Monday, September 09, 2013

Today 5,605.26 3,132.10 Point Change - 67.38 - 45.07 % Change -1.19 % q -1.42 % 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

-0.7% 1.5% 323.7 895.8 17.3 37.4 2,308.7 107.2 143.5 36.3 18.4

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]

ASPI downtrend persists

CSE Diary for 09.09.2013

Big caps continue lead downtrend: The benchmark index dips a further 67 points today with some of the large blue chip counters leading the decline of the index while some volatility was also observed during the day. Ceylon Tobacco, Asian Hotels and Properties and John Keells Holdings led to the plunge in the index. S&P SL20 also had a similar steep drop of 45 points. JKH tops turnover with sole crossing: John Keells Holdings registered the only crossing for the day of 241k shares which changed hands at LKR209.0. Onboard trading was active in the counter though on to the selling side as the counter slipped to LKR206.4 (-1.4%) at close of trading. Banking counters suffer: Selling pressure continued to remain strong in banking sector counters as Commercial Bank and Sampath Bank continued to lose ground. The former fell to LKR113.8 and later to LKR179.0 with dips of 0.6% and 3.2% respectively.

Interest was also visible in Central Finance, Lanka IOC and Access Engineering. Some activity among retailers: Retail activity though on a lower scale was noted in Access Engineering, Panasian Power, Richard Pieris and Central Investments and Finance. However, selling pressure seemed to be higher in most of the counters.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Aug-13 as at 06.09.2013 YoY Change Annual Avg Week ending 06.09.2013 8.61 9.64 10.56 11.84 -13.25 6.3 8.0

6400 6200 6000

Index

5800
5600 5400 5200

ASPI
3600 3500 3400 3300 3200 3100 3000 2900

Turnover LKR ('mn)

2,500 2,000 1,500

100.0 80.0 60.0

Volume ('mn)

Index

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 5,605.3 3,132.1 323.7 2.4 17.3 229 2,308.7 143.5 36.3 107.2 15.9 2.1 2.8 Today 12,339.6 18,799.8 2,584.5 1,657.2 639.5 3,095.4 503.4 2,673.6 669.1 149.7

Pre Day 5,672.6 3,177.2 239.3 1.8 21.3 222 2,336.4 104.9 108.3 -3.4 16.1 2.2 2.8 Pre Day 12,377.3 19,499.1 2,629.0 1,668.6 635.5 3,117.7 504.4 2,694.4 673.0 151.5

Change % -1.19% q -1.42% q 35.26% 35.26% -18.74% 3.15% -1.19% 36.76% -66.49% -3270.15% -1.19% -1.19% 0.00% % Change -0.30% -3.59% -1.69% -0.68% 0.63% -0.71% -0.20% -0.77% -0.58% -1.20% q q q q p q q q q q

Last Week 5,782.7 3,229.1 277.1 2.1 25.6 208 2,381.7 140.7 130.1 10.6 16.4 2.2 2.7 Last Week 12,555.7 19,895.1 2,657.3 1,703.1 638.8 3,140.3 522.1 2,844.7 675.3 157.3

% WoW Change -3.07% -3.00% 16.79% 16.79% -32.38% 10.10% -3.07% 2.00% -72.09% 907.33% -3.07% -3.07% 3.70% % WoW Change -1.72% -5.51% -2.74% -2.70% 0.11% -1.43% -3.57% -6.02% -0.92% -4.88% 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% 3.0% 4.6% 3.0% 3.9% 3.0% 2.8% 2.1% 2.0% 2.3% 1.0% 1.5% 1.4% 1.3% 1.2%

Volume 710,493 237 301 441 916 277,898 5 1,300 3,004 500 22,497 35,290 710 11,710 83,381 3,713

Turnover LKR ('000) 148,115.52 252.52 108.53 881.39 35.66 31,634.99 3.36 10.33 450.60 56.80 4,054.94 1,767.71 107.13 1,381.90 15,177.33 233.16

Turnover USD ('000) 1,113.93 1.90 0.82 6.63 0.27 237.92 0.03 0.08 3.39 0.43 30.50 13.29 0.81 10.39 114.14 1.75

Intraday High (LKR) 209.00 1,100.00 365.00 2,008.70 39.90 114.50 672.00 8.10 150.00 113.60 184.90 50.10 151.00 118.10 185.50 69.00

Intraday Low (LKR) 206.00 1,017.00 358.00 1,980.50 38.00 113.70 672.00 7.90 148.90 113.60 180.00 50.00 150.00 117.50 178.90 62.60

Close 206.40 1,030.30 358.40 1,998.00 38.50 113.80 672.00 7.90 148.90 113.60 180.20 50.10 150.90 118.10 179.00 62.80

Price Gainers
Company
CIFL SERENDIB ENG.GRP PC HOUSE PCH HOLDINGS RAMBODA FALLS

Price Losers
Today 1.00 109.90 0.80 1.00 12.50 Change + 0.30 + 14.90 + 0.10 + 0.10 + 1.00 % Change Company 42.86% 15.68% 14.29% 11.11% 8.70%
MACKWOODS ENERGY BLUE DIAMONDS [X] HUEJAY AHOT PROPERTIES CEYLON TOBACCO

Today 6.00 0.70 50.00 62.80 1,030.30

Change - 1.00 - 0.10 - 5.00 - 6.00 - 86.30

% Change -14.29% -12.50% -9.09% -8.72% -7.73%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK SAMPATH CENTRAL FINANCE LANKA IOC

