Monday, January 27, 2014

Today 6,245.81 3,461.75 Point Change - 9.82 - 16.34 % Change -0.16 % q -0.47 % q

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

5.6% 6.1% 872.6 834.1 55.8 39.2 2,598.5 -33.0 249.6 282.6 0.8

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]

Investors book profits

CSE Diary for 27.01.2014

Index dips on profit taking: The Colombo stocks saw a sharp rise during the first few minutes of trading but quickly turned around as investors were on selling mood. Following the 3 consecutive days of gains some profit taking led the index into the red. However, a partial recovery of the index was observed during the final hour of trading as some buying somewhat rescued the index to finally end with dip of only 9 points. Decline in John Keells Holdings and Finlays Colombo weighted negatively on the index. Large crossing in JKH: John Keells Holdings recorded a relatively large crossing with 700k shares changing hands at LKR235.0 during the final hour of trading. The counter was active on board as well with some heavy selling pressure. The counter dipped 3.2% to close at LKR238.1. Further crossings were recorded in Expolanka Holdings and Janashakthi Insurance with the former

registering 3.3mn shares at LKR8.8 and the latter registering 1.5mn shares at LKR13.5.
Profit taking in value counters as well: Investors seem to be taking profit in value counters as well with both Voting and Non-Voting of Tokyo Cement witnessing some investor interest though the counters closed with dips of 0.3% and 3.4% respectively. Selling pressure was observed in Expolanka Holdings, Laugfs Gas and Softlogic Holdings. However due to continuous buying interest counters only recorded marginal losses.

Retailers on selected counters: Retail activity today centered around Touchwood Investments as the counter saw 8.7mn shares trading and recording a gain of 10.3%. Further retail interest was also observed in The Finance [Non-Voting].

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 27.01.2014 Inflation (%) Dec-13 YoY Change Annual Avg Week ending 24.01.2014 6.84 7.02 7.15 9.66 -56.34

6400 6200

Index

6000 5800 5600

4.7 6.9

ASPI
3400

Turnover LKR ('mn)

3500

2,000 1,500 1,000 500

150.0

Volume ('mn)

Index

3300

100.0
50.0

3200
3100

3000

0.0

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 6,245.8 3,461.8 872.6 6.7 55.8 226 2,598.5 249.6 282.6 -33.0 16.8 2.1 2.8 Today 13,981.6 21,970.4 2,860.7 1,838.7 753.3 3,209.5 612.7 3,093.8 755.8 160.8

Pre Day 6,255.6 3,478.1 1,452.6 11.1 134.4 244 2,602.6 299.6 684.5 -384.8 16.8 2.1 2.8 Pre Day 14,074.7 21,326.3 2,879.0 1,883.6 754.8 3,219.6 619.6 3,114.5 757.3 160.4

Change % -0.16% q -0.47% q -39.92% -39.92% -58.48% -7.38% -0.16% -16.71% -58.71% -91.42% -0.14% -0.33% 0.00% % Change -0.66% 3.02% -0.64% -2.39% -0.20% -0.31% -1.12% -0.67% -0.19% 0.25% q p q q q q q q q p

Last Week 6,156.7 3,425.7 675.8 5.2 54.2 233 2,561.4 233.5 280.5 -46.9 16.6 2.0 2.8 Last Week 13,864.5 20,733.0 2,799.1 1,854.8 734.2 3,207.4 597.1 3,025.8 750.0 158.5

% WoW Change 1.45% 1.05% 29.13% 29.13% 2.98% -3.00% 1.45% 6.87% 0.76% -29.63% 1.46% 1.27% 0.00% % WoW Change 0.84% 5.97% 2.20% -0.87% 2.61% 0.06% 2.61% 2.25% 0.78% 1.47%

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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 9.1% 9.7% 2.7% 4.4% 2.6% 3.9% 2.4% 3.0% 2.0% 1.6% 2.4% 1.4% 1.3% 1.5% 1.2% 1.1%

