Monday, April 07, 2014

Today 6,048.38 3,321.43 Point Change - 6.17 - 1.67 % Change -0.10 % q -0.05 % 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

2.3% 1.8% 537.5 826.7 22.5 40.7 2,531.5 211.1 289.4 78.3 -9.4

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]

COMB steered turnover amidst a dip in indices…

CSE Diary for 07.04.2014
ASPI traded between narrow bands: The benchmark index traded between narrow bands amidst moderate turnover level as the ASPI settled with a 6 points dip at 6,048.38. Losses denoted in Lanka Orix Leasing Company (-3.7%), Ceylinco Insurance (-4.6%) and Cargills (-3.7%) outweighed gains made in John Keells Holdings (+0.7%) and Dialog Axiata (+1.1%). The S&P SL20 index settled broadly flat at 3,321.43. COMB added 38% to the turnover: Interest extended in Commercial Bank as it dominated turnover following fresh foreign buying into the counter over the last week. Two off-board blocks carrying 407k shares were crossed off at LKR125.0 while several onboard blocks were transacted at a similar price before it closed flat for the day at LKR125.0. Interest in diversified sector: Diversified sector encountered interest with large caps; John Keells Holdings and Aitken Spence emerging to the top turnover slot. John Keells Holdings witnessed two

blocks totaling c.169k shares being picked at LKR233.0 and LKR235.0 and touched LKR236.0 at its intra-day high. Activity in Aitken Spence was supported by a 300k share block which traded at LKR98.0. Investors also focused on Lanka IOC which settled with a gain of 0.8% for the day at LKR40.0. Retailer participation on a low note: Retail participation was low with majority of activity surrounding Asia Asset Finance and Lanka IOC.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 04.04.2014 Inflation (%) Mar-14 YoY Change Annual Avg Week ending 04.04.2014 6.64 6.81 7.05 8.64 -21.94 4.2 5.7

6100 6050 6000 5950

Index

5900
5850 5800

ASPI Turnover LKR ('mn)
3350 6,000 5,000

3300

Index

3250

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

3200
3150

3100

0

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 6,048.4 3,321.4 537.5 4.1 22.5 210 2,531.5 289.4 78.3 211.1 16.1 2.0 2.9 Today 13,417.3 19,340.0 2,792.1 1,818.1 852.7 3,193.4 596.3 2,889.6 716.5 182.2

Pre Day 6,054.6 3,323.1 5,041.7 38.6 49.3 213 2,534.1 387.5 4,469.9 -4,082.4 16.2 2.0 2.9 Pre Day 13,474.9 19,404.9 2,796.3 1,815.7 852.7 3,187.9 591.2 2,889.6 710.0 181.1

Change % -0.10% q -0.05% q -89.34% -89.34% -54.36% -1.41% -0.10% -25.32% -98.25% -105.17% -0.10% -0.11% 0.00% % Change -0.43% -0.33% -0.15% 0.13% 0.00% 0.17% 0.87% 0.00% 0.91% 0.61% q q q p p p p q p p

Last Week 5,968.3 3,279.9 464.4 3.6 23.4 235 2,498.0 114.0 58.1 55.8 15.9 2.0 2.9 Last Week 13,288.2 19,273.1 2,734.1 1,780.1 820.9 3,152.0 578.5 2,843.4 717.1 175.0

% WoW Change 1.34% 1.27% 15.74% 15.74% -3.93% -10.64% 1.34% 153.96% 34.67% 278.27% 1.34% 1.34% 0.00% % WoW Change 0.97% 0.35% 2.12% 2.13% 3.87% 1.31% 3.08% 1.62% -0.09% 4.09%

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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% 8.0% 2.8% 4.2% 3.5% 3.9% 2.3% 2.9% 1.9% 1.6% 2.4% 1.4% 1.2% 1.6% 1.2% 1.1%

Volume 282,591 8 1,763 91 5,649 1,625,022 778 2,635 20,181 373,674 111 91 31 10,469 96,702 3,945

Turnover LKR ('000) 66,100.68 8.45 642.67 181.27 277.44 203,126.28 437.86 23.73 3,071.77 36,618.72 22.53 6.84 4.24 1,569.88 17,402.89 243.74

Turnover USD ('000) 506.28 0.06 4.92 1.39 2.12 1,555.78 3.35 0.18 23.53 280.47 0.17 0.05 0.03 12.02 133.29 1.87

Intraday High (LKR) 236.00 1,074.90 368.00 2,000.00 49.80 125.30 566.00 9.10 153.00 98.00 203.00 75.20 136.80 151.50 180.50 63.00

Intraday Low (LKR) 232.00 1,050.00 360.10 1,940.00 46.10 122.10 562.00 9.00 152.00 97.00 202.60 75.10 136.80 149.90 178.50 60.00

Close 234.40 1,074.90 365.00 1,990.00 49.20 125.00 564.20 9.10 153.00 98.00 203.00 75.10 136.80 150.10 180.00 63.00

Price Gainers
Company
S M B LEASING [X] BANSEI RESORTS CFI CARGO BOAT MULLERS

Price Losers
Today 0.50 8.40 92.30 111.90 1.30 Change + 0.10 + 1.30 + 10.70 + 9.90 + 0.10 % Change Company 25.00% 18.31% 13.11% 9.71% 8.33%
LANKA CENTURY [W0006] CEYLON LEATHER [W0014] TESS AGRO [X] TESS AGRO G S FINANCE

