Wednesday, July 24, 2013

Today 6,079.14 3,448.11 Point Change - 5.1 + 12.02 % Change -0.08 % q 0.35 % 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

7.7% 11.8% 291.5 911.7 13.2 40.3 2,339.5 106.8 118.6 11.8 16.7

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]

Heavyweights spearheaded turnover amidst sluggish indices...

CSE Diary for 24.07.2013

ASPI ended broadly flat: Indices fell back to a sluggish trend following three consecutive days of upward momentum as the ASPI closed broadly flat at 6,079.14 points (-5 points). Heavyweights; Dialog Axiata (+2.3%) and John Keells Holdings (-0.2%) weighed significantly on indices. The S&P SL20 index closed with a gain of 12 points. Diversified sector dominated the turnover: Diversified sector dominated the turnover adding 26% supported by John Keells Holdings and Bukit Darah. The former which rallied three consecutive days topped the turnover backed by a c.89k share block before it dipped 0.2% at its close of LKR269.7. The latter gathered renewed interest towards mid-day trading denoting a gain of 0.1% at its close. No offboard transactions were recorded.

Renewed interest in Dialog: Dialog Axiata surrounded notable buying interest as it edged up to the top turnover slot backed by a 4.4 mn on-board share block at its intra-day high of LKR8.8. The counter closed with a gain of 2.3%. Kegalle Plantations saw investor participation with the approaching of its XD date leading the counter to the top turnover slot. Interest remained in Textured Jersey which closed with a dip of 3.2% leaving further opportunity to accumulate at current levels. BFI sector interest highlighted Hatton National Bank [Non-Voting] which closed with a 1.6% gain at LKR111.8. Retail activity in selected counters: Retailer participation remained moderate surrounding selected counters; First Capital Holdings, Kegalle Plantations and Textured Jersey.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 24.07.2013 YoY Change Annual Avg Week ending 19.07.2013 8.63 10.56 11.79 -0.41 6.8 8.6 9.66

6200 6150 6100 6050 6000 5950 5900 5850

Index

ASPI Turnover LKR ('mn)

3500 3450 2,500 2,000 1,500 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Volume ('mn)

Index

3400

3350 3300
3250

1,000 500
0

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 6,079.1 3,448.1 291.5 2.2 13.2 235 2,339.5 118.6 11.8 106.8 16.1 2.2 2.6 Today 13,241.3 18,918.7 2,803.6 1,988.4 647.5 3,298.7 595.5 3,072.4 759.4 162.9

Pre Day 6,084.2 3,436.1 408.4 3.1 11.3 237 2,341.4 160.4 82.3 78.2 16.2 2.2 2.5 Pre Day 13,201.3 18,940.0 2,814.5 1,993.5 652.4 3,293.5 598.8 3,107.1 762.4 162.3

Change % -0.08% q 0.35% p -28.62% -28.62% 17.08% -0.84% -0.08% -26.09% -85.69% 36.65% -0.92% -0.58% 4.00% % Change 0.30% -0.11% -0.39% -0.25% -0.76% 0.16% -0.56% -1.12% -0.38% 0.38% p q q q q p q q q p

Last Week 5,982.4 3,376.7 191.7 1.5 12.8 223 2,302.2 34.5 20.3 14.2 16.1 2.2 2.4 Last Week 13,132.2 18,858.5 2,799.2 1,905.6 638.6 3,300.7 575.3 3,042.1 751.5 158.1

% WoW Change 1.62% 2.11% 52.03% 52.03% 3.11% 5.38% 1.62% 243.57% -41.92% 649.90% 0.18% -0.21% 8.33% % WoW Change 0.83% 0.32% 0.16% 4.35% 1.38% -0.06% 3.50% 1.00% 1.05% 3.00% 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 9.9% 8.0% 3.6% 4.4% 3.2% 4.0% 3.0% 3.1% 2.1% 2.2% 2.4% 1.2% 1.6% 1.5% 1.4% 1.3%

Volume 244,820 0 5 0 1,301 48,432 50,005 4,549,329 7,170 14,995 11,834 6,010 316 11,900 36,863 4,010

Turnover LKR ('000) 66,135.91 0.00 2.09 0.00 52.54 5,666.11 34,303.45 40,027.09 1,112.82 1,874.40 2,249.53 347.56 51.19 1,526.28 7,430.78 279.90

