Tuesday, April 29, 2014

Today 6,186.25 3,405.32 Point Change + 14.31 + 10.98 % Change 0.23 % p 0.32 % p

ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index

No.06, 37th Lane, Queens Road, Colombo - 03, Sri Lanka Tel: +94 11 727 7000, Fax: +94 11 727 7099 Email: research@equity.softlogic.lk

4.6% 4.3% 570.8 822.8 29.4 39.7 2,590.6 48.3 153.5 105.2 -7.1

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 picked up boosted by heavy-caps

CSE Diary for 29.04.2014

Indices resumed uptrend buoyed by blue-chips: Bourse resumed the rally buoyed by the gains showcased in blue-chips. ASPI reached to an intra-day peak of c. 6,214 points during the session and retraced back to settle the day at 6,186.25 with a gain of 14 points. John Keells Holdings (+1.3%) was the main supporter of the index followed by price advances in Sri Lanka Telecom (+1.5%) and Expolanka Holdings (+5.3%). The S&PSL20 index also closed with a gain of 10 points at 3,405.32.

80k shares which was picked at LKR157.0. Sampath Bank further edged higher and closed at LKR194.9 with a gain of 0.2%. SAMPs onboard turnover was dominated by two trades which amounted to 91k shares at LKR196.0. SPEN regained investor interest; Aitken Spence was among the top turnover list backed by a few large on-board trading blocks, the largest being the 100K share transaction which changed hands at LKR97.0. The counter closed at LKR98.0 with a gain of 1.0%. Heavy retail interest on UBC and EXPO: Strong retail interest was seen in Union Bank of Colombo where the counter rallied and closed at LKR21.4 with a gain of 4.9%, spearheading the daily turnover. Expolanka Holdings soared fuelled by several large transactions and ended at LKR10.0, posting a strong gain of 5.3%.

Strong interest in BFI sector: BFI sector gathered investor prominence as Hatton National Bank, Sampath Bank and Commercial Bank encountered robust on-board turnover. HNB leapt and settled at LKR157.7 with a gain of 0.5% supported by a single on-board transaction of

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 29.04.2014 Inflation (%) Mar-14 YoY Change Annual Avg Week ending 02.05.2014 6.58 7.02 8.69 -12.07 4.2 5.7 6.78

6300 6200

Index

6100 6000
5900 5800

ASPI Turnover LKR ('mn)

3450 6,000 5,000

3400

Index

3350

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

3300
3250

3200

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 6,186.3 3,405.3 570.8 4.4 29.4 243 2,590.6 153.5 105.2 48.3 16.5 2.0 2.8 Today 13,817.8 19,593.0 2,872.0 1,856.0 830.9 3,242.4 611.5 3,078.7 722.9 183.4

Pre Day 6,171.9 3,394.3 423.8 3.2 24.9 226 2,584.6 128.5 76.2 52.2 16.5 2.0 2.8 Pre Day 13,788.1 19,642.5 2,865.9 1,843.5 843.1 3,235.8 605.1 3,035.7 728.2 182.0

Change % 0.23% p 0.32% p 34.70% 34.70% 18.33% 7.52% 0.23% 19.45% 37.98% -7.59% 0.23% 0.23% 0.00% % Change 0.22% -0.25% 0.21% 0.68% -1.44% 0.20% 1.05% 1.41% -0.73% 0.77% p q p p q p p p q p

Last Week 6,191.8 3,397.4 547.2 4.2 28.6 228 2,592.9 226.1 46.8 179.3 16.5 2.0 2.8 Last Week 13,822.3 19,941.6 2,908.5 1,862.2 843.6 3,235.4 621.0 3,018.1 715.6 175.8

% WoW Change -0.09% 0.23% 4.32% 4.32% 2.84% 6.58% -0.09% -32.11% 124.97% -73.08% -0.09% -0.09% 0.00% % WoW Change -0.03% -1.75% -1.25% -0.33% -1.50% 0.22% -1.54% 2.01% 1.01% 4.31%

