Monday, September 16, 2013

Today 5,730.12 3,180.24 Point Change - 19.34 + 3.50 % Change -0.34 % q 0.11 % p

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]

1.5% 3.1% 683.5 869.3 24.1 35.6 2,360.1 -69.1 326.4 395.5 19.1

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]

Indices ended in opposites; JKH added 73% to the daily turnover

CSE Diary for 16.09.2013

IndIndices closed opposites: The Bourse traded on an indecisive note where both indices ended on opposite direction. ASPI closed in the negative territory with a loss of 19 points at 5,730.12 elicited by a notable drop in the early trading session driven largely by the price dip of Ceylon Tobacco Company (-3.1%). Price drops in Sri Lanka Telecom (-5.0%) and Asian Hotels & Properties (-4.1%) too pressurized the ASPI performance. S&P SL20 however closed marginally positive at 3,180.24 with a gain of 3 points. JKH added 73% to the daily turnover: John Keells Holdings spearheaded the daily turnover with a 73.0% contribution supported by eight crossings which added up to 1.4 mn shares at LKR210.0. JKH denoted significant on-board activity too backed by several large blocks, largest being the 205k transaction which traded at LKR210.0. The counter closed in the green at LKR210.9 with a gain of 0.6%.

LIOC, SAMP and HNB.X attracted on-board interest: Lanka IOC attracted noteworthy on-board interest heavily supported by four transactions accumulating to 850k shares which traded at LKR25.0. The counter closed at LKR25.0 with a dip of 3.9%. Sampath Bank witnessed further downward price pressure today with notable onboard turnover levels on a segregated note with several transactions. SAMP settled at LKR175.0 with a drop of 0.6%. HNB Non-Voting too displayed noteworthy on-board turnover however dominated by a two transactions totaling to 76k shares at LKR112.0. The counter, which currently trades below its NAVPS of 135.4 based on the latest earnings, ended at 112.0 with a gain of 0.7%

Retail activity moderate: Retail activity was concentrated on Tess Agro, Touchwood Investments and PC Pharma on a moderate note.

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 11.74 -12.06 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 5,730.1 3,180.2 683.5 5.2 24.1 233 2,360.1 326.4 395.5 -69.1 16.3 2.2 2.7 Today 12,420.2 19,468.3 2,648.1 1,717.3 657.3 3,124.2 514.2 2,777.3 676.0 150.6

Pre Day 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 Pre Day 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

Change % -0.34% q 0.11% p -30.23% -30.23% -53.05% 6.88% -0.34% -43.90% 23.74% -126.37% -0.34% -0.33% 0.00% % Change 0.01% -1.02% -1.17% 1.14% 0.03% -0.78% -1.36% -1.03% -0.33% -3.18% p q q p p q q q q q

Last Week 5,605.3 3,132.1 323.7 2.5 17.3 229 2,308.7 143.5 36.3 107.2 15.9 2.1 2.8 Last Week 12,339.6 18,799.8 2,584.5 1,657.2 639.5 3,095.4 503.4 2,673.6 669.1 149.7

% WoW Change 2.23% 1.54% 111.16% 111.16% 39.09% 1.75% 2.23% 127.44% 989.68% -164.47% 2.23% 2.23% -3.57% % WoW Change 0.65% 3.56% 2.46% 3.63% 2.77% 0.93% 2.14% 3.88% 1.04% 0.61% 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 7.7% 8.6% 3.3% 4.6% 2.9% 3.8% 2.9% 2.8% 2.0% 1.9% 2.3% 1.0% 1.5% 1.3% 1.2% 1.2%

Volume 2,365,178 1,667 1 334 2,600 14,999 7 27,378 3,063 53,118 13,207 20,977 1 1,511 113,497 2,265

Turnover LKR ('000) 497,181.50 1,769.63 0.40 669.04 100.18 1,701.81 4.66 220.64 458.31 6,018.04 2,377.49 1,054.89 0.16 178.44 19,902.18 149.99

Turnover USD ('000) 3,763.78 13.40 0.00 5.06 0.76 12.88 0.04 1.67 3.47 45.56 18.00 7.99 0.00 1.35 150.66 1.14

Intraday High (LKR) 212.00 1,120.00 400.00 2,010.00 40.00 114.70 668.00 8.10 150.00 113.30 182.00 51.00 162.00 118.20 179.80 68.90

Intraday Low (LKR) 209.50 1,050.00 400.00 2,000.00 38.10 112.50 665.00 8.00 147.90 113.00 180.00 50.00 162.00 118.00 173.50 66.00

Close 210.90 1,085.00 400.00 2,000.20 38.50 113.30 665.50 8.00 150.00 113.30 180.00 50.20 162.00 118.10 175.00 66.10

Price Gainers
Company
SHALIMAR ALUFAB ASCOT HOLDINGS CAL FINANCE TESS AGRO

Price Losers
Today 950.00 13.70 129.50 15.50 2.10 Change + 120.00 + 1.50 + 13.80 + 1.50 + 0.20 % Change Company 14.46% 12.30% 11.93% 10.71% 10.53%
ENVI. RESOURCES [W 0003] TOUCHWOOD SAMSON INTERNAT. SERENDIB ENG.GRP ENVI. RESOURCES [W 0006]

Today 0.40 1.70 80.60 95.00 1.00

Change - 0.10 - 0.20 - 9.40 - 9.90 - 0.10

% Change -20.00% -10.53% -10.44% -9.44% -9.09%

Top 05 Performers for the Day

Company
JKH LANKA IOC SAMPATH ASIRI HNB[NON VOTING]