Today 206.40 113.80 179.00 184.50 25.40

Pre Day 209.40 114.50 185.00 183.10 25.40

% Change -1.43% -0.61% -3.24% 0.76% 0.00%

Volume (mn) 0.71 0.28 0.08 0.07 0.42

Contribution to Total T/O 6.4% 1.4% 0.7% 0.5% 0.5%

Turnover (LKR) 148,115,525 31,634,988 15,177,331 12,150,700 10,715,156

Most Active
Company
CIFL PANASIAN POWER RICHARD PIERIS JKH BLUE DIAMONDS

Today 1.00 2.30 5.90 206.40 1.60

Pre Day 0.70 2.40 6.10 209.40 1.70

% Change 42.86% -4.17% -3.28% -1.43% -5.88%

Volume (mn) 4.54 2.81 1.06 0.71 0.67

Contribution to Total T/O 0.2% 0.3% 0.3% 6.4% 0.0%

Turnover (LKR) 4,478,360 6,537,616 6,332,978 148,115,525 1,070,870

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 09.09.2013 122.22 21.74 175.18 2.04 1.34 207.92 132.97

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 21 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

Taprobane Holdings 0 0 Scrip Dividend 0 0 27-09-2013 1/0/1900 1/0/1900 26-09-2013 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

The CSE has directed to suspend trading of listed securities of Touchwood Investments PLC with immediate effect for three market days commencing from 10-09-2013

Material Dealings by Related Parties of Listed Companies

Company SOFTLOGIC HOLDINGS PEOPLE'S LEASING & FIN. Name A K Pathirage People's Bank Relationship Transaction Chairman Purchase Common Directors Purchase Quantity 320,624 100,000 Price (LKR) 8.10-8.40 13.50-13.80 Date 5.9.2013-6.9.2013 5.9.2013-6.9.2013

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 14,922.5 2,793.4 6,519.8 14,205.2

Change -15.0 -10.0 -27.6 344.4

Change % -0.10% q -0.36% q -0.42% q 2.48% p

Time* 16:34 06:23 06:23 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 110.05 83.46 644.00 1,387.10 328.90

Change -0.48 0.25 -3.75 0.60 2.75

Change % -0.43% q 0.30% p -0.58% q 0.04% p 0.84% p

Time* 06:09 05:52 06:29 06:09 06:09 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka rubber exporter hit by falling prices Sri Lanka's Eastern Merchants, a rubber export firm said it lost 17 million rupees in the year to March 2013, from a profit of 105 million rupees a year earlier as world rubber prices dropped.Revenues also dropped to 2.5 billion rupees from 4.6 billion rupees a year earlier. "Our turnover was mainly affected due to sluggish sales of natural rubber, which is the main revenue generator of our Company," chairman J B L de Silva told shareholders. [Source: www.lbo.lk] Sri Lanka expects more foreign portfolio investments Sri Lanka is expecting more foreign investment into shares, officials who participated in a forum in Hong Kong have said.Sri Lanka's Securities and Exchange Commission said in a statement that over 100 institutional, high net worth investors, and fund managers participated in the investment forum where 11 Sri Lankan firms were showcased."We are pleased to have received a positive response from participants for our first ever investor event in Hong Kong," Colombo Stock Exchange chairman Krishan Balendra was quoted as saying in the statement. [Source: www.lbo.lk] Lifeline for distressed Licensed Finance Companies The Central Bank has come with a lifeline offer for distressed finance companies subject to several conditions. The Central Bank said with a view to sustaining financial system stability and enhancing public confidence in the financial system, it has decided to implement a Liquidity Support Scheme (LSS) for any licensed finance company (LFC) that faces liquidity constraints, thereby enabling such LFCs to revive and restructure operations. [Source: www.ft.lk] Rupee and 5-year bond yield gains amid liquidity fluctuations The overnight surplus liquidity in money markets witnessed some fluctuations for the week ending 6 September, as it decreased from a weekly high of Rs. 31.48 during the start of the week to a low of Rs. 13.25 billion by the later part of the week. A dollar inflow into the system was seen as the reason behind the increase in liquidity last Friday (30 August) while continuous Open Market Operations (OMO) throughout the week in order to mop up the build-up in liquidity was seen as the reason behind the decline. [Source: www.ft.lk]

Global
China Inflation Stays Subdued as Producer-Price Drop Eases Chinas consumer inflation stayed below target for an eighth month while factory-gate prices fell by the least in six months, reflecting an economic pickup that leaves room for officials to add stimulus if needed. The consumer-price index rose 2.6 percent, the National Bureau of Statistics said in a statement today in Beijing, matching the median forecast in a Bloomberg News survey. The producer-price index dropped 1.6 percent in August, the 18th straight decline, after Julys 2.3 percent decrease. [Source: www.bloomberg.com] Pound Approaches 7-Month High Versus Euro Before Osborne Speech The pound strengthened toward a seven-month high versus the euro before U.K. Chancellor of the Exchequer George Osborne delivers a speech today in which he will promise to stick to the governments austerity plan. Sterling advanced for a second day versus the dollar before a report on Sept. 11 economists said will show jobless claims fell last month. Unemployment in July held at 7.8 percent, according to a separate Bloomberg survey, above the Bank of Englands 7 percent threshold for assessing interest rates. [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

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