Friday, July 12, 2013

Today 6,028.74 3,385.43 Point Change - 33.64 - 7.47 % Change -0.55 % q -0.22 % q

ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index

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6.8% 9.7% 328.5 905.7 72.3 40.3 2,315.4 43.2 63.8 20.6 15.6

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 dip amidst subdued activity levels

CSE Diary for 12.07.2013

Indices took a gradual downtrend: Market activity extended its sluggish momentum as the turnover recorded a mere LKR86 mn at mid-day with a slowdown in investor participation. Total turnover stood at LKR328 mn marginally above the weeks average turnover of LKR293 mn. The benchmark index took a volatile path depicting a gradual downtrend to close with a dip of 33 points at 6,028 points dominated by a further dip in John Keells Holdings (-1.3%). The S&P SL20 index reflected a lesser dip of 7 points at its close consequent to gains in Dialog Axiata (+1.2%), Sampath Bank (+1.8%) and Ceylon Tobacco Company (+0.3%) on low volume. PC House dominated turnover: Turnover remained low backed by the absence of crossings. PC-House dominated the turnover backed by several sizeable blocks which carried its intra-day volume to 60 mn shares. The counter dipped 7.7% to LKR1.2 at its close. John Keells Holdings remained in the turnover top slot with a further announcement stating its

project investment at USD650 mn. The counter weighed negatively on indices dipping to LKR248.5 at its intra-day low before recovering to close at LKR249.9. BFI sector added 28% to the turnover: Investors focused on Hatton National Bank and Commercial Bank as both edged up the top turnover list. The former dipped 0.5% leaving further room for accumulation while three mid-sized blocks transacted at LKR156.0 heightened the turnover in the counter. The latter gained marginally at its close. Nations Trust Bank saw majority of activity during the initial hours of trading while it dipped 1.3% at its close. Lanka Tiles was noted in the top turnover slot backed by two large transactions at LKR80.0. Retail activity on subdued mode: Retailers extended their cautious mode as selected counters gathered focus. Colombo Land and Development saw notable activity dipping -1.8% as it denoted some selling pressure. Lanka IOC and Overseas Realty also saw some interest.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 12.07.2013 YoY Change Annual Avg Week ending 12.07.2013 8.63 10.64 11.94 -25.22 6.8 8.6 9.68

6300 6200

Index

6100 6000 5900 5800

ASPI
3500

Turnover LKR ('mn)

3550 3450 3400 3350 3300 3250

4,000 3,000 2,000 1,000 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 6,028.7 3,385.4 328.5 2.5 72.3 224 2,315.4 63.8 20.6 43.2 16.1 2.2 2.4 Today 13,172.3 18,992.3 2,809.9 1,920.9 650.8 3,322.5 584.8 3,046.7 734.3 159.9

Pre Day 6,062.4 3,392.9 241.8 1.9 17.5 229 2,328.3 28.7 21.8 7.0 16.2 2.2 2.3 Pre Day 13,197.5 19,120.2 2,812.0 1,937.8 654.6 3,354.7 588.2 3,057.2 752.7 160.8

Change % -0.55% q -0.22% q 35.88% 35.88% 313.51% -2.18% -0.55% 122.11% -5.46% 521.12% -0.55% -0.55% 4.35% % Change -0.19% -0.67% -0.07% -0.87% -0.58% -0.96% -0.57% -0.34% -2.45% -0.57% q q q q q q q q q q

Last Week 6,048.2 3,383.5 570.2 4.4 19.6 235 2,322.8 340.3 61.4 278.9 16.3 2.2 2.3 Last Week 13,166.3 19,112.4 2,795.6 1,933.3 654.1 3,384.3 590.3 3,073.0 756.0 155.7

% WoW Change -0.32% 0.06% -42.38% -42.38% 269.08% -4.68% -0.32% -81.26% -66.51% -84.51% -1.04% -1.07% 4.35% % WoW Change 0.05% -0.63% 0.51% -0.64% -0.50% -1.83% -0.92% -0.85% -2.86% 2.67% 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 9.3% 8.1% 3.5% 4.5% 3.1% 3.9% 3.0% 3.1% 2.1% 2.2% 2.4% 1.2% 1.6% 1.5% 1.4% 1.3%

Volume 177,408 2,253 200 60 1,112 170,911 4,013 195,440 167,933 4,376 1,002 3,575 20 10,231 10,835 850

Turnover LKR ('000) 44,350.60 2,252.81 83.40 115.86 44.13 19,634.03 2,769.00 1,702.61 26,201.63 553.48 188.77 202.54 3.29 1,332.41 2,140.58 59.07

Turnover USD ('000) 339.49 17.24 0.64 0.89 0.34 150.29 21.20 13.03 200.56 4.24 1.44 1.55 0.03 10.20 16.39 0.45

Intraday High (LKR) 253.50 1,000.00 417.00 1,931.50 41.40 115.50 699.00 8.80 158.00 127.00 192.00 57.90 164.50 132.00 199.80 71.00

Intraday Low (LKR) 248.50 990.00 417.00 1,931.00 39.30 114.50 690.00 8.70 156.00 126.00 188.00 56.00 164.50 128.10 195.00 69.00

Close 249.90 1,000.00 417.00 1,931.00 39.50 115.00 690.00 8.80 156.00 126.10 188.00 57.10 164.50 129.90 198.00 69.60

Price Gainers
Company
E B CREASY LANKA CERAMIC RAMBODA FALLS KEELLS FOOD RENUKA CITY HOT.

