Thursday, November 28, 2013

Today 5,752.20 3,163.59 Point Change + 7.53 + 1.07 % Change 0.13 % p 0.03 % 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

1.9% 2.5% 718.8 829.6 68.9 36.3 2,393.2 -6.7 217.3 224.0 22.5

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]

Indices broadly flat; Diversified players gathered interest

CSE Diary for 28.11.2013

Indices settled broadly flat: Indices denoted a volatile path as the benchmark index traded between a band of 5,735.08 points and 5,764.34 points before settling on marginal grounds at 5752.20 points. The S&P SL20 took a similar trend and closed broadly flat at 3,163.59 points. Gains made in Ceylon Tobacco Company and Sri Lanka Telecom and losses in John Keells Holdings and Nestle Lanka kept the indices on marginal grounds. Crossings in ECL and CLC: Commercial Leasing and Finance continued to gather interest as it crossed off a block of 15 mn shares at a 52-week high (offboard) price of LKR5.0. On-board interest in the counter was insignificant. E-Channelling spearheaded the days turnover as it registered a block of 22.1 mn shares at a 52-week high (offboard) price of LKR10.0 before closing with a dip of 0.9% at LKR10.4. The transaction involved a sale of shares by J.B. Cocoshell (Private) Limited to Trading Partners (Private) Limited.

Interest emerged in diversified players: Interest was prominent in diversified players Aitken Spence and John Keells Holdings. The former continued to trade at a 52-week low price of LKR106.0 while its hotel arm; Aitken Spence Hotel Holdings also gathered interest as it gained 0.9% after having traded at a 52week low at LKR63.2. S&P SL20 caliber banks; Commercial Bank and National Development Bank gathered interest as each gained 0.8% and 0.3% at their respective closing prices. Lanka IOC followed by its strong earnings growth during 2QFY14 gathered focus as it touched a 52-week high price at LKR30.5. Retailers focused on penny counters: Retailer interest was largely concentrated on Blue Diamonds Voting and Non-Voting, Touchwood Investments and Dankotuwa Porcelane.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Oct-13 as at 27.11.2013 YoY Change Annual Avg Week ending 29.11.2013 8.06 8.80 9.69 10.93 -10.09

6000 5900

Index

5800
5700 5600

6.7 7.6

ASPI Turnover LKR ('mn)

3300 3250 2,000 1,500 1,000 500 0 200.0

Volume ('mn)

150.0 100.0 50.0 0.0

Index

3200 3150 3100

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 5,752.2 3,163.6 718.8 5.5 68.9 222 2,393.2 217.3 224.0 -6.7 14.9 1.9 3.0 Today 12,522.3 18,907.0 2,722.6 1,716.3 685.8 3,171.0 541.2 2,813.4 714.1 160.6

Pre Day 5,744.7 3,162.5 836.5 6.4 110.8 217 2,390.0 87.3 133.7 -46.4 14.9 1.9 3.0 Pre Day 12,487.8 18,808.2 2,722.1 1,727.3 689.4 3,171.3 536.2 2,802.6 709.0 157.5

Change % 0.13% p 0.03% p -14.07% -14.07% -37.84% 2.30% 0.13% 148.84% 67.57% -85.46% 0.13% 0.13% 0.00% % Change 0.28% 0.53% 0.02% -0.63% -0.53% -0.01% 0.93% 0.39% 0.72% 1.98% p p p q q q p p p p

Last Week 5,801.9 3,202.2 948.3 7.2 65.9 231 2,413.6 336.8 545.2 -208.4 15.4 2.0 3.0 Last Week 12,616.3 18,672.9 2,769.2 1,765.0 706.4 3,207.8 551.0 2,862.7 715.5 158.7

% WoW Change -0.86% -1.21% -24.20% -24.20% 4.52% -3.90% -0.84% -35.50% -58.91% -96.76% -3.09% -2.18% 0.00% % WoW Change -0.74% 1.25% -1.68% -2.76% -2.92% -1.15% -1.78% -1.72% -0.19% 1.20% 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 8.8% 8.3% 3.0% 4.3% 3.0% 3.8% 2.7% 3.0% 1.9% 1.8% 2.4% 1.3% 1.4% 1.3% 1.2% 1.2%

Volume 304,981 2,980 1,001 114 28,398 185,307 1,245 42,252 125 1,112,098 402 98,357 3 25,643 16,880 423

Turnover LKR ('000) 64,776.31 3,115.95 361.86 216.67 1,083.66 21,310.43 804.76 377.84 17.95 118,882.91 74.38 6,391.64 0.45 3,076.28 2,761.66 28.90

Turnover USD ('000) 493.90 23.76 2.76 1.65 8.26 162.49 6.14 2.88 0.14 906.45 0.57 48.73 0.00 23.46 21.06 0.22

Intraday High (LKR) 213.50 1,060.00 361.50 1,935.00 39.90 115.60 650.00 9.00 144.00 108.00 189.00 65.20 153.00 120.50 166.50 68.90

Intraday Low (LKR) 210.00 1,030.00 361.00 1,900.00 37.00 115.00 644.00 8.70 143.50 106.00 185.00 64.10 147.00 118.00 162.10 65.70

Close 212.00 1,057.10 361.50 1,900.10 39.40 115.00 644.00 8.90 143.60 106.20 189.00 64.40 151.00 120.30 164.40 66.90

Price Gainers
Company
BLUE DIAMONDS [X] BLUE DIAMONDS HUNAS FALLS HDFC HARISCHANDRA

