Monday, August 19, 2013

Today 6,224.34 3,494.18 Point Change - 8.87 + 2.63 % Change -0.14 % q 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

10.3% 13.3% 1,130.5 925.9 27.2 40.5 2,563.6 849.3 956.1 106.8 18.0

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]

Index on a downward path; crossing contributing to 77% of the turnover

CSE Diary for 19.08.2013

Indices recovered to close with a gain: Indices depicted a downward path today ending the day with a 9 points loss. Losses on Sri Lanka Telecom (2.4%) and Ceylon Tobacco Company (-0.4%) derailed the overall index performances. Turnover levels were healthy at LKR1.1bn, mainly supported by 77% contributions from off-board transactions. S&P SL20 however ended on a marginally positive ground with a gain of 3 points at 3,494.18. HNB adding 73% to the daily turnover: Hatton National Bank [Non-Voting] spearheaded the turnover, adding nearly 73% to the daily turnover backed by a single off-board transaction of 7mn shares which was dealt at LKR117.5. The counter displayed low activity levels on-board and closed at LKR115.0 with a marginal gain of 0.8%. John Keells Holdings too denoted off-board interest with a single crossing of 195k shares which changed hands at LKR258.0.

COMB and NEST attracted heavy on-board interest: Commercial Bank, which released financials below expectations, displayed notable on-board investor interest supported by two 100k trades at LKR119.5. COMB closed at LKR119.6 with a marginal gain of 0.08%. Nestle Lanka too attracted heavy on-board interest with several large transactions, largest being the 5.2k shares which traded at LKR2,500.0. NEST closed at a 52week high of LKR2,544.8 with a gain of 4.2%. Retail activity on selected stocks: Retail activity was moderate and surrounded on Nations Lanka Finance and Expolanka Holdings..

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 19.08.2013 YoY Change Annual Avg Week ending 16.08.2013 8.61 10.56 11.88 -4.17 6.1 8.3 9.66

6300 6200

Index

6100 6000 5900 5800

ASPI
3500

Turnover LKR ('mn)

3550

2,500 2,000 1,500

100.0 80.0 60.0

Volume ('mn)

Index

3450

3400 3350
3300

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 6,224.3 3,494.2 1,130.5 8.6 27.2 240 2,563.6 956.1 106.8 849.3 17.6 2.4 2.5 Today 13,033.2 22,780.1 2,891.3 1,912.2 658.6 3,216.6 573.6 3,027.9 720.2 157.9

Pre Day 6,233.2 3,491.6 594.5 4.5 27.1 228 2,567.3 190.7 159.7 31.1 17.7 2.4 2.5 Pre Day 13,097.1 22,656.4 2,899.0 1,911.8 655.9 3,219.4 572.1 3,053.6 720.1 160.9

Change % -0.14% q 0.08% p 90.16% 90.16% 0.23% 5.26% -0.14% 401.22% -33.15% 2635.10% -0.14% -0.14% 0.00% % Change -0.49% 0.55% -0.27% 0.02% 0.40% -0.09% 0.26% -0.84% 0.02% -1.82% q p q p p q p q p q

Last Week 6,130.2 3,451.5 372.8 2.8 19.0 235 2,359.2 158.9 90.2 68.7 16.2 2.2 2.5 Last Week 13,073.4 21,003.8 2,884.1 1,926.2 666.5 3,199.1 575.9 3,034.8 722.8 160.9

% WoW Change 1.54% 1.24% 203.24% 203.24% 43.43% 2.13% 8.67% 501.81% 18.36% 1136.79% 8.67% 8.67% 0.00% % WoW Change -0.31% 8.46% 0.25% -0.73% -1.19% 0.54% -0.39% -0.23% -0.36% -1.82% 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 8.7% 9.9% 3.0% 5.3% 2.8% 3.7% 2.7% 2.7% 1.9% 1.9% 2.3% 1.0% 1.3% 1.3% 1.2% 1.2%

