Thursday, June 13, 2013

Today 6,207.87 3,499.09 Point Change - 76.89 - 52.32 % Change -1.22 % q -1.47 % 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: [email protected]

10.0% 13.4% 480.0 923.8 25.0 41.1 2,384.0 42.8 67.7 24.9 16.0

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]

Bourse on a clear downtrend

CSE Diary for 13.06.2013

Index on a clear downtrend: The bourse witnessed a clear downtrend today however in latter part of the day ASPI witnessed some spikes in both directions owing to Ceylon Tobacco Company being traded with a notable gap on-board both up and down. ASPI closed the day at 6,207.87 with a dip of 77 points. Heavy sell-downs in large cap counters John Keells Holdings (-2.4%), Ceylon Tobacco Company (2.4%) and Commercial Bank (-2.5%) dragged down the overall performance of the index.

Softlogic Holdings on a sell-off: Heavy sell-off was seen in Softlogic Holdings with notable on-board turnover. The counter transacted a large on-board block of 1.0mn shares at LKR10.0. SHL closed the day at LKR9.9 with a notable dip of 7.5%, trading near a strong support level. Sampath Bank further dipped today by 0.9% to settle at LKR213.0, trading near a strong technical support level. The counter transacted a mid-sized on-board block of 50k shares at LKR214.0.

COMB spearheads daily turnover: Commercial Bank witnessed some off-board interest backed by a single mid-sized crossing of 500k shares which was dealt at LKR118.0. The counter attracted notable on-board interest, topping the on-board turnover list. Several large transactions were seen on-board on COMB during trading hours, largest being the 127k shares which was transacted at LKR118.0. The counter settled the day at LKR116.9 with a dip of 2.5%.

Heavy retail activity on MTD walkers: Retail interest was heavy on retail investor-favorites MTD walkers with heavy turnover. KAPI closed the day at LKR31.5 with a drop of 0.9%. Retail interest was also present in Nation Lanka Finance.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) May-13 as at 13.06.2013 YoY Change Annual Avg Week ending 12.06.2013 8.67 9.80 10.85 12.71 -10.03 7.3 8.8

6600 6500 6400

Index

6300
6200 6100 6000

ASPI
3650

Turnover LKR ('mn)

3700 3600 3550 3500 3450 3400

3,000 2,500 2,000 1,500 1,000 500 0

70.0 60.0 50.0 40.0 30.0 20.0 10.0 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 6,207.9 3,499.1 480.0 3.8 25.0 237 2,384.0 67.7 24.9 42.8 16.9 2.3 2.2 Today 13,608.3 18,813.9 2,918.4 2,028.7 689.8 3,500.8 617.8 3,128.0 804.5 163.8

Pre Day 6,284.8 3,551.4 566.3 4.4 21.1 236 2,413.6 56.1 158.7 -102.6 17.1 2.3 2.1 Pre Day 13,763.9 19,064.1 2,938.9 2,061.3 687.6 3,539.9 617.8 3,143.1 810.3 165.9

Change % -1.22% q -1.47% q -15.24% -15.24% 18.41% 0.42% -1.22% 20.63% -84.34% -141.75% -1.22% -1.22% 4.76% % Change -1.13% -1.31% -0.70% -1.58% 0.31% -1.11% 0.01% -0.48% -0.72% -1.28% q q q q p q p q q q

Last Week 6,372.4 3,596.3 1,365.6 10.7 37.8 242 2,447.1 744.3 192.0 552.3 17.3 2.4 2.1 Last Week 13,864.9 19,344.8 2,940.8 2,067.1 705.4 3,597.8 648.1 3,272.4 828.6 169.5

% WoW Change -2.58% -2.70% -64.85% -64.85% -33.83% -2.07% -2.58% -90.91% -87.05% -92.24% -2.58% -2.57% 4.76% % WoW Change -1.85% -2.74% -0.76% -1.86% -2.22% -2.70% -4.67% -4.41% -2.91% -3.34% 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 9.6% 7.5% 3.6% 4.5% 3.1% 3.9% 3.0% 3.0% 2.2% 2.3% 2.4% 1.2% 1.6% 1.6% 1.5% 1.3%

Volume 60,401 1,230 0 183 12,257 889,878 912 56,593 12,967 11,388 17,886 70,105 5,006 2,708 130,333 5,201

Turnover LKR ('000) 16,211.45 1,170.16 0.00 356.94 504.11 104,792.74 639.35 505.86 2,166.95 1,533.18 3,481.03 4,205.92 834.26 386.03 27,855.71 365.71

Turnover USD ('000) 127.21 9.18 0.00 2.80 3.96 822.30 5.02 3.97 17.00 12.03 27.32 33.00 6.55 3.03 218.58 2.87

Intraday Intraday High (LKR) Low (LKR) 273.50 985.00 0.00 1,983.00 41.80 121.00 709.90 9.00 169.00 135.00 195.00 60.00 173.90 145.00 218.00 73.00 266.60 940.00 0.00 1,900.10 41.00 116.20 701.00 8.80 167.00 133.50 193.00 59.80 166.50 140.70 213.00 70.00