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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% 7.7% 2.8% 4.1% 3.4% 4.0% 2.3% 2.9% 1.9% 1.5% 2.4% 1.4% 1.3% 1.6% 1.3% 1.1%

Volume 69,330 290 0 19 82,681 220,529 11,036 39,860 198,015 428,847 5,396 23,303 100 49,927 156,104 9,902

Turnover LKR ('000) 16,468.42 312.39 0.00 37.97 4,027.02 28,007.61 6,264.44 370.62 31,098.46 41,656.51 1,106.13 1,771.02 14.50 7,963.35 30,561.15 638.71

Turnover USD ('000) 126.10 2.39 0.00 0.29 30.84 214.46 47.97 2.84 238.12 318.97 8.47 13.56 0.11 60.98 234.01 4.89

Intraday High (LKR) 238.00 1,099.90 0.00 2,000.00 49.00 127.40 586.00 9.40 157.90 98.00 205.20 78.00 145.00 160.00 196.00 64.90

Intraday Low (LKR) 236.00 1,065.00 0.00 1,990.00 47.00 127.00 565.10 9.20 157.00 97.00 204.00 75.20 145.00 159.00 193.00 63.50

Close 238.00 1,065.30 375.00 1,997.70 48.90 127.00 580.00 9.30 157.70 98.00 205.00 76.10 145.00 160.00 194.90 64.90

Price Gainers
Company
CIFL THE FINANCE CO. [X] PCH HOLDINGS RICH PIERIS EXP RAMBODA FALLS

Price Losers
Today 0.70 6.50 0.90 68.50 15.60 Change + 0.10 + 0.80 + 0.10 + 7.40 + 1.60 % Change Company 16.67% 14.04% 12.50% 12.11% 11.43%
PC HOUSE G S FINANCE FINLAYS COLOMBO CAL FINANCE CEYLINCO INS.

Today 0.30 53.90 270.00 12.90 1,270.70

Change - 0.10 - 11.10 - 30.00 - 1.40 - 119.30

% Change -25.00% -17.08% -10.00% -9.79% -8.58%

Top 05 Performers for the Day

Company
UNION BANK EXPOLANKA AITKEN SPENCE HNB SAMPATH

Today 21.40 10.00 98.00 157.70 194.90

Pre Day 20.40 9.50 97.00 156.90 194.50

% Change 4.90% 5.26% 1.03% 0.51% 0.21%

Volume (mn) 3.10 4.54 0.43 0.20 0.16

Contribution to Total T/O 2.5% 1.7% 1.6% 1.2% 1.2%

Turnover (LKR) 65,854,157 44,851,145 41,656,509 31,098,464 30,561,153

Most Active
Company
EXPOLANKA UNION BANK THE FINANCE CO.[NON VOTING] SOFTLOGIC CAP[RIGHTS] RICHARD PIERIS

Today 10.00 21.40 6.50 0.10 6.90

Pre Day 9.50 20.40 5.70 0.10 6.60

% Change 5.26% 4.90% 14.04% 0.00% 4.55%

Volume (mn) 4.54 3.10 3.00 1.10 1.10

Contribution to Total T/O 1.7% 2.5% 0.7% 0.0% 0.3%

Turnover (LKR) 44,851,145 65,854,157 19,135,916 110,001 7,503,911

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 29.04.2014 120.70 20.88 181.03 2.15 1.27 219.59 130.60

CSE Announcements
Dividends
Company AMW Capital Leasing The Lighthouse Hotel 0 0 0
Company Description

DPS (LKR) 0.85 2.00 0.00 0.00 0.00

Proportion 0 0

XD Date 08-05-2014 27-06-2014 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 20-05-2014 07-07-2014 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

0

Material Dealings by Related Parties of Listed Companies

Company VALLIBEL ONE Name Mr. Nimal Perera 0 Relationship Transaction Deputy Chairman Purchase 0 0 Quantity 213,893 0 Price (LKR) 17.8-18.1 0.00 Date 28.04.2014 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 16,448.7 3,192.5 6,742.2 14,288.2

