Monday, March 04, 2013

Today 5,631.89 3,203.78 Point Change - 20.8 - 3.07 % Change -0.37 % q -0.10 % 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

-0.2% 3.8% 1,076.1 852.3 19.4 38.2 2,163.7 858.3 876.4 18.1 0.2

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]

Market in red; Banking sector dominates trading

CSE Diary for 04.03.2013

The Colombo bourse commenced weekly operations on a weak note extending its downtrend from the last week on account of the negative market sentiments. However a short term bullish trend was seen in the final hour of trading. The benchmark index dipped 21 points to settle at 5,631.89. Ceylon Tobacco Company (-1.5%) Ceylon Beverage Holdings (-14.8%) and John Keells Holdings (+0.1%) weighted heavily to losses on the indices. However S&P SL20 index witnessed a flat trading session where the indices declined marginally by 3 points to end at 3,203.78. Furthermore Banking sector counters such as Commercial Bank, Sampath Bank, National Development Bank and Hatton National Bank added 86.0% of the daily turnover. Commercial Bank emerged as the top contributor to the daily turnover backed up by six off-market transactions accounting for 4.2 mn shares dealt at LKR110.0. The counter attracted heavy investor interest during trading hours where it was lifted by

0.5% to end days trading at LKR 109.6. In addition, persistent interest was seen in other banking heavy weights led by Sampath Bank (+0.3%), National Development Bank (-0.1%) and Hatton National Bank (+0.1%). Moreover Sampath Bank lifted the market turnover with a single off-the-floor deal of 1.2mn shares at a price of LKR237.0 while the counter closed flat at LKR235.0. Premier Blue-chip John Keells Holdings was trading on a thin volume with 29k shares changing hands. The counter was trading on a tight range where it traded at a high of LKR236.0 and a low of LKR233.3 before settling down for the day at LKR233.9. The leading tile manufacturer, Royal Ceramic witnessed notable level of buying interest where it recorded a mid-size on-board block of 50k shares at a price of LKR97.0. The counter is currently trading at a forward PE of 5.4x on FY14E earnings.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Feb-13 as at 04.03.2013 YoY Change Annual Avg Week ending 01.03.2013 9.10 10.08 11.10 14.42 -40.65

5900 5800

Index

5700
5600 5500

9.8 8.6

ASPI
3300 3280 3260 3240 3220 3200 3180 3160 3140

Turnover LKR ('mn)

4,000 3,000 2,000 1,000 0

140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

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 5,631.9 3,203.8 1,076.1 8.4 19.4 227 2,163.7 876.4 18.1 858.3 15.2 2.1 2.4 Today 12,757.6 15,633.3 2,787.2 1,847.3 595.9 3,343.9 462.9 2,549.1 771.1 167.7

Pre Day 5,652.7 3,206.9 673.9 5.3 16.5 238 2,171.7 83.3 407.6 -324.4 15.3 2.1 2.4 Pre Day 12,711.7 15,822.6 2,809.7 1,856.1 574.8 3,362.3 467.2 2,571.5 782.9 168.8

Change % -0.37% q -0.10% q 59.68% 59.68% 17.75% -4.62% -0.37% 952.29% -95.56% -364.63% -0.37% -0.36% 0.00% % Change 0.36% -1.20% -0.80% -0.48% 3.68% -0.55% -0.94% -0.87% -1.51% -0.60% p q q q p q q q q q

Last Week 5,735.6 3,223.3 300.1 2.4 12.6 228 2,203.5 117.1 22.9 94.2 15.5 2.1 2.3 Last Week 12,772.0 16,175.6 2,794.7 1,883.9 604.1 3,404.9 476.5 2,607.9 791.0 172.7

% WoW Change -1.81% -0.60% 258.61% 258.61% 53.47% -0.44% -1.81% 648.65% -20.82% 811.16% -1.81% -1.80% 4.35% % WoW Change -0.11% -3.35% -0.27% -1.94% -1.36% -1.79% -2.86% -2.25% -2.52% -2.87% Page | 2.

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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 9.2% 6.5% 4.0% 4.0% 3.5% 4.0% 3.3% 3.4% 2.2% 2.2% 2.5% 1.2% 1.5% 1.5% 1.8% 1.4%

Volume 29,254 1,143 1,476 289 4,274 5,064,264 564 317,593 92,662 1,155 5,495 16,583 40 11,304 1,321,168 21,735

Turnover LKR ('000) 6,892.14 852.85 649.44 469.54 181.91 557,003.04 397.88 2,858.35 13,801.54 137.86 977.91 956.07 5.83 1,371.75 312,903.42 1,514.52

Turnover USD ('000) 54.09 6.69 5.10 3.68 1.43 4,371.20 3.12 22.43 108.31 1.08 7.67 7.50 0.05 10.77 2,455.58 11.89

Intraday Intraday High (LKR) Low (LKR) 236.00 750.00 440.10 1,625.10 43.00 110.00 705.60 9.10 149.20 123.00 178.00 59.90 145.80 122.00 236.00 70.00 233.30 740.00 440.00 1,620.00 42.50 109.00 705.40 9.00 148.60 119.00 177.90 56.70 145.80 119.10 233.50 69.50

