Wednesday, August 07, 2013

Today 6,151.79 3,479.87 Point Change + 30.34 + 2.83 % Change 0.50 % p 0.08 % 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

9.0% 12.8% 725.0 913.4 40.5 40.2 2,367.4 208.3 394.6 186.3 16.1

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]

Index held green on a single counter

CSE Diary for 07.08.2013

Index on green with Nestle gains: The benchmark index surged in early trading however left dormant in most part of trading in the positive territory. ASPI settled at 6,151.79 with a gain of 30 points. Significant gains recorded in Nestle Lanka (+10.3%) lifted the index followed by minor gains in Sri Lanka Telecom (+2.3%) and Distilleries Company (+1.3%). However S&P SL20 closed with a slight gain of 9 points at 3,485.68. Crossings in heavy caps added 35% to the turnover: Chevron Lubricants spearheaded the turnover supported by a single off-board transaction of 567k shares at LKR308.5. Distilleries Company and Lanka IOC denoted some offboard interest where the former recorded two crossings totaling to 393k shares at LKR192.0-192.5 and latter transacted 2mn shares which changed hands at LKR25.5. And these two counters

displayed on-board interest too during trading hours. On-board investor interest on AEL and COMB: Access Engineering continued its dominance in the on-board turnover list with significant number of large blocks, the largest being the 250k transaction which was traded at LKR21.0. The counter closed at LKR21.0 with a gain of 1.5%. BFI sector counter heavy capped Commercial Bank displayed notable investor interest supported by a single large block of 104k shares which was transacted at LKR120.0. COMB ended at LKR119.3 with a slight dip of 0.3%. Retail interest surrounded selected counters: Retail participation was concentrated on Textured Jersey and Central Investment and Finance. The former closed at a 52-week high at LKR13.6 with an intraday gain of 0.7%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 07.08.2013 YoY Change Annual Avg Week ending 07.08.2013 8.63 10.57 11.75 -28.97 6.1 8.3 9.66

6200 6150 6100 6050 6000 5950 5900 5850

Index

ASPI
3500

Turnover LKR ('mn)

3550 3450 3400 3350 3300 3250

2,000 1,500 1,000 500 0

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 6,151.8 3,479.9 725.0 5.5 40.5 244 2,367.4 394.6 186.3 208.3 16.3 2.2 2.5 Today 13,091.5 21,015.7 2,846.3 1,947.2 662.7 3,275.3 574.2 3,056.0 720.8 159.1

Pre Day 6,121.5 3,477.0 531.9 4.0 23.2 229 2,355.8 363.9 213.5 150.4 16.2 2.2 2.5 Pre Day 13,105.5 20,503.7 2,825.7 1,962.4 651.0 3,252.0 570.2 3,055.0 726.3 157.2

Change % 0.50% p 0.08% p 36.31% 36.31% 74.57% 6.55% 0.50% 8.45% -12.76% 38.56% 0.50% 0.50% 0.00% % Change -0.11% 2.50% 0.73% -0.77% 1.80% 0.72% 0.70% 0.03% -0.76% 1.15% q p p q p p p p q p

Last Week 6,037.2 3,429.0 906.3 6.9 14.5 245 2,323.3 147.2 608.5 -461.3 16.0 2.1 2.6 Last Week 13,184.6 19,367.7 2,802.5 1,941.5 657.4 3,243.7 578.7 3,061.4 728.8 157.9

% WoW Change 1.90% 1.48% -20.01% -20.01% 178.54% -0.41% 1.90% 167.99% -69.39% -145.16% 1.90% 1.90% -3.85% % WoW Change -0.71% 8.51% 1.56% 0.30% 0.80% 0.98% -0.78% -0.18% -1.11% 0.70% 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 9.7% 9.5% 3.3% 5.1% 3.0% 4.0% 3.0% 3.0% 2.1% 2.1% 2.4% 1.1% 1.5% 1.5% 1.4% 1.4%

Volume 116,624 4,051 46,111 19,696 39,130 321,181 6,811 138,900 21,575 2,151 464,603 41,297 1,000 78,994 6,245 0

