Thursday, January 23, 2014

Today 6,226.14 3,469.12 Point Change + 13.47 + 10.86 % Change 0.22 % p 0.31 % 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

5.3% 6.3% 1,872.1 830.3 131.7 38.7 2,590.3 236.7 762.5 525.8 1.2

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 extend bullish sentiment; YTD net foreign inflow at LKR1.2 bn

CSE Diary for 23.01.2014

Indices extend gains amidst turnover crossing LKR1.8 bn: Indices continued on a bullish trend amidst improved investor participation carrying the turnover across the LKR1.8 bn mark. The benchmark index settled with a gain of 13 points at 6,226.14 backed by gains in Commercial Bank, Cargills and Ceylon Tobacco Company. Consequently the S&P SL20 index settled with a 10 point gain at 3,469.12. YTD foreign inflow at the end of trading stood at LKR1.2 bn. 15 Crossings added 37% to the turnover: Several S&P SL20 counters recorded crossings including Chevron Lubricants, John Keells Holdings, Commercial Bank, Hayleys, Ceylon Tobacco Company and Hatton National Bank. JKH added 5 blocks which totaled 614k shares between price levels of LKR248.0LKR250.0 leading the counter to spearhead the days turnover. Taprobane Holdings and Lanka IOC also recorded one crossing each. 15 crossings in total during the day added 37% to the turnover.

Several counters at their 52-week high levels: Buying interest in in the BFI sector primarily surrounded Commercial Bank and National Development Bank. The former touched a 52-week high level at LKR131.5 during the day while the latter traded at an intra-day high of LKR186.0. Lanka IOC, Tokyo Cement, Hemas Holdings, Expolanka Holdings and Textured Jersey Lanka also witnessed significant investor participation as they traded at their 52-week high levels ahead of the earnings season. Improved retail participation: Retail interest primarily surrounded Nation Lanka Finance, Tokyo Cement, Asia Asset Finance and SMB Leasing.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 22.01.2014 Inflation (%) Dec-13 YoY Change Annual Avg Week ending 24.01.2014 6.84 7.15 9.77 -28.24 4.7 6.9 7.02

6300 6200 6100 6000 5900 5800 5700 5600

Index

ASPI Turnover LKR ('mn)

3500 3400 2,000 1,500 1,000 500 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

3300 3200

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 6,226.1 3,469.1 1,872.1 14.3 131.7 248 2,590.3 762.5 525.8 236.7 16.8 2.1 2.8 Today 14,062.6 21,077.9 2,869.1 1,880.2 753.8 3,213.8 604.8 3,105.9 750.4 159.4

Pre Day 6,212.7 3,458.3 1,397.9 10.7 108.6 236 2,584.7 598.0 307.3 290.7 16.7 2.1 2.8 Pre Day 13,936.2 20,984.9 2,852.8 1,881.2 750.9 3,224.1 606.7 3,110.8 751.4 159.4

Change % 0.22% p 0.31% p 33.92% 33.92% 21.23% 5.08% 0.22% 27.52% 71.10% -18.55% 0.22% 0.22% 0.00% % Change 0.91% 0.44% 0.57% -0.05% 0.39% -0.32% -0.32% -0.16% -0.13% 0.00% p p p q p q q q q p

Last Week 6,167.0 3,427.1 1,865.6 14.3 91.7 243 2,565.7 917.7 364.7 552.9 16.6 2.0 2.8 Last Week 13,797.5 20,938.9 2,791.6 1,844.1 737.2 3,237.0 609.0 3,022.7 765.1 158.5

% WoW Change 0.96% 1.23% 0.35% 0.35% 43.58% 2.06% 0.96% -16.90% 44.16% -57.19% 0.96% 0.96% 0.00% % WoW Change 1.92% 0.66% 2.78% 1.96% 2.26% -0.72% -0.69% 2.75% -1.92% 0.57%

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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 9.5% 8.9% 2.7% 4.4% 2.6% 4.0% 2.4% 2.9% 2.0% 1.6% 2.3% 1.3% 1.3% 1.5% 1.2% 1.1%

Volume 1,516,558 27,004 540 640 1,281,276 1,392,010 137 146,982 235,866 3,472 4,052 7,895 41,180 16,487 50,036 6,566

Turnover LKR ('000) 377,811.62 33,079.92 189.58 1,369.54 42,550.09 180,956.53 83.74 1,368.94 37,745.17 364.88 819.00 588.48 6,183.50 2,472.99 8,948.98 429.37

Turnover USD ('000) 2,888.94 252.95 1.45 10.47 325.36 1,383.69 0.64 10.47 288.62 2.79 6.26 4.50 47.28 18.91 68.43 3.28

Intraday High (LKR) 250.40 1,230.00 359.00 2,140.00 37.10 131.50 615.00 9.40 161.10 105.50 202.60 75.00 151.00 150.80 179.30 66.80

Intraday Low (LKR) 247.50 1,230.00 349.00 2,131.50 33.00 128.00 610.00 9.30 160.00 104.50 200.10 73.00 150.00 149.50 178.00 65.30

Close 248.20 1,230.00 355.80 2,139.90 37.00 130.60 610.60 9.30 160.00 105.00 202.10 73.50 150.10 150.00 178.50 65.60

Price Gainers
Company
G S FINANCE EQUITY ONE PLC PEOPLE'S MERCH CIT SOFTLOGIC FIN

