Wednesday, September 18, 2013

Today 5,700.74 3,157.38 Point Change - 4.52 - 4.52 % Change -0.08 % q -0.14 % 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

1.0% 2.3% 700.1 860.9 40.5 35.0 2,347.9 361.5 561.6 200.1 18.8

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]

JKH spearheaded bourse amidst stagnant mode of indices

CSE Diary for 18.09.2013

Indices ended on marginal grounds: The

and 581.6k shares each at a price of LKR212.0. S&P SL20 players surrounded the top turnover slot: Amidst John Keells Holdings largely outweighing activity in the rest of the counters investors also focused on Commercial Bank and Sampath Bank. The former denoted notable buying interest with a block of 199k shares being picked on-board at LKR113.0 before closing at its intra-day high price at LKR113.0. The latter edged up to the top turnover slot backed by a transaction of 100k shares at LKR174.5. Chevron Lubricants and Cargills gathered some interest. The latter was dominated by an on-board block of 68k shares at LKR155.0. Retailers continued on the sidelines: Selective counters gathered interest as retailer favourites; EChannelling, Orient Garments, Touchwood Investments, Nation Lanka Finance and Tess Agro were active on-board.

benchmark index denoted a stagnant trend following a dip of 21 points during mid-trading as the ASPI ended broadly flat at 5,700.74 (-4.52 points). The main contributors to the dip were Ceylon Tobacco Company (-3.0%), Nestle Lanka (1.25%) and Lion Brewery Ceylon (-2.65%) while the S&P SL20 index follow suited denoting a stagnant trend and closed at 3,157.38 (-4.52 points).

Crossings in JKH and ECL: 12.7mn shares of EChannelling were transacted via an off board block at LKR8.5 while John Keells Holdings recorded a crossing of 519.4k shares which changed hands at LKR213.0 during the final trading hour. Although ECL dominated the turnover during early trading hours, John Keells Holdings outpaced ECL during the latter part of trading supported by two on-board blocks of 310k

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 17.09.2013 YoY Change Annual Avg Week ending 20.09.2013 8.61 10.57 11.74 -14.34 6.3 8.0 9.64

6200 6000

Index

5800 5600 5400 5200

ASPI
3400

Turnover LKR ('mn)

3500 3300 3200 3100 3000 2900

1,400 1,200 1,000 800 600 400 200 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 5,700.7 3,157.4 700.1 5.3 40.5 206 2,347.9 561.6 200.1 361.5 16.2 2.2 2.7 Today 12,391.0 19,013.7 2,647.1 1,706.2 653.1 3,131.8 519.3 2,770.8 683.9 154.3

Pre Day 5,705.3 3,161.9 913.0 6.9 27.9 218 2,349.9 23.5 695.2 -671.7 16.2 2.2 2.7 Pre Day 12,391.0 19,305.3 2,646.8 1,704.4 654.8 3,115.8 514.7 2,759.7 676.7 151.5

Change % -0.08% q -0.14% q -23.32% -23.32% 45.08% -5.50% -0.08% 2293.87% -71.22% -153.82% -0.08% -0.08% 0.00% % Change 0.00% -1.51% 0.01% 0.11% -0.26% 0.51% 0.89% 0.40% 1.06% 1.87% p q p p q p p p p p

Last Week 5,730.2 3,179.0 1,174.6 8.9 30.7 236 2,360.1 857.0 144.7 712.2 16.3 2.2 2.7 Last Week 12,441.1 19,827.5 2,691.1 1,678.8 647.6 3,111.1 519.0 2,818.5 675.4 153.4

% WoW Change -0.51% -0.68% -40.39% -40.39% 31.92% -12.71% -0.52% -34.46% 38.26% -49.24% -0.52% -0.52% 0.00% % WoW Change -0.40% -4.10% -1.64% 1.63% 0.86% 0.67% 0.05% -1.69% 1.26% 0.59% 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 7.7% 8.4% 3.2% 4.5% 3.1% 3.8% 2.9% 2.8% 2.0% 2.0% 2.3% 1.1% 1.5% 1.3% 1.2% 1.3%

Volume 1,483,771 1,011 0 80 100 571,888 144 44,768 53,287 5,891 1,342 8,691 75,421 1,834 144,597 100

