Friday, April 11, 2014

Today 6,092.34 3,346.92 Point Change + 17.29 + 1.92 % Change 0.28 % p 0.06 % 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

3.0% 2.5% 540.6 830.1 25.5 40.9 2,551.3 182.8 228.6 45.7 -8.3

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 rebounded as value counters rallied ahead

CSE Diary for 11.04.2014

Indices rebounded to gains: The benchmark index denoted a volatile path as it rebounded to an intra-day high of 6,096.52 (+21 points) after having dipped to an intra-day low of 6,064.30 during early trading. Investor activity picked up amidst a rally in value counters in the backdrop of the World Bank having expressed optimism on the Sri Lankan economy well above its South Asian peers with a growth forecast of 7.3% for 2014E. Sri Lanka Telecom (+3.5%), Lanka IOC (+4.7%) and Lion Brewery (+2.4%) weighed positively on indices. The S&PSL20 index ended broadly flat.

Crossings in heavyweights JKH & CTC: John Keells Holdings spearheaded the turnover supported by two blocks carrying c.316k shares at LKR238.0 while a few mid-sized on board blocks were transacted at a similar price. Ceylon Tobacco Company encountered a block of 30k which was crossed off at LKR1,050.0.

Value counters rallied ahead of the earnings season: Manufacturing and Energy sectors underscored gains with selected value counters trading at 52-week high levels. Activity levels spiked up in Lanka IOC as it gained 5.4% at its intra-day high of LKR43.1while Textured Jersey Lanka touched a new 52-week high price of LKR16.7 (+1.2%). Both counters emerged to the top turnover slot amidst robust volumes. Laugfs Gas Voting and Non-Voting gathered focus as each touched new 52-week high levels of LKR35.8 (+4.9%) and LKR28.7 (+4.4%) respectively. Tokyo Cement Voting and Non-Voting extended their rally at 52-week high levels while renewed interest was seen in F&B players; Renuka Agro Foods and Ceylon Cold Stores. Improved retail activity: Retailer sentiment witnessed an improvement with majority of activity surrounding Lanka IOC, Laugfs Gas [Non-Voting], Blue Diamond [Non-Voting] and Textured Jersey Lanka.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 11.04.2014 Inflation (%) Mar-14 YoY Change Annual Avg Week ending 11.04.2014 6.63 7.04 8.64 -22.51 4.2 5.7 6.80

6200 6100

Index

6000 5900
5800 5700

ASPI
3350

Turnover LKR ('mn)

3400

6,000 5,000

Index

3300
3250 3200 3150

4,000
3,000 2,000 1,000

3100

70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Volume ('mn)

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 6,092.3 3,346.9 540.6 4.1 25.5 224 2,551.3 228.6 45.7 182.8 16.3 2.0 2.9 Today 13,606.9 19,302.9 2,830.2 1,838.4 832.9 3,212.6 610.3 2,947.8 716.2 179.8

Pre Day 6,075.1 3,345.0 359.0 2.7 20.8 220 2,542.7 15.0 13.2 1.8 16.2 2.0 2.9 Pre Day 13,553.6 19,287.5 2,818.9 1,837.0 827.9 3,219.8 611.5 2,939.2 716.3 176.5

Change % 0.28% p 0.06% p 50.58% 50.58% 22.66% 1.82% 0.34% 1422.49% 247.50% 9788.82% 0.34% 0.34% 0.00% % Change 0.39% 0.08% 0.40% 0.08% 0.61% -0.22% -0.20% 0.29% -0.02% 1.83% p p p p p q q p q p

Last Week 6,054.6 3,323.1 5,041.7 38.6 49.3 213 2,534.1 387.5 4,469.9 -4,082.4 16.2 2.0 2.9 Last Week 13,474.9 19,404.9 2,796.3 1,815.7 852.7 3,187.9 591.2 2,889.6 710.0 181.1

% WoW Change 0.62% 0.72% -89.28% -89.28% -48.32% 5.16% 0.68% -41.02% -98.98% -104.48% 0.68% 0.68% 0.00% % WoW Change 0.98% -0.53% 1.21% 1.25% -2.31% 0.78% 3.24% 2.01% 0.87% -0.72%

