Monday, June 17, 2013

Today 6,219.11 3,496.79 Point Change - 0.28 - 7.56 % Change 0.00 % q -0.22 % 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]

10.2% 13.3% 310.1 922.6 8.7 40.8 2,388.4 90.4 146.2 55.7 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]

ASPI on a consolidation tone

CSE Diary for 17.06.2013

Dull momentum in the bourse: Bourse displayed a range-play today where the indices traded on a technically called rectangle pattern on a band of nearly 29 points. However market activity were dull in most part of the day and ASPI ended marginally negative at 6,219.11with a loss of 0.2 points. Gains recorded in Ceylon Tobacco Company (+1.0%), Ceylon Beverage Holdings (14.1%) and the losses denoted in Commercial Leasing and Finance (-4.7%) and John Keells Holdings (-0.5%) kept the indices on marginal grounds. Dormant off-board interest: The activities on the crossing board were low and were topped by a single off-board transaction of Distilleries Company of 200k shares which was dealt at LKR.195.0. DIST also showed active on-board interest where it recorded a single 99k share transaction at LKR195.0. The counter closed at LKR193.0 with a dip of 1.0%. Ceylon Tobacco Company too recorded a single crossing of 25k shares at LKR1000.0.

Heavy caps leading the daily turnover: Notable onboard interest was seen in heavy caps John Keells Holdings, Ceylon Tobacco Company and Distilleries Company. John Keells Holdings further dipped today by 0.5% and settled at LKR264.2. JKH recorded several on-board transactions of 10k at LKR265.0.

Retail activity slowed: Retail activity was low. However selected counters Nanda Investments and Finance, Kelsey Developments and MTD Walkers displayed some retail interest.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) May-13 as at 17.06.2013 YoY Change Annual Avg Week ending 12.06.2013 8.67 9.80 10.85 12.69 -15.28 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 6,219.1 3,496.8 310.1 2.4 8.7 231 2,388.4 146.2 55.7 90.4 16.9 2.3 2.2 Today 13,560.7 19,156.8 2,898.7 2,030.7 674.0 3,487.7 611.7 3,079.4 804.1 164.7

Pre Day 6,219.4 3,504.4 577.2 4.5 28.4 237 2,388.5 159.7 241.6 -81.9 16.9 2.3 2.2 Pre Day 13,603.6 18,940.7 2,919.9 2,033.0 684.1 3,500.5 621.6 3,108.7 802.0 164.9

Change % 0.00% q -0.22% q -46.27% -46.27% -69.23% -2.53% 0.00% -8.48% -76.93% -210.40% 0.00% 0.00% 0.00% % Change -0.32% 1.14% -0.73% -0.11% -1.48% -0.37% -1.58% -0.94% 0.26% -0.12% q p q q q q q q p q

Last Week 6,341.3 3,574.5 825.9 6.4 26.6 244 2,435.1 470.1 112.5 357.6 17.2 2.3 2.1 Last Week 13,846.1 19,349.3 2,912.6 2,067.4 695.2 3,571.6 638.7 3,198.5 819.5 166.7

% WoW Change -1.93% -2.17% -62.45% -62.45% -67.24% -5.33% -1.92% -68.90% -50.46% -74.71% -1.92% -1.92% 4.76% % WoW Change -2.06% -1.00% -0.48% -1.78% -3.04% -2.35% -4.22% -3.73% -1.89% -1.21% 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 9.5% 7.8% 3.7% 4.3% 3.2% 3.9% 3.0% 3.0% 2.2% 2.3% 2.4% 1.2% 1.6% 1.6% 1.5% 1.3%

Volume 106,494 49,707 452 191 352 99,194 100 115,168 128,920 1,808 319,429 15,183 23,418 50,176 14,632 1,400

Turnover LKR ('000) 28,217.66 49,350.48 199.02 366.94 14.40 11,555.60 70.01 1,013.51 21,077.64 245.71 62,283.97 912.02 4,076.84 7,031.45 3,113.52 99.71

Turnover USD ('000) 219.56 384.00 1.55 2.86 0.11 89.92 0.54 7.89 164.01 1.91 484.64 7.10 31.72 54.71 24.23 0.78

Intraday Intraday High (LKR) Low (LKR) 265.50 994.00 445.00 1,939.00 41.90 118.00 708.90 8.90 168.50 137.00 196.90 60.20 175.00 144.90 215.00 73.90 263.90 940.00 440.00 1,900.00 40.50 116.20 700.00 8.70 163.00 135.00 191.10 59.90 170.00 139.50 211.00 70.00

Close 264.20 990.00 444.00 1,928.60 41.90 116.40 700.10 8.80 163.50 137.00 193.00 60.10 175.00 140.00 211.80 70.80

