Wednesday, September 04, 2013

Today 5,744.89 3,210.96 Point Change - 7.47 + 0.07 % Change -0.13 % q 0.00 % 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: research@equity.softlogic.lk

1.8% 4.1% 431.3 907.1 32.4 39.0 2,366.2 -41.1 168.4 209.5 18.4

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 down trended for the third consecutive day

CSE Diary for 04.09.2013

Colombo Bourse remains stagnant: The Colombo Bourse saw a downward trend for the third consecutive day as the ASPI closed on marginal grounds at 5,744.89 (down 7 points). The main contributors for the dip were John Keells Holdings (-0.84%), Nestle Lanka (-0.98%) and Chevron Lubricants Lanka (-3.71%). S&P SL20 ended on a similar note broadly flat at 3,210.96 as gains on heavy cap; Ceylon Tobacco Company (+2.30%) weighed positively on the index. Heavy caps recorded two off board blocks: John Keells Holdings and Nestle Lanka continued to attract investor attention and collectively contributed 17% to the days turnover. John Keels Holdings recorded 2 crossings accounting to 250k shares at LKR 213.0 while Nestle Lanka registered an off board transaction of 10k shares which changed hands at LKR2,100.0.

S&P SL 20 players dominated the top turnover: S&P SL20 counters; Commercial Bank, John Keells Holdings and National Development Bank traded among the top turnover slot denoting active on board interest and jointly generated 40% of the days turnover. Commercial Bank saw an onboard block of 610k shares which was picked at LKR114.7 and closed at a similar price gaining 0.35%. John Keells Holdings denoted some selling pressure which led the share price to dip to LKR 213.0 (-0.8%) while National Development Banks turnover was led by several mid-sized blocks which traded at LKR145.0 Retail interest surrounded Touchwood: Retailers continued to show interest in Touchwood Investments where mid-sized blocks traded at a declining price and closed at LKR1.5. Vallibel One and SMB Leasing also saw some activity.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 04.09.2013 YoY Change Annual Avg Week ending 06.09.2013 8.61 10.56 11.84 -21.11 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 5,744.9 3,211.0 431.3 3.2 32.4 226 2,366.2 168.4 209.5 -41.1 16.3 2.2 2.7 Today 12,401.3 20,201.0 2,656.7 1,687.8 629.3 3,125.8 511.8 2,766.0 664.2 152.5

Pre Day 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 Pre Day 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

Change % -0.13% q 0.00% p 46.20% 46.20% -9.54% -2.16% -0.13% 82.54% 650.54% -163.87% -0.13% -0.13% 0.00% % Change -0.12% 0.66% 0.00% -0.47% -1.26% -0.25% -0.49% -1.19% -0.60% -0.26% q p p q q q q q q q

Last Week 5,753.2 3,209.9 694.2 5.2 25.8 254 2,369.6 318.6 116.0 202.6 16.4 2.2 2.7 Last Week 12,321.0 20,160.6 2,690.6 1,680.4 636.6 3,150.7 512.2 2,842.0 684.5 154.3

% WoW Change -0.14% 0.03% -37.87% -37.87% 25.40% -11.02% -0.14% -47.15% 80.56% -120.28% -0.14% -0.14% 0.00% % WoW Change 0.65% 0.20% -1.26% 0.44% -1.14% -0.79% -0.07% -2.67% -2.96% -1.18% 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% 9.5% 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 494,967 1,010 708 10,107 4,603 763,934 972 3,905 21,191 15,858 8,457 12,674 641 5,101 12,685 200

Turnover LKR ('000) 105,438.00 1,206.59 254.17 21,215.22 179.88 87,622.32 641.72 31.66 3,096.78 1,812.48 1,593.40 633.91 96.65 603.21 2,359.21 13.60

Turnover USD ('000) 792.77 9.07 1.91 159.51 1.35 658.81 4.82 0.24 23.28 13.63 11.98 4.77 0.73 4.54 17.74 0.10

Intraday High (LKR) 214.00 1,195.00 365.00 2,099.90 40.90 115.00 670.00 8.20 151.00 115.00 189.10 50.40 151.00 119.00 187.80 68.00

Intraday Low (LKR) 212.80 1,190.00 358.00 2,010.00 39.00 114.20 660.00 8.00 145.00 113.60 184.00 50.00 150.00 116.00 183.10 68.00

Close 213.00 1,194.40 359.00 2,020.00 39.00 114.70 670.00 8.10 146.30 114.60 189.00 50.00 150.00 118.00 186.70 68.00

Price Gainers
Company
S M B LEASING [X] ASCOT HOLDINGS MIRAMAR CONVENIENCE FOOD ACL PLASTICS

Price Losers
Today 0.40 128.40 52.50 197.80 86.00 Change + 0.10 + 22.90 + 6.60 + 20.40 + 8.50 % Change Company 33.33% 21.71% 14.38% 11.50% 10.97%
ENVI. RESOURCES [W 0003] TOUCHWOOD CEYLON LEATHER [W 0013] CIFL ENVI. RESOURCES [W 0006]

