229.1 277.1 2.1 25.6 208 2,381.7 140.7 130.1 10.6 16.4 2.2 2.7 Pre Day 12,555.7 19,895.1 2,657.3 1,703.1 638.8 3,140.3 522.1 2,844.7 675.3 157.3

Change % -0.53% q -0.56% q 6.45% 6.45% 39.77% 11.06% -0.52% -34.44% -78.54% 504.37% -0.52% -0.52% 0.00% % Change -1.11% 0.88% -0.02% -0.43% -0.24% -0.21% -1.48% -1.59% -1.04% -2.82% q p q q q q q q q q

Last Week 5,923.3 3,319.3 503.2 3.8 20.4 259 2,439.7 109.6 205.9 -96.3 16.8 2.3 2.6 Last Week 12,650.2 20,777.5 2,720.0 1,793.3 639.2 3,166.2 529.7 2,918.1 695.6 157.2

% WoW Change -2.89% -3.27% -41.38% -41.38% 75.51% -10.81% -2.89% -15.86% -86.45% -166.79% -2.49% -3.04% 3.85% % WoW Change -1.85% -3.41% -2.33% -5.44% -0.30% -1.03% -2.91% -4.07% -3.93% -2.77% 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 7.8% 9.2% 3.0% 4.6% 3.0% 3.8% 2.9% 2.8% 2.0% 2.0% 2.4% 1.0% 1.4% 1.3% 1.3% 1.3%

Volume 304,905 2,506 871 306 200 289,608 77 105,648 2,337 12,673 10,500 7,100 946 1,256 24,383 0

Turnover LKR ('000) 65,280.52 2,884.22 313.21 612.53 7.84 33,266.46 51.68 846.49 345.38 1,446.37 1,982.80 355.09 142.36 145.48 4,513.90 0.00

Turnover USD ('000) 490.83 21.69 2.35 4.61 0.06 250.12 0.39 6.36 2.60 10.87 14.91 2.67 1.07 1.09 33.94 0.00

Intraday High (LKR) 215.00 1,199.00 365.00 2,120.00 39.30 115.00 678.00 8.20 150.00 114.50 189.00 50.90 154.00 116.10 187.40 0.00

Intraday Low (LKR) 212.50 1,124.30 355.10 2,000.00 39.10 114.00 657.00 8.00 146.50 114.00 185.00 50.00 150.00 115.60 183.00 0.00

Close 214.80 1,167.50 358.00 2,040.00 39.20 114.30 669.00 8.10 147.80 114.20 188.90 50.00 151.00 115.90 183.60 69.00

Price Gainers
Company
ENVI. RESOURCES [W 0003] BLUE DIAMONDS ENVI. RESOURCES [W 0006] CIT CEYLON LEATHER [W 0013]

Price Losers
Today 0.40 2.00 0.90 114.00 1.10 Change + 0.10 + 0.30 + 0.10 + 11.00 + 0.10 % Change Company 33.33% 17.65% 12.50% 10.68% 10.00%
PC PHARMA KALAMAZOO FIRST CAPITAL CEYLON LEATHER [W 0014] ASCOT HOLDINGS

Today 1.20 904.70 15.70 1.20 105.50

Change - 0.30 - 186.10 - 3.00 - 0.20 - 15.50

% Change -20.00% -17.06% -16.04% -14.29% -12.81%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK HNB ASSURANCE TOUCHWOOD ACCESS ENG SL

Today 214.80 114.30 49.50 1.90 20.30

Pre Day 212.90 114.60 48.40 1.80 20.30

% Change 0.89% -0.26% 2.27% 5.56% 0.00%

Volume (mn) 0.30 0.29 0.49 13.00 0.62

Contribution to Total T/O 2.8% 1.4% 1.1% 0.9% 0.5%

Turnover (LKR) 65,280,520 33,266,459 26,626,753 21,523,618 12,541,191

Most Active
Company
TOUCHWOOD BLUE DIAMONDS[NON VOTING] PANASIAN POWER S M B LEASING[NON VOTING] CIFL

Today 1.90 0.80 2.40 0.30 0.60

Pre Day 1.80 0.80 2.40 0.30 0.60

% Change 5.56% 0.00% 0.00% 0.00% 0.00%

Volume (mn) 13.00 2.19 1.90 1.65 1.51

Contribution to Total T/O 0.9% 0.1% 0.2% 0.0% 0.0%

Turnover (LKR) 21,523,618 1,776,983 4,546,446 498,775 722,912

Softlogic Equity Research

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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 03.09.2013 119.45 21.73 175.40 2.02 1.34 206.80 133.00