Volume 1,011,818 35,171 368 5,697 5,027 76,993 35 530,128 50,017 9,800 32,879 92,575 1,845 22,924 29,909 876

Turnover LKR ('000) 239,737.66 45,736.81 129.09 12,106.34 184.93 9,857.03 21.43 5,014.08 7,997.68 1,006.30 6,740.04 6,941.23 280.45 3,435.26 5,350.26 57.80

Turnover USD ('000) 1,834.86 350.05 0.99 92.66 1.42 75.44 0.16 38.38 61.21 7.70 51.59 53.13 2.15 26.29 40.95 0.44

Intraday High (LKR) 247.40 1,349.00 355.00 2,150.00 36.90 130.00 615.00 9.60 160.10 103.10 206.00 75.00 153.00 150.00 180.00 66.00

Intraday Low (LKR) 238.00 1,300.00 350.00 2,125.00 36.70 127.50 612.00 9.40 159.00 102.00 203.00 73.30 152.00 147.10 178.50 65.90

Close 239.20 1,340.20 355.00 2,125.20 36.80 128.00 612.00 9.50 159.40 102.40 205.50 75.00 152.10 149.00 178.80 66.00

Price Gainers
Company
TOUCHWOOD CEYLON TOBACCO PALM GARDEN HOTL COLD STORES TALAWAKELLE

Price Losers
Today 3.20 1,340.20 80.00 165.50 27.00 Change + 0.30 + 88.90 + 5.30 + 10.50 + 1.70 % Change Company 10.34% 7.10% 7.10% 6.77% 6.72%
MORISONS FINLAYS COLOMBO KEELLS FOOD CITRUS HIKKADUWA ASIAN ALLIANCE

Today 230.00 253.10 62.60 20.20 86.80

Change - 65.00 - 46.90 - 9.20 - 1.90 - 8.00

% Change -22.03% -15.63% -12.81% -8.60% -8.44%

Top 05 Performers for the Day

Company
JKH EXPOLANKA JKH[WARRANTS] CEYLON TOBACCO JANASHAKTHI INS.

Today 239.20 9.00 77.70 1340.20 13.50

Pre Day 247.00 9.00 80.00 1251.30 13.50

% Change -3.16% 0.00% -2.88% 7.10% 0.00%

Volume (mn) 1.01 5.99 0.61 0.04 2.19

Contribution to Total T/O 9.2% 2.0% 1.8% 1.8% 1.1%

Turnover (LKR) 239,737,660 53,113,332 46,568,744 45,736,813 29,629,102

Most Active
Company
TOUCHWOOD S M B LEASING EXPOLANKA S M B LEASING[NON VOTING] ASIA ASSET

Today 3.20 1.50 9.00 0.50 2.00

Pre Day 2.90 1.50 9.00 0.50 2.00

% Change 10.34% 0.00% 0.00% 0.00% 0.00%

Volume (mn) 8.74 6.19 5.99 5.91 2.34

Contribution to Total T/O 1.0% 0.4% 2.0% 0.1% 0.2%

Turnover (LKR) 27,250,178 9,268,812 53,113,332 3,010,324 4,645,040

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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 27.01.2014 113.65 21.61 178.81 2.08 1.28 215.49 130.66

CSE Announcements
Dividends
Company Aitken Spence Plantation 0 0 0 0
Company Description

DPS (LKR) 2.00 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 05-02-2014 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 17-02-2014 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

Type of Security
-

Code
1/0/1900

Board
1/0/1900

Offer Price
0.00

1/0/1900

1/0/1900

0.00%

Key Corporate Diclosures

Sri Lanka Telecom announced that its subsidiary, Mobitel (Private) Limited is in negotiation with Hutchinson Asia Telecom about a possible acquisition of Hutchison Telecommunications Lanka (Pvt) Limited.

