Wednesday, July 10, 2013

Today 6,016.05 3,365.08 Point Change + 35.89 + 17.12 % Change 0.60 % p 0.51 % 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

6.6% 9.1% 228.2 905.8 31.9 40.1 2,310.5 8.1 43.8 35.7 15.6

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]

Index reversed but on a slow note

CSE Diary for 10.07.2013

Index reversed but with low turnover: The bourse denoted an upsurge today near the 6,000 psychological mark and ended with a gain of 36 points to settle at 6,016. Turnover levels were meager and gains recorded in John Keells Holdings (+1.6%), Sri Lanka Telekom (+3.3%) and Ceylinco Insurance (+8.5%) positively reflected on the index performances. S&P SL20 follow suited on a similar path and settled at 3,365 with a gain of 17 points. No crossings, further diminishing turnover levels: No transactions were recorded in the crossing board. On-board interest on JKH: Notable on-board interest was seen in the Premier Blue Chip;

John Keells Holdings. The turnover levels of the counter were heightened by a single transaction of 27k shares which was traded at LKR244.0. At the end of the day JKH closed at LKR245.6 with a gain of 1.6%. Retail interest in PCH and TWOD: Retail interest was seen in PC House and Touchwood investments. The former denoted a single large on-board transaction of 2mn shares which was traded at LKR1.4. The counter closed at LKR1.4 with a gain of 16.7%. TWOD too traded actively and closed at LKR4.6 with a gain of 2.2%.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 10.07.2013 YoY Change Annual Avg Week ending 12.07.2013 8.63 9.68 10.64 11.94 -30.66 6.8 8.6

6400 6300 6200

Index

6100
6000 5900 5800

ASPI
3600 3550 3500 3450 3400 3350 3300 3250 3200

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 6,016.1 3,365.1 228.2 1.7 31.9 228 2,310.5 43.8 35.7 8.1 16.1 2.2 2.4 Today 13,095.2 19,008.4 2,790.7 1,913.1 641.8 3,360.5 588.6 3,030.6 742.0 159.8

Pre Day 5,980.2 3,348.0 254.3 1.9 14.4 217 2,296.7 38.6 41.0 -2.4 16.1 2.2 2.3 Pre Day 13,010.8 18,916.9 2,794.8 1,892.2 652.0 3,367.8 588.5 3,036.0 748.9 155.3

Change % 0.60% p 0.51% p -10.29% -10.29% 121.67% 5.07% 0.60% 13.49% -12.99% -433.48% 0.40% -0.09% 4.35% % Change 0.65% 0.48% -0.15% 1.11% -1.56% -0.22% 0.02% -0.18% -0.93% 2.87% p p q p q q p q q p

Last Week 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 Last Week 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

% WoW Change -1.67% -1.98% -74.16% -74.16% -16.45% 2.24% -1.66% -83.63% -85.72% -54.18% -2.58% -3.03% 4.35% % WoW Change -1.30% -0.88% -0.28% -3.50% -3.92% -1.96% -2.53% -2.07% -3.93% 2.20% Page | 2.

Softlogic Equity Research

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% 8.1% 3.6% 4.5% 3.2% 3.9% 3.0% 3.0% 2.2% 2.2% 2.5% 1.2% 1.6% 1.5% 1.4% 1.4%

Volume 221,588 2,480 200 665 35,210 63,018 219 269,779 22,999 1,000 1,310 302 545 21,115 15,364 500

Turnover LKR ('000) 54,229.76 2,466.61 85.00 1,279.70 1,416.14 7,173.32 150.80 2,247.51 3,608.09 123.50 247.29 17.67 87.37 2,745.99 2,968.53 35.75

Turnover USD ('000) 415.18 18.88 0.65 9.80 10.84 54.92 1.15 17.21 27.62 0.95 1.89 0.14 0.67 21.02 22.73 0.27