Close 233.90 746.20 440.00 1,620.50 42.50 109.90 705.50 9.00 149.10 119.00 177.90 56.70 145.80 121.60 235.90 69.90

Price Gainers
Company
ASIRI CENTRAL RENUKA SHAW [X] TEA SMALLHOLDER LIGHTHOUSE HOTEL SIGIRIYA VILLAGE

Price Losers
Today 264.00 15.80 47.90 47.00 68.90 Change + 48.60 + 2.20 + 5.80 + 4.50 + 5.90 % Change Company 22.56% 16.18% 13.78% 10.59% 9.37%
ENVI. RESOURCES [W0003] CEYLON LEATHER [W0014] CEYLON BEVERAGE CEYLON LEATHER [W0013] CARGO BOAT

Today 1.40 3.00 400.00 3.10 75.40

Change - 0.40 - 0.80 - 69.50 - 0.50 - 9.60

% Change -22.22% -21.05% -14.80% -13.89% -11.29%

Top 05 Performers for the Day

Company
COMMERCIAL BANK SAMPATH NAT. DEV. BANK HNB ROYAL CERAMIC

Today 109.90 235.90 145.00 149.10 97.00

Pre Day 109.00 235.10 145.10 149.00 99.00

% Change 0.83% 0.34% -0.07% 0.07% -2.02%

Volume (mn) 5.06 1.32 0.34 0.09 0.10

Contribution to Total T/O 25.7% 14.5% 2.3% 0.6% 0.5%

Turnover (LKR) 557,003,039 312,903,423 49,550,092 13,801,536 9,936,790

Most Active
Company
COMMERCIAL BANK SAMPATH FREE LANKA VALLIBEL PANASIAN POWER

Today 109.90 235.90 2.50 5.80 2.70

Pre Day 109.00 235.10 2.40 5.80 2.70

% Change 0.83% 0.34% 4.17% 0.00% 0.00%

Volume (mn) 5.06 1.32 1.20 1.10 0.69

Contribution to Total T/O 25.7% 14.5% 0.1% 0.3% 0.1%

Turnover (LKR) 557,003,039 312,903,423 2,950,485 6,387,241 1,852,070

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan Malaysia Russia Saudi Arabia Singapore Switzerland Thailand UK USA Dollar Yuan Euro Rupee Yen Ringgit Rouble Riyal Dollar Franc Baht Pound Dollar Indicative Rate 04.03.2013 129.52 20.47 165.81 2.32 1.36 40.99 4.15 33.98 102.44 135.19 4.27 191.55 127.43

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

DPS (LKR) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proportion 01 for 10.9037 0

XD Date 0 0 0 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00

XR Date

Payment Date 00-Jan-00 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

Commercial Credit and Finance PLC Capitalalization 0 0 0 0 27-03-2013 1/0/1900 1/0/1900 28-03-2013 1/0/1900 1/0/1900

Source: www.cbsl.gov.lk

Global Markets
Index AMERICA Dow Jones Industrial Average S&P 500 Index EUROPE EURO STOXX 50 Price EUR FTSE 100 Index ASIA Nikkei 225 Hong Kong Hang Seng Index
* Time is as at ET

Value 14,089.7 1,518.2 2,607.3 6,349.6 11,652.3 22,537.8

Change 35.2 3.5 -10.2 -30.5 45.9 -342.4

Change % 0.25% p 0.23% p -0.39% q -0.48% q 0.40% p -1.50% q

Time* 0-Jan 0-Jan 05:49 05:50 01:28 03:01

Source: www.bloomberg.com

Commodity Markets
Commodity ENERGY Crude Oil (Brent) Crude Oil (WTI) AGRICULTURE ICE Cotton #2 CBOT Wheat METALS COMEX Gold COMEX Silver COMEX Copper
* Time is as at ET

Units USD/bbl. USD/bbl. USd/lb. USd/bu. USD/t oz. USD/t oz. USd/lb.

Price 110.50 90.51 85.13 715.75 1,576.50 28.71 350.40

Change 0.09 -0.17 -0.27 -5.00 4.00 0.21 0.35

Change % 0.08% p -0.19% q -0.32% q -0.69% q 0.25% p 0.74% p 0.10% p

Time* 05:59 06:00 06:00 06:00 06:00 05:59 05:59

Source: www.bloomberg.com

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CSE Announcements
Cargills [CARG: LKR145.8]: Millers Brewery Ltd (MBL), a wholly-owned subsidiary of CARG has on the 25th of February 2013, entered into an Agreement with Carlton United Breweries Ltd of Australia (CUB), a subsidiary of SABMiller of London and Johannesburg whereby MBL will produce CUB'S FOSTERS Lager under license for distribution and sale in the territory of Sri Lanka. LB Finance [LFIN: LKR146.7]: Ms Anandhiy Krishnajina Gunewardena was appointed as Independent NonExecutive Director of LFIN with effect from 1st March 2013. Kegalle Plantations [KGAL: LKR110.1]: RPC Plantation Management Services Private Limited purchased 208,310 shares of KGAL at a purchase price of LKR23,568,207 on 27 th February 2013. Consequently, its shareholding in KGAL has increased to 71.39%.

