Wednesday, July 03, 2013

Today 6,117.97 3,433.00 Point Change - 22.82 - 29.51 % Change -0.37 % q -0.85 % 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

8.4% 11.3% 883.2 905.5 38.2 40.0 2,349.6 17.7 267.7 250.0 15.2

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]

Selling pressure re-enters bourse

CSE Diary for 03.07.2013

Bluechips lose value: Following yesterdays Moodys downgrade from positive to stable investor sentiment turned negative during the day with considerable selling pressure re-entering the market. The bourse was on a sharp downtrend until about 1pm reaching an intra-day low of 6,112 before recovering to the 6,140 mark. However the final hours weighed average results in a closing index point of 6,117 illustrating a decline of 23 points. John Keells Holdings, Commercial Leasing and Commercial Bank were the main negative contributors to the index. 8 crossings for the day; Lanka Ceramics, the newly acquired subsidiary of Royal Ceramics registered 2 crossings for the day with 2.4mn shares changing hands at LKR120.0. Janashakthi Insurance and Carsons saw a crossing each of 11.4mn and 100k shares respectively. Banking sector counter with attractive valuations; Nations Trust Bank registered

2 further off-board deals of 630k shares at LKR65.0. Diversified and Banks record heavy dips: Considerable interest was noted in Sampath Bank though counter dipped 1.3% to LKR200.0. More banking counters Commercial Bank and Hatton National Bank registered drops of 1.5% and 0.5% respectively. Selling pressure was moderate in John Keells Holdings and Hayleys two of the largest conglomerates as the counters lost 2.7% and 0.5% respectively. Retailers on a cautious note: Retail selling pressure was high in the retail favourite counters Touchwood Investments and Central Investments and Finance while the former recorded a new 52week low price of LKR4.0.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 03.07.2013 YoY Change Annual Avg Week ending 05.07.2013 8.65 10.66 12.09 -37.20 6.8 8.6 9.70

6500 6400 6300 6200 6100 6000 5900 5800

Index

ASPI
3700 3650 3600 3550 3500 3450 3400 3350 3300

Turnover LKR ('mn)

4,000 3,000 2,000 1,000 0

120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

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 6,118.0 3,433.0 883.2 6.8 38.2 223 2,349.6 267.7 250.0 17.7 16.6 2.3 2.3 Today 13,267.7 19,177.4 2,798.5 1,982.5 668.0 3,427.6 603.8 3,094.7 772.4 156.3

Pre Day 6,140.8 3,462.5 472.5 3.6 23.8 214 2,358.3 133.5 142.5 -9.0 16.6 2.3 2.2 Pre Day 13,286.6 19,040.3 2,818.3 2,011.8 683.3 3,410.5 606.3 3,108.6 768.2 157.2

Change % -0.37% q -0.85% q 86.89% 86.89% 60.59% 4.21% -0.37% 100.60% 75.50% -296.55% -0.37% -0.37% 4.55% % Change -0.14% 0.72% -0.70% -1.46% -2.25% 0.50% -0.41% -0.45% 0.54% -0.58% q p q q q p q q p q

Last Week 6,072.7 3,413.6 2,268.2 17.4 108.0 230 2,332.2 298.2 935.0 -636.8 16.6 2.2 2.2 Last Week 13,192.1 18,950.5 2,812.8 1,948.2 658.2 3,404.4 611.2 3,046.3 779.1 157.2

% WoW Change 0.75% 0.57% -61.06% -61.06% -64.68% -3.04% 0.75% -10.21% -73.26% -102.78% 0.08% 0.67% 4.55% % WoW Change 0.57% 1.20% -0.51% 1.76% 1.48% 0.68% -1.21% 1.59% -0.87% -0.58% Page | 2.

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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% 8.0% 3.7% 4.4% 3.1% 3.9% 3.0% 2.9% 2.2% 2.2% 2.5% 1.2% 1.6% 1.5% 1.4% 1.4%

Volume 75,474 3,456 100,068 3,393 16,001 122,159 217 87,211 42,966 1,164 17,690 7,865 56 2,572 353,322 3,301

Turnover LKR ('000) 19,744.00 3,447.51 44,029.92 6,532.38 627.29 14,041.30 151.44 722.25 6,850.47 147.81 3,405.33 475.55 9.52 342.18 70,995.67 231.01

Turnover USD ('000) 151.18 26.40 337.14 50.02 4.80 107.51 1.16 5.53 52.45 1.13 26.07 3.64 0.07 2.62 543.61 1.77

Intraday High (LKR) 267.00 1,014.00 440.00 1,950.00 40.50 116.50 699.00 8.40 162.00 129.90 192.50 60.50 173.00 134.50 202.90 71.90

Intraday Low (LKR) 255.20 981.00 439.90 1,925.10 39.10 114.20 696.40 8.20 158.50 125.10 192.50 60.00 170.00 131.00 198.00 69.80

Close 259.60 999.50 440.00 1,929.80 40.00 114.50 696.40 8.30 159.20 128.10 192.50 60.20 170.10 133.00 200.00 71.90

Price Gainers
Company
G S FINANCE SWADESHI CEYLINCO INS. CEYLON BEVERAGE EQUITY TWO PLC

Price Losers
Today 600.00 9,000.00 1,146.00 577.00 25.00 Change + 99.90 + 1,445.00 + 146.00 + 71.20 + 2.20 % Change Company 19.98% 19.13% 14.60% 14.08% 9.65%
S M B LEASING [X] PCH HOLDINGS PC PHARMA PC HOUSE CIFL

