Friday, January 31, 2014

Today 6,248.08 3,443.25 Point Change + 20.82 - 1.31 % Change 0.33 % p -0.04 % 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

5.7% 5.5% 1,335.0 818.4 163.8 40.0 2,608.3 208.8 429.6 220.8 1.0

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]

Heavy speculative interest in the BFI sector

CSE Diary for 31.01.2014

ASPI gains, S&PSL20 flattens: Indices were rather indecisive today, however the gains and interest was mainly focused on the small sized BFI sector counters. ASPI ended at 6,248.08 with a gain of 21 points buoyed by the gains recorded in Asiri Hospital Holdings (+8.4%), Nestle Lanka (+1.5%) and Aitken Spence (+3.3%). S&P SL20 however closed at 3,443.25 with a marginal dip of 1 points. Off-board interest in diverse sectors: Brown & Company topped the crossing board with a single off-board block amounting to c. 991k shares at LKR90.0. Off-board interest was also seen in Nestle Lanka and Chevron Lubricants where the former denoted a single c. 29k share transaction at LKR2,182.0 and the latter crossed 165k shares in one block at LKR285.0. LLUB denoted on-board interest too backed by a single trade of c 79k shares which was picked at LKR285.0. The counter ended at LKR285.1 with a gain of 0.04%. Ceylon Tobacco Company also gathered some off-board interest

during the day . JKH spearhead daily turnover supported by onboard trades: John Keells Holdings spearheaded the daily-turnover backed by a single on-board block of 546k shares at LKR240.0. The counter settled flat at LKR240.0. On-board Investor interest was also seen in the value counter Expolanka Holdings with mounting buying pressure backed by heavy volumes. The counter settled at LKR9.8 with a gain of 5.4%. Notable speculation on small sized BFI counters: Retailer speculation were notable with intra-day rallies on small-sized BFI counters; SMB Leasing (+7.1%), Chilaw Finance (+11.1%), Commercial Credit and Finance (+9.3%) and Trade Finance and Investment (+7.6%)

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 30.01.2014 Inflation (%) Jan-14 YoY Change Annual Avg Week ending 31.01.2014 6.82 7.00 7.14 9.66 -35.27 4.4 6.5

6300 6200 6100 6000

Index

5900
5800 5700

ASPI
3500 3450 3400 3350 3300 3250 3200 3150

Turnover LKR ('mn)

2,000 1,500 1,000 500

200.0

Volume ('mn)

150.0 100.0 50.0

Index

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 6,248.1 3,443.3 1,335.0 10.2 163.8 249 2,608.3 429.6 220.8 208.8 16.9 2.1 2.8 Today 14,055.6 21,742.2 2,905.3 1,858.7 807.6 3,212.2 604.8 3,074.7 755.7 157.5

Pre Day 6,227.3 3,444.6 808.0 6.2 55.4 240 2,599.6 88.4 304.9 -216.5 16.8 2.1 2.8 Pre Day 13,946.9 21,739.3 2,892.7 1,845.4 793.2 3,196.2 601.5 3,072.2 752.0 159.2

Change % 0.33% p -0.04% q 65.23% 65.23% 195.82% 3.75% 0.34% 385.89% -27.57% -196.45% 0.34% 0.34% 0.00% % Change 0.78% 0.01% 0.43% 0.72% 1.82% 0.50% 0.55% 0.08% 0.49% -1.09% p p p p p p p p p q

Last Week 6,255.6 3,478.1 1,452.6 11.1 134.4 244 2,602.6 299.6 684.5 -384.8 16.8 2.1 2.8 Last Week 14,074.7 21,326.3 2,879.0 1,883.6 754.8 3,219.6 619.6 3,114.5 757.3 160.4

% WoW Change -0.12% -1.00% -8.09% -8.09% 21.83% 2.05% 0.22% 43.38% -67.74% -154.26% 0.23% 0.05% 0.00% % WoW Change -0.14% 1.95% 0.91% -1.32% 6.99% -0.23% -2.38% -1.28% -0.21% -1.83%