Turnover LKR ('000) 31,348.63 4,872.28 18,460.80 44,216.02 1,562.28 38,506.54 4,706.09 1,192.28 3,299.45 262.37 89,303.52 2,237.70 160.00 10,308.10 1,226.03 0.00

Turnover USD ('000) 238.22 37.02 140.28 335.99 11.87 292.61 35.76 9.06 25.07 1.99 678.61 17.00 1.22 78.33 9.32 0.00

Intraday High (LKR) 270.00 1,212.10 415.00 2,285.00 40.70 120.00 695.00 8.70 153.40 122.10 192.50 54.20 160.00 131.00 197.00 0.00

Intraday Low (LKR) 266.00 1,200.10 400.00 2,050.00 39.20 119.00 690.00 8.50 151.10 121.90 191.00 54.00 160.00 130.00 196.00 0.00

Close 267.50 1,200.30 400.00 2,259.80 40.00 119.30 690.00 8.60 153.00 122.10 192.50 54.10 160.00 130.70 196.20 74.00

Price Gainers
Company
BERUWELA WALKINN CEYLON LEATHER [W 0013] KURUWITA TEXTILE NESTLE BLUE DIAMONDS [X]

Price Losers
Today 76.30 2.40 22.70 2,259.80 1.10 Change + 14.30 + 0.30 + 2.40 + 210.80 + 0.10 % Change Company 23.06% 14.29% 11.82% 10.29% 10.00%
S M B LEASING [X] ENVI. RESOURCES [W 0006] GESTETNER KELANI VALLEY SERENDIB HOTELS [X]

Today 0.30 1.60 156.20 74.30 15.10

Change - 0.10 - 0.20 - 16.60 - 7.30 - 1.30

% Change -25.00% -11.11% -9.61% -8.95% -7.93%

Top 05 Performers for the Day

Company
CHEVRON DISTILLERIES LANKA IOC ACCESS ENG SL NESTLE

Today 310.10 192.50 25.60 21.00 2259.80

Pre Day 308.40 190.00 25.40 20.70 2049.00

% Change 0.55% 1.32% 0.79% 1.45% 10.29%

Volume (mn) 0.59 0.46 3.15 2.63 0.02

Contribution to Total T/O 7.6% 3.8% 3.4% 2.3% 1.9%

Turnover (LKR) 180,726,313 89,303,520 80,230,314 55,171,354 44,216,020

Most Active
Company
PC HOUSE LANKA IOC CIFL ACCESS ENG SL PCH HOLDINGS

Today 1.10 25.60 1.10 21.00 1.20

Pre Day 1.10 25.40 1.10 20.70 1.30

% Change 0.00% 0.79% 0.00% 1.45% -7.69%

Volume (mn) 19.52 3.15 2.85 2.63 1.40

Contribution to Total T/O 0.9% 3.4% 0.1% 2.3% 0.1%

Turnover (LKR) 21,323,026 80,230,314 3,168,071 55,171,354 1,679,644

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 07.08.2013 117.88 21.50 174.97 2.16 1.35 201.65 131.60

CSE Announcements
Dividends
Company Renuka Agri Foods 0 0 0 0
Company Description

DPS (LKR) 0.10 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 26-09-2013 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 04-10-2013 1/0/1900 1/0/1900 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

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

No Announcements.

Material Dealings by Related Parties of Listed Companies

Company PC PHARMA PCH HOLDINGS Name S.H.M Rishan S.H.M Rishan Relationship Chairman Chairman Transaction Sale Sale Quantity 7,113,876 2,044,496 Price (LKR) 1.4-1.5 1.2-1.3 Date 1-8-2013-5-8-2013 1-8-2013-2-8-2013

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 15,518.7 2,788.8 6,553.0 13,824.9

Change -93.4 -2.0 -51.2 -576.1

Change % -0.60% q -0.07% q -0.77% q -4.00% q

Time* 16:34 06:49 06:49 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 105.52 85.88 647.75 1,277.80 315.85

Change 0.22 0.19 -2.75 -3.70 -1.45

Change % 0.21% p 0.22% p -0.42% q -0.29% q -0.46% q

Time* 06:34 06:29 06:53 06:33 06:33 Page | 4.