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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 9.2% 7.7% 2.8% 4.2% 3.4% 4.0% 2.3% 2.9% 1.9% 1.6% 2.4% 1.4% 1.2% 1.6% 1.2% 1.1%

Volume 621,194 41,459 210 1 16,395 70,562 101 18,701 1,780 14,105 553 1 1,510 2,323 116,902 98

Turnover LKR ('000) 147,843.08 43,535.86 76.79 1.99 779.27 8,891.19 57.58 170.22 270.56 1,381.93 112.23 0.08 208.43 350.04 21,346.69 6.29

Turnover USD ('000) 1,132.27 333.42 0.59 0.02 5.97 68.09 0.44 1.30 2.07 10.58 0.86 0.00 1.60 2.68 163.49 0.05

Intraday High (LKR) 238.20 1,089.00 368.00 1,994.00 48.00 127.00 578.00 9.20 152.00 98.00 205.00 77.00 141.00 152.00 183.90 64.20

Intraday Low (LKR) 236.50 1,049.10 365.10 1,994.00 46.10 125.00 570.00 9.00 152.00 97.80 202.00 77.00 138.00 150.50 182.00 64.20

Close 238.00 1,050.00 365.70 1,994.00 48.00 126.80 570.10 9.10 152.00 98.00 203.10 77.00 138.00 151.20 183.40 64.20

Price Gainers
Company
CEYLON LEATHER [W0013] G S FINANCE CIFL ORIENT GARMENTS HUNTERS

Price Losers
Today 0.30 40.90 0.80 10.50 293.00 Change + 0.10 + 5.70 + 0.10 + 1.10 + 24.40 % Change Company 50.00% 16.19% 14.29% 11.70% 9.08%
LANKA CENTURY [W0006] BIMPUTH FINANCE MULLERS TEA SERVICES CARGO BOAT

Today 0.30 53.10 1.20 652.10 103.50

Change - 0.10 - 4.60 - 0.10 - 47.30 - 6.50

% Change -25.00% -7.97% -7.69% -6.76% -5.91%

Top 05 Performers for the Day

Company
JKH LANKA IOC CEYLON TOBACCO TEXTURED JERSEY RENUKA AGRI

Today 238.00 42.80 1050.00 16.50 3.10

Pre Day 238.00 40.90 1050.00 16.50 3.10

% Change 0.00% 4.65% 0.00% 0.00% 0.00%

Volume (mn) 0.62 1.54 0.04 1.71 7.11

Contribution to Total T/O 5.8% 2.5% 1.7% 1.1% 0.9%

Turnover (LKR) 147,843,077 64,906,440 43,535,858 28,239,826 22,230,038

Most Active
Company
RENUKA AGRI BLUE DIAMONDS[NON VOTING] TEXTURED JERSEY LANKA IOC PIRAMAL GLASS

Today 3.10 1.10 16.50 42.80 3.50

Pre Day 3.10 1.10 16.50 40.90 3.50

% Change 0.00% 0.00% 0.00% 4.65% 0.00%

Volume (mn) 7.11 3.53 1.71 1.54 0.71

Contribution to Total T/O 0.9% 0.2% 1.1% 2.5% 0.1%

Turnover (LKR) 22,230,038 3,884,514 28,239,826 64,906,440 2,487,534

Softlogic Equity Research

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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 11.04.2014 122.53 21.02 181.43 2.17 1.29 219.02 130.57

CSE Announcements
Dividends
Company Central Finance Company 0 0 0 0
Company Description

DPS (LKR) 0.85 0.00 0.00 0.00 0.00

Proportion 1 for 1 0

XD Date 09-04-2014 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 11-04-2014 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

Bimputh Finance 0 0 Right Issue 0 0 12-05-2014 1/0/1900 1/0/1900 02-06-2014 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

Bairaha Farms has decided to colloborate in a new project to set up a large scale state of the art commercial animal food manufacturing factory together with raw material procrument and modern post-harvest storage facilities

