Tuesday, October 08, 2013

Today 5,897.05 3,257.34 Point Change + 29.95 + 12.96 % Change 0.51 % p 0.40 % 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

4.5% 5.6% 490.3 820.7 35.9 35.9 2,452.2 48.1 232.0 184.0 20.7

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]

Retailers backbone bourse

CSE Diary for 08.10.2013

Large caps fuel ASPI gain of 29 points: Indices denoted significant gains during early trading backed by large caps as the ASPI touched an intra-day peak of 5,908.3 (+41 points) before closing lower with a gain of 29 points. Ceylon Tobacco Company and Nestle Lanka primarily weighed positively on the index. The counters collectively take up 13% of the total market capitalization. The S&P SL20 index settled with a gain of 12 points. Crossings in large caps; CTC & JKH: John Keells Holdings continued to dominate turnover supported by two off-board blocks amounting to 655k shares at LKR219.5. On-board interest in the counter weighed largely on the selling side as it closed flat at LKR219.0 after touching an intra-day high of 220.6 during early trading. Ceylon Tobacco Company added a block of 20k shares to the

crossings board at a 52-week high (off-board) price of LKR1100.0. Buying interest in the counter led its price to gain 3.7% at close. Continued interest in Tokyo Cement: Tokyo Cement gathered interest as it saw several sizable on-board transactions at LKR24.5 and LKR24.6 price levels. It touched an intra-day high at LKR24.89 while closing with a gain of 2.1% for the day. The counter currently trades at a trailing PER of 5.7x. Notable activity in retail favourites: The market denoted strong retail interest driving turnover levels. Touchwood Investments, HVA Foods and Nation Lanka Finance surrounded the top turnover slot with the former recording the most number of trades for the day. Penny counters; Blue Diamonds, FLC Holdings and Ceylon Tea Brokers also saw some activity during the day.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Sep-13 as at 07.10.2013 YoY Change Annual Avg Week ending 04.10.2013 8.60 10.52 11.55 -15.71 6.2 7.8 9.63

6000 5900

Index

5800 5700 5600 5500

ASPI Turnover LKR ('mn)

3300 3250 1,400 1,200 1,000 800 600 400 200 0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

3200

3150 3100
3050

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 5,897.1 3,257.3 490.3 3.7 35.9 237 2,452.2 232.0 184.0 48.1 15.7 2.2 2.7 Today 12,711.1 19,661.8 2,728.3 1,783.5 697.0 3,214.9 567.6 2,871.3 724.2 158.6

Pre Day 5,867.1 3,244.4 483.7 3.7 26.2 235 2,439.8 243.1 15.4 227.8 15.7 2.1 2.7 Pre Day 12,708.2 19,304.0 2,738.3 1,779.1 702.4 3,197.7 569.6 2,862.0 725.9 157.1

Change % 0.51% p 0.40% p 1.36% 1.36% 37.13% 0.85% 0.51% -4.56% 1096.47% -78.90% 0.51% 0.51% 0.00% % Change 0.02% 1.85% -0.36% 0.24% -0.77% 0.54% -0.34% 0.32% -0.24% 0.90% p p q p q p q p q p

Last Week 5,780.8 3,210.9 1,282.0 9.8 73.3 231 2,380.9 439.1 49.3 389.8 15.9 2.1 2.7 Last Week 12,641.6 18,842.2 2,662.3 1,753.5 681.6 3,171.3 530.8 2,812.3 702.1 155.5

% WoW Change 2.01% 1.45% -61.75% -61.75% -51.09% 2.60% 3.00% -47.15% 273.56% -87.67% -0.91% 1.72% 0.00% % WoW Change 0.55% 4.35% 2.48% 1.71% 2.27% 1.37% 6.94% 2.10% 3.14% 1.95% 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 7.7% 8.5% 3.1% 4.4% 2.9% 3.8% 2.8% 2.9% 2.0% 1.9% 2.3% 1.2% 1.4% 1.3% 1.2% 1.3%

Volume 880,670 39,402 2,159 115 5,276 1,794 324 37,100 17,106 3,925 14,458 68,560 1,002 20 9,553 32,861

Turnover LKR ('000) 193,279.50 43,386.93 842.07 229.43 203.84 211.55 218.70 322.78 2,565.90 449.97 2,703.64 4,113.62 152.30 2.40 1,640.91 2,250.96

Turnover USD ('000) 1,474.08 330.90 6.42 1.75 1.55 1.61 1.67 2.46 19.57 3.43 20.62 31.37 1.16 0.02 12.51 17.17

Intraday High (LKR) 220.60 1,149.90 392.00 1,998.00 39.40 118.00 675.00 8.80 150.00 115.00 187.00 60.10 153.90 122.00 174.80 72.00

Intraday Low (LKR) 219.00 1,099.00 390.00 1,995.00 38.50 117.00 675.00 8.70 149.90 113.00 185.00 60.00 150.10 119.60 171.00 68.00

Close 219.00 1,115.20 390.00 1,995.00 39.30 117.70 675.00 8.70 150.00 115.00 187.00 60.00 153.90 122.00 172.00 71.40

Price Gainers
Company
S M B LEASING [X] TOUCHWOOD COMMERCIAL DEV. S M B LEASING HUNAS FALLS