Turnover USD ('000) 503.09 0.00 0.02 0.00 0.40 43.10 260.94 304.48 8.47 14.26 17.11 2.64 0.39 11.61 56.52 2.13

Intraday High (LKR) 273.20 0.00 424.90 0.00 41.70 117.20 699.90 8.80 159.00 125.50 193.50 58.00 162.00 130.00 204.00 69.80

Intraday Low (LKR) 266.40 0.00 417.00 0.00 40.00 116.50 685.00 8.60 154.90 125.00 190.00 57.00 162.00 125.80 198.00 69.80

Close 269.70 1,002.00 424.90 1,901.50 41.00 117.00 686.10 8.80 157.30 125.00 190.00 58.00 162.00 130.00 200.30 69.80

Price Gainers
Company
MERC. SHIPPING OFFICE EQUIPMENT HARISCHANDRA RAMBODA FALLS ASCOT HOLDINGS

Price Losers
Today 172.80 2,479.00 2,189.90 14.20 129.90 Change + 19.60 + 272.00 + 188.90 + 1.20 + 9.90 % Change Company 12.79% 12.32% 9.44% 9.23% 8.25%
MULTI FINANCE BLUE DIAMONDS [X] CITRUS KALPITIYA KELANI CABLES PC HOUSE

Today 17.20 1.00 6.30 73.00 1.10

Change - 3.50 - 0.10 - 0.60 - 6.90 - 0.10

% Change -16.91% -9.09% -8.70% -8.64% -8.33%

Top 05 Performers for the Day

Company
JKH DIALOG BUKIT DARAH KEGALLE TEXTURED JERSEY

Today 269.70 8.80 686.1 114.00 12.20

Pre Day 270.30 8.60 685.20 114.00 12.60

% Change -0.22% 2.33% 0.13% 0.00% -3.17%

Volume (mn) 0.24 4.55 0.05 0.09 0.72

Contribution to Total T/O 2.8% 1.7% 1.5% 0.4% 0.4%

Turnover (LKR) 66,135,910 40,027,087 34,303,455 10,024,702 8,811,505

Most Active
Company
DIALOG TEXTURED JERSEY JANASHAKTHI INS. PANASIAN POWER FIRST CAPITAL

Today 8.80 12.20 13.70 2.30 19.50

Pre Day 8.60 12.60 13.80 2.30 19.20

% Change 2.33% -3.17% -0.72% 0.00% 1.56%

Volume (mn) 4.55 0.72 0.35 0.33 0.27

Contribution to Total T/O 1.7% 0.4% 0.2% 0.0% 0.2%

Turnover (LKR) 40,027,087 8,811,505 4,762,387 763,434 5,206,289

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 24.07.2013 121.74 21.43 173.57 2.20 1.32 201.90 131.46

CSE Announcements
Dividends
Company No Dividend Annoucements 0 0 0 0
Company Description

DPS (LKR) 0.00 0.00 0.00 0.00 0.00

Proportion 3 for 8 0

XD Date 0 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 1/0/1900 1/0/1900 1/0/1900 00-Jan-00 00-Jan-00

Renunciation

Rights Issues / Scrip Dividend / Sub division / Capitalization

Kingsbury 0 0 Right Issue 0 0 12-8-2013 1/0/1900 1/0/1900 02-9-2013 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 Corporate Disclosures

Material Dealings by Related Parties of Listed Companies

Company SINGALANKA CENTRAL INVESTMENTS Name Sinali Capital Aspic Corporation Relationship Transaction Common Director Purchase Common Director Sale Quantity 50,000 7,086,845 Price (LKR) 61.00 1.60-2.00 Date 15.7.2013 01.7.2013-31.7.2013

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 15,567.7 2,752.0 6,654.0 14,731.3

Change 22.2 29.1 56.6 -47.2

Change % 0.14% p 1.07% p 0.86% p -0.32% q

Time* 16:33 06:52 06:51 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 107.22 85.95 656.00 1,344.50 322.60

