Wednesday, April 17, 2013

Today 5,868.53 3,361.99 Point Change + 15.85 + 10.42 % Change 0.27 % p 0.31 % p

ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index

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4.0% 9.0% 610.7 805.0 31.9 38.4 2,248.3 43.7 126.1 82.4 7.0

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]

Positive momentum with turnover centered on JKH and BFI sector

CSE Diary for 17.04.2013

Bourse extends gains on a positive outlook: The benchmark index extended its gains today on a highly positive sentiment in the early trading session. However in the mid trading and late trading the market wandered on a consolidation phase while retaining its earlier gain reflecting a formation of a technically called doji pattern. ASPI gained 16 points to close at 5,868.53. Gains recorded on Distilleries Company (+2.8%), DFCC Bank (+2.4%) and Commercial Leasing and Finance (+2.1%) mirrored on the positive performance of the index. John Keells spearheads turnover: John Keells Holdings strongly contributed to the daily turnover with a single off-board block of 174k shares which was crossed off at a price of LKR249.0. The counter also demonstrated heavy on board retail participation pushing the price towards the LKR250.0 psychological barrier. JKH closed at LKR248.60 ending marginally flat. Ceylon Tobacco

Company and Hayleys highlighted the crossing boards with the former recording a single block of 50k shares at LKR800.0 and the latter also posting a single crossing of 100k shares at LKR295.0.

BFI sector dominates turnover let by NTB: BFI sector continued to attract notable investor interest led by Nations Trust Bank. The counter displayed heavy on-board interest with notable retail participation and denoting two large on-board blocks of 336k shares and 128k shares transacted at prices LKR63.0 and LKR62.0 respectively. NTB closed at LKR62.90, up 3.6%. National Development Bank, and Commercial Bank too attracted heavy investor interest with intra-day gains of 1.5% and 0.3%.
Retail activity centered on penny stocks: Retail counters witnessed notable small-investor participation with counters Blue Diamonds Nonvoting, FLC Holdings and Muller and Phipps demonstrating heavy trading.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Mar-13 as at 17.04.2013 YoY Change Annual Avg Week ending 12.04.2013 9.25 10.25 11.35 13.74 -25.75 7.5 8.8

5900 5850 5800

Index

5750
5700 5650 5600

ASPI

Turnover LKR ('mn)

3400 3350

2,500 2,000 1,500

200.0

Volume ('mn)

150.0 100.0 50.0 0.0

Index

3300 3250 3200

1,000 500
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 5,868.5 3,362.0 610.7 4.9 31.9 229 2,248.3 126.1 82.4 43.7 15.9 2.2 2.3 Today 13,587.8 16,380.4 2,727.7 1,924.8 612.4 3,402.9 502.2 2,616.9 808.8 171.5

Pre Day 5,852.7 3,351.6 1,579.9 12.6 64.6 227 2,242.2 1,333.4 695.7 637.6 15.8 2.2 2.3 Pre Day 13,493.1 16,365.1 2,707.8 1,921.4 609.0 3,387.8 501.0 2,595.2 822.0 171.5

Change % 0.27% p 0.31% p -61.35% -61.35% -50.67% 0.88% 0.27% -90.54% -88.16% -93.14% 0.27% 0.27% 0.00% % Change 0.70% 0.09% 0.73% 0.18% 0.56% 0.45% 0.25% 0.83% -1.60% 0.00% p p p p p p p p q p

Last Week 5,794.3 3,322.5 309.4 2.5 14.1 223 2,219.8 37.9 26.5 11.4 15.7 2.1 2.3 Last Week 13,328.5 16,240.1 2,679.5 1,904.0 589.3 3,385.0 493.1 2,571.8 812.6 171.0