Change 87.3 26.7 42.0 -141.0

Change % 0.53% p 0.84% p 0.63% p -0.98% q

Time* 16:15 06:59 07:00 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 101.22 92.45 704.50 1,290.40 308.85

Change 0.38 0.22 -4.00 -8.60 -0.45

Change % 0.38% p 0.24% p -0.56% q -0.66% q -0.15% q

Time* 06:43 06:43 06:42 06:42 06:42

Source: www.bloomberg.com

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TOP STORIES
Local
Sri Lanka 'BB-' rating confirmed, foreign debt, deficits high: Fitch Fitch Ratings has confirmed a 'BB-' rating on Sri Lanka with a stable outlook on strong economic growth but said state debt was over twice that of similar rated countries and foreign debt three times as much. Sri Lanka's rating is three levels below the lowest investment grade rating of 'BBB-'. The outlook was stable. "Official data do not point to overheating of the economy, as inflation (4.2 percent in March) and credit growth (4.4 percent in February) are low," Fitch Ratings said. [Source: www.lbo.lk] Sri Lanka Treasuries yields steady Sri Lanka's Treasuries yields were steady at Wednesday's auction with 12-month yield unchanged at 7.02 percent, date from the state debt office showed. There were no sales of 3-month bills. Last week 3-month bills were sold for a weighted average yield of 6.58 percent. The 6-month yield was 6.78 percent, down one basis point. The debt office sold 3.9 billion rupees of 6-month bills, 7.4 billion rupees of 12 month bills totaling 11.3 billion rupees after offering 15.0 billion rupees of maturing bills at the auction. [Source: www.lbo.lk] More BOI companies paying tax now The Board of Investment has made a significant contribution towards increasing government tax revenue. Although the BOI is an entity that facilitates the granting of tax concessions to promote investment 1,056 out of the total 1,723 BOI projects have become tax paying entities after completing their terms of tax concessions. Another 95 BOI projects will become tax paying entities by the end of this year. Apart from this 101 projects will enter the tax paying threshold by end 2015 and 71 more will become tax payers by end 2016. [Source: www.dailynews.lk] Hemas Rs. 1 b debenture issue draws Rs. 4.5 b demand Hemas Holdings PLCs (HHL) maiden debenture issue of Rs. 1 billion had drawn heavy demand with subscriptions worth Rs. 4.5 billion received at the time of oversubscription. The company said its oversubscribed issue of 10 million Rated, Unsecured, Redeemable Debentures at Rs. 100 each, (5 million in the first tranche and an equal amount in the event of oversubscription of the original amount), received 119 applications applying for 44.8 million debentures amounting to Rs. 4.5 billion through cheques, RTGS transfers, and guarantees. [Source: www.ft.lk]

Global
U.K. Economic Growth Quickens to 0.8% as Recovery Broadens U.K. growth accelerated in the first quarter as the recovery broadened, pushing output excluding oil and gas back above its pre-recession peak. Gross domestic product expanded 0.8 percent from the final three months of 2013, when it grew 0.7 percent, the Office for National Statistics said today in London. Britain is on track to have the fastest-expanding economy of any Group of Seven nation in 2014, raising the prospect that Bank of England policy makers may raise borrowing costs by year-end. [Source: www.bloomberg.com] Chinas Provinces Fail to Meet Lower 2014 Growth Goals Almost all Chinese provinces failed to meet their growth targets in the first quarter even after scaling back their ambitions as the government instructs officials to focus on reining in debt and curbing pollution. Thirty of 31 provinces and municipalities reported missing their goals, with the biggest shortfall in northeastern Heilongjiang, where an expansion of 4.1 percent compared with an 8.5 percent target for the year. Most localities targets are lower than in 2013. The latest data were released by government websites and newspapers. [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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