Thursday, October 24, 2013

Today 5,936.40 3,263.76 Point Change + 35.50 + 4.58 % Change 0.60 % p 0.14 % 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

5.2% 5.8% 516.8 834.4 40.6 36.4 2,468.6 21.9 110.3 88.3 22.8

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 on an upward trend led by JKH

.

CSE Diary for 24.10.2013

ASPI bounced from the support zone: The benchmark index depicted an upward trend backed by gains in John Keells Holdings (+3.29%), Finlays Colombo (+18.71%), Sri Lanka Telecom (+2.06%) and Ceylinco Insurance (+3.92%) and closed at 5936.40 gaining 35 points. The S&PSL20 too journeyed on a similar path and ended with a gain of 18 points. Crossings on DIAL and UBC: Renewed off board interest was seen in Dialog Axiata and Union Bank of Colombo where the former recorded a single crossing of 4.6mn shares at LKR8.9 and the latter crossed a single block of 2mn shares which changed hands at LKR17.0. Dialog Axiata denoted notable on board interest and was within the top turnover slot supported by two transactions accumulating to 1.1mn shares and ended at LKR8.9 (+1.14%). UBC depicted significant investor interest and topped the on board turnover with many medium size blocks. The counter settled at LKR18.6 with a notable intraday gain of 14.81%.

Price appreciation in JKH: John Keels Holdings continued to attract investor interest as it was heavily active during the day and the counter was among the top turnover slot and denoted a significant price appreciation of 3.29%. John keels Holdings (Rights) witnessed considerable on-board interest and closed at LKR67.1 with a sizable gain of 31.31%. National Development Bank and Royal Ceramics Lanka also saw some interest and closed at LKR153.0and LKR90.1 respectively.

Concentrated retail interest: Retail investor interest surrounded Touchwood Investments, Swarnamahal Financial Services and HVA Foods.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Sep-13 as at 23.10.2013 YoY Change Annual Avg Week ending 25.10.2013 8.56 9.11 10.02 11.69 -16.20

6000 5900

Index

5800
5700 5600

6.2 7.8

ASPI Turnover LKR ('mn)

3350 3300 3,000 2,500 2,000 1,500 1,000 500 0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

3250 3200 3150

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 5,936.4 3,263.8 516.8 4.0 40.6 228 2,468.6 110.3 88.3 21.9 16.0 2.2 2.6 Today 12,838.2 19,649.7 2,820.1 1,781.2 705.9 3,242.5 573.8 2,900.7 733.1 161.2

Pre Day 5,900.9 3,259.2 481.2 3.7 26.6 221 2,453.9 147.1 114.5 32.6 15.9 2.2 2.6 Pre Day 12,740.1 19,689.5 2,832.0 1,752.9 696.3 3,228.1 570.1 2,885.2 724.9 158.7

Change % 0.60% p 0.14% p 7.41% 7.41% 52.90% 3.17% 0.60% -25.04% -22.84% -32.79% 0.79% 0.20% 0.00% % Change 0.77% -0.20% -0.42% 1.62% 1.37% 0.45% 0.65% 0.54% 1.13% 1.59% p q q p p p p p p p

Last Week 5,976.5 3,309.0 545.7 4.2 18.6 237 2,485.3 129.2 157.1 -27.9 15.9 2.2 2.6 Last Week 12,818.3 19,866.8 2,795.1 1,800.1 707.9 3,261.7 582.3 2,920.2 741.5 161.4

% WoW Change -0.67% -1.37% -5.29% -5.29% 118.90% -3.80% -0.67% -14.68% -43.76% -178.60% 0.55% -1.30% 0.00% % WoW Change 0.15% -1.09% 0.89% -1.05% -0.28% -0.59% -1.46% -0.67% -1.13% -0.12% 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 7.6% 8.5% 3.0% 4.3% 2.9% 3.8% 2.7% 2.9% 1.9% 1.8% 2.3% 1.2% 1.4% 1.3% 1.2% 1.3%

Volume 138,744 36 3,143 1,218 6,600 39,669 5,182 5,825,435 3,515 10,201 4,274 10,611 0 56,046 35,735 100

Turnover LKR ('000) 30,299.11 40.33 1,188.20 2,386.86 259.83 4,661.11 3,423.34 51,846.02 512.60 1,145.05 812.06 636.76 0.00 6,911.72 6,254.00 7.29

Turnover USD ('000) 231.71 0.31 9.09 18.25 1.99 35.65 26.18 396.49 3.92 8.76 6.21 4.87 0.00 52.86 47.83 0.06

Intraday High (LKR) 223.00 1,120.40 380.00 1,960.00 40.00 117.70 690.00 9.00 147.90 114.50 190.00 60.10 0.00 124.00 176.00 72.90

Intraday Low (LKR) 213.00 1,120.00 378.00 1,959.50 38.30 117.40 660.00 8.80 145.70 112.00 190.00 60.00 0.00 122.00 174.20 72.90

Close 220.00 1,120.20 378.00 1,960.00 39.70 117.50 660.30 8.90 146.60 112.10 190.00 60.00 157.00 124.00 175.00 72.90

Price Gainers
Company
S M B LEASING [X] ENVI. RESOURCES [W0003] FINLAYS COLOMBO SWARNAMAHAL FIN UNION CHEMICALS

Price Losers
Today 0.40 0.50 297.00 2.60 420.00 Change + 0.10 + 0.10 + 46.80 + 0.40 + 58.00 % Change Company 33.33% 25.00% 18.71% 18.18% 16.02%
COLOMBO FORT INVESTMENTS SOFTLOGIC CAP KELSEY CEYLON LEATHER [W0014] TOUCHWOOD