Today 0.30 0.70 1.10 1.20 35.40

Change - 0.10 - 0.20 - 0.10 - 0.10 - 2.50

% Change -25.00% -22.22% -8.33% -7.69% -6.60%

Top 05 Performers for the Day
Company
COMMERCIAL BANK JKH AITKEN SPENCE LANKA IOC BAIRAHA FARMS

Today 125.00 234.40 98.00 40.00 144.90

Pre Day 125.00 232.70 98.00 39.70 146.40

% Change 0.00% 0.73% 0.00% 0.76% -1.02%

Volume (mn) 1.63 0.28 0.37 0.72 0.16

Contribution to Total T/O 8.0% 2.6% 1.4% 1.1% 0.9%

Turnover (LKR) 203,126,278 66,100,681 36,618,724 28,989,555 22,504,264

Most Active
Company
ASIA ASSET S M B LEASING PC HOUSE COMMERCIAL BANK EXPOLANKA

Today 2.00 1.20 0.30 125.00 9.00

Pre Day 2.00 1.20 0.30 125.00 9.00

% Change 0.00% 0.00% 0.00% 0.00% 0.00%

Volume (mn) 3.52 2.77 2.16 1.63 1.41

Contribution to Total T/O 0.3% 0.1% 0.0% 8.0% 0.5%

Turnover (LKR) 7,034,775 3,565,692 648,240 203,126,278 12,684,996

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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 07.04.2014 121.27 21.02 178.88 2.17 1.26 216.39 130.56

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

0

New Listing
Company
0

Type of Security
-

Code
1/0/1900

Board
1/0/1900

Offer Price
0.00

0

-

1/0/1900

1/0/1900

0.00%

Key Corporate Diclosures
Lankem Ceylon has purchased from Agarapatana Plantation Ltd, an equity stake of 43.6% in Waverly Power (Pvt) Ltd for a consideration of LKR102mn

Material Dealings by Related Parties of Listed Companies
Company KINGSBURY Name Mr K.D.D. Perera 0 Relationship Transaction Common Director Purchase 0 0 Quantity 1,257,258 0 Price (LKR) 13.0-13.2 0.00 Date 02-04-2014 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 16,412.7 3,201.3 6,648.5 14,808.9

Change -159.8 -29.0 -47.1 -254.9

Change % -0.96% q -0.90% q -0.70% q -1.69% q

Time* 16:15 06:39 06:40 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 100.66 91.99 674.75 1,301.40 301.85

Change -0.48 -0.41 5.00 -2.10 -0.40

Change % -0.47% q -0.44% q 0.75% p -0.16% q -0.13% q

Time* 06:26 06:24 06:26 06:27 06:26

Source: www.bloomberg.com

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TOP STORIES
Local
 Sri Lanka sovereign bond rated 'BB-(EXP)' by Fitch Fitch Ratings has given a 'BB-' 'Expected' rating for Sri Lanka's 500 million US dollar sovereign bond. Fitch said a fiscal deficit of 5.9 percent of gross domestic product in 2013 and a debt burned of 78.3 percent of GDP was at "relatively high levels' but the 2014 budget signaled commitment to better management. But Sri Lanka's external finances was weaker with foreign debt of 35.9 percent of GDP, with similar rated other countries having only 18.9 percent of debt. [Source: www.lbo.lk]  Sri Lanka launches sovereign bond; price guidance 5.5-pct Sri Lanka has begun selling a 500 million US dollar sovereign bond in international markets, a media report said. Bloomberg newswires said price guidance for the 5-year bond has been set at around 5.5 percent. Sri Lanka sold a 5-year one billion dollar bond at 6.0 percent in January but its yield has come down in secondary trading since then.

[Source: www.lbo k]  Sri Lanka tourist arrivals up 17.5-pct in March 2014 Sri Lanka's tourist arrivals rose 17.5 percent to 133,048 in March 2014 from a year earlier backed by strong growth from Eastern Europe, East Asia and India, official data showed. Visitors in the first quarter were up 24.8 percent to 421,501 from a year earlier. Western Europe grew 4.5 percent to 44,824 with Germany up 19.9 percent to 12,448, France up 27.8 percent to 9,266, Austria up 23.8 percent to 1,482. But UK dropped 13.0 percent to 11,823, Switzerland dropped 15.7 percent to 1,419. [Source: www.lbo.lk]  Unemployment rate dips to 4.1% The unemployment rate in Sri Lanka fell to 4.1% in the fourth quarter of 2013, according to the latest data released by the Department of Census & Statistics. The overall unemployment rate reported for females was 6.4% and it was 2.8% for males. The highest unemployment rate was reported from the G.C.E (A/L) and above group, which was about 8.1%. The survey results also revealed that unemployment among females is higher than that among males in all age groups. [Source: www.ft.lk]

Global
 BOJ Seen Doubling ETF Purchases in Next Round of Easing Japan’s central bank will probably double purchases of exchange-traded funds in a second round of monetary easing under Governor Haruhiko Kuroda anticipated in coming months, a Bloomberg News survey of economists shows. The Bank of Japan, which tomorrow is forecast to leave unchanged a 60 trillion yen to 70 trillion yen ($674 billion) target for yearly expansion of the monetary base, will increase annual ETF buys to 2 trillion yen in months ahead, according to a survey of 36 analysts. [Source: www.bloomberg.com]  America’s Fiscal Health Affirmed as Treasuries Demand Rises America’s improving fiscal health is starting to be reflected in the market for Treasuries. As the Federal Reserve scales back its unprecedented bond buying this year, the ability of the world’s largest debtor nation to attract investors underscores the strides the U.S. has made to strengthen its creditworthiness after the worst financial crisis since the Great Depression.

[Source: www.bloomberg.com]

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Softlogic Equity Research
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