Close 267.00 952.20 436.50 1,978.20 41.00 116.90 701.00 8.90 167.10 133.50 194.40 60.00 166.70 140.70 213.00 70.30

Price Gainers
Company
COMMERCIAL DEV. EQUITY ONE PLC SAMSON INTERNAT. CEYLON PRINTERS BERUWALA RESORTS

Price Losers
Today 71.00 33.80 100.00 1,599.00 2.20 Change + 6.90 + 2.70 + 7.80 + 99.00 + 0.10 % Change Company 10.76% 8.68% 8.46% 6.60% 4.76%
GESTETNER SELINSING SHALIMAR MULTI FINANCE KALAMAZOO

Today 178.00 1,070.00 900.00 20.40 1,402.10

Change - 22.00 - 130.00 - 95.00 - 1.90 - 123.20

% Change -11.00% -10.83% -9.55% -8.52% -8.08%

Top 05 Performers for the Day

Company
COMMERCIAL BANK SOFTLOGIC MTD WALKERS CHEVRON SAMPATH

Today 116.90 9.90 31.50 294.50 213.00

Pre Day 119.90 10.70 31.80 294.50 215.00

% Change -2.50% -7.48% -0.94% 0.00% -0.93%

Volume (mn) 0.89 4.35 0.98 0.10 0.13

Contribution to Total T/O 4.4% 1.8% 1.3% 1.2% 1.2%

Turnover (LKR) 104,792,736 43,555,175 31,707,939 29,643,907 27,855,711

Most Active
Company
SOFTLOGIC NATION LANKA[WARRANTS] AMANA TAKAFUL NATION LANKA FREE LANKA

Today 9.90 0.10 1.50 10.20 2.60

Pre Day 10.70 0.10 1.50 10.20 2.70

% Change -7.48% 0.00% 0.00% 0.00% -3.70%

Volume (mn) 4.35 2.59 1.53 1.17 1.08

Contribution to Total T/O 1.8% 0.0% 0.1% 0.5% 0.1%

Turnover (LKR) 43,555,175 260,421 2,300,611 12,080,323 2,925,141

Softlogic Equity Research

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan Malaysia Russia Saudi Arabia Singapore Switzerland Thailand UK USA Dollar Yuan Euro Rupee Yen Ringgit Rouble Riyal Dollar Franc Baht Pound Dollar Indicative Rate 13.06.2013 120.47 20.76 170.24 2.20 1.34 40.45 3.96 33.98 101.29 138.85 4.10 199.82 127.44

Announcements
Dividends
Company Watawala Plantations Plc 0 0 0 0 0 0 0
Company Description

DPS (LKR) 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proportion 0

XD Date 10-07-2013 0 0 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00

XR Date

Payment Date 18-07-2013 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00
Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

No Announcements 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

Global Markets
Index AMERICA Dow Jones Industrial Average S&P 500 Index EUROPE EURO STOXX 50 Price EUR FTSE 100 Index ASIA Nikkei 225 Hong Kong Hang Seng Index
* Time is as at ET

Value 14,995.2 1,612.5 2,641.8 6,237.1 12,445.4 20,887.0

Change -126.8 -13.6 -24.8 -62.4 -843.9 -467.6

Change % -0.84% q -0.84% q -0.93% q -0.99% q -6.35% q -2.19% q

Time* 0-Jan 0-Jan 06:45 06:44 02:28 04:01

Source: www.bloomberg.com

Commodity Markets
Commodity ENERGY Crude Oil (Brent) Crude Oil (WTI) AGRICULTURE ICE Cotton #2 CBOT Wheat METALS COMEX Gold COMEX Silver COMEX Copper
* Time is as at ET

Units USD/bbl. USD/bbl. USd/lb. USd/bu. USD/t oz. USD/t oz. USd/lb.

Price 103.21 95.46 87.33 683.50 1,385.60 21.73 318.55

Change -0.28 -0.42 -0.74 0.50 -6.40 -0.07 -4.00

Change % -0.27% q -0.44% q -0.84% q 0.07% p -0.46% q -0.33% q -1.24% q

Time* 06:26 06:27 06:26 06:48 06:28 06:27 06:28

Source: www.bloomberg.com

Softlogic Equity Research

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CSE Announcements
Mercantile Investments and Finance [MERC:LKR2200.0]: Debenture Issue: The company informs that it is withdrawing the proposed debenture issue of LKR500mn with an option to increase to LKR1 bn.