% WoW Change 1.28% 1.19% 97.39% 97.39% 126.57% 2.69% 1.28% 232.72% 211.21% 282.51% 1.28% 1.28% 0.00% % WoW Change 1.95% 0.86% 1.80% 1.09% 3.93% 0.53% 1.85% 1.75% -0.47% 0.29% 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 9.5% 6.6% 3.9% 4.2% 3.5% 4.0% 3.2% 3.4% 2.5% 2.2% 2.2% 1.2% 1.5% 1.7% 1.6% 1.4%

Volume 406,998 50,241 3 1,004 26,804 211,616 106 83,529 109,373 793 2,957 52,853 360 101,380 113,739 208

Turnover LKR ('000) 101,287.42 40,190.62 1.35 1,775.58 1,153.75 24,180.70 74.87 776.85 19,110.76 95.22 493.59 2,942.02 54.93 14,936.59 24,753.44 14.56

Turnover USD ('000) 807.91 320.58 0.01 14.16 9.20 192.88 0.60 6.20 152.44 0.76 3.94 23.47 0.44 119.14 197.44 0.12

Intraday Intraday High (LKR) Low (LKR) 249.00 799.80 450.00 1,770.00 43.10 114.50 720.00 9.40 176.00 120.10 170.00 56.50 153.00 149.00 219.00 70.00 248.50 790.00 450.00 1,763.00 43.00 113.50 705.30 9.20 173.00 120.00 164.00 55.00 152.50 142.10 216.00 70.00

Close 248.60 790.10 450.00 1,765.40 43.00 114.20 705.60 9.30 173.80 120.00 168.00 55.40 152.50 147.90 217.20 70.00

Price Gainers
Company
CITRUS LEISURE [W0019] ENVI. RESOURCES [W0003] LAXAPANA CEYLON LEATHER [W0014] ASIA CAPITAL

Price Losers
Today 3.10 1.50 5.50 4.00 29.00 Change + 0.50 + 0.20 + 0.70 + 0.50 + 3.00 % Change Company 19.23% 15.38% 14.58% 14.29% 11.54%
HAPUGASTENNE HARISCHANDRA TAPROBANE KURUWITA TEXTILE RADIANT GEMS

Today 33.40 2,000.00 4.20 22.80 52.60

Change - 5.00 - 200.10 - 0.40 - 2.00 - 3.90

% Change -13.02% -9.10% -8.70% -8.06% -6.90%

Top 05 Performers for the Day

Company
JKH NATIONS TRUST CEYLON TOBACCO NAT. DEV. BANK HAYLEYS

Today 248.60 62.90 790.10 170.40 300.40

Pre Day 248.50 60.70 793.90 167.90 292.90

% Change 0.04% 3.62% -0.48% 1.49% 2.56%

Volume (mn) 0.41 1.19 0.05 0.23 0.10

Contribution to Total T/O 4.5% 3.3% 1.8% 1.8% 1.3%

Turnover (LKR) 101,287,424 74,567,016 40,190,625 39,647,211 29,750,255

Most Active
Company
BLUE DIAMONDS[NON VOTING] FREE LANKA MULLERS CITRUS LEISURE[WARRANTS] RAIGAM SALTERNS

Today 1.70 2.90 1.70 3.10 2.50

Pre Day 1.60 2.90 1.60 2.60 2.40

% Change 6.25% 0.00% 6.25% 19.23% 4.17%

Volume (mn) 3.02 2.72 1.64 1.50 1.42

Contribution to Total T/O 0.2% 0.3% 0.1% 0.2% 0.2%

Turnover (LKR) 5,144,553 7,866,440 2,796,566 4,468,049 3,476,724

Softlogic Equity Research

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan Malaysia Russia Saudi Arabia Singapore Switzerland Thailand UK USA Dollar Yuan Euro Rupee Yen Ringgit Rouble Riyal Dollar Franc Baht Pound Dollar Indicative Rate 17.04.2013 130.00 20.30 165.23 2.32 1.28 41.38 4.01 33.43 101.72 135.87 4.33 192.59 125.37

Announcements
Dividends
Company No Announcements 0 0 0 0 0 0 0
Company Description

