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Thursday, January 30, 2014

Today 6,227.26 3,444.56 Point Change - 24.88 - 12.13 % Change -0.40 % q -0.35 % 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

5.3% 5.5% 808.0 827.0 55.4 39.5 2,599.6 -216.5 88.4 304.9 0.8

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 dipped amidst continued interest in BFI sector

CSE Diary for 30.01.2014


Indices dipped amidst some volatility: Indices moved on a volatile path as the ASPI traded between 6,234.75 and 6,262.06 before settling with a dip of 24 points. Losses in Ceylon Tobacco Company (-1.9%) and John Keells Holdings (-0.3%) weighed negatively on indices while Asiri Hospital Holdings (+4.4%) and Expolanka Holdings (+4.5%) were on the positive side. Consequently the S&P SL20 index recorded a 12 point gain and settled at 3,444.56. 7 crossings for the day: Aitken Spence witnessed four crossings accumulating to 1.65 mn shares at LKR100.0. On-board activity in the counter depicted some selling pressure as a block of 125k shares traded at LKR100.0. Ceylon Tobacco Company and Chevron Lubricants recorded one block each carrying 20k shares and 100k shares at LKR1,300.0 and LKR285.0. Ceylinco Insurance recorded a crossing of 18k shares during the final trading hour at LKR1,390.0.

Continued interest in the BFI sector: Union Bank and Nation Lanka Finance gathered focus with each gaining 4.5% and 7.8% at their intra-day high levels of LKR20.8 and LKR9.7 respectively. Several counters traded at their 52-week high levels including Expolanka Holdings, Nawaloka Hospitals and National Development Bank. Vallibel Power witnessed some activity as it gained 3.5% to LKR5.9 followed by its earnings announcement denoting a 15% YoY growth in net earnings for 3QFY14. Improved retail participation: Retailer activity primarily surrounded finance sector counters; Union Bank, Nation Lanka Finance and Amana Bank. Expolanka Holdings and Vallibel Power also saw some interest.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 30.01.2014 Inflation (%) Dec-13 YoY Change Annual Avg Week ending 31.01.2014 6.82 7.00 7.14 9.66 -35.27 4.7 6.9

6300 6200 6100 6000

Index

5900
5800 5700

ASPI
3500 3450 3400 3350 3300 3250 3200 3150

Turnover LKR ('mn)

2,000 1,500 1,000 500

150.0

Volume ('mn)

Index

100.0
50.0

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 6,227.3 3,444.6 808.0 6.2 55.4 240 2,599.6 88.4 304.9 -216.5 16.8 2.1 2.8 Today 13,946.9 21,739.3 2,892.7 1,845.4 793.2 3,196.2 601.5 3,072.2 752.0 159.2

Pre Day 6,252.1 3,456.7 808.7 6.2 49.4 242 2,609.9 142.0 160.8 -18.8 16.9 2.1 2.8 Pre Day 13,968.3 21,962.9 2,888.0 1,848.1 771.8 3,222.9 611.1 3,072.4 757.6 159.2

Change % -0.40% q -0.35% q -0.09% -0.09% 12.02% -0.83% -0.40% -37.74% 89.63% 1053.16% -0.40% -0.40% 0.00% % Change -0.15% -1.02% 0.16% -0.15% 2.77% -0.83% -1.57% -0.01% -0.74% 0.00% q q p q p q q q q p

Last Week 6,226.1 3,469.1 1,872.1 14.3 131.7 248 2,590.3 762.5 525.8 236.7 16.8 2.1 2.8 Last Week 14,062.6 21,077.9 2,869.1 1,880.2 753.8 3,213.8 604.8 3,105.9 750.4 159.4

% WoW Change 0.02% -0.71% -56.84% -56.84% -57.97% -3.23% 0.36% -88.40% -42.01% -191.45% 0.37% 0.18% 0.00% % WoW Change -0.82% 3.14% 0.82% -1.85% 5.22% -0.55% -0.53% -1.09% 0.22% -0.12%

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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 9.1% 9.4% 2.6% 4.4% 2.5% 3.9% 2.4% 3.0% 2.0% 1.6% 2.4% 1.4% 1.3% 1.5% 1.1% 1.1%

Volume 20,219 38,732 1,524 1,029 10,301 100,155 2 8,000 3,545 1,930,251 20,101 5,100 50 13,978 32,244 2,400

Turnover LKR ('000) 4,856.18 50,353.96 526.06 2,213.24 371.05 12,719.19 1.23 76.02 568.20 193,099.25 4,242.56 381.50 7.51 2,108.89 5,618.99 151.46

Turnover USD ('000) 37.15 385.16 4.02 16.93 2.84 97.29 0.01 0.58 4.35 1,477.04 32.45 2.92 0.06 16.13 42.98 1.16

Intraday High (LKR) 241.80 1,325.00 349.50 2,175.00 36.70 127.50 614.80 9.60 161.00 101.50 212.50 75.00 150.10 151.50 176.00 65.50

Intraday Low (LKR) 237.20 1,299.90 345.00 2,149.00 36.00 126.00 614.80 9.50 159.00 100.00 211.00 74.50 150.10 150.00 173.10 63.00

Close 240.00 1,300.00 345.20 2,150.00 36.00 127.00 614.80 9.50 159.90 100.10 211.00 74.50 150.10 150.70 174.00 63.10

Price Gainers
Company
SWISSTEK TESS AGRO [X] CITRUS LEISURE [W0019] DUNAMIS CAPITAL BRAC LNKA FNANCE

