Tuesday, August 06, 2013

Today 6,121.45 3,477.04 Point Change + 7.27 + 5.57 % Change 0.12 % p 0.16 % 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

8.5% 12.7% 531.9 911.7 23.2 40.1 2,355.8 150.4 363.9 213.5 15.9

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]

High caps upheld index and turnover

CSE Diary for 06.08.2013

Index stayed positive on marginal grounds: The benchmark index moved on a sluggish note however stayed positive on marginal grounds primarily driven by heavy caps; Nestle Lanka (+5.1%), John Keells Holdings (+0.5%) and Bukit Darah (+0.7%). The index closed with a 7 point gain after gaining 14 points at its intra-day high of 6,128.74 points. The S&P SL20 index followed a similar path closing with a gain of 5 points. Crossings in heavy caps added 35% to the turnover: John Keells Holdings spearheaded the turnover backed by a crossing totaling 353k shares at LKR268.0 and a few mid-sized on-board blocks before it closed with a gain of 0.5%. Nestle Lanka attracted interest during early trading with a crossing which carried 20k shares at a 52-week high price of LKR2,250.0. On-board activity in the counter denoted strong buying interest with the counter rallying to an intra-day high of LKR2,050.0

(+5.1%). Chevron Lubricants continued to gather interest recording a block of c.149k shares which was crossed off at LKR308.5 while it gained 0.8% at its intra-day high. The three crossings added 35% to the days turnover. Focus on DFCC and TJL: DFCC Bank and Textured Jersey Lanka edged up to the top turnover slot depicting notable buying interest. Each gained 1.3% and 3.8% at their intra-day high levels of LKR130.0 and LKR13.7 respectively. The former recorded an on-board block of c.198k shares at LKR130.0 while the latter saw several mid-sized blocks while highlighting a new 52-week high at LKR13.7.

Retail interest surrounded selected counters: Retail participation was narrowed to a few selected counters; Textured Jersey Lanka, Central Investments and Finance and Nation Lanka Finance.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 06.08.2013 YoY Change Annual Avg Week ending 02.08.2013 8.63 10.56 11.75 -31.46 6.1 8.3 9.66

6200 6150 6100 6050 6000 5950 5900 5850

Index

ASPI
3500

Turnover LKR ('mn)

3550 3450 3400 3350 3300 3250

2,000 1,500 1,000 500 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 6,121.5 3,477.0 531.9 4.0 23.2 229 2,355.8 363.9 213.5 150.4 16.2 2.2 2.5 Today 13,105.5 20,503.7 2,825.7 1,962.4 651.0 3,252.0 570.2 3,055.0 726.3 157.2

Pre Day 6,114.2 3,471.5 288.4 2.2 16.2 227 2,353.0 114.1 143.4 -29.3 16.2 2.2 2.5 Pre Day 13,083.5 20,324.7 2,811.4 1,966.2 661.3 3,249.9 570.2 3,041.4 727.1 159.0

Change % 0.12% p 0.16% p 84.45% 84.45% 43.25% 0.88% 0.12% 218.87% 48.92% -613.98% 0.12% 0.12% 0.00% % Change 0.17% 0.88% 0.51% -0.19% -1.55% 0.07% 0.00% 0.45% -0.10% -1.08% p p p q q p q p q q

Last Week 6,055.5 3,432.0 700.1 5.3 13.2 239 2,330.4 261.5 503.5 -242.0 16.0 2.2 2.6 Last Week 13,191.8 19,380.3 2,834.4 1,960.5 658.0 3,257.3 582.0 3,070.5 739.8 156.7

% WoW Change 1.09% 1.31% -24.03% -24.03% 76.42% -4.18% 1.09% 39.16% -57.59% -162.13% 1.09% 1.09% -3.85% % WoW Change -0.65% 5.80% -0.31% 0.10% -1.06% -0.16% -2.02% -0.50% -1.83% 0.33% 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 9.8% 9.5% 3.4% 4.7% 3.0% 4.0% 3.0% 3.0% 2.0% 2.1% 2.4% 1.1% 1.5% 1.5% 1.4% 1.4%

Volume 610,938 8,942 10,255 28,820 1,408 54,096 617 117,201 5,501 660 25,465 3,941 50,103 238,990 21,101 102

Turnover LKR ('000) 163,878.64 10,731.25 4,229.97 62,665.09 55.00 6,446.93 425.85 1,012.95 841.85 80.82 4,838.37 216.53 7,868.08 31,054.63 4,158.37 7.54

Turnover USD ('000) 1,245.34 81.55 32.14 476.20 0.42 48.99 3.24 7.70 6.40 0.61 36.77 1.65 59.79 235.99 31.60 0.06

Intraday High (LKR) 270.00 1,215.00 417.00 2,050.00 39.20 119.90 697.00 8.80 153.40 125.00 191.00 55.00 158.00 130.00 198.40 74.00

Intraday Low (LKR) 265.10 1,200.00 411.40 2,000.00 39.00 118.80 690.00 8.60 151.30 122.00 190.00 54.80 155.00 129.00 197.00 70.00

Close 269.20 1,200.00 411.50 2,049.00 39.10 119.60 690.50 8.60 151.30 122.00 190.00 54.80 157.00 129.90 197.20 74.00

Price Gainers
Company Today Change + 0.10 + 5.30 + 0.10 + 0.50 + 8.30

Price Losers
% Change Company 14.29% 10.71% 10.00% 9.80% 9.22%
BERUWELA WALKINN CDB [X] ANILANA HOTELS ASIAN ALLIANCE CONVENIENCE FOOD