Price Losers
Today 1,150.00 116.00 15.00 69.90 290.00 Change + 85.00 + 7.10 + 0.90 + 3.80 + 15.00 % Change Company 7.98% 6.52% 6.38% 5.75% 5.45%
LANKA ALUMINIUM PCH HOLDINGS ENVI. RESOURCES [W 0003] PC PHARMA KELANI CABLES

Today 26.50 1.60 1.00 2.00 75.50

Change - 3.40 - 0.20 - 0.10 - 0.20 - 7.40

% Change -11.37% -11.11% -9.09% -9.09% -8.93%

Top 05 Performers for the Day

Company
PC HOUSE JKH LANKA FLOORTILES HNB COMMERCIAL BANK

Today 1.20 249.90 80.00 156.00 115.00

Pre Day 1.30 253.30 78.00 156.80 114.50

% Change -7.69% -1.34% 2.56% -0.51% 0.44%

Volume (mn) 60.78 0.18 0.36 0.17 0.17

Contribution to Total T/O 3.2% 1.9% 1.3% 1.1% 0.8%

Turnover (LKR) 74,863,908 44,350,601 29,028,050 26,201,630 19,634,031

Most Active
Company
PC HOUSE CIFL BLUE DIAMONDS[NON VOTING] CFT SWARNAMAHAL FIN

Today 1.20 1.40 1.10 8.50 2.00

Pre Day 1.30 1.50 1.10 8.70 2.10

% Change -7.69% -6.67% 0.00% -2.30% -4.76%

Volume (mn) 60.78 1.36 0.88 0.61 0.60

Contribution to Total T/O 3.2% 0.1% 0.0% 0.2% 0.1%

Turnover (LKR) 74,863,908 1,897,567 970,006 5,411,049 1,218,186

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 12.07.2013 119.84 21.29 171.02 2.18 1.32 198.31 130.64

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

No Annoucements 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 Anilana Hotels & Properties 0 Type of Security Equity Code ALHP.N0000 1/0/1900 Board Diri Savi Board 1/0/1900 Offer Price LKR12.0 1/0/1900

Key Corporate Diclosures

LEE HEDGES-entered a MoU with Urban Development Authority for the lease of property for 99 years of lease term at LKR466.46 mn.

Material Dealings by Related Parties of Listed Companies

Company PC HOUSE Name Mr. S H M Rishan 0 Relationship Chairman 0 Transaction 0 0 Quantity 1,389,932 Price (LKR) LKR1.1-LKR1.2 0 Date 5.7.2013-9.7.2013 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 15,460.9 2,694.8 6,575.7 14,506.3

Change 169.3 13.4 32.3 33.7

Change % 1.11% p 0.50% p 0.49% p 0.23% p

Time* 00:00 06:41 06:40 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 104.72 84.98 685.00 1,274.10 314.90

Change -0.19 0.24 2.00 -5.80 -2.85

Change % -0.18% q 0.28% p 0.29% p -0.45% q -0.90% q

Time* 06:51 06:46 06:51 06:51 06:52 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka US$1.5bn expressway to top China toll road firm A top Chinese toll road company has landed deal to build and run a 1.5 billion US dollar expressway from Sri Lanka's capital to Kurunegala, which could be Sri Lanka's largest single foreign investment to date. The northern expressway system runs from Colombo to Jaffna in the north via Kurunegala with connections to Kandy and Trincomalee. The cost of the entire project could exceed 4.5 billion US dollars, according to some estimates. [Source: www.lbo.lk] Sri Lanka BOC to finance Rs. 3.9 bn road project Sri Lankas state run Bank of Ceylon will provide a 3.91 billion rupee loan to the Road Development Authority to rehabilitate and upgrade a 48 kilometer stretch of road. The state information office said in a statement that the project which has approval from the cabinet of ministers will be completed 30 days upon commencement.The 48 km road section spans from Bodagama to Kaltota in the islands Monaragala district. [Source: www.lbo.lk] Sri Lanka John Keells mixed resort investment up to $850mn A mixed resort project in Sri Lanka's capital Colombo by listed John Keells group will involve investments up to 850 million US dollars, officials said. Investment promotions minister Lakshaman Yapa Abeywardene, said Thursday the project has been approved by the state investment agency, the Board of Investment of Sri Lanka, which gives tax holidays.

[Source: www.lbo.lk] China Highland Capital Management to enter Sri Lanka Officials from China Highland Capital Management (HCM), a China-based discretionary investment management company, paid a courtesy call on the officials of the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE). The visit was to explore the possibilities of investing in private equity, listed equity and the debt market in Sri Lanka and another country in the Asian region. [Source: www.lbo.lk]

Global
China Finance Chief Lou Says 6.5% Growth Wouldnt Pose Problem Chinese Finance Minister Lou Jiwei said a 6.5 percent economic-growth rate wouldnt be a big problem, signaling the government may tolerate a slower pace of expansion than officials have previously indicated. Lou, speaking yesterday at the U.S.-China Strategic and Economic Dialogue in Washington, also said hes confident in achieving a 7 percent growth rate this year. Thats lower than the governments 2013 target of 7.5 percent, given in March. First-half expansion was probably below 7.7 percent but not too far from it, he said. [Source: www.bloomberg.com] Singapores Economy Beats Forecasts to Grow Most Since 2011 Singapores economy grew at the fastest pace in more than two years last quarter as services strengthened and manufacturing rebounded, reducing pressure on the central bank to ease monetary policy. Gross domestic product rose an annualized 15.2 percent in the three months through June from the previous quarter, when it grew 1.8 percent, the Trade Ministry said in a statement today. That exceeded all 12 estimates in a Bloomberg News survey, where the median was for an 8.1 percent expansion. [Source: www.bloomberg.com] Page | 5. Softlogic Equity Research

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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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