Volume 278,982 6,151 84 19,786 892 419,451 143 32,003 581 0 40,240 4,323 201 6,184 25,796 200

Turnover LKR ('000) 72,079.62 8,403.65 33.16 49,433.73 35.67 50,133.15 98.67 274.73 90.06 0.00 7,766.37 224.82 30.37 798.43 4,927.39 14.46

Turnover USD ('000) 548.05 63.90 0.25 375.86 0.27 381.18 0.75 2.09 0.68 0.00 59.05 1.71 0.23 6.07 37.46 0.11

Intraday High (LKR) 260.00 1,385.00 395.00 2,550.00 41.00 119.80 692.50 8.60 155.00 0.00 194.90 52.90 152.00 130.00 193.90 72.30

Intraday Low (LKR) 256.80 1,350.50 394.00 2,449.50 39.90 119.00 690.00 8.50 155.00 0.00 192.70 52.00 151.10 129.00 190.10 72.30

Close 259.30 1,359.40 394.00 2,544.80 39.90 119.60 690.80 8.50 155.00 122.00 194.90 52.10 151.10 129.10 190.90 72.30

Price Gainers
Company
ENVI. RESOURCES [W 0003] G S FINANCE PALM GARDEN HOTL AMF CO LTD E B CREASY

Price Losers
Today 0.40 675.00 89.00 367.70 1,200.00 Change + 0.10 + 125.00 + 14.00 + 37.70 + 100.00 % Change Company 33.33% 22.73% 18.67% 11.42% 9.09%
HARISCHANDRA CEYLINCO INS. NUWARA ELIYA CEYLON BEVERAGE ENVI. RESOURCES [W 0006]

Today 2,000.20 1,100.70 1,200.20 489.00 0.90

Change - 382.80 - 198.30 - 149.60 - 56.00 - 0.10

% Change -16.06% -15.27% -11.08% -10.28% -10.00%

Top 05 Performers for the Day

Company
HNB[NON VOTING] JKH COMMERCIAL BANK NESTLE EXPOLANKA

Today 115.00 259.30 119.60 2544.80 7.40

Pre Day 114.10 256.80 119.50 2441.30 7.40

% Change 0.79% 0.97% 0.08% 4.24% 0.00%

Volume (mn) 7.05 0.28 0.42 0.02 1.92

Contribution to Total T/O 32.3% 2.8% 2.0% 1.9% 0.6%

Turnover (LKR) 827,806,721 72,079,618 50,133,151 49,433,726 14,311,183

Most Active
Company
HNB[NON VOTING] S M B LEASING[NON VOTING] EXPOLANKA S M B LEASING PC PHARMA

Today 115.00 0.30 7.40 0.70 1.10

Pre Day 114.10 0.30 7.40 0.70 1.10

% Change 0.79% 0.00% 0.00% 0.00% 0.00%

Volume (mn) 7.05 4.57 1.92 1.33 1.18

Contribution to Turnover Total T/O (LKR) 32.3% 827,806,721 0.1% 1,370,801 0.6% 14,311,183 0.0% 929,899 0.1% 1,300,631

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 19.08.2013 121.37 21.51 175.39 2.13 1.35 205.63 131.52

CSE Announcements
Dividends
Company Distilleries Company of Sri Lanka PLC Richard Pieris and Company PLC 0 0 0
Company Description

DPS (LKR) 3.00 0.25 0.00 0.00 0.00

Proportion 0 0

XD Date 30-09-2013 28-08-2013 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 08-10-2013 30-08-2013 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 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 15,081.5 2,833.4 6,480.9 13,758.1

Change -30.7 -20.9 -19.1 108.0

Change % -0.20% q -0.73% q -0.29% q 0.79% p

Time* 16:35 07:10 07:11 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 106.95 92.75 648.75 1,373.10 335.00

Change -0.51 -0.57 5.25 2.10 -1.70

Change % -0.47% q -0.61% q 0.82% p 0.15% p -0.50% q

Time* 07:01 07:02 07:21 07:02 07:02 Page | 4.