Material Dealings by Related Parties of Listed Companies

Company THE FINANCE COMPANY SMB LEASING Name Dr. T Senthilverl Mr. T Senthilverl Relationship Director Director Transaction Quantity Purchase 177,168 Purchase 23,470,746 Price (LKR) 14.1-14.2 1.50 Date 24.01.2014 24.01.2014

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 15,879.1 3,014.6 6,576.5 15,005.7

Change -318.2 -13.6 -87.3 -385.8

Change % -1.96% q -0.45% q -1.31% q -2.51% q

Time* 16:30 05:21 05:21 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 97.06 86.83 567.25 1,270.70 328.15

Change 0.42 -0.38 2.00 6.20 1.00

Change % 0.43% p -0.44% q 0.35% p 0.49% p 0.31% p

Time* 05:05 05:03 05:04 05:04 05:05

Source: www.bloomberg.com

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TOP STORIES
Local
2014 to be better after below-expectations 2013: CEOs For Sri Lanka Incorporated, the 2013 ended below expectations but 2014 is primed to be better according to CEOs who responded to a comprehensive survey done by MTI Consulting in partnership with CIMA Sri Lanka. As per the survey, countrys economy is expected to stabilise in 2014 by 62% of respondents compared to 56% in 2013, whilst 20% indicated acceleration in the economy which is slightly higher than the last years 17%. However, MTI said it must be noted that only 18% of the respondents expect the economy to decline in 2014 which is a sharp drop of 9ppt from 2013. [Source: www.ft.lk] RAM upgrades Janashakthi Insurances ratings to A; Outlook is Stable RAM Ratings Lanka has upgraded Janashakthi Insurance PLCs long- and short-term claims-paying ability ratings to A and P2, respectively from A- and P2. The Outlook on the long term rating is Stable. The upgrade reflects the continued improvement in the companys Life segment where it now compares well against its higher rated peers. The companys ratings are supported by its good competitive position, underwriting performance in the life segment and above-average capitalisation levels. [Source: www.ft.lk] CIFL case: AG Dept. informs Court of Monetary Board measures to revive crisis-hit finance companies The Attorney Generals Department last week updated to Court of Appeal hearing a case on the troubled Central Investment and Finance Ltd., (CIFL) about new measures taken by the Monetary Board to revive crisis-hit finance companies. The Court further extended the Interim Order issued on September 27 against the Central Investment & Finance Ltd staying the operation of the Monetary Boards direction to convert its 60% deposit liabilities into Non-Voting Shares. [Source: www.ft.lk] Rupee at 1-week high on exporter dollar sales The rupee ended at a one-week high on Friday, gaining for a second straight day, due to exporter dollar conversions in the absence of importer demand for the greenback, dealers said. The spot rupee closed at 130.60/70 per dollar, its highest since 17 January and firmer than Thursdays close of 130.73/76. There was not too much importer outflow, oil (bills) were also not seen, said a stockbroker. However, the rupee is expected to fall in the absence of any intervention by the Central Bank, dealers said. [Source: www.ft.lk]

Global
U.K. Seen Growing Most Since 2007 as Carney Primes Phase Two Britains economy probably capped its best year of growth since 2007 during the last quarter, bringing Mark Carney closer to completing what he calls the first phase of his low interest-rate policy. Gross domestic product rose 0.7 percent, near the 0.8 percent pace of the previous three months, according to the median of 39 estimates in a Bloomberg News survey. The data due tomorrow would mark the first full year since the financial crisis when the economy sustained expansion in every quarter. [Source: www.bloomberg.com] German Business Confidence Rises as Growth Pickup Seen German business confidence rose to the highest level in more than two years and beat economists forecasts in a signal that the expansion in Europes largest economy may be accelerating. The Ifo institutes business climate index, based on a survey of 7,000 executives, climbed to 110.6 in January from 109.5 in December. Economists predicted an increase to 110, according to the median of 45 estimates in a Bloomberg News survey. It was the third consecutive increase and the strongest reading since July 2011. [Source: www.bloomberg.com]

Softlogic Equity Research

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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.

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