Wednesday, June 12, 2013

Today 6,284.76 3,551.41 Point Change - 19.03 - 9.06 % Change -0.30 % q -0.25 % 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

11.4% 15.1% 566.3 923.0 21.1 41.1 2,413.6 -102.6 56.1 158.7 15.9

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]

Big caps tumble further

CSE Diary for 12.06.2013

Index dips below 6,300: Following a further correction the market dipped below 6,300 mark with 19 point drop leading to lower turnover and activity. Continuous downward volatility was noted throughout the day stemming from selling pressure in counters that went through an upsurge in the recent past. The counters that lead the decline were John Keells Holdings, Ceylon Cold Stores, Carsons Cumberbatch and Sri Lanka Telecom. Strong buying in Sampath Bank: Sampath Bank has been attracting strong investor interest during the last couple of days despite its declining price primarily supported by its healthy valuations. The counter saw 1crossing of 300k shares changing hands at LKR215.0. A number of mid-sized on board blocks changed hands at LKR215.0 with overall on-board volumes reaching 521k shares. The counter closed the day at LKR215.0 with a drop of 0.9%. Two crossings also witnessed in Commercial Bank with 500k share changing hands at LKR118.0.

Renewed Interest in MTD Walkers: MTD Walkers saw 1.4mn shares changing hands with no crossings as one large on board deal of 1mn shares were dealt at LKR30.0. Amidst heavy buying interest the counter appreciated 14.4% to close at LKR31.8. Chevron Lubricants recovered from a sharp dip in price at the start of the day where it recorded an intra-day low of LKR280.1. However the counter closed up for the day at LKR294.5 (+0.4%).

Retail activity on selected counters: Retail interest remained moderate despite lower turnover with activity registered in MTD Walkers while retail selling pressure was also noted in Nation Lanka and its Warrant with the Warrant expected to expire converting it to normal shares.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) May-13 as at 12.06.2013 YoY Change Annual Avg Week ending 12.06.2013 8.67 9.80 10.85 12.71 -13.89 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 6,284.8 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 Today 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

Pre Day 6,303.8 3,560.5 750.6 5.9 31.7 235 2,420.7 358.6 145.5 213.1 17.1 2.3 2.1 Pre Day 13,789.2 19,117.6 2,904.0 2,073.4 688.2 3,534.7 624.3 3,137.9 809.3 166.5

Change % -0.30% q -0.25% q -24.55% -24.55% -33.39% 0.43% -0.30% -84.35% 9.09% -148.14% -0.30% -0.30% 0.00% % Change -0.18% -0.28% 1.20% -0.58% -0.08% 0.15% -1.05% 0.16% 0.12% -0.37% q q p q q p q p p q

Last Week 6,422.8 3,635.1 818.3 6.4 27.2 256 2,466.4 432.3 118.1 314.2 17.4 2.4 2.1 Last Week 13,919.2 19,548.8 2,959.5 2,089.2 700.7 3,604.3 657.5 3,375.2 827.1 170.1

% WoW Change -2.15% -2.30% -30.80% -30.80% -22.41% -7.81% -2.14% -87.02% 34.36% -132.65% -2.14% -2.14% 0.00% % WoW Change -1.12% -2.48% -0.70% -1.33% -1.86% -1.79% -6.05% -6.88% -2.04% -2.44% 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 9.7% 7.6% 3.6% 4.4% 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 48,100 202 153 280 3,651 653,937 906 428,128 8,916 6 128,969 35,480 3,756 8,766 821,350 519

Turnover LKR ('000) 13,167.98 195.15 67.28 556.36 151.99 77,300.14 635.53 3,853.26 1,492.85 0.81 25,149.24 2,128.81 657.18 1,255.66 176,533.29 37.47

Turnover USD ('000) 103.42 1.53 0.53 4.37 1.19 607.10 4.99 30.26 11.72 0.01 197.52 16.72 5.16 9.86 1,386.45 0.29

Intraday Intraday High (LKR) Low (LKR) 275.00 984.00 440.00 1,990.00 41.90 120.00 710.00 9.10 170.00 135.00 195.70 60.10 175.00 143.30 216.90 72.50 271.00 953.00 436.00 1,983.40 41.50 118.00 701.00 8.90 167.00 135.00 194.90 60.00 167.00 143.00 213.90 71.10

Close 273.50 976.00 436.50 1,983.50 41.60 119.90 701.40 9.00 167.70 135.00 195.00 60.00 175.00 143.30 215.00 72.50