Price Gainers
Company
TEA SMALLHOLDER PC PHARMA CEYLON BEVERAGE HUEJAY GESTETNER

Price Losers
Today 52.30 4.90 599.00 75.90 194.80 Change + 9.10 + 0.70 + 74.00 + 8.20 + 17.60 % Change Company 21.06% 16.67% 14.10% 12.11% 9.93%
HAYLEYS FIBRE SOFTLOGIC FIN PROPERTY DEVELOPMENT ON'ALLY BIMPUTH FINANCE

Today 26.20 30.50 54.00 50.00 20.10

Change - 4.80 - 4.00 - 4.90 - 4.50 - 1.80

% Change -15.48% -11.59% -8.32% -8.26% -8.22%

Top 05 Performers for the Day

Company
DISTILLERIES CEYLON TOBACCO JKH HNB COMMERCIAL BANK

Today 193.00 990.00 264.20 163.50 116.40

Pre Day 195.00 979.80 265.60 163.50 116.70

% Change -1.03% 1.04% -0.53% 0.00% -0.26%

Volume (mn) 0.32 0.05 0.11 0.13 0.10

Contribution to Total T/O 2.6% 2.1% 1.2% 0.9% 0.5%

Turnover (LKR) 62,283,972 49,350,479 28,217,658 21,077,637 11,555,599

Most Active
Company
NANDA FINANCE S M B LEASING BROWNS BEACH DISTILLERIES NATION LANKA

Today 8.20 0.80 18.50 193.00 10.10

Pre Day 8.20 0.80 19.30 195.00 10.20

% Change 0.00% 0.00% -4.15% -1.03% -0.98%

Volume (mn) 0.95 0.63 0.48 0.32 0.29

Contribution to Total T/O 0.3% 0.0% 0.4% 2.6% 0.1%

Turnover (LKR) 7,866,932 501,816 8,941,625 62,283,972 2,919,597

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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 17.06.2013 123.45 20.98 171.34 2.23 1.36 41.14 4.05 34.27 102.48 139.23 4.19 201.94 128.52

Announcements
Dividends
Company Peoples Leasing & Finance PLC 0 0 0 0 0 0 0
Company Description

DPS (LKR) 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proportion 0

XD Date 19-07-2013 0 0 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00 00-Jan-00

XR Date

Payment Date 30-07-2013 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 15,070.2 1,626.7 2,712.6 6,362.7 13,033.1 21,225.9

Change -105.9 -9.6 45.3 54.5 346.6 256.8

Change % -0.70% q -0.59% q 1.70% p 0.86% p 2.73% p 1.22% p

Time* 0-Jan 0-Jan 07:03 07:03 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 106.28 98.50 87.87 678.50 1,385.10 21.85 319.70

Change 0.35 0.65 -1.57 -2.25 -2.50 -0.10 -0.45

Change % 0.33% p 0.66% p -1.76% q -0.33% q -0.18% q -0.47% q -0.14% q

Time* 06:53 06:53 06:52 07:13 06:54 06:53 06:53

Source: www.bloomberg.com

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CSE Announcements
Anilana Hotels and Properties Limited-IPO: The Company informed that subscriptions amounting to LKR 486,565,200 were received today. Accordingly the issue closed at 4.30 pm. Central Finance Company [CFIN: LKR190.0] -Debenture Issue: Final details of the applications received for each category of debentures are as follows. 49 applications of type A- debentures were received with a value of LKR1.8252 bn. 19 applications of type B -debentures were received with a value of LKR539.6 mn. 44 applications of type C- debentures were received with a value of LKR1.9647 bn.