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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 9.1% 9.2% 2.6% 4.5% 2.5% 3.9% 2.4% 2.9% 2.0% 1.6% 2.4% 1.4% 1.3% 1.5% 1.1% 1.1%

Volume 754,412 23,193 2,138 29,571 5,531 208,915 185 305,540 39,855 80,729 13,815 1,813 766 24,339 58,080 412

Turnover LKR ('000) 181,057.81 30,148.70 737.52 64,512.53 199.25 26,534.95 113.32 2,885.66 6,361.02 8,149.64 2,900.78 135.07 116.43 3,652.04 10,076.43 26.73

Turnover USD ('000) 1,385.34 230.68 5.64 493.61 1.52 203.03 0.87 22.08 48.67 62.36 22.19 1.03 0.89 27.94 77.10 0.20

Intraday High (LKR) 240.00 1,323.00 345.00 2,196.00 36.70 127.40 613.00 9.60 160.00 103.90 210.00 75.00 153.90 151.00 175.00 65.50

Intraday Low (LKR) 239.20 1,281.00 342.20 2,160.00 36.00 126.00 612.50 9.10 159.00 100.00 207.50 74.40 151.00 149.20 173.00 64.00

Close 240.00 1,287.90 345.00 2,181.60 36.50 127.00 612.60 9.20 159.80 103.40 210.00 74.50 153.90 149.90 174.00 65.00

Price Gainers
Company
MIRAMAR G S FINANCE SINHAPUTHRA FIN CEYLON LEATHER [W0014] AGALAWATTE

Price Losers
Today 51.60 447.00 112.00 1.60 27.70 Change + 8.90 + 62.50 + 14.00 + 0.20 + 3.10 % Change Company 20.84% 16.25% 14.29% 14.29% 12.60%
PC HOUSE LANKA ASHOK DURDANS TESS AGRO [X] INDO MALAY

Today 0.50 1,355.00 107.00 1.20 1,340.50

Change - 0.10 - 266.30 - 10.00 - 0.10 - 109.50

% Change -16.67% -16.43% -8.55% -7.69% -7.55%

Top 05 Performers for the Day

Company
JKH BROWNS S M B LEASING CHEVRON NESTLE

Today 240.00 91.00 1.50 285.10 2181.60

Pre Day 240.00 91.50 1.40 285.00 2150.00

% Change 0.00% -0.55% 7.14% 0.04% 1.47%

Volume (mn) 0.75 1.01 53.30 0.27 0.03

Contribution to Total T/O 6.9% 3.5% 3.4% 2.9% 2.5%

Turnover (LKR) 181,057,809 90,483,469 88,610,862 76,280,664 64,512,527

Most Active
Company
S M B LEASING S M B LEASING[NON VOTING] FLC HOLDINGS EXPOLANKA CHILAW FINANCE

Today 1.50 0.50 2.20 9.80 21.00

Pre Day 1.40 0.50 2.20 9.30 18.90

% Change 7.14% 0.00% 0.00% 5.38% 11.11%

Volume (mn) 53.30 44.37 10.21 6.22 3.12

Contribution to Total T/O 3.4% 1.0% 0.9% 2.3% 2.5%

Turnover (LKR) 88,610,862 26,538,906 22,454,831 60,304,721 63,951,542

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan UK USA Dollar Yuan Euro Rupee Yen Pound Dollar Indicative Rate 31.01.2014 114.94 21.56 177.15 2.09 1.27 215.46 130.70

CSE Announcements
Dividends
Company 0 0 0 0 0
Company Description

DPS (LKR) 0.00 0.00 0.00 0.00 0.00

Proportion 0 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

0 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
0

Type of Security
-

Code
1/0/1900

Board
1/0/1900

Offer Price
0.00

1/0/1900

1/0/1900

0.00%

Key Corporate Diclosures

0

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 15,848.6 2,996.9 6,491.1 14,914.5