Turnover LKR ('000) 315,071.11 1,064.26 0.00 158.00 3.99 64,619.23 95.84 361.33 7,991.20 665.72 239.10 445.39 11,690.29 216.55 25,189.45 6.87

Turnover USD ('000) 2,382.39 8.05 0.00 1.19 0.03 488.61 0.72 2.73 60.42 5.03 1.81 3.37 88.40 1.64 190.47 0.05

Intraday High (LKR) 212.00 1,085.00 0.00 1,976.00 39.90 113.00 666.00 8.20 150.00 113.50 180.00 52.00 158.00 119.00 179.90 68.70

Intraday Low (LKR) 210.50 1,045.00 0.00 1,975.00 39.90 112.00 661.00 8.00 146.00 112.90 178.00 50.00 155.00 118.00 174.00 68.70

Close 212.00 1,046.80 379.00 1,975.00 39.90 113.00 661.00 8.10 150.00 113.00 178.00 52.00 155.00 119.00 174.00 68.70

Price Gainers
Company
ALUFAB MALWATTE [X] BLUE DIAMONDS [X] NATION LANKA FLC HOLDINGS

Price Losers
Today 15.30 4.60 1.10 6.80 2.40 Change + 1.80 + 0.50 + 0.10 + 0.60 + 0.20 % Change Company 13.33% 12.20% 10.00% 9.68% 9.09%
TESS AGRO S M B LEASING CEYLON LEATHER [W 0014] MIRAMAR TALAWAKELLE

Today 1.80 0.60 1.40 43.10 18.60

Change - 0.30 - 0.10 - 0.20 - 5.70 - 1.60

% Change -14.29% -14.29% -12.50% -11.68% -7.92%

Top 05 Performers for the Day

Company
JKH E - CHANNELLING COMMERCIAL BANK SAMPATH CHEVRON

Today 212.00 8.30 113.00 174.00 270.00

Pre Day 211.80 8.10 112.90 175.00 270.10

% Change 0.09% 2.47% 0.09% -0.57% -0.04%

Volume (mn) 1.48 19.00 0.57 0.14 0.04

Contribution to Total T/O 13.4% 6.9% 2.8% 1.1% 0.5%

Turnover (LKR) 315,071,112 161,225,714 64,619,234 25,189,445 12,043,960

Most Active
Company
E - CHANNELLING TOUCHWOOD BLUE DIAMONDS TESS AGRO BLUE DIAMONDS[NON VOTING]

Today 8.30 1.60 2.80 1.80 1.10

Pre Day 8.10 1.70 2.60 2.10 1.00

% Change 2.47% -5.88% 7.69% -14.29% 10.00%

Volume (mn) 19.00 4.24 2.13 2.02 1.71

Contribution to Total T/O 6.9% 0.3% 0.3% 0.2% 0.1%

Turnover (LKR) 161,225,714 6,850,139 5,882,622 3,673,324 1,888,168

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 18.09.2013 123.60 21.60 176.57 2.09 1.33 210.26 132.25

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

DPS (LKR) 0.00 0.00 0.00 0.00 0.00

Proportion 01 for 03 01 for 03

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

Tess Agro Tess Agro 0 Capitalization Right Issues 0 To Be Notified To Be Notified 1/0/1900 To Be Notified 1/0/1900

Source: www.cbsl.gov.lk

New Listing
Company No new listing 0 Type of Security Code 1/0/1900 1/0/1900 Board 1/0/1900 1/0/1900 Offer Price 0.00% 1/0/1900

Key Corporate Diclosures

No Announcements

Material Dealings by Related Parties of Listed Companies

Company ALLIANCE FINANCE Name Mr.D.L.S.R Perera 0 Relationship Director 0 Transaction Purchase 0 Quantity 32,400 0 Price (LKR) 836.00 0.00 Date 17-09-13 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 15,529.7 2,907.6 6,577.4 14,505.4

Change 35.0 16.7 7.2 193.7

Change % 0.23% p 0.58% p 0.11% p 1.35% p

Time* 16:34 07:02 07:02 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 106.20 84.65 645.50 1,300.30 323.30