Price Losers
Today 1.20 3.60 48.20 31.70 2,148.00 Change + 0.20 + 0.60 + 3.90 + 2.10 + 135.30 % Change Company 20.00% 20.00% 8.80% 7.09% 6.72%
CFI ENTRUST SEC INDUSTRIAL ASPH. LANKA CENTURY [W] ASIRI CENTRAL

Today 92.00 16.10 200.20 1.30 266.10

Change - 11.00 - 1.70 - 19.80 - 0.10 - 19.80

% Change -10.68% -9.55% -9.00% -7.14% -6.93%

Top 05 Performers for the Day

Company
E - CHANNELLING AITKEN SPENCE COMM LEASE & FIN JKH BLUE DIAMONDS

Today 10.40 106.20 4.00 212.00 3.60

Pre Day 10.50 76.41 86.07 214.00 3.00

% Change -0.95% 38.99% -95.35% -0.93% 20.00%

Volume (mn) 22.17 1.11 15.00 0.30 10.55

Contribution to Total T/O 9.3% 5.0% 3.1% 2.7% 1.5%

Turnover (LKR) 221,677,071 118,882,911 75,000,008 64,776,314 36,863,973

Most Active
Company
E - CHANNELLING COMM LEASE & FIN BLUE DIAMONDS TOUCHWOOD BLUE DIAMONDS[NON VOTING]

Today 10.40 4.00 3.60 3.20 1.20

Pre Day 10.50 0.10 3.00 3.00 1.00

% Change -0.95% 3900.00% 20.00% 6.67% 20.00%

Volume (mn) 22.17 15.00 10.55 4.53 3.98

Contribution to Total T/O 9.3% 3.1% 1.5% 0.6% 0.2%

Turnover (LKR) 221,677,071 75,000,008 36,863,973 14,629,556 4,727,397

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 28.11.2013 119.60 21.53 177.99 2.11 1.29 213.73 131.15

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 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 No New Listings 0 Type of Security Code 1/0/1900 1/0/1900 Board 1/0/1900 1/0/1900 Offer Price 0.00% 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 16,097.3 3,096.4 6,677.0 15,727.1

Change 24.5 13.7 27.6 277.5

Change % 0.15% p 0.45% p 0.41% p 1.80% p

Time* 16:31 05:29 05:29 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 92.21 78.44 663.50 1,240.80 319.60

Change -0.09 -0.70 7.50 2.90 0.55

Change % -0.10% q -0.88% q 1.14% p 0.23% p 0.17% p

Time* 05:16 14:29 14:24 05:16 05:15 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka shipyard hurt by lubricant import controls Sri Lanka's Colombo Dockyard, a ship repair and building firm, found its competitiveness hurt by import restrictions on specialist lubricants. Sri Lanka requires a 'no objection' letter from the government to import lubricants as it is a licensed business on which the state has placed import restrictions. A Dockyard official told a business forum in Colombo that competing countries like Singapore or Dubai could supply any brand of lubricants demanded by ship owners quickly. [Source: www.lbo.lk] Foreign commercial debt jumps 36.2% in 18 months Sri Lankas outstanding foreign commercial loan has jumped 36.2% within 18 months through end-June this year, an official document showed on Wednesday, as the country has been increasingly borrowing for post-war infrastructure revival. Total outstanding foreign commercial loan has risen to more than Rs. 1.04 trillion ($ 7.93 billion) by end June 2013 from Rs. 764.5 billion ($ 5.83 billion) at the end of 2011, a Parliament document seen by Reuters showed. [Source: www.ft.lk] Rupee recovers on exporter dollar sales after intervention The Sri Lankan rupee recovered on Wednesday as exporter dollar sales outpaced importer demand for the greenback early in the day, after intervention by a state-run bank held the currency at Rs. 131.15, dealers said. As the rupee spot was capped through intervention, three-day forward or spot next was actively traded in the market and ended at Rs. 131.30/35, firmer from Tuesdays close of Rs. 131.45/50. [Source: www.ft.lk] Drop in WAvgs for 10th consecutive week inspires secondary bond markets Activity in secondary bond markets picked up yesterday as weighted averages (WAvgs) at the weekly Treasury bill auction declined for a 10th consecutive week. The WAvgs on the market favorite 364 day bill decreased the most by six basis points to 9.69% while the WAvgs on the 91 day and 182 day bills decreased by four and five basis points respectively to 8.06% and 8.80%. [Source: www.ft.lk]

Global
Euro-Area Economic Confidence Rises More Than Forecast Economic confidence in the euro-area rose more than economists forecast in November, adding to signs the currency blocs recovery is gaining momentum. An index of executive and consumer sentiment increased to 98.5 from 97.7 in October, the European Commission in Brussels said today. Thats above the median estimate of 98 in a Bloomberg News survey of 31 economists. [Source: www.bloomberg.lk] German Unemployment Rises Fourth Month in Uneven Recovery German unemployment rose for a fourth month in November, signaling an uneven recovery in Europes largest economy. The number of people out of work climbed a seasonally-adjusted 10,000 to 2.985 million, after gaining by a revised 3,000 in October, the Nuremberg-based Federal Labor Agency said today. Economists predicted no change, according to the median of 33 estimates in a Bloomberg News survey. The adjusted jobless rate was unchanged at 6.9 percent. [Source: www.bloomberg.lk] 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

l.kern@equity.softlogic.lk
+94 11 7277053, +94 77 7348018 Chandima Kariyawasam chandima.kariyawasam@equity.softlogic.lk +94 11 7277058, +94 77 7885778 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.