Price Gainers
Company
MTD WALKERS UNION CHEMICALS INDUSTRIAL ASPH. EQUITY TWO PLC EDEN HOTEL LANKA

Price Losers
Today 31.80 549.80 253.90 29.70 37.70 Change + 4.00 + 49.80 + 13.80 + 1.60 + 1.90 % Change Company 14.39% 9.96% 5.75% 5.69% 5.31%
NATION LANKA [W 0021] COMMERCIAL DEV. CEYLON LEATHER [W 0013] BIMPUTH FINANCE CAL FINANCE

Today 0.10 64.10 3.10 21.00 20.30

Change - 0.20 - 12.70 - 0.40 - 2.50 - 1.40

% Change -66.67% -16.54% -11.43% -10.64% -6.45%

Top 05 Performers for the Day

Company
SAMPATH COMMERCIAL BANK MTD WALKERS CHEVRON DISTILLERIES

Today 215.00 119.90 31.80 294.50 195.00

Pre Day 217.00 119.70 27.80 293.30 195.00

% Change -0.92% 0.17% 14.39% 0.41% 0.00%

Volume (mn) 0.82 0.65 1.44 0.10 0.13

Contribution to Total T/O 7.3% 3.2% 1.8% 1.2% 1.0%

Turnover (LKR) 176,533,287 77,300,142 44,008,531 29,356,720 25,149,236

Most Active
Company
NATION LANKA[WARRANTS] S M B LEASING NATION LANKA MTD WALKERS SAMPATH

Today 0.10 0.80 10.20 31.80 215.00

Pre Day 0.30 0.80 10.60 27.80 217.00

% Change -66.67% 0.00% -3.77% 14.39% -0.92%

Volume (mn) 3.46 2.28 1.88 1.44 0.82

Contribution to Total T/O 0.0% 0.1% 0.8% 1.8% 7.3%

Turnover (LKR) 422,530 1,820,036 19,112,259 44,008,531 176,533,287

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 12.06.2013 120.62 20.76 169.49 2.18 1.32 40.48 3.93 33.95 101.41 137.66 4.09 199.20 127.33

Announcements
Dividends
Company People's Leasing & Finance Plc Sigiriya Village Hotels PLC Colonial Motors PLC 0 0 0 0 0
Company Description

DPS (LKR) 0.50 2.00 3.00 0.00 0.00 0.00 0.00 0.00
Proportion 0

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

XR Date

Payment Date To be notified To be notified To be notified 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 15,122.0 1,626.1 2,699.3 6,353.7 13,289.3 21,354.7

Change -116.6 -16.7 16.1 13.6 -28.3 -260.4

Change % -0.76% q -1.02% q 0.60% p 0.21% p -0.21% q -1.20% q

Time* 0-Jan 0-Jan 06:58 06:58 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 103.39 95.49 85.02 692.25 1,376.00 21.71 321.20

Change 0.43 0.11 -0.16 -4.50 -1.00 0.06 1.70

Change % 0.42% p 0.12% p -0.19% q -0.65% q -0.07% q 0.30% p 0.53% p

Time* 06:47 06:48 06:38 07:08 06:48 06:47 06:48

Source: www.bloomberg.com

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CSE Announcements
Chillaw Finance [CFL:LKR11.1]: Rights Issue
Alloted/Listed 4,237,667 Proportion Consideration 1 for 7 LKR10.0 Estimated to be Raised 42,376,670 Date Listed 12.06.2013

Dealing by Directors:
Company Royal Ceramics Lanka [RCL: LKR107.4] Name Mr. A.A Page Relationship Transaction Director Purchase Quantity 3,500 Price (LKR) 106.5-107.0 Date 05.06.2013-10.06.2013