Today 210.90 25.00 175.00 14.50 112.00

Pre Day 209.60 26.00 176.00 14.50 111.20

% Change 0.62% -3.85% -0.57% 0.00% 0.72%

Volume (mn) 2.37 1.13 0.11 1.16 0.10

Contribution to Total T/O 21.1% 1.2% 0.8% 0.7% 0.5%

Turnover (LKR) 497,181,505 28,238,254 19,902,184 16,777,298 10,731,716

Most Active
Company
PC PHARMA TESS AGRO JKH TOUCHWOOD PC HOUSE

Today 1.70 2.10 210.90 1.70 0.90

Pre Day 1.70 1.90 209.60 1.90 0.90

% Change 0.00% 10.53% 0.62% -10.53% 0.00%

Volume (mn) 2.74 2.39 2.37 2.04 2.00

Contribution to Total T/O 0.2% 0.2% 21.1% 0.2% 0.1%

Turnover (LKR) 5,003,829 4,881,737 497,181,505 3,641,104 1,788,042

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 16.09.2013 123.39 21.59 176.59 2.08 1.34 210.72 132.10

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 Softlogic Holdings 0 Type of Security Debenture Code SHL09/09/16A15.75 1/0/1900 Board Main Board 1/0/1900 Offer Price 15.75% 1/0/1900

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 15,376.1 2,893.2 6,633.8 14,404.7

Change 75.4 26.1 50.0 17.4

Change % 0.49% p 0.91% p 0.76% p 0.12% p

Time* 16:35 06:13 06:14 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 106.90 84.20 644.25 1,316.10 321.55

Change -1.31 -0.26 2.75 7.50 1.20

Change % -1.21% q -0.31% q 0.43% p 0.57% p 0.37% p

Time* 05:59 05:58 06:19 05:59 05:58 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka fish exporter starts EU marketing unit Sri Lanka-based Tess Agro Plc, an exporter of sea fish said it had set up a marketing unit in Belgium to gain direct access to the European Union and better prices.The key markets of the firm are the EU, US and Japan."The company has opened a branch in Belgium to expand its presence in the EU," chairperson S F Fernando told shareholders in the annual report.Fernando said the Belgian unit will import fish from the company and supply it to restaurants, hotel and supermarkets. [Source: www.lbo.lk] Dhammika gears up for gaming kingship Having shot to business leader status from the origins of gaming industry, Dhammika Perera is now gearing to take his empire to a new level, a move that is likely to re-profile the countrys leisure and entertainment scene for the better. Dhammika has already submitted his application to the Board of Investment to set up what will be his flagship business venture to date the $ 350 million Queensbury Integrated Resort and Casino. [Source: www.ft.lk] Sri Lanka tourist arrivals up 26-pct in Aug; India, China surge Sri Lanka's tourist arrivals surged 26.1 percent in August 2013 from a year earlier to 100,224, with India, Germany and China surging, official data showed.Arrivals up to August were up 14.3 percent to 711,446.Indian arrivals, the largest source market, rose 29.2 percent to 14,528 in August showing strong growth for the second month in a row after bucking a near two year trend in lackluster performance. [Source: www.lbo.lk] Rupee bond markets turn bullish following NSB dollar bond issue The much-awaited National Savings Bank (NSB) dollar bond issue, at which it was successful in raising an amount of US $ 750 million, saw secondary market bond yields reverse an upward trend it had witnessed over the past three weeks towards the latter part of the week ending 13 September 2013. [Source: www.ft.lk]

Global
WTI Falls After Biggest Weekly Drop Since July on Syria Talks West Texas Intermediate crude fell for a second day on signs that the threat of imminent military strikes against Syria is receding as the U.S. pursues a plan to confiscate the nations chemical weapons.WTI for October delivery slid as much as $1.73 to $106.48 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.63 at 10:10 a.m. London time. Last week it slid 2.1 percent. The volume of all futures traded was 35 percent more than the 100-day average [Source: www.bloomberg.com] Indian Inflation Unexpectedly Quickens Before Rajan Review Indian inflation unexpectedly accelerated to a six-month high in August as the rupees slide stoked import costs, adding pressure on central bank Governor Raghuram Rajan to sustain efforts to support the currency. The wholesale-price index rose 6.1 percent from a year earlier, compared with Julys 5.79 percent climb, the Commerce Ministry said in New Delhi today. The median estimate of 25 analysts in a Bloomberg News survey was for a 5.7 percent gain. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

Softlogic Equity Research

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

[email protected]
+94 11 7277032

Branches Softlogic Equity Sales

Dihan Dedigama [email protected] +94 11 7277010, +94 77 7689933 Eardley Kern Horana Madushanka Rathnayaka No. 212, 1st Floor, Panadura Road, Horana [email protected] +94 34 7451000, +94 77 3566465 Negombo Krishan Williams No. 121, St. Joseph Street Negombo [email protected] +94 31 2224714-5, +94 77 3569827 Kurunegala Bandula Lansakara No.13, Rajapihilla Mawatha, Kurunegala [email protected] +94 37 2232875, +94 77 3615790 Matara No.8A, 2nd Floor, FN Building, Station Road, Matara +94 41 7451000

[email protected]
+94 11 7277053, +94 77 7348018 Chandima Kariyawasam [email protected] +94 11 7277058, +94 77 7885778 Sonali Abayasekera [email protected] +94 11 7277051, +94 77 7736059 Thanuja De Silva [email protected] +94 11 7277059, +94 77 3120018

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Softlogic Equity Research

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