Price Losers
Today 450.70 31.90 15.10 114.80 31.20 Change + 70.70 + 3.30 + 1.20 + 8.80 + 2.30 % Change Company 18.61% 11.54% 8.63% 8.30% 7.96%
PC HOUSE LAKE HOUSE PRIN. BERUWELA WALKINN LANKA CENTURY [W0006] UDAPUSSELLAWA

Today 0.50 95.50 94.40 1.10 26.30

Change - 0.10 - 12.40 - 9.60 - 0.10 - 2.20

% Change -16.67% -11.49% -9.23% -8.33% -7.72%

Top 05 Performers for the Day

Company
JKH CHEVRON TAPROBANE COMMERCIAL BANK LANKA IOC

Today 248.20 291.00 2.90 130.60 39.50

Pre Day 249.50 294.40 2.90 128.50 39.90

% Change -0.52% -1.15% 0.00% 1.63% -1.00%

Volume (mn) 1.52 0.67 64.15 1.39 1.66

Contribution to Total T/O 14.6% 7.5% 7.4% 7.0% 2.5%

Turnover (LKR) 377,811,616 194,221,180 192,463,315 180,956,526 66,035,283

Most Active
Company
TAPROBANE ASIA ASSET NATION LANKA MULLERS S M B LEASING[NON VOTING]

Today 2.90 1.90 8.70 1.40 0.50

Pre Day 2.90 1.80 8.70 1.30 0.50

% Change 0.00% 5.56% 0.00% 7.69% 0.00%

Volume (mn) 64.15 5.47 4.73 3.97 3.40

Contribution to Total T/O 7.4% 0.4% 1.6% 0.2% 0.1%

Turnover (LKR) 192,463,315 10,379,088 42,239,624 5,571,459 1,696,493

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan UK USA Dollar Yuan Euro Rupee Yen Pound Dollar Indicative Rate 23.01.2014 115.14 21.61 177.18 2.12 1.25 216.66 130.78

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% 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 16,373.3 3,153.6 6,821.4 15,695.9

Change -41.1 2.3 -4.9 -125.1

Change % -0.25% q 0.07% p -0.07% q -0.79% q

Time* 16:30 06:02 06:02 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 96.72 87.63 565.50 1,244.90 331.75

Change -0.01 -0.21 4.25 6.30 -1.95

Change % -0.01% q -0.24% q 0.76% p 0.51% p -0.58% q

Time* 05:46 05:41 05:45 05:46 05:45

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka exports up 6.2-pct in 2013: trade ministry Sri Lanka's exports rose 6.2 percent from year earlier to 10,379 million US dollars, the commerce ministry said. Agriculture products grew 10.3 percent to 2479.94 million US dollars, industrial products grew 4.91 percent to 7,618 million US dollars with apparels up 13.31 percent to 4492.20 million. Other export crops surged 42.9 percent to 521.43 million US dollars, the trade ministry said. Tea had risen 9.22 percent to 1526.75 million US dollars and fisheries products rose 19.14 percent to 244.43 million US dollars. [Source: www.lbo.lk] Lanka can be a gateway in exports to Middle East, Africa and Europe - Hobo "Sri Lanka is currently entering into one of the most exciting phases with sustainable economic growth. Sri Lanka has recorded a growth of 6 to 8% for the last few years,"said Nobuhito Hobo Ambassador of Japan. "As the balance of power in the global economy shifts to Asia, the export sector is expected to expand steadily in order to boost the economic growth in Sri Lanka. In addition, the recent CHOGM in Sri Lanka was an excellent opportunity to appeal and distribute the advantages and potentials of Sri Lanka for many world influential business people, " [Source: www.dailynews.lk] Sri Lanka Cargills group gets nod to start bank Sri Lanka's Cargills (Ceylon) Plc said it start up banking arm had been given the nod to start operations by the regulator. Cargills Bank was given a license to start operations from January 21, the firm said in a stock exchange filing.

[Source: www.lbo.lk] Sri Lanka to sack officer over 'false' GDP data row Sri Lanka's main statistics office Wednesday said a senior official who denounced alleged government pressure to inflate economic growth data would be sacked after he was found guilty of leaking confidential information.Accounts Director H.S. Wanasinghe faced two separate disciplinary hearings after he complained to the Asian Development Bank (ADB) and an opposition lawmaker that the government was manipulating data. [Source: www.lbo.lk]

Global
Global Factory Growth Diverges From Europe to China: Economy Euro-area factory output expanded faster than economists forecast in January and a gauge in China signaled a surprise drop in manufacturing, highlighting the uneven nature of the global recovery. A euro-area manufacturing index increased to 53.9 from 52.7 in December, Markit Economics said in a statement today. That exceeded the median estimate of 53 in a Bloomberg News survey of 39 economists. A Chinese gauge dropped to 49.6 from 50.5, weaker than even the most pessimistic forecast in a survey. A number below 50 indicates contraction. [Source: www.bloomberg.com] China Manufacturing Index Signals Surprise Contraction Chinas manufacturing may contract for the first time in six months, adding to stresses in the worlds second-biggest economy, according to a gauge released by HSBC Holdings Plc and Markit Economics. The preliminary reading of 49.6 for January in a Purchasing Managers Index (SHCOMP) released today was below a final figure of 50.5 in December and all 19 estimates of analysts in a Bloomberg News survey. A number above 50 indicates expansion. [Source: www.bloomberg.com]

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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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