Local News
Sri Lanka growth to be on track: Sri Lanka is expecting 7.5% growth this year despite a slowdown in exports, and adverse weather hitting fisheries, Central Bank Governor Nivard Cabraal said. Cabraal said Gross Domestic growth in the first quarter is expected to be close to 6.0%. "If we have that number our 7.5% number could be reached," Cabraal told foreign correspondents in Colombo. "That was the highest base (quarter) in the previous year. So if we have 6 or close to 6% it will give us the confidence to keep our numbers without a change." The Central Bank usually revises its annual growth target based on ongoing developments while also tweaking interest rates and other policies to manage inflation and allow credit to flow into the economy, which will boost activity. Credit to the private sector has slowed in the first four months of the year, amid still high state borrowings. Cabraal said bad weather had hit fisheries, which may also impact inflation in the short term, but he was also confident of maintaining single digit inflation. [Source: www.lbo.lk] Cabraal says rupee movement no cause for concern: The fall in Sri Lankas rupee currency is no cause for concern as foreign investors have been changing their positions rather than pulling out of the countrys bond market, Central Bank Governor Ajith Nivard Cabraal said. The rupee had sunk to a more than six-month low of 129.00/129.10 per dollar on Friday, as foreign investors sold bonds as part of a broader sell-off in emerging markets on fears that loose global monetary conditions were about to end. We havent seen foreigners cashing out we havent seen any (rupee) movement that has caused us any concerns, Cabraal told a Foreign Correspondents Association Forum late on Friday. We have actually seen some of the banks changing their positions and booking forwards, perhaps, with the conditions that are taking place in the rest of the Asia. They are doing it mainly as a hedge because they believe that there could be a movement in the direction of depreciation. [Source: www.ft.lk] Sri Lanka private credit falls to three year low in April: Sri Lanka's credit to private business fell to a three year low of LKR7.6 bn in April 2013 the lowest since May 2010, with state borrowings continuing to crowd out other loans. In the same month, central government borrowing from domestic banks rose LKR76.8 bn to LKR851.2 bn, with borrowings in the past 12 months growing 54.6% accelerating from 41.9% in March. State enterprises borrowed another LKR9.1 bn in April, with total borrowings up 34% in the 12-months to LKR344.6 bn. The increase was lower than in March. Foreign currency borrowings by state enterprises were steady at LKR233.9 bn in the month from LKR234.1 bn, while rupee borrowings rose to LKR110.6 bn from 101.4 bn a month earlier. Net bank borrowings by the central government rose LKR36.7 bn to LKR1,217 bn, in April up 18.3% from a year earlier. Net credit to government was lower than gross borrowings from commercial banks due a contraction in central bank credit by LKR40.7 bn. [Source: www.lbo.lk] Exchange relaxation to boost apartment sales: Leading property developers welcomed last weeks exchange controls relaxations by the Central Bank, which permitted the repatriation of capital and capital gains from the sale of residential properties by non- residents. This is one of the issues which restricted foreigners buying Sri Lankan apartments. We have been asking to liberalize this area as we believed that Softlogic Equity Research Page | 5
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investors should have the liberty to buy and sell property at their discretion similar to any other inves tment, said CEO of Overseas Realty Ceylon [OSEA: LKR18.5]. The relaxed rules are expected to boost apartment sales as they will now provide a clear pathway for foreigners to buy as well as invest in apartments, according to another leading property developer. The relaxed exchange controls will now provide hasslefree and streamlined ways for foreigners to buy apartments. Apart from that, this will also open up the market for the overseas investors to invest in our condominiums with the option of reselling at a later date, said the head of Marketing and Sales at Imperial Builders Private Limited, Dilshan Kodituwakku. [Source: www.dailymirror.lk] Sri Lanka promises fast-track investment approvals from July 01: Sri Lanka's investment promotion ministry said a new fast-track unit will be opened from July 01, to give approvals for projects within three months. The Board of Investment of Sri Lanka will staff the office with six officers who have multi-lingual capabilities, the ministry said in a statement. All applications that are submitted will be copied to the investment promotions minister and the ministry secretary who will solve any outstanding problems. Issues that cannot be solved at a ministry level will be forwarded to a progress monitoring committee chaired by the President. Investment promotions minister Lakshman Yapa Abeywardene expects the procedure to provide all necessarily approvals, within three months, the statement said. [Source: www.lbo.lk]

Global News
India Holds Rates as Rupee Drop Risks Fueling Inflation: ndia left interest rates unchanged after a plunge in the rupee to a record low threatened to stoke inflation in Asias third-largest economy. Governor Duvvuri Subbarao kept the repurchase rate at 7.25% as 15 of 25 analysts in a Bloomberg News survey predicted, a Reserve Bank of India statement showed in Mumbai today. Ten called for a fourth straight cut of 25 basis points. The rupees fall of about 6% versus the dollar this quarter is among the steepest in Asia and may fan import costs in a country with the second-highest consumer inflation in the Group of 20 nations. The currency has been weighed down by an unprecedented current-account deficit that Subbarao has said is the biggest risk in an economy hurt by moderating investment. [Source: www.bloomberg.com] Singapore Exports Fall More Than Estimated on Electronics Slump: Singapores exports fell more than economists estimated in May as manufacturers shipped fewer electronics after an uneven global recovery hurt demand. Non-oil domestic exports slid 4.6% from a year earlier, after falling 1 percent in April, the trade promotion agency said in a statement today. The median of 10 estimates in a Bloomberg News survey was for a 0.2% drop. Shipments of electronics dropped 13.2% from a year ago, extending the slump to a 10th month. The World Bank last week cut its global growth forecast for 2013 after emerging markets from China to Brazil slowed more than projected, weakening prospects for Singapores trade-dependent economy. Analysts have lowered their estimate for the islands export expansion this year to 2.5% from 4%, according to a survey by the central bank this month. [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

Dihan Dedigama [email protected] +94 11 7277010, +94 77 7689933 Chandima Kariyawasam [email protected] +94 11 7277058, +94 77 7885778 Sonali Abayasekera [email protected] +94 11 7277051, +94 77 7736059 Thanuja De Silva [email protected] +94 11 7277059, +94 77 3120018

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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