Today 0.30 1.50 0.90 0.50 0.80

Change - 0.10 - 0.40 - 0.20 - 0.10 - 0.10

% Change -25.00% -21.05% -18.18% -16.67% -11.11%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK NAT. DEV. BANK TOUCHWOOD NESTLE

Today 213.00 114.70 145.00 1.50 2020.00

Pre Day 214.80 114.30 146.30 1.90 2040.00

% Change -0.84% 0.35% -0.89% -21.05% -0.98%

Volume (mn) 0.49 0.76 0.22 16.20 0.01

Contribution to Total T/O 4.5% 3.7% 1.4% 1.2% 0.9%

Turnover (LKR) 105,438,001 87,622,317 32,309,730 27,283,507 21,215,220

Most Active
Company
TOUCHWOOD S M B LEASING PANASIAN POWER CIFL PC HOUSE

Today 1.50 0.60 2.40 0.50 0.70

Pre Day 1.90 0.60 2.40 0.60 0.70

% Change -21.05% 0.00% 0.00% -16.67% 0.00%

Volume (mn) 16.20 1.92 1.71 0.90 0.77

Contribution to Total T/O 1.2% 0.0% 0.2% 0.0% 0.0%

Turnover (LKR) 27,283,507 1,150,313 4,106,139 452,151 533,704

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 04.09.2013 120.96 21.73 175.15 1.97 1.34 207.01 133.00

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 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

TOUCHWOOD INVESTMENTS: A petitioner has filed an application to wind up the company, in respect of an amount of LKR3.79 mn which the petitioner alleges to be due from the Company as at the date of the winding up application.

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 14,834.0 2,732.9 6,433.0 14,053.9

Change 23.7 -20.5 -35.4 75.4

Change % 0.16% p -0.74% q -0.55% q 0.54% p

Time* 16:40 06:43 06:43 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 107.80 83.00 644.75 1,402.70 325.30

Change -0.74 0.29 -2.50 -9.30 -5.15

Change % -0.68% q 0.35% p -0.39% q -0.66% q -1.56% q

Time* 06:30 06:29 06:49 06:30 06:31 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka's Pan Asia Bank becomes gilt dealer Sri Lanka's Pan Asia Bank Plc has been appointed a primary dealer in government securities, the Central Bank said. The bank has been given the nod to start operations from September 16. [Source: www.lbo.lk] Sri Lanka sells smaller bill volume at auction Sri Lanka has accepted only 2.7 billion rupees of bids for an auction of 9.0 billion rupees of maturing bills Wednesday with yields being flat, the state debt office said. The 3-months yield was at 8.61 percent, the 6-month yield was 9.64 percent and the 12-month yield was 10.56 percent. All yields were kept unchanged with only 2.7 billion rupees in bids accepted for a auction which offered 9.0 billion rupees of maturing bills. [Source: www.lbo.lk] Sri Lanka's Sampath Bank plans Myanmar branch, strong credit growth Sri Lanka's Sampath Bank is planning a branch in Myanmar and is expecting 20 percent credit growth this year despite tighter economic conditions, a top official said. The bank already has a stake in a financial firm Bangladesh, which it helped set up, though a part of its stake has been sold down. Sampath, which started in 1986 and has grown to be the third largest private lender in the country, is also selectively also selectively eyeing cross-border lending. This year the Sampath is expecting 20 percent credit growth, despite tighter economic conditions. [Source: www.lbo.lk] Access Engineering to rehabilitate Labugama & Kalatuwawa water treatment plants Access Engineering PLC, continues their prominent presence in the water sector and has commenced work on the rehabilitation of the Labugama and Kalatuwawa Water supply schemes in August of 2013 with completion planned within a period of 3 years. The project, which has a value of 34 Million Euros, is carried out for the National Water Supply & Drainage Board and is funded through a Tied Aid Loan from the Government of Hungary. [Source: www.island.lk]

Global
Euro-Area Exports Drive Economic Rebound After Record Recession The euro-area economy returned to growth in the second quarter after a record-long recession, driven by a rebound in exports from the 17-nation currency bloc. Gross domestic product rose 0.3 percent from the previous three months, in line with an Aug. 14 estimate, the European Unions statistics office in Luxembourg said today. From a year earlier, the economy shrank a revised 0.5 percent. The European Central Bank forecasts a 0.6 percent contraction this year before the region returns to growth in 2014. [Source: www.bloomberg.com] U.K. Services Growth Accelerates to Fastest Pace Since 2006 U.K. services growth unexpectedly accelerated last month to the fastest pace since 2006 as companies reported a surge in demand. A gauge of activity increased to 60.5 from 60.2 in July, Markit Economics and the Chartered Institute of Purchasing and Supply said in a statement today in London. Economists forecast 59.7, according to the median of 26 estimates in a Bloomberg News survey. Readings above 50 indicate expansion. A gauge of new business rose to the highest in more than 16 years. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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Dimantha Mathew dimantha.mathew@equity.softlogic.lk +94 11 7277030 Kavindu Ranasinghe kavindu.ranasinghe@equity.softlogic.lk +94 11 7277031 Imalka Hettiarachchi

imalka.hettiarachchi@equity.softlogic.lk
+94 11 7277032

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