Source: www.bloomberg.com

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TOP STORIES
Local
SL records US $ 537 mn FDIs in first half Central Bank said the country has received US $ 537 million worth Foreign Direct Investments (FDIs) in the first half of 2013.Sri Lanka has set a FDI target of US $ 2 billion for 2013. In 2012, Sri Lanka received US $ 1.34 billion in FDIs, falling short from a target of US $ 1.5 billion.Meanwhile, net inflows to the stock market and commercial banks in the first half stood at US $120.2 million and US $ 664.3 million respectively. Net inflows to the government securities market amounted to US $ 664.4 million. [Source: www.dailymirror.lk] Good times ahead for insurance industry The insurance industry is expected to grow at a healthy pace as a result of macro economic conditions prevailing in the country. The landscape of the insurance industry will be clearer after 2016,when the composite insurance companies are segregated. All registered insurance companies have increased their capital to Rs 500 million and all have adopted the Risk Based Capital framework."Then we will be in a better position to determine the actual size of the market and forecast an optimal numbers of players", Insurance Board of Sri Lanka Chairperson Indrani Sugathadasa said. [Source: www.dailynews.lk] Sri Lanka to be a current account surplus economy by 2016: CB Governor Central Bank Governor Ajith Nivard Cabraal on Friday expressed confidence that Sri Lanka will be a current account surplus economy by 2016.Sri Lanka has put into motion certain factors into so that the economy undergoes a gradual structural shift, with the five hub concept as discussed in this years roadmap. We have already seen signs of that with the current account deficit being moderated, which will continue over the next few years. Our view is that Sri Lanka, after the next four years, will become a current account surplus economy," Cabraal said . [Source: www.ft.lk] Sri Lanka's Jaffna peninsula seeks more trade and investment Sri Lankas northern Jaffna peninsula, which has emerged from a 30-year civil war, has untapped potential for greater investment and trade officials said."We welcome all the new businesses and investments," K Pooranachandran, president of the Jaffna chamber of commerce and industry said."We are here to help them. The place is very conducive for businesses and new developments." The Jaffna peninsula, which has a population of about 600,000 population, is now looking up businesses in the area linking with other areas in the island. [Source: www.dailymirror.lk]

Global
U.K. Growth Forecasts Raised by CBI as Recovery Builds The Confederation of British Industry raised its forecasts for U.K. economic growth this year and next as business and consumer confidence strengthens and credit conditions improve.The business lobbys quarterly forecasts see the economy expanding 1.2 percent this year and 2.3 percent in 2014. Thats up from 1 percent and 2 percent projected in May. The London-based group also said today that unemployment -- which the Bank of England has set as the key indicator for its guidance on policy -- will fall to 7.6 percent next year after staying at its current 7.8 percent in 2013. [Source: www.bloomberg.com]

China July Home Prices Rise as Nation Seeks Long-Term PolicyChinas new home prices rose the most since January 2011 in the n Chinas new home prices rose the most since January 2011 in the nations four major cities, led by a 17 percent jump in Guangzhou and Shenzhen, on speculation the government will refrain from imposing tighter curbs.Beijing and Shanghai prices both increased 14 percent in July as 69 of 70 cities tracked by the government climbed from a year earlier, according to a statement by the National Bureau of Statistics yesterday. For the third month in a row, the eastern city of Wenzhou was the only one to post a decline. [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 +94 41 7451000

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+94 11 7277053, +94 77 7348018 Chandima Kariyawasam chandima.kariyawasam@equity.softlogic.lk +94 11 7277058, +94 77 7885778 Sonali Abayasekera sonali.abayasekera@equity.softlogic.lk +94 11 7277051, +94 77 7736059 Thanuja De Silva thanuja.desilva@equity.softlogic.lk +94 11 7277059, +94 77 3120018

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