CSE Announcements
Dividends
Company Dunamis Capital PLC 0 0 0 0
Company Description

DPS (LKR) 1.00 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 11-09-2013 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 23-09-2013 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

Singer Finance has received 68 Debenture applications which amounts to a value of LKR2,060.6 mn.

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 14,810.3 2,762.0 6,491.6 13,978.4

Change -30.6 -12.1 -14.6 405.5

Change % -0.21% q -0.44% q -0.22% q 2.99% p

Time* 16:38 06:21 06:21 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 107.21 83.86 658.75 1,394.90 327.85

Change -0.44 0.37 4.75 -1.20 4.55

Change % -0.41% q 0.44% p 0.73% p -0.09% q 1.41% p

Time* 06:09 06:00 06:27 06:08 06:09 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Winding up case for Sri Lanka's Touchwood forestry firm A provincial High Court in Sri Lanka is to hear a petition to wind up Touchwood Investments, a Colombo-based forestry firm, according to a newspaper notice placed by lawyers.A notice in Sri Lanka's Daily News, newspaper said, a resident of Rajagiriya, a suburb of Colombo has petitioned the High Court of the Western Province to wind up Touchwood and it is to be heard on October 03. The notice placed by F J & G De Saram, a legal firm said "any creditor contributory" to the firm who may want to support or oppose the action could get a copy of the court petition and be present at the hearing. [Source: www.lbo.lk] 5 year bond prices up The start of a fresh month saw bond prices increase which move inversely to yields, mainly on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) as its yields were seen hitting intraday lows of 11.75% and 11.80% respectively against its opening of 11.82% and 11.90%. Active two-way quotes were mainly seen on the five-year durations as yields along the rest of the yield curve remained steady. [Source: www.ft.lk] Medical city for Hambantota The government will build a medical city in Hambantota to provide world class medical treatment to both Sri Lankans and foreigners.This ground breaking project will get underway near the proposed state-of-the-art 650 bed general hospital built at a cost of Rs. 7 billion with financial assistance from the Government of The Netherlands. The Netherlands has also pledged concessionary financial assistance of Euro 86.49 million to develop this hospital and another in Nuwara Eliya. [Source: www.dailynews.lk] Why Sri Lanka is losing sleep over the rupee Sri Lankas central bankers are probably more worried about the accelerated fall in the Indian rupee in the past four months than the Reserve Bank of India Governor Duvvuri Subbarao. And thats good news. The worst performance of the Indian rupee in Asia Pacific this year at 16% depreciation to the US dollar is probably doing more good in boosting exports than the numerous policies from the government. [Source: www.ft.lk]

Global
UK construction PMI hits highest level in Aug since Sept 2007: Markit/CIPS British construction activity grew at the fastest pace in nearly six years in August, driven by residential building, a survey showed on Tuesday, in another sign that the UK's economic recovery is gathering pace. The Markit/CIPS construction purchasing managers index (PMI) rose to 59.1 last month - its highest level since September 2007 - from 57.0 in July, staying far above the 50 threshold for growth for a fourth month.Economists polled by Reuters had expected a slight slowing in the pace of growth. [Source: www.reuters.com] Worst of Crisis Over for Asian Emerging Markets, Nomura Says The worst is over for Asian emerging markets after investors pulled billions of dollars last month on concern the U.S. Federal Reserve will start cutting back bond purchases, according to Nomura Holdings Inc. (8604) Were through the worst of the crisis but it doesnt mean individual countries wont continue to suffer significant challenges, Steve Ashley, London-based head of global markets at Nomura, said in an interview. We remain relatively positive on the longer term performance of risk assets in Asian emerging markets. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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Dimantha Mathew [email protected] +94 11 7277030 Kavindu Ranasinghe [email protected] +94 11 7277031 Imalka Hettiarachchi

[email protected]
+94 11 7277032

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