Change -0.01 0.28 2.25 9.30 2.80

Change % -0.01% q 0.33% p 0.34% p 0.70% p 0.88% p

Time* 06:43 06:30 07:02 06:41 06:43 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka Treasuries short tenure bids rejected Sri Lanka's state debt office has rejected offers for three and 6 month bills at Wednesday's auction accepting only tenders only for 12 month bills. After offering 12.0 billion rupees of maturing bills for roll-over the debt office said 9.2 billion rupees of bids, all for 12-month tenor were accepted at a average yield of 10.56 percent, down 03 basis points from a week earlier. Meanwhile in forex markets the spot US dollar was quoted at 131.55.65 rupees but trading was taking place on spot-next, where settlement is made four days later, dealers said. [Source: www.lbo.lk] Sri Lanka holds rates, state credit easing: Central Bank Sri Lanka is holding its policy interest rates at 9.00 percent to give money to banks with credit to state starting to ease, which will help private borrowing, the Central Bank said. Sri Lanka's private borrowings and investment have been crowded out and investments by heavy government borrowing from banks and chronic large losses in state enterprises. The Central Bank said in May, private credit rose to 18.3 billion rupees from 7.6 billion rupees in April while credit to state has fallen by 6.2 billion rupees. [Source: www.lbo.lk] Sri Lanka bank ATMs connected to domestic switch Sri Lanka's two largest state-run banks were connected to a domestic automated teller machine switch, which will make transactions cheaper, with more banks expected to join soon, officials said. Bank of Ceylon and People's Bank with about 900 ATMs between them were connected to the system allowing each other's customers to withdraw cash from teller machines owned by another. At the moment transactions through teller cards are offered by some banks, but they are cleared through international systems like Cirrus. At some banks the transaction fees are high. [Source: www.lbo.lk] Laugfs Gas seeks price hike Laugfs Gas, Sri Lankas private gas retailer has asked the Consumer Affairs Authority for permission to increase the price of a gas cylinder by Rs. 700. However, the State owned LP gas supplier Litro Gas has yet not made a request for a price hike. Under the essential commodities regulations of the country, the gas retailers need the permission of the Consumer Affairs Authority for a price increase. The Consumer Affairs Authority has so far not taken a decision in regard to increasing the price of LP gas. Sri Lanka reviews and revises LP gas prices bimonthly. [Source: www.ft.lk]

Global
Europe Manufacturing Expands for First Time in Two Years Euro-area manufacturing unexpectedly expanded in July for the first time in two years, led by Germany, adding to signs the currency blocs economy is emerging from a record-long recession. A manufacturing index based on a survey of purchasing managers rose to 50.1 from 48.8 in June, London-based Markit Economics said today. That exceeds the median estimate of 49.1 in a Bloomberg News survey of 39 economists. A reading above 50 indicates growth. [Source: www.bloomberg.com] China Manufacturing Weakens Further as Slowdown Deepens: Economy Chinas manufacturing weakened by more than estimated in July, according to a preliminary survey of purchasing managers that casts further doubt on the governments ability to meet its annual economic growth (CNGDPYOY) target. The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics, if confirmed in the final report Aug. 1, would be the lowest in 11 months. Readings below 50 indicate contraction. A separate euro-area gauge showed manufacturing unexpectedly expanded this month. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

Softlogic Equity Research

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 Eardley Kern 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

l.kern@equity.softlogic.lk
+94 11 7277053, +94 77 7348018 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

The report has been prepared by Softlogic Stockbrokers (Pvt) Ltd. The information and opinions contained herein has been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only, descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as, an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments. Softlogic Stockbrokers (Pvt) Ltd may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which they are based before the materialized disseminated to their customeLKRNot all customers will receive the material at the same time. Softlogic Stockbrokers, their respective directors, officers, representatives, employees, related persons and/or Softlogic Stockbrokers, may have a long or short position in any of the securities or other financial instruments mentioned or issuers described herein at any time and may make a purchase and/or sale, or offer to make a purchase and/or sale of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principal or agent. Softlogic Stockbrokers may make markets in securities or other financial instruments described in this publication, in securities of issuers described here in or in securities underlying or related to such securities. Softlogic Stockbrokers (Pvt) Ltd may have recently underwritten the securities of an issuer mentioned herein. This document may not be reproduced, distributed, or published for any purposes.

Softlogic Equity Research

Page | 6.