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka's sovereign rating can be upped on better fiscal, monetary policy: Fitch Sri Lanka's credit rating can be upgraded if fiscal and monetary policy improves leading to greater stability and steady growth and more foreign direct investment and less debt comes for investment, a senior Fitch Ratings official said. Sri Lanka has a 'BB-' speculative rating, three levels below investment grade with a stable outlook. Andrew Colquhoun, head of Asia Pacific sovereign ratings at Fitch, said Sri Lanka has seen higher levels of economic growth and also investment in recent years than many similarly rated countries. [Source: www.lbo.lk] Sri Lanka sells 4-year bonds to yield below market Sri Lanka has sold 4-year Treasury bonds at an auction Wednesday to yield 10.87 percent, the state debt office said, which is lower than the secondary market rate. The debt office said it sold 1.6 billion rupees of bonds maturing on January 15, 2017. In the secondary market a bond maturing January 01, 2017 was quoted at 11.15/25 percent, dealers said, which was much higher than the 10.87 percent average auction yield [Source: www.lbo.lk] Fitch forecasts 7% growth; insists challenges remain Fitch Rating officials yesterday remained cautiously optimistic on Sri Lanka, noting that recent success is overshadowed by growing challenges and risks. Fitch said it forecasts Sri Lankas economy to grow 7% in 2013. To fuel their growth, larger export-driven corporates are likely to seek external funding, along with commercial banks, as they cater to credit demand from exporters that generally lack the scale to tap global bond markets, Fitch said. [Source: www.ft.lk] Keells Super goes Mobile! With Sri Lanka having to experience a mobile penetration thats close to the entire population of the country coupled with the increasing growth in internet access via handsets and smartphones, Keells Super brings mobile shopping for the first time in its industry, adding greater ease and convenience to its shoppers. Registering over 25,000 customers as of today, Keells Super is able to provide a continuous and consistent service to its shoppers both at home and abroad, enabling Sri Lankans living overseas to send a variety of supermarket goods to their loved ones at home. [Source: www.dailymirro.lk]

Global
German Industrial Output Rebounds in Sign of Recovery German industrial production rose in June, adding to signs that growth in Europes largest economy accelerated in the second quarter. Output increased 2.4 percent from May, when it dropped a revised 0.8 percent, the Economy Ministry in Berlin said today. Economists forecast a gain of 0.3 percent, according to the median of 41 estimates in a Bloomberg News survey. Production climbed 2 percent from a year earlier when adjusted for working days. [Source: www.bloomberg.com] BOJ Seen Adding Stimulus by June as 2% Inflation Elusive The Bank of Japan will expand its record easing by June next year as inflation remains distant from its 2 percent target, according to a survey of economists by Bloomberg News. Twenty of 26 analysts expect more stimulus in the next 10 months, while all said the bank would keep policy on hold at a two-day meeting starting today. Consumer prices excluding fresh food, the BOJs preferred measure of inflation, rose 0.4 percent in June. [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

Branches Softlogic Equity Sales

Dihan Dedigama dihan.dedigama@equity.softlogic.lk +94 11 7277010, +94 77 7689933 Eardley Kern Horana Madushanka Rathnayaka No. 212, 1st Floor, Panadura Road, Horana madushanka.rathnayaka@equity.softlogic.lk +94 34 7451000, +94 77 3566465 Negombo Krishan Williams No. 121, St. Joseph Street Negombo krishan.williams@equity.softlogic.lk +94 31 2224714-5, +94 77 3569827 Kurunegala Bandula Lansakara No.13, Rajapihilla Mawatha, Kurunegala bandula.lansakara@equity.softlogic.lk +94 37 2232875, +94 77 3615790 Matara No.8A, 2nd Floor, FN Building, Station Road, Matara

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