DPS (LKR) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proportion 0

XD Date 0 0 0 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00

XR Date

Payment Date 00-Jan-00 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

No Announcements 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

Global Markets
Index AMERICA Dow Jones Industrial Average S&P 500 Index EUROPE EURO STOXX 50 Price EUR FTSE 100 Index ASIA Nikkei 225 Hong Kong Hang Seng Index
* Time is as at ET

Value 14,756.8 1,574.6 2,574.3 6,256.7 13,382.9 21,569.7

Change 157.6 22.2 -34.8 -46.1 161.5 -102.4

Change % 1.08% p 1.43% p -1.34% q -0.77% q 1.22% p -0.47% q

Time* 16-Apr 16-Apr 07:35 07:35 02:28 04:01

Source: www.bloomberg.com

Commodity Markets
Commodity ENERGY Crude Oil (Brent) Crude Oil (WTI) AGRICULTURE ICE Cotton #2 CBOT Wheat METALS COMEX Gold COMEX Silver COMEX Copper
* Time is as at ET

Units USD/bbl. USD/bbl. USd/lb. USd/bu. USD/t oz. USD/t oz. USd/lb.

Price 100.39 87.71 85.83 708.00 1,373.80 23.10 322.60

Change -0.86 -1.02 0.41 0.50 -13.50 -0.57 -9.90

Change % -0.86% q -1.33% q 0.42% p 0.04% p -0.81% q -2.04% q -2.93% q

Time* 14:29 07:31 07:21 07:45 07:25 07:26 07:45

Source: www.bloomberg.com

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CSE Announcements

Dealing by Directors:
Company Name Relationship Common Director Common Director Common Director Common Director Common Director Common Director Director Transaction Quantity Sale Purchase Sale Sale Sale Sale Purchase 171,720 275,000 716,168 129,840 162,320 59,253 275,000 Price (LKR) 55.0-58.0 55.0 55.0-55.2 55.0-56.0 55.0-55.1 55.0 55.0 Date 12.04.13 17.04.13 12.04.13 12.04.13 12.04.13 12.04.13 12.04.13

Singalanka Standard Chemicals [SING: LKR65.0] K. G. Plastics (Private) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Best Real Invest Co. Services (Pvt) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Penpals (Pvt) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Photo Kina (Private) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Cinemas (Pvt) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Paper Containers (Private) Ltd Singalanka Standard Chemicals [SING: LKR65.0] Mr. K.C Vignarajah

Local News
Sri Lanka power tariffs raised: Sri Lanka's power regulator has approved a tariff request by state-run Ceylon Electricity Board denying a request to reduce tariffs of large domestic users, after earlier cutting of LKR40 bn in estimated costs. Under the new tariffs a proposal to charge domestic users by the highest rated block instead of differently priced slabs, which ran into stiff opposition at a public hearing had also been approved. Low user, domestic users had been the most highly subsidized users along with religions categories, industry and government offices. The regulator denied a request by the CEB to reduce the tariff of large domestic users to LKR32 above 900 units a month and has maintained a rate of 34 plus 40% fuel surcharge. Other tariff requests to general purpose, government, religious and industry had been approved. The regulator has imposed a series of conditions on the CEB. [Source: www.lbo.lk] Sri Lanka should be less dependent on foreign borrowings: Central Bank: Sri Lanka should depend less on foreign capital to bridge a savings investment gap, to make the economy more resilient to external shocks, the Central Bank has said. Sri Lanka had an investment ratio of 30.6 percent of Gross Domestic Product in 2012 but domestic savings were only 17%. National savings were higher at 24% mostly due to remittance flows. "We should increase domestic savings," Central Bank Governor Nivard Cabraal said at the release of the bank's annual report on the economy for 2012. "By 2016 we hope to generate resources for investments domestically." The Central Bank is projecting investments to rise to 33% of GDP by 2016 and domestic savings to 28.4%. National savings which include remittances are projected to rise to 34.2%. "Also, foreign capital may be used to partly bridge the savings-investment gap, yet, it may not necessarily constitute a perfect substitute for domestic savings, because of the external finance premium attached to it," the Central Bank said. "Hence, over the long term, increasing the economys potential income by improving productivity of capital may yield sustainable outcomes. Further, for the corporate sector, financing investments from external sources may not be difficult in good times, but the possibility of a reversal in capital inflows could create economic vulnerabilities" [Source: www.lbo.lk] Sri Lanka Treasuries yield steady: Sri Lanka's Treasuries yields eased 01 basis point across maturities at Wednesday's auction with the 12-month yield at 11.34% the state debt office said. The 3-month yield was down 01 basis point at 9.24% and the six month yield was 10.24% also down 01 basis point. The debt office which is a unit of the Central Bank offered LKR8.0 bn of maturing debt for roll-over and sold LKR14.0 bn in bills. Softlogic Equity Research Page | 5
5