Today 62.00 33.50 8.20 96.10 195.00

Change - 14.30 - 2.90 - 0.70 - 6.90 - 13.40

% Change -18.74% -7.97% -7.87% -6.70% -6.43%

S M B LEASING 0.80 HUNAS FALLS 54.80 CENTRAL INVESTMENTS & FINANCE1.10 SOFTLOGIC CAP 5.60 ACL PLASTICS 98.30

Top 05 Performers for the Day

Company
JKH CHEVRON NESTLE DFCC BANK TEXTURED JERSEY

Today 269.20 308.40 2049.00 129.90 13.50

Pre Day 267.90 306.00 1950.00 128.30 13.20

% Change 0.49% 0.78% 5.08% 1.25% 2.27%

Volume (mn) 0.61 0.20 0.03 0.24 1.35

Contribution to Total T/O 7.0% 2.7% 2.7% 1.3% 0.8%

Turnover (LKR) 163,878,644 63,052,075 62,665,091 31,054,629 18,254,937

Most Active
Company
CIFL PC HOUSE EXPOLANKA TEXTURED JERSEY NATION LANKA

Today 1.10 1.10 6.70 13.50 7.80

Pre Day 1.00 1.10 6.80 13.20 8.30

% Change 10.00% 0.00% -1.47% 2.27% -6.02%

Volume (mn) 3.92 3.39 1.98 1.35 1.34

Contribution to Total T/O 0.2% 0.2% 0.6% 0.8% 0.4%

Turnover (LKR) 4,540,736 3,729,396 13,345,018 18,254,937 10,549,081

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 06.08.2013 117.51 21.49 174.57 2.16 1.34 202.10 131.59

CSE Announcements
Dividends
Company No Dividend Annoucements 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

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

Name Company NO MATERIAL DEALINGS BY DIRECTORS 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 15,612.1 2,810.4 6,606.6 14,401.1

Change -46.2 1.3 -13.0 143.0

Change % -0.30% q 0.05% p -0.20% q 1.00% p

Time* 16:32 06:37 06:36 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 106.88 85.30 647.00 1,291.90 320.00

Change 0.32 0.10 1.75 -10.50 3.20

Change % 0.30% p 0.12% p 0.27% p -0.81% q 1.01% p

Time* 06:25 06:15 06:45 06:44 06:25 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka debt sales to expand 3-fold in five years Sri Lanka domestic and foreign currency issues will expand three fold over the next five years, Fitch Ratings said in Colombo. "The excitement in the bond market is a step in the right direction for Sri Lanka to become a financial hub for South Asia, " Maninda Wickramasinghe, chief executive of Fitch Ratings in Colombo said. "We see more financial institutions getting geared to finance their growth, corporates expanding their capital base and activities, as well as investing in technology to add value to their operation. " [Source: www.lbo.lk] Sri Lanka deficit to move down with lower rates, PPPs: CB Governor Sri Lanka's budget deficit will narrow and debt will slow with falling domestic interest rates and public private partnerships in infrastructure, Central Bank Governor Nivard Cabraal said. "We will see a huge reduction in interest costs, " Cabraal told a sovereign and banking forum organized by Fitch. In 2014 the budget deficit is likely to be about 5.2 percent of gross domestic product, he said. [Source: www.lbo.lk] Nestle says none of its products affected by Fonterra recall The worlds biggest food group Nestle (NESN.VX) said on Monday none of its products was affected by a recall of dairy products made by New Zealands Fonterra. We would like to reassure consumers that none of our products are affected by the Fonterra recall. We did not purchase any of the batches of whey protein concentrate which Fonterra has recalled, Nestle spokesman Philippe Aeschlimann said in an emailed statement. [Source: www.ft.lk] Apparel sector sets US$ 5 b target in 2015 based on thecurrent scenario in international business climate the apparel sector has set itself a target of achieving US$ 5 billion in 2015 through garment exports. A further US$ 1 billion is targeted from the emerging new market in China around that time, together will make the apparel sector worth nearly US$7 billion before the end of 2020, Tuli Cooray JAAF said. Speaking of the apparel sector and the benefits the industry could accrue under new regulation, Cooray said that the apparel sector alone would anticipate an additional foreign exchange turnover of US$ 1billion 2018 [Source: www.dailynews.lk]

Global
German Factory Orders Rise Most in Eight Months as Recovery Seen German factory orders (GRIORTMM) increased by the most in eight months in June, led by demand for investment goods and adding to evidence that Europes biggest economy is benefiting from a nascent euro-area recovery. Orders, adjusted for seasonal swings and inflation, increased 3.8 percent from May, when they fell a revised 0.5 percent that was less than originally estimated, the Economy Ministry in Berlin said today. Economists forecast a gain of 1 percent in June, according to the median of 42 estimates in a Bloomberg News survey. [Source: www.bloomberg.com] Americans With Best Credit in Decades Drive U.S. Economy Americans have made progress putting their finances in order and are ready to borrow again -- giving the worlds largest economy another driver of spending and growth. Household net worth soared to a record high in the first quarter, Federal Reserve data show, and the financial-obligations ratio relating consumer debt to income matched the lowest in 33 years. Consumer loans are rising, and the American Bankers Association reports the share of delinquencies on bank cards is the smallest since 1990. [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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