Dealing by Directors:
Company Nation Lanka Finance [CSF: LKR10.2] Name Access Equities Relationship Transaction Common Director Sale Quantity 675,000 Price (LKR) 11.7-11.9 Date 10.06.2013

Local News
SEC Chief explains capital markets turnaround strategy: The first area is to improve the liquidity of the market. Godahewa explains that this starts with increasing the participation rate of foreigners, educating retail participants about investing and communicating well with the media. He hopes that this education process will help rebuild investor confidence and double the local participation from 700,000 to 1.4 million Central Depository System (CDS) accounts by 2016. The next step is to increase the market capitalization of the CSE. Godahewa hopes to increase the numbers from 287 currently to 400 in 2016, with market capitalization increasing from USD 20 bn to USD 50 bn. With docile markets over the past 20 years, trading systems are currently outdated. In order to meet the needs of market participants, he intends for an upgrade in the systems technology to be of a global standard by 2016. This would include strengthening the risk management processes, enabling centralized clearing for counter-parties and instituting a delivery versus payment settlement solution for securities. Godahewa believes that a five-fold increase in corporate debt issuance from US $ 2 billion to US $ 10 billion within the next three years is possible. This, together with allowing other products (like the derivatives and commodities markets) to develop and demutualizing the CSE to foster a commercial agenda, will help sustain market interest. [Source: www.dailymirror.lk] Post-2015 agenda for Asia: With the Millennium Development Goals expiring in 2015, a global debate is underway for a new development agenda to replace them. For Asia, the agenda must in part tackle the unfinished task of poverty reduction under the MDGs but also confront the newer challenges of income inequality and environmental destruction. Asia did very well in the core MDG goal of reducing the number of people living in poverty by half. Yet, two-thirds of the worlds poor still live in the region. And while basic health and education have improved in much of Asia, there are glaring gaps in lower-income countries, especially in reducing infant deaths and in improving maternal health. [Source: www.dailymirror.lk] Sri Lanka to ban foreign investments in to steel, cement, retail trade: Sri Lanka plans to ban foreign investments into steel, cement, retail trade, small scale agriculture and beauty care products, to 'protect' domestic investors, according to decision by the cabinet of ministers. Cabinet spokesman Keheliya Rambukwelle said relevant regulations would be made known later. He said existing investors in the sectors will not be affected and it will not be with retrospective effect. However the government wanted to promote foreign investments into assembling of vehicles, refining petroleum products and making boats for the export market. [Source: www.lbo.lk] Sri Lanka sells 20-year bonds at 12.15-pct: Sri Lanka has sold 20-year rupee denominated bonds to yield 12.50% and 30-year bonds to yield 12.50%, the state debt office said. At the first 30-year bond auction last month 30-year bonds were also sold at 12.50%. The debt office sold LKR8.0 bn in 20 year bonds maturing on Softlogic Equity Research Page | 5
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June 01, 2033 and LKR5.0 bn in 30-year bonds maturing on June 01, 2043. There have been no recent auctions of 20-year bonds. [Source: www.lbo.lk] Sri Lanka processing large property projects: Sri Lanka is processing several large mixed development projects in the capital Colombo including two which may be over USD500 mn, investment promotion minister Lakshman Abeywardena said. One project now being processed involves a USD640 mn investment, he told reporters. Another involving a Korean investor may go up to a USD1bn in all its phases he said. Sri Lanka's Abans group is engaged in a USD140 mn project in its first phase, Abeywardena said. In addition the University of Central Lancashire was building another USD140 mn campus in Mirigama. [Source: www.lbo.lk]

Global News
World Bank cuts China growth forecast: The World Bank has cut its growth forecast for China amid warnings of slower but more stable global growth over the coming months. The bank now expects the China to grow 7.7% in 2013, down from its earlier projection of 8.4%. It also cut the forecast for global economic growth to 2.2% from 2.4%. The bank said growth in China, the world's second-largest economy, had slowed as policymakers look to rebalance its growth model. Over the past few decades China has relied heavily on exports and government-led investment to boost its economy. However, a slowdown in key markets such as the US and Europe has seen a decline in demand for Chinese exports, prompting concerns whether China can sustain its high growth rate. [Source: www.bbc.co.uk] Spain Recession Seen Ending by 2014 as Austerity Eases: The Spanish economy will shake off its recession and growth will accelerate through 2015 as European Union officials ease demands for budget cuts, economists said. Economic output in Spain will increase for the first time since 2011 in the first quarter of 2014 and expand by 0.5% over the year, according to the median of 32 forecasts in the Bloomberg monthly survey. That compares with a previous estimate for a 0.3% expansion next year. The economy will grow by 0.9% in 2015, the survey showed. There is an expectation that the fiscal consolidation will be less of a drag than before, Luigi Speranza, an economist at BNP Paribas SA in London, said in a telephone interview yesterday. [Source: www.bloomberg.com]

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Dimantha Mathew [email protected] +94 11 7277030 Kavindu Ranasinghe [email protected] +94 11 7277031 Imalka Hettiarachchi [email protected] +94 11 7277032

Softlogic Equity Sales

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Branches
Horana Madushanka Rathnayaka st No. 212, 1 Floor, Panadura Road, Horana [email protected] +94 34 7451000, +94 77 3566465 Negambo Krishan Williams No. 121, St. Joseph Street Negambo [email protected] +94 31 2224714-5, +94 77 3569827 Kurunegala Bandula Lansakara No.13, Rajapihilla Mawatha, Kurunegala [email protected] +94 37 2232875, +94 77 3615790 Matara Lalith Rajapaksha nd No.8A, 2 Floor, FN Building, Station Road, Matara [email protected] +94 41 7451000, +94 77 3031159

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