Intraday High (LKR) 249.00 996.00 425.00 1,950.00 41.50 114.90 690.00 8.60 158.00 123.50 191.00 58.50 163.00 131.30 195.00 71.50

Intraday Low (LKR) 242.50 990.00 425.00 1,921.00 39.70 113.50 688.00 8.30 156.00 123.50 188.50 58.50 160.30 130.00 193.00 71.50

Close 245.60 996.00 425.00 1,950.00 40.80 113.80 688.00 8.50 157.50 123.50 189.00 58.50 160.30 131.30 194.00 71.50

Price Gainers
Company
S M B LEASING [X] PC HOUSE S M B LEASING CEYLON LEATHER [W 0013] SERENDIB LAND

Price Losers
Today 0.40 1.40 0.80 2.40 1,700.00 Change + 0.10 + 0.20 + 0.10 + 0.30 + 200.00 % Change Company 33.33% 16.67% 14.29% 14.29% 13.33%
E B CREASY PC PHARMA DIPPED PRODUCTS ALLIANCE MIRAMAR

Today 1,063.60 2.50 112.90 901.10 58.80

Change - 183.90 - 0.30 - 11.10 - 86.90 - 4.30

% Change -14.74% -10.71% -8.95% -8.80% -6.81%

Top 05 Performers for the Day

Company
JKH PC HOUSE TOUCHWOOD RICHARD PIERIS CIFL

Today 245.60 1.40 4.60 7.00 1.50

Pre Day 241.80 1.20 4.50 6.90 1.60

% Change 1.57% 16.67% 2.22% 1.45% -6.25%

Volume (mn) 0.22 11.72 2.95 1.08 4.83

Contribution to Total T/O 2.3% 0.7% 0.6% 0.3% 0.3%

Turnover (LKR) 54,229,757 16,716,393 13,893,761 7,575,714 7,480,236

Most Active
Company
PC HOUSE CIFL TOUCHWOOD PCH HOLDINGS RICHARD PIERIS

Today 1.40 1.50 4.60 2.00 7.00

Pre Day 1.20 1.60 4.50 1.90 6.90

% Change 16.67% -6.25% 2.22% 5.26% 1.45%

Volume (mn) 11.72 4.83 2.95 2.77 1.08

Contribution to Total T/O 0.7% 0.3% 0.6% 0.2% 0.3%

Turnover (LKR) 16,716,393 7,480,236 13,893,761 5,764,411 7,575,714

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 10.07.2013 119.44 21.30 166.82 2.18 1.29 194.07 130.62

CSE Announcements
Dividends
Company Ceylon Leather Products PLC 0 0 0 0
Company Description

DPS (LKR) 1.00 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date To be notified 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date To be notified 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

JKH has proposed a project valued in excess of USD650 mn to the Government involving Waterfront Properties (Private) Limited.

Material Dealings by Related Parties of Listed Companies

Company PEOPLE'S LEASING Name People's Bank 0 Relationship Transaction Common Directors Purchase 0 0 Quantity 264,568 Price (LKR) LKR14.6-LKR14.7 0 Date 4.7.2013-9.7.2013 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 15,300.3 2,644.7 6,472.9 14,416.6

Change 75.7 -19.5 -40.2 -56.3

Change % 0.50% p -0.73% q -0.62% q -0.39% q

Time* 16:38 07:04 07:04 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 105.26 85.45 680.25 1,251.90 306.70