Today 0.30 2.00 2.60 1.10 1.80

Change - 0.10 - 0.60 - 0.50 - 0.20 - 0.30

% Change -25.00% -23.08% -16.13% -15.38% -14.29%

Top 05 Performers for the Day

Company
LANKA CERAMIC JANASHAKTHI INS. SAMPATH NATIONS TRUST NAT. DEV. BANK

Today 115.10 13.70 200.00 64.60 162.00

Pre Day 119.00 13.70 202.60 64.50 163.00

% Change -3.28% 0.00% -1.28% 0.16% -0.61%

Volume (mn) 2.40 12.16 0.35 0.79 0.29

Contribution to Total T/O 12.3% 7.1% 3.0% 2.2% 2.0%

Turnover (LKR) 288,001,727 166,617,235 70,995,673 51,226,307 47,306,251

Most Active
Company
JANASHAKTHI INS. CIFL TOUCHWOOD PC HOUSE LANKA CERAMIC

Today 13.70 1.80 4.20 1.10 115.10

Pre Day 13.70 2.10 4.50 1.30 119.00

% Change 0.00% -14.29% -6.67% -15.38% -3.28%

Volume (mn) 12.16 3.92 2.67 2.60 2.40

Contribution to Total T/O 7.1% 0.3% 0.5% 0.1% 12.3%

Turnover (LKR) 166,617,235 7,473,753 10,900,187 3,021,684 288,001,727

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 03.07.2013 119.65 21.29 169.46 2.19 1.30 197.96 130.60

CSE Announcements
Dividends
Company Expolanka Holdings PLC 0 0 0 0
Company Description

DPS (LKR) 0.12 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 11-07-2013 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 23-07-2013 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

No Annoucements 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 1/0/1900 1/0/1900

Key Corporate Diclosures

No Disclosures

Material Dealings by Related Parties of Listed Companies

Company C T HOLDINGS Name Mr. Anthony A Page 0 0 Relationship Director 0 Transaction Purchase 0 Quantity 4,422 0 Price (LKR) 144.0-145.0 0 Date 01.07.2013 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 14,932.4 2,546.2 6,196.3 14,055.6

Change -42.6 -57.0 -107.6 -43.2

Change % -0.28% q -2.19% q -1.71% q -0.31% q

Time* 16:35 06:38 06:38 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 100.99 84.80 670.00 1,245.50 314.35

Change 1.39 0.08 11.75 2.10 0.05

Change % 1.40% p 0.09% p 1.79% p 0.17% p 0.02% p

Time* 06:31 06:27 06:51 06:31 06:32 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka central bank slams Moody's outlook downgrade Sri Lanka's central bank has disputed a cut in the outlook to stable from positive on the island's 'B1' sovereign rating saying it is "backward looking" and not a proper reflection of the external position and recent improvements in the economy. Moody's cut the outlook saying external bank borrowings had risen sharply, but reserves were not growing fast enough and budget deficits and national debt were continuing to be high amid slower economic growth. [Source: www.lbo.lk] China top Sri Lanka top lender up to April 2013, Japan follows China has given 165.28 million US dollars for projects financed in Sri Lanka in the first four month of 2013, though Japan has committed more new funding in the period, official data show. The World Bank has disbursed 95.7 million US dollars (0.84 million in grants) in the period, coming behind China, out of a total of 580.7 million US dollars, a fiscal report showed. Japan has recently ratcheted up lending for projects and has also expressed willingness to finance an urban metro. After about a lapse of 10 years Sri Lanka has also sought Japanese finance for a coal power plant. [Source: www.lbo.lk] Sri Lanka Treasuries yields flat Sri Lanka's Treasuries yields were steady at Wednesday's auction with only the 3-month yield easing one basis point to 8.65 percent, data from the state debt office showed. The 6-month yield was flat at 9.70 percent and the 12-month yield was also flat at 10.66 percent. The debt office said 579 million rupees in 3-month bills, 500 million in 6-month bills and 9.5 billion in 12month bills were sold. The state offered 12.0 billion bills at the auction for roll-over [Source: www.lbo.lk] External debt tops $ 20 b At the end of April 2013, the total outstanding external debt of the Government was $ 20.0 billion (Rs. 2.542 trillion). Total debt service payment from January to April 2013 amounted to $ 479.8 million (Rs. 71,828.1 million). Of this, $ 256.6 million (Rs. 43,574.7 million) was for principal payments and the balance $ 223.2 million (Rs. 28,253.4 million) was for the interest payments. The total estimated debt service payments for 2013 are $ 1,263.5 million (Rs. 63,972.4 million), of which 38% has already been paid by 30 April 2013, according to the Finance Ministry. [Source: www.ft.lk]

Global
Feds Dudley Sees Faster Growth in 2014 as Fiscal Drag Wanes Federal Reserve Bank of New York President William C. Dudley, who has supported record stimulus, said economic growth will probably quicken in 2014, possibly warranting a reduction in the central banks bond purchase program. The private sector of the economy should continue to heal, while the amount of fiscal drag will begin to subside, Dudley said in prepared remarks that were similar to a June 27 statement he made in New York. [Source: www.bloomberg.com] Egypt unrest pushes light crude oil over $100 a barrel The price of US light crude oil has risen above $100 a barrel for the first time since September 2012 on concerns over political turmoil in Egypt. US light crude rose more than 2% to $101.80 a barrel in Asia trade. Brent crude also rose 1% to 105.20 a barrel. "The turmoil in Egypt has caused the market to inject some premium into oil futures," Victor Shum, a vice president at IHS Energy Insights, told the BBC. [Source: www.bbc.co.uk] Page | 5.

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+94 11 7277032

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