Local News
China Exim Bank signs USD200 mn loan to put Matara-Beliatta on track: The Exim Bank of China has signed the relevant Loan Agreement with the Government of Sri Lanka indicating its agreement to provide USD200 mn under Preferential Buyers Credit facility to finance the Matara-Beliatta Section of the MataraKataragama Railway Extension Project. This is following the Chinese Government on request from the Government of Sri Lanka agreeing to provide a loan of USD278.2 mn through Export-Import (Exim) Bank of China on concessional terms to finance Phase I of the Matara-Kataragama Railway Extension Project. The Finance Ministry said out of the total loan amount, USD200 mn will be provided under Preferential Buyers Credit facility and the balance USD78.2 mn will be provided under Chinese Government concessional loan facility. These loan facilities will be provided at an annual interest rate of 2% with a repayment period of 20 years including a five-year grace period. [Source: www.ft.lk] India ups aid to Sri Lanka to Rs. 12.5 b via Budget: Even as the anti-Sri Lanka mood in Tamil Nadu is getting more belligerent, the Centre has increased its annual grant to the country in the Union Budget. The allocation has gone up to Rs. 500 crore (INRs. 5 bn or SLRs. 12.5 bn) for 2013-2014 from Rs. 290 crore last year. It was Rs. 181.94 crore in 2011-2012. The Budget has allocated Rs. 5,550 crore as aid for foreign governments and organisations. [Source: www.ft.lk] Sri Lanka Cairn draws blank on fourth well: Cairn Lanka (Pvt) Ltd has not found any oil in its fourth exploration well, its parent company said in a stock exchange filing. Cairn India said the well found "thick high quality re servoir sands, which were not hydrocarbon bearing," and it was plugged and abandoned. The data from the well and another two wells where petroleum was found will be used to fully understand the potential of the block, the firm said. Analysis of data is expected to take at least until the first quarter of next year, according to earlier statements. [Source: www.ft.lk] Sri Lanka to continue relaxing exchange controls: CB governor: Sri Lanka will continue to liberalise foreign exchange controls to encourage the investments needed to maintain high economic growth, Central bank governor Nivard Cabraal said. "The thinking now is to try to have faster growth for which we need more savings and investment which, if not available in our own country, we must get from outside," he said. "What we are setting out is exchange liberalisation in a gradual manner - gradually giving confidence to outside and local investors," he told a forum on liberalizing foreign exchange controls organized by the Shippers' Academy Colombo. "In the next few years we will need to bring in new reforms. We have not gone Softlogic Equity Research Page | 5
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too fast, nor have we gone too slow. We have been not too hot or too cold, not too hard or too soft. We will apply those principles in foreign exchange regulations." [Source: www.lbo.lk] Sri Lanka Mattala flights by Air Arabia: Air Arabia, a UAE based budget carrier will launch twice weekly flights to Sri Lanka's second international airport in Mattala from March 18, a media report said. It will start flights between Sharjah and Mattala, Arabian Business, a Middle Eastern business news portal said. "Just a few months after our inception in 2003, we launched a direct service to Colombo, which was our first destination in the Subcontinent, and we are delighted to now add a second route to the country," Adel Ali, Group chief executive of Air Arabia was quoted as saying. "Our new service to Mattala is in direct response to passenger demand, and while contribute to the trade and tourism ties between UAE and Sri Lanka." The airline already operates nine weekly flights between Sharjah and Colombo, flying every day and twice a day on Tuesdays and Fridays. [Source: www.lbo.lk]

Global News
Eurozone unemployment hits 11.9%:The rate of unemployment in the eurozone rose to a fresh record high in January, official figures show. The jobless rate in the 17 countries that use the euro rose to 11.9% in January from 11.8% in December, the statistics agency Eurostat said. The highest rate was 27% in Greece, although the most recent figure there was from November, while the lowest rate was 4.9% in Austria. Eurostat also said eurozone inflation had fallen to 1.8% in February. The inflation figure was the lowest for two years, putting it in line with the European Central Bank's (ECB) inflation target of below, but close to 2%. Analysts said that the high unemployment and low figure for inflation would make it more likely that the ECB would cut its interest rates later in the year from the current rate of 0.75%. [Source: www.bbc.co.uk] China Tightening Pressure Eases as Growth Recovery Slows: China may hold off tightening monetary policy after growth in services and manufacturing weakened, underscoring challenges for the nations leaders as they open the annual session of parliament tomorrow. Expansion in industries including retailing, transportation and banking was the slowest in five months in February, an official survey of purchasing managers showed yesterday. Gauges released March 1 pointed to manufacturing growth cooling. The recent batch of data suggest the current recovery is relatively weak compared to past ones, which means the government may delay the timing of monetary tightening to support growth, said Chief China economist at Nomura Holdings Inc. in Hong Kong. [Source: www.bloomberg.com]

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Branches
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