Change 1.73 -0.53 2.75 6.00 0.25

Change % 1.67% p -0.62% q 0.41% p 0.48% p 0.08% p

Time* 07:15 06:52 07:15 06:54 06:55 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
IMF cuts 2013 global growth forecast Global economy is growing more slowly than expected, with risks to that growth increasing especially in emerging markets, says the IMF. Global growth is now projected at 3.1% for 2013 and 3.8% for 2014, a downward revision of % point each year compared with forecasts in April 2013. The global lender said that growth had been affected by increased financial market volatility and rising interest rates in advanced economies since its last World Economic Outlook report was published in April. [Source: www.imf.org/www.lbo.lk] Sri Lanka gold sales fall after tax Gold purchases from dealers in Sri Lanka slowed after a 10 percent tax was imposed, despite prices falling further, industry players said. On Tuesday a gold sovereign (about 8.1 grams) the most popular benchmark price was quoted around 40,500 rupees for a 22 carats and 44,000 rupees for a 24 carats, in the trade, after falling from highs of 54,000 in March, a dealer said. Tourists now find gold in Dubai and Malaysia more competitive, dealers said. Gold dealers say the consumers are expecting a further drop in international gold prices which may have contributed to a fall in purchases. [Source: www.lbo.lk] Sri Lanka expects to keep 5.8-pct deficit target in 2013: Treasury Sec Sri Lanka is expecting to maintain a 5.8 percent budget deficit target with better tax revenues on the second half of 2013 and continued moderation of current expenses, Treasury Secretary P B Jayasundera said. Sri Lanka's revenues have been hurt by slowing imports, particularly motor vehicles, but other taxes including value added tax are starting to improve, he told an economic policy forum organized by Ceylon Chamber of Commerce. Jayasundera said the expansion of VAT to retail was expected to boost revenues. [Source: www.lbo.lk] Sri Lanka vulnerable to drop in capital inflows on US Fed fallout Sri Lanka, with international reserves amounting to less than US$ 7 billion, and other emerging markets with weaker fundamentals amid market volatility could face risks in the face of the US Federal Reserve announcing plans to cut its stimulus programme later this year. The rupee has already fallen sharply in recent weeks after foreign investors holding Treasury bonds sold down their holdings. The Central Bank is resorting to moral suasion, selective intervention and withholding data in a bid to calm the forex market. [Source: www.island.lk]

Global
China Exports Unexpectedly Drop With Imports in Drag on Economy Chinas exports and imports both unexpectedly declined in June in a sign that weakness in global and domestic demand will intensify the slowdown in the worlds second-biggest economy. Overseas shipments fell 3.1 percent from a year earlier, the General Administration of Customs said in Beijing today, compared with the median estimate of a 3.7 percent gain in a Bloomberg News survey of 39 economists. Imports declined 0.7 percent after a 0.3 percent drop in May [Source: www.bloomberg.com] British Manufacturing Decline Casts Doubt on Recovery U.K. manufacturing unexpectedly shrank in May amid a drop in pharmaceuticals and metals output, casting doubts on the strength of the economic recovery in the second quarter. Factory output fell 0.8 percent from April, when it declined 0.2 percent, the Office for National Statistics said today in London. The median forecast of 25 economists in a Bloomberg News survey was a 0.4 percent increase. Total industrial production was unchanged, thanks to an increase in oil and gas production. Separate data showed the goods-trade gap was little changed at 8.5 billion pounds ($12.6 billion). [Source: www.bloomberg.com] Page | 5. Softlogic Equity Research

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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

Branches Softlogic Equity Sales

Dihan Dedigama dihan.dedigama@equity.softlogic.lk +94 11 7277010, +94 77 7689933 Chandima Kariyawasam chandima.kariyawasam@equity.softlogic.lk +94 11 7277058, +94 77 7885778 Sonali Abayasekera sonali.abayasekera@equity.softlogic.lk +94 11 7277051, +94 77 7736059 Thanuja De Silva thanuja.desilva@equity.softlogic.lk +94 11 7277059, +94 77 3120018 Horana Madushanka Rathnayaka No. 212, 1st Floor, Panadura Road, Horana madushanka.rathnayaka@equity.softlogic.lk +94 34 7451000, +94 77 3566465 Negambo Krishan Williams No. 121, St. Joseph Street Negambo 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 Matara Lalith Rajapaksha No.8A, 2nd Floor, FN Building, Station Road, Matara lalith.rajapaksha@equity.softlogic.lk +94 41 7451000, +94 77 3031159
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