Change 0.78 0.21 2.50 -9.10 1.00

Change % 0.74% p 0.25% p 0.39% p -0.69% q 0.31% p

Time* 06:51 06:50 07:08 06:50 06:51 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka People's Leasing 'B+' international rating confirmed: Fitch Fitch Ratings said a 'B+' international rating of Sri Lanka's People's Leasing and Finance has been confirmed with a stable outlook. The company's domestic 'AA(lka)' rating has also been confirmed. The state-owned and systemically important People's Bank (PB, AA+(lka)/Stable), has a high propensity but limited ability to provide extraordinary support to PLC if required, because PLC is strategically important to PB and due to other linkages. [Source: www.lbo.lk] Sri Lanka's Tess Agro in Rs117mn cash call Sri Lanka's Tess Agro, a fishery exporter has made a 117 million rupee cash call to finance a European marketing arm and a domestic project. The Tess Agro said it wants to sell 60 million ordinary shares at 1.50 rupees to shareholders at the rate of one for every three existing ones. Another 30 million non-voting shares will be sold at the rate of one for every six existing shares for 90 cents a share. The firm said the money will be used to fund a marketing arm in Belgium and a project to build facilities in Sri Lanka's Muthurajawela area. [Source: www.lbo.lk] Sri Lanka paid another installment for land by India's Krrish: minister India's Krrish group has paid another installment for state land given to their project including interest for delays investment promotion minister Lakshman Abeywardene said. At the time they were given the last extension the firm had paid 4,254.5 million rupees and another 150.8 million had been made recently. "They now have to pay 595 million rupees," Abeywardene told reporters. "And that includes 12 percent interest for delays. " Krrish had said they will complete the payment by October he said. [Source: www.lbo.lk] Sri Lanka Shangri La hotel to start building in October A 450 million US dollar project by Hong Kong based Shangri La in Sri Lanka's capital Colombo will begin construction by end October investment promotions minister Lakshman Abeywardene said. Shangri La is building two hotels, a smaller beach resort at Hambantota in the south of the country and a larger mixed development involving a hotel and other facilities including shopping in Colombo. "We have been told the planning and design will be completed by October 30 and they will begin construction, " minister Abeywardene said. [Source: www.lbo.lk]

Global
Fall in Home Loans Pushing Fed Away From Taper in Mortgage Bonds Federal Reserve policy makers, while considering today whether to taper $85 billion in monthly bond buying, confront a drop in demand for home loans that argues against a cut to their mortgage bond purchases. A surge in mortgage rates to two-year highs has undercut borrowing, pushing down refinancing by more than 70 percent since last September. Wells Fargo & Co. (WFC) said this month originations may fall 29 percent this quarter, while JPMorgan Chase & Co. said volumes may plunge 40 percent in the second half compared with the first six months of the year. [Source: www.bloomberg.com] Stevens to Bear Abbott Stimulus Burden in Slowing Australia Australia today saw the swearing in of its 28th prime minister, with Tony Abbott pledging to rein in spending even as the growth outlook weakens -- stepping up challenges for Glenn Stevens, who begins his final term as central bank governor with the cash rate at a record low. The divergence of monetary and fiscal policy in the worlds 12th largest economy raises the risk of tension between Abbott, 55, and Stevens, 55, who was reappointed by the previous administration. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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

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

l.kern@equity.softlogic.lk
+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

The report has been prepared by Softlogic Stockbrokers (Pvt) Ltd. The information and opinions contained herein has been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only, descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as, an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments. Softlogic Stockbrokers (Pvt) Ltd may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which they are based before the materialized disseminated to their customeLKRNot all customers will receive the material at the same time. Softlogic Stockbrokers, their respective directors, officers, representatives, employees, related persons and/or Softlogic Stockbrokers, may have a long or short position in any of the securities or other financial instruments mentioned or issuers described herein at any time and may make a purchase and/or sale, or offer to make a purchase and/or sale of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principal or agent. Softlogic Stockbrokers may make markets in securities or other financial instruments described in this publication, in securities of issuers described here in or in securities underlying or related to such securities. Softlogic Stockbrokers (Pvt) Ltd may have recently underwritten the securities of an issuer mentioned herein. This document may not be reproduced, distributed, or published for any purposes.

Softlogic Equity Research

Page | 6.