Price Losers
Today 0.40 4.60 73.80 0.80 53.20 Change + 0.10 + 0.60 + 9.30 + 0.10 + 6.10 % Change Company 33.33% 15.00% 14.42% 14.29% 12.95% Today Change - 3.10 - 0.10 - 25.50 - 0.10 - 7.20 % Change -9.69% -9.09% -8.96% -7.14% -6.19%

HAPUGASTENNE 28.90 CENTRAL INVETMENTS & FINANCE 1.00 FINLAYS COLOMBO 259.00 MULLERS 1.30 LANKA MILK FOODS 109.20

Top 05 Performers for the Day

Company
JKH CEYLON TOBACCO TOUCHWOOD HVA FOODS NATION LANKA

Today 219.00 1115.20 4.60 11.70 7.80

Pre Day 219.00 1075.50 4.00 11.50 7.30

% Change 0.00% 3.69% 15.00% 1.74% 6.85%

Volume (mn) 0.88 0.04 7.64 2.32 1.54

Contribution to Total T/O 7.9% 1.8% 1.4% 1.1% 0.5%

Turnover (LKR) 193,279,499 43,386,927 33,785,940 27,524,826 11,806,468

Most Active
Company
TOUCHWOOD FLC HOLDINGS HVA FOODS BLUE DIAMONDS CIFL

Today 4.60 2.60 11.70 3.30 1.00

Pre Day 4.00 2.50 11.50 3.20 1.10

% Change 15.00% 4.00% 1.74% 3.12% -9.09%

Volume (mn) 7.64 2.64 2.32 2.28 1.94

Contribution to Total T/O 1.4% 0.3% 1.1% 0.3% 0.1%

Turnover (LKR) 33,785,940 6,859,822 27,524,826 7,671,776 2,022,156

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 08.10.2013 123.57 21.43 177.92 2.12 1.35 210.89 131.12

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 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% 1/0/1900

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 14,936.2 2,911.6 6,386.3 13,894.6

Change -136.3 -11.4 -51.0 41.3

Change % -0.90% q -0.39% q -0.79% q 0.30% p

Time* 16:31 06:32 06:32 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 103.80 84.38 698.50 1,324.20 331.85

Change 0.77 0.36 3.75 -0.90 2.20

Change % 0.75% p 0.43% p 0.54% p -0.07% q 0.67% p

Time* 06:19 06:17 06:37 06:18 06:18 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Rupee hovers near 3-month high after CB comments The rupee hovered near its three-month high on Monday as dollar sales by banks and exporters offset importer demand for the greenback after the Central Bank said it expected the currency to behave in a stable manner in the next few months.Spot rupee closed steady at 131.15/20, its highest close since 15 July.Central Bank Governor Ajith Nivard Cabraal told Reuters in an interview on Friday that the rupee would behave in a stable manner in the next few months as the monetary authority has taken steps needed to deal with a volatile environment. [Source: www.ft.lk] Cinnamon builds third hotel in Colombo John Keels Hotels Group (JKH) will be building a Select Service Hotel at a site in Greenpath, Colombo 07 with an investment of Rs. 3.5 billion. The hotel will be opened by mid 2014.The hotel is set to be in the 4 Star Class with the basic facilities of a 5 Star hotel. The hotel will boast of 243 rooms and cater towards the young target market. We do not compromise on quality and as JKH have always maintained the provision of fresh concepts into the hotels. this expansion is set to bring about another facet to city hotels, Denis Gruhier, General Manager, Cinnamon Lakeside said. [Source: www.dailynews.lk] Sri Lanka and India ink deal for 500MW coal plant Sri Lanka and India has inked a deal to build a 500MegaWatt joint venture coal power plant, in the island's North Eastern coast which is expected to come on stream by 2018.State-run Ceylon Electricity Board signed a crucial power purchase agreement (PPA) with Trincomalee Power Company, which has India's National Thermal Power Corporation (NTPC) as a 50 percent joint venture partner.The plant is expected to cost 512 million US dollars and will be financed with 30 percent equity and 70 percent loan. [Source: www.lbo.lk] Canada threatens to pull Commonwealth funding Canada's Prime Minister Stephen Harper has threatened to withdraw funding for the Commonwealth in an escalating row over rights abuses by Sri Lanka ahead of a summit next month.Harper confirmed late Monday that he was boycotting the November 15-17 summit in Colombo, citing "the absence of accountability for the serious violations of human rights" during and after Sri Lanka's long civil war against Tamil separatists. [Source: www.lbo.lk]

Global
Biggest US Foreign Creditors Show Concern on Default Risk China and Japan, which together hold more than $2.4 trillion in U.S. Treasuries, raised pressure on the U.S. to resolve a political impasse on its debt ceiling that threatens to destabilize global financial markets.Japan must consider the impact of any default on its bond holdings, even as the U.S. will probably avoid a fiscal crisis, Japanese Finance Minister Taro Aso said today in Tokyo. Chinese Deputy Finance Minister Zhu Guangyao said yesterday that the U.S. should prevent a default, the Peoples Daily reported. [Source: www.bloomberg.com] U.K. House-Price Index Rises to Highest Since June 2002 A U.K. house-price index rose to the highest in more than a decade last month as government measures to boost homebuying lifted the outlook for sales to a record.A gauge by the Royal Institution of Chartered Surveyors increased to 54, the highest since June 2002, from 41 in August, the London-based group said in a report today, citing a poll of property surveyors. A price-expectations measure advanced to 48, the highest since May 2002. [Source: www.bloomberg.com] 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

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