Price Losers
Today 20.80 1.30 1.40 14.00 8.60 Change + 1.80 + 0.10 + 0.10 + 1.00 + 0.60 % Change Company 9.47% 8.33% 7.69% 7.69% 7.50%
MIRAMAR CEYLON LEATHER [W0014] LANKA CENTURY [W0006] CEYLON LEATHER [W0013] BERUWELA WALKINN

Today 42.70 1.40 0.80 0.90 94.00

Change - 12.30 - 0.40 - 0.20 - 0.20 - 10.80

% Change -22.36% -22.22% -20.00% -18.18% -10.31%

Top 05 Performers for the Day


Company
AITKEN SPENCE EXPOLANKA CEYLON TOBACCO UNION BANK CHEVRON

Today 100.10 9.30 1300.00 19.70 285.00

Pre Day 101.00 8.90 1325.60 19.90 282.50

% Change -0.89% 4.49% -1.93% -1.01% 0.88%

Volume (mn) 1.93 9.11 0.04 2.20 0.10

Contribution to Total T/O 7.4% 3.2% 1.9% 1.7% 1.1%

Turnover (LKR) 193,099,253 83,869,619 50,353,963 44,445,915 28,942,725

Most Active
Company
EXPOLANKA NAWALOKA NATION LANKA S M B LEASING ASIA ASSET

Today 9.30 3.50 9.50 1.40 1.90

Pre Day 8.90 3.40 9.00 1.50 2.00

% Change 4.49% 2.94% 5.56% -6.67% -5.00%

Volume (mn) 9.11 4.77 3.05 2.75 2.25

Contribution to Total T/O 3.2% 0.6% 1.1% 0.2% 0.2%

Turnover (LKR) 83,869,619 16,549,658 28,502,300 4,035,857 4,274,755

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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 30.01.2014 114.08 21.59 178.50 2.09 1.28 216.46 130.73

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 SOFTLOGIC HOLDINGS Name Mr. A K Pathirage 0 Relationship Chairman 0 Transaction Purchase 0 Quantity 275,000 0 Price (LKR) 11.00 0.00 Date 29-01-2014 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 15,738.8 3,010.6 6,530.3 15,007.1

Change -189.8 -0.8 -14.0 -376.9

Change % -1.19% q -0.03% q -0.21% q -2.45% q

Time* 16:31 05:35 05:35 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 97.93 85.42 554.25 1,253.70 323.70

Change 0.57 -0.13 2.75 -8.50 -0.35

Change % 0.59% p -0.15% q 0.50% p -0.67% q -0.11% q

Time* 05:20 05:17 05:18 05:19 05:19

Source: www.bloomberg.com

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TOP STORIES
Local
Record tea crop in 2013 Sri Lanka harvested a record crop of 340.2Mkgs during the year, surpassing its previous best of 331.4Mkgs recorded in 2010, John Keells Ltd. said.This was a 4.2% increase over 2012, it added. There was an increase of 2.8Mkgs from the high grown region whilst the mediums accounted for an increase of 3.9Mkgs. The main contribution however was from the low grown planting districts with a significant increase of 7.2Mkgs during the year. [Source: www.ft.lk] Millennium Housing closes IPO after first tranche of Rs. 96 m Millennium Housing Developers Ltd. (MHDL) has decided to close its Initial Public Offering (IPO) following the oversubscription of the first tranche of Rs. 96 million. The IPO, first in 2014, involved the issuance of 16 million shares at Rs. 6 in the first tranche and a further equal amount in the event of an oversubscription aimed at raising Rs. 192 million. The final subscription amount will be disclosed shortly. Last morning soon after the IPO opened, MDHL said it had received 368 applications requesting 10.737 million shares worth Rs. 64.4 million. [Source: www.ft.lk] Lanka Century Warrants trade cease Lanka Century Investment said the company Warrants 2014 will cease to trade on February 3, 2014, being the market day immediately preceding the commencement of the exercise period. This is in terms of the Item 2.3 of Section XIII of the circular to shareholders dated March 2, 2010 and conditions endorsed on the certificates in respect of Warrants 2014. The holders of the said Warrants are entitled to exchange their Warrants with an equal number of Ordinary Shares of the Company at Rs 36 per share during the exercise period commencing February 3, 2014 to February 24, 2014, company said. [Source: www.dailynews.lk] Nestl collects record 62 million litres of local fresh milk in 2013 Nestl Lanka PLC, Sri Lankas largest private sector buyer of fresh milk, yesterday announced that it had procured its highest ever collection of 62 million litres of local milk in 2013, marking a 15% growth from 2012. Currently procuring an average of 170,000 litres of fresh milk daily from 18,000 Sri Lankan farmers, the company has played an active role in developing the local dairy sector since the early 1980s, working closely with the local government and farmers over the years to help increase local fresh milk production and help make Sri Lanka become self-sufficient in fresh milk. [Source: www.ft.lk]

Global
German Joblessness Fell More Than Forecast in January German unemployment declined more than forecast in January as companies grew more confident in the strength of Europes largest economy. The number of people out of work decreased by a seasonally-adjusted 28,000 to 2.93 million, after falling a revised 19,000 in December, the Nuremberg-based Federal Labor Agency said today. Economists predicted a drop of 5,000, according to the median of 34 estimates in a Bloomberg News survey. [Source: www.bloomberg.com] China Manufacturing Index Shows Contraction A Chinese manufacturing gauge signaled the first contraction in six months in January as companies cut jobs and creditmarket stresses damped confidence in the worlds second-biggest economy. A Purchasing Managers Index fell to 49.5 from 50.5 in December, HSBC Holdings Plc and Markit Economics said in a statement today. The reading compared with the median 49.6 estimate in a Bloomberg News survey of 14 economists. A number below 50 indicates contraction. [Source: www.bloomberg.com]

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Softlogic Equity Research


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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