Today 97.00 4.50 19.90 1.80 4.20

Change - 8.00 - 0.30 - 1.30 - 0.10 - 0.20

% Change -7.62% -6.25% -6.13% -5.26% -4.55%

Top 05 Performers for the Day

Company
UNION BANK JKH[RIGHTS] DIALOG JKH CENTRAL FINANCE

Today 18.60 67.10 8.90 220.00 190.10

Pre Day 16.20 51.10 8.80 213.00 190.50

% Change 14.81% 31.31% 1.14% 3.29% -0.21%

Volume (mn) 7.25 1.51 5.83 0.14 0.08

Contribution to Total T/O 5.1% 3.7% 2.1% 1.2% 0.6%

Turnover (LKR) 126,162,446 91,105,584 51,846,019 30,299,115 15,672,205

Most Active
Company
UNION BANK S M B LEASING DIALOG PCH HOLDINGS TOUCHWOOD

Today 18.60 0.80 8.90 1.50 4.20

Pre Day 16.20 0.80 8.80 1.50 4.40

% Change 14.81% 0.00% 1.14% 0.00% -4.55%

Volume (mn) 7.25 6.91 5.83 2.71 1.92

Contribution to Total T/O 5.1% 0.2% 2.1% 0.2% 0.3%

Turnover (LKR) 126,162,446 5,528,119 51,846,019 4,070,465 8,117,318

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 24.10.2013 126.20 21.50 180.28 2.12 1.34 211.72 130.76

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

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 0 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

Union Bank of Colombo has informed that it has received an indication of interest from a global institution in making an investment in the bank. A decsion by the said to make an investment if any will be made only upon the completion of a detailed due diligence study.

Material Dealings by Related Parties of Listed Companies

Company NO DEALING BY DIRECTORS 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 15,413.3 3,029.3 6,704.0 14,486.4

Change -54.3 12.2 29.5 60.4

Change % -0.35% q 0.40% p 0.44% p 0.42% p

Time* 16:32 06:23 06:23 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 97.20 80.12 703.00 1,337.90 326.85

Change 0.34 -0.57 1.25 3.90 0.10

Change % 0.35% p -0.71% q 0.18% p 0.29% p 0.03% p

Time* 06:08 06:07 06:28 06:08 06:07 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka too reliant on foreign borrowings: Fitch Sri Lanka is too reliant on government foreign borrowings and foreign currency risks are also rising for borrowers who may not have forex revenues, Fitch Ratings has said. Sri Lanka has been unable to attract high levels of foreign direct investments since the end of a war with FDI averaging 1.2 percent of gross domestic product since a war ended in 2009. The state foreign debt burden was now 57 percent of gross domestic product (GDP), which was much higher than all other Asian emerging markets except Mongolia. [Source: www.lbo.lk] Rupee under appreciation pressure: CB The rupee, which hit a record low at end August, is under appreciation pressure and the Central Bank has been intervening to curb a sharp rise, the Central Bank Governor said on Wednesday. The rupee has been trading at more than a threemonth high of 130.70/75 to the dollar, after having appreciated 3.42% since it hit a record low of 135.20 on 28 August. There is actually more appreciation pressure than depreciation pressure at the moment , Governor Ajith Nivard Cabraal told Reuters. [Source: www.ft.lk] Sri Lanka targets US $ 2bn FDIs from CHOGM Sri Lankas investment promotion bureau, the Board of Investment (BoI), said it would expect at least US $ 2.0 billion worth of foreign direct investments (FDIs) in 2014 from the Commonwealth Heads of Gover nment Meeting (CHOGM) alone. BoI Director Promotion Dilip S. Samarasinghe said they were expecting at least 1,000 delegates from 60 countries to the Commonwealth Business Forum (CBF), the biggest business forum ever held in Sri Lanka along with the CHOGM. [Source: www.dailymirror.lk] Sri Lanka Cairn could start field development by 2015: official Cairn Lanka, a unit of Cairn India, which has found natural gas in its off-shore block in Sri Lanka could begin field development by 2015 if ongoing talks over pricing is concluded, an official said. Cairn Lanka is now in talks with Sri Lanka's government over gas pricing and is continuing to appraise its gas finds. Micheal Quinn, Cairn's head of International Exploration & New Ventures told a forum in Colombo that once agreement is reached with the government Cairn expects to conduct more studies and begin field development by 2015. [Source: www.lbo.lk]

Global
Chinas Manufacturing Strengthens in Boost to Recovery: Economy Chinas manufacturing strengthened more than anticipated this month, a sign the recovery is gaining momentum even as leaders struggle with surging home prices and local-government debt. The preliminary 50.9 reading for a Purchasing Managers Index (EC11FLAS) released today by HSBC Holdings Plc and Markit Economics compared with a 50.4 median estimate from analysts surveyed by Bloomberg News. Readings above 50 indicate expansion. [Source: www.bloomberg.com] Euro-Area Services, Manufacturing Unexpectedly Slow Euro-area services and manufacturing output unexpectedly slowed in October as the recovery in the currency bloc struggled to gain momentum. A composite index based on a survey of purchasing managers in both industries declined to 51.5 this month from 52.2 in September, London-based Markit Economics said today. Economists had forecast the indicator would rise to 52.4, according to the median of 24 estimates in a Bloomberg News survey. A reading above 50 indicates expansion. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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