[Source: www.lbo.lk] Global economy to grow 3.3-pct led by US, emerging economies: IMF, The global economy will grow 3.3% in 2013 with the United States growing 1.9%, emerging and developing nations growing 5.3% and the Euro area contracting 0.3%, the International Monetary Fund has said. "What was until now a two-speed recovery, strong in emerging market and developing economies but weaker in advanced economies, is becoming a three-speed recovery," IMF economic counsellor Olivier Blanchard said in the agency's April World Economic Outlook. "Emerging market and developing economies are still going strong, but in advanced economies, there appears to be a growing bifurcation between the United States on one hand and the euro area on the other." [Source: www.lbo.lk] Sri Lanka central bank may buy gold: CB Governor: Sri Lanka's central bank, an active trader in gold which cut its holdings last year may buy into gold, now that it is falling, Central Bank Governor Nivard Cabraal has said. "Overall, gold prices coming down is giving an opportunity to various central banks across the world to improve on their holdings," Cabraal told Bloomberg television in an interview. "An opportunity that provides us with space to purchase a little more quantities and hold in our own reserves would be an interesting one." Sri Lanka's central bank which had as much as 16 tonnes of gold by mid 2011 has gradually sold down its stock, helping boost returns on its reserve assets and central bank profits. By the end of 2011 its gold stock was down to 9.98 tonnes and by end 2012 it was down to 3.6 tonnes, according to World Gold Council data. During the last credit bubble that ended in 2008 gold went up to around 1,300 dollars an ounce, fell to 900 and climbed back to 1,800 dollars an ounce amid quantity easing by the Fed and other central banks. Now gold has tumbled to about 1375 dollars an ounce and oil and other commodity prices are also falling. [Source: www.lbo.lk]

Global News
UK unemployment rises to 2.56 million: UK unemployment rose by 70,000 to 2.56 million between December and February, the Office for National Statistics (ONS) has said. It meant the unemployment rate for the quarter was 7.9%. The number of people claiming Jobseeker's Allowance last month fell by 7,000 to 1.53 million. Also, the ONS said average regular pay, excluding bonuses, rose 1%, the lowest since records began more than a decade ago. The number of people in work fell by 2,000 in the latest quarter to February, to just under 30 million, the first time the figure has dipped since autumn 2011. [Source: www.cnn.com] India Gains as Gold Plunge Boosts Scope for Rate Cuts: The gold rout may narrow Indias record currentaccount deficit, easing pressure on the rupee, damping inflation and boosting scope for a further reduction in interest rates. Gold purchases account for more than two-thirds of the deficit, which reached USD32.6 bn in the quarter ended Dec. 31, according to the Reserve Bank of India. The metals 18% plunge in 2013 could help cut import costs by almost USD7 bn in the 12 months ending March 2014, Barclays Plc said. Indias finance minister is visiting North America to woo investors as a slide in foreign direct investment increases reliance on more volatile stock and bond inflows to fund the trade imbalance. The shortfall, along with price pressures, has restricted the central bank to a 50 basis-point rate reduction this year even with economic expansion at a decade low. [Source: www.bloomberg.com]

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