Change 109.8 -30.4 -47.4 -92.5

Change % 0.70% p -1.00% q -0.72% q -0.62% q

Time* 16:31 05:40 05:39 01:28

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 97.90 86.12 553.00 1,243.30 320.65

Change -0.33 0.09 -0.50 0.80 -2.00

Change % -0.34% q 0.10% p -0.09% q 0.06% p -0.62% q

Time* 05:18 05:14 05:17 05:17 05:18

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka JKH unit gets Air France-KLM agency Mack Air (Pvt) Ltd, a unit of Sri Lanka's John Keells Holdings said it will be the general sales agent for Air France - KLM in the island from February 2014. Romesh David, head of JKH's transportation division said the market would be developed with the synergies synergies generated by other related and complementing businesses within the travel, transportation, leisure and hotel sectors" of the group. Air France-KLM, has a network spread over four continents helping boost tourist arrivals and also catering to needs of the Sri Lankan travellers, the firm said. [Source: www.lbo.lk] First FTA-driven bonus: An FDI pipeline Buoyed by its latest exports turnaround, Sri Lanka is now marshalling its FTAs to directly catapult into major global regions, and for the first time FTAs have become an FDI driver. You will be eligible for even more free trade when we begin our FTA with yet another G20 economy in addition to India, which is China. As a result, 40% of the world population will be directly accessible to Lankan exporters, said Minister of Industry and Commerce Rishad Bathiudeen yesterday. [Source: www.ft.lk] Rupee up on exporter dollar sales The rupee ended firmer on Thursday due to exporter dollar sales in the absence of importer demand for the greenback and intervention from State banks, but dealers expect the currency to fall on possible foreign outflows after the US Federal Reserve further trimmed its monetary stimulus. The Fed announced a further $10 billion reduction in its monthly bond buying as it stuck to plans to wind down its extraordinary stimulus despite the recent turmoil across many emerging markets. The spot rupee ended at 130.63/65 per dollar, firmer from Wednesdays close of 130.72/82. [Source: www.ft.lk] Apparel exports top US$ 4.3 bn in 2013 Apparel exports in 2013 have reached an all time record of US$ 4.3 billion compared with US$ 3.8 billion in 2012," said Joint Apparel Association Forum (JAAF) acting Chairman Noel Priyatilleke. Speaking at the JAFF 10th Annual General Meeting he said that nevertheless, the challenge ahead of us is not only to sustain this business but also to grow because the Government expects Sri Lankan apparel, tea and rubber to fetch a turnover of US$ 10 billion by 2016 and Sri Lankan apparel has also to be among the first ten apparel exporter countriesof the world by 2020. [Source: www.dailynews.lk]

Global
Japans Inflation Accelerates as Abe Seeks Wage Gains Japans inflation accelerated in December, industrial output gained and a measure of demand for workers strengthened, signaling gains for Prime Minister Shinzo Abes campaign to end two decades of stagnation. Prices excluding fresh food increased 1.3 percent from a year earlier, the statistics bureau said today in Tokyo, above a median estimate of 1.2 percent in a Bloomberg survey of 32 economists. Industrial production rose 1.1 percent from the previous month, while the number of jobs for every seeker rose to 1.03, exceeding 1 for the first the time since October 2007. [Source: www.bloomberg.com] U.K. Consumer Sentiment Rises to Highest Since Northern Rock Run Consumer confidence rose to the highest level since the near-collapse of Northern Rock Plc triggered the credit crisis in Britain more than six years ago. A consumer-sentiment index by GfK NOP Ltd. rose 6 points to minus 7 in January, the most since September 2007, the London-based research group said today. The median forecast of 20 economists in a Bloomberg News survey was for a one-point increase to minus 12. [Source: www.bloomberg.com]

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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

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