Local News
Sri Lanka short term Treasuries ease: Sri Lanka's short term Treasuries yields eased at Wednesday's with the 3-month yield falling 03 basis points to 8.67%, the state debt office said. The 6-month yield fell 01 basis point to 9.80% and the 12-month yield was flat at 10.85%. The state debt office said LKR943 mn in 3-month bills, LKR2.7 bn in 6-month bills and LKR11.2 bn in 12-mont bills totaling LKR14.9 bn were sold. The debt office offered LKR12.0 bn in maturing bills for auction. [Source: www.lbo.lk] Sri Lanka relaxes foreign exchange controls: Sri Lanka has relaxed controls on foreign exchange for travel, migration, sale of residential property by non-residents and maintaining foreign exchange accounts. Foreign exchange for travel had been raised from USD2,500 to USD5,000 and on migration each individual family member will be allowed to take up to USD150,000 instead of a 'family unit', the Central Bank said. [Source: www.lbo.lk] CB orders cut in credit card interest rates: The Central Bank has told commercial banks to cut the interest rate charged on credit card advances by 4% points in a bid to reduce other lending rates, the Deputy Governor said on Tuesday. A Central Bank directive asked commercial banks to reduce rates on advances to 24% from 28% and reduce the lending rates on all other loans so as to not exceed 24% per annum. Though yields on Treasury bills have declined between 199-228 basis points since the Central Bank slashed policy rates on December 2012, banks rates on commercial loans have declined only by around 100 basis points and remain around 18%, bankers say. [Source: www.ft.lk] DFCC, NDB plan USD250 mn, 10-year global bonds: Sri Lankas top development lenders, National Development Bank [NDB: LKR172.4] and DFCC Bank [DFCC: LKR143.3], are each planning USD250 mn bond issues, Deputy Treasury Secretary S.R. Attygalle told Reuters on Tuesday. The decision to let local banks tap the international market follows the Governments decision not to issue an international sovereign bond itself this year after raising money through euro bonds for three consecutive years. Both NDB and DFCC are working on the bond issue. Each of them will go for USD250 mn, 10-year bond issue, Attygalle said. He did not say when the lenders planned to tap the global capital market. Two sources with knowledge of the deals said NDB had appointed HSBC, Barclays Capital, Singapores DBS Bank and the investment arm of NDB as the lead managers to manage the bond. DFCC Bank, meanwhile, has mandated Citibank NA and Bank of America Merrill Lynch to manage its bond issue, the sources said. [Source: www.ft.lk] Sri Lanka power generation positive in March: Sri Lanka's power generation rose 2% in March 2013 to 1,057 GigaWatt hours (millions of units) from a year earlier, recovering from a slump in February official data showed. In February 2013 power generation fell 1.4% to 913 GWh from a year earlier. In the first quarter of 2013, power generation was up 0.5% to 2,957 GWh from a year earlier. Amid better rainfall, state-run Ceylon Electricity Board's hydro power generation rose 119% to 351GWh in March, usually a relatively dry Softlogic Equity Research Page | 5
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month and thermal generation was down just 6.8% to 341 GWh. Private sector power generation was down 28.5% to 364GWh. In the first quarter, CEB hydro generation was up 166% to 1,264GWh, thermal generation fell 12.7% to 828GWh. Purchases from independent power producers (IPPs) were down 43% to 864GWh. Non-conventional renewable energy was up 66.7% to 25GWh. [Source: www.lbo.lk] Rupee sinks to 6-month closing low: Sri Lankas rupee dropped to the lowest close in nearly six months on Tuesday, weighed down by banks demand for dollars to settle bond-related sales and importer buying of the U.S. currency, dealers said. The rupee, which hit 127.80 per dollar in intraday trade, ended at 127.75/85, its lowest close since Dec. 19. It had closed at 126.55/60 on Monday. We see some small-time bondholders pulling back with the U.S. treasury yields moving upward, a currency dealer said. They are also concerned over interest rates further coming down after the central banks comments. [Source: www.ft.lk]

Global News
Indonesia Raises Deposit Facility Rate After Rupiah Slide: Indonesias central bank said it raised the rate it pays lenders on overnight deposits as a preemptive step to maintain stability after the rupiah weakened and said it will ensure sufficient liquidity in the market. Bank Indonesia increased the deposit facility rate, also known as the Fasbi, by a quarter of a percentage point to 4.25%, the central bank said in a statement on its website. The change will be effective today, it said. Rupiah forwards, which weakened to the lowest in more than three years this week, rose today, while the Jakarta Composite Index (JCI) fell for a fifth day. Bank Indonesia policy makers are scheduled to meet tomorrow and all 19 economists surveyed by Bloomberg News predict they will keep the key reference rate at a record-low 5.75%. [Source: www.bloomberg.lk] Euro Trades Near February High on ECB Bets; Yen Trims 2.8% Surge: The euro was less than 0.1% from its highest in 3 1/2 months before European Central Bank executive board member Benoit Coeure speaks as expectations for lower benchmark interest rates in the region decline. Europes common currency climbed 1.7% from before the ECBs June 6 meeting through yesterday as short-term rates reached a four-month high. The yen fell against all but one of its 16 major counterparts, trimming its biggest gain versus the dollar since 2010. Demand for the greenback was supported before a report tomorrow that may show sales at U.S. retailers increased by the most in three months. Australias dollar rebounded from the lowest in almost three years as consumer confidence rose [Source: www.bloomberg.lk]

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