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 16,170.2 3,117.6 6,562.5 13,960.1

Change -267.0 -35.3 -79.5 -340.1

Change % -1.62% q -1.12% q -1.20% q -2.38% q

Time* 16:15 06:24 06:24 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 103.15 89.38 662.75 1,320.60 306.30

Change -0.25 0.36 0.50 0.10 1.80

Change % -0.24% q 0.40% p 0.08% p 0.01% p 0.59% p

Time* 06:09 06:10 06:10 06:11 06:10

Source: www.bloomberg.com

Softlogic Equity Research

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TOP STORIES
Local
WB tips Lanka to lead South Asias growth; flags off key risks too The World Bank expects Sri Lanka to lead South Asia in economic growth this year benefitting from recent rebound and enhanced capacity but the country faces many risks to the positive outlook. Sri Lanka would continue to grow at 7.3% this year as the economy was sustained by new capacity from infrastructure investments and rebuilding after the countrys recent conflict, the World Bank said in its twice-a-year South Asia Economic Focus released yesterday. [Source: www.ft.lk] Sri Lanka's CEB posts profits in 2013, with rains, tariff hike Sri Lanka Ceylon Electricity Board has made operating profits of 24.6 billion rupees in 2013, the Central Bank said, amid reports that it had lost 24.3 billion rupees in the first quarter of 2014 due to a drought. The 2013 profit was an improvement on the 2012 loss of 62.1 billion rupees helped by a 2.5 billion rupee monthly increase in revenues from a tariff hike. The total fuel bill had fallen 30.8 percent to 29.4 billion in 2013 despite a increase of 25 rupees a litre due to higher hydro power generation, the Central Bank's annual report said. [Source: www.lbo.lk] Sri Lanka generates one third of electric energy from coal With a second 300 MegaWatt power plant beginning test runs, more than one third of Sri Lanka's daily electricity needs are now being generated from coal-fired energy, official data show. On the April 09, out of the daily energy requirement of 35.6 GigaWatt hours (millions of units of electricity), 35.6 percent came from coal. On April 08, 36.8 percent came from coal.

[Source: www.lbo.lk] Sri lanka Softlogic Holdings downgraded by Fitch Sri Lanka's Softlogic Holdings Plc, has been downgraded by one notch from 'A-(lka)' to 'BBB+(lka)' which is still in the investment grade, with a 'stable; outlook by Fitch. "The downgrade reflects Fitch's expectation of a sustained weakness in SHL's financial profile at the holding company level, primarily because of debt-funded capital injections into the company's financial services, leisure and expanding retail subsidiaries, " the rating agency said. [Source: www.lbo.lk]

Global
Chinas Inflation Stays Below Target as Producer Prices Drop Consumer inflation in China remained below the governments target in March while factory-gate deflation deepened, giving Premier Li Keqiang more scope to roll out measures to support growth. The consumer price index rose 2.4 percent from a year earlier, the National Bureau of Statistics said today in Beijing, matching the median estimate of economists in a Bloomberg News survey. The producer price index fell 2.3 percent, after a 2 percent drop in February, extending the decline to 25 months. [Source: www.bloomberg.com] Property Trust Sales Drop 49% as Vicious Loop Seen: China Credit Chinese developers raised 49 percent less through trusts in the first quarter as the collapse of Zhejiang Xingrun Real Estate Co. highlighted default risks. Issuance of property-related trusts, which target wealthy investors, slid to 50.7 billion yuan ($8.16 billion) from 99.7 billion yuan in the fourth quarter, data compiled by Use Trust show. The yield on AA rated five-year bonds has climbed 175 basis points in the past year to 7.23 percent, according to Chinabond. That compares with 2.74 percent on corporate securities globally, Bank of America Merrill Lynch indexes show. [Source: www.bloomberg.com]

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Softlogic Equity Research

Kavindu Ranasinghe kavindu.ranasinghe@equity.softlogic.lk +94 11 7277031 Imalka Hettiarachchi imalka.hettiarachchi@equity.softlogic.lk +94 11 7277032

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+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

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