Tuesday, July 30, 2013

Today 6,055.48 3,432.03 Point Change - 1.44 + 6.26 % Change -0.02 % q 0.18 % 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

7.3% 11.2% 700.1 914.1 13.2 40.1 2,330.4 -242.0 261.5 503.5 16.6

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 flat; Deals in JKH boost turnover

CSE Diary for 30.07.2013

ASPI remains flat: The benchmark index stayed broadly flat for most part of the day with some movement in both directions towards the last hour of trading. Ceylon Tobacco, Commercial Bank and Nestle weighted positively on the index while John Keells Holdings, Ceylon Guardian Investment Trust and CT Holdings weighted negatively on the index. JKH dominates turnover: John Keells Holdings recorded 4 crossings accounting for 1.1mn shares LKR265.0 and LKR268.0. Onboard trading was also high in the counter with a volume of 656k shares. The counter saw fairly high selling pressure following the release of its earnings which signified a dip

of 4%. The counter dipped 1.3% to LKR264.1. Banking counters stay active: Banking counters led by Commercial Bank and Sampath Bank saw considerable investor interest with the former recording a few midsized blocks between 50k and 100k in size. Both counters recorded gains of 2.5% and 1.4% to close at LKR116.8 and LKR202.0 respectively. Investor interest was retained in Textured Jersey and Ceylinco Insuarnce [Non-Voting]. Retail activity was moderate: Some retail activity was present today with retail investors mostly concentrating on Textured Jersey (+0.8%) and Union Bank (+1.1%).

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jun-13 as at 30.07.2013 YoY Change Annual Avg Week ending 26.07.2013 8.63 10.56 11.79 -4.12 6.8 8.6 9.66

6200 6150 6100 6050 6000 5950 5900 5850

Index

ASPI
3450

Turnover LKR ('mn)

3500

1,000 800 600

80.0

Volume ('mn)

60.0 40.0 20.0 0.0

Index

3400

3350 3300
3250

400 200
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 6,055.5 3,432.0 700.1 5.3 13.2 239 2,330.4 261.5 503.5 -242.0 16.0 2.2 2.6 Today 13,191.8 19,380.3 2,834.4 1,960.5 658.0 3,257.3 582.0 3,070.5 739.8 156.7

Pre Day 6,056.9 3,425.8 451.3 3.4 9.7 233 2,330.9 264.3 210.4 53.9 16.0 2.2 2.6 Pre Day 13,132.0 19,139.8 2,839.4 1,976.3 657.3 3,278.4 584.5 3,080.4 741.3 157.6

Change % -0.02% q 0.18% p 55.13% 55.13% 35.04% 2.58% -0.02% -1.08% 139.27% -548.81% -0.02% -0.02% 0.00% % Change 0.45% 1.26% -0.17% -0.80% 0.10% -0.64% -0.43% -0.32% -0.20% -0.58% p p q q p q q q q q

Last Week 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 Last Week 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

% WoW Change -0.47% -0.12% 71.44% 71.44% 16.70% 0.84% -0.47% 62.97% 511.90% -409.59% -1.31% -0.97% 4.00% % WoW Change -0.07% 2.32% 0.71% -1.66% 0.86% -1.10% -2.81% -1.18% -2.96% -3.42% 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% 8.6% 3.5% 4.5% 3.0% 4.0% 3.0% 3.0% 2.1% 2.2% 2.5% 1.1% 1.5% 1.5% 1.5% 1.3%

Volume 1,758,643 3,958 28 229 1,000 539,262 129 22,316 17,509 3,602 27,373 4,434 200 10,718 90,627 303

Turnover LKR ('000) 468,489.90 4,174.32 11.68 443.70 39.26 62,748.71 88.52 190.21 2,697.48 449.25 5,214.55 248.21 31.48 1,371.90 18,264.70 20.88

Turnover USD ('000) 3,560.73 31.73 0.09 3.37 0.30 476.92 0.67 1.45 20.50 3.41 39.63 1.89 0.24 10.43 138.82 0.16

Intraday High (LKR) 269.00 1,090.00 419.00 2,000.00 39.90 117.30 695.00 8.60 155.00 125.00 190.50 56.50 158.00 128.00 203.00 70.00

Intraday Low (LKR) 260.00 1,040.00 417.00 1,920.00 39.10 115.00 686.00 8.50 154.00 124.30 190.00 55.20 157.40 128.00 199.90 68.90

Close 264.10 1,064.50 417.30 1,950.00 39.30 116.80 686.10 8.50 154.10 124.50 190.50 56.00 157.40 128.00 202.00 68.90

Price Gainers
Company
AMF CO LTD MULLERS PALM GARDEN HOTL COLD STORES HOTEL SIGIRIYA

Price Losers
Today 390.00 1.40 80.50 175.00 79.80 Change + 28.00 + 0.10 + 5.20 + 10.00 + 4.30 % Change Company 7.73% 7.69% 6.91% 6.06% 5.70%
MIRAMAR CEYLON GUARDIAN UDAPUSSELLAWA BLUE DIAMONDS [X] MERC. SHIPPING

Today 56.50 171.10 27.20 1.00 147.70

Change - 8.80 - 17.90 - 2.80 - 0.10 - 12.20

% Change -13.48% -9.47% -9.33% -9.09% -7.63%

Top 05 Performers for the Day

Company
JKH COMMERCIAL BANK SAMPATH TEXTURED JERSEY CEYLINCO INS.[NON VOTING]

Today 264.10 116.80 202.00 13.00 400.10

Pre Day 267.50 114.00 199.20 12.90 429.80

% Change -1.27% 2.46% 1.41% 0.78% -6.91%

Volume (mn) 1.76 0.54 0.09 1.02 0.03

Contribution to Total T/O 20.1% 2.7% 0.8% 0.6% 0.5%

Turnover (LKR) 468,489,897 62,748,713 18,264,704 13,374,539 11,268,537

Most Active
Company
JKH CIFL TEXTURED JERSEY PANASIAN POWER COMMERCIAL BANK

Today 264.10 1.10 13.00 2.30 116.80

Pre Day 267.50 1.10 12.90 2.30 114.00

% Change -1.27% 0.00% 0.78% 0.00% 2.46%

Volume (mn) 1.76 1.13 1.02 0.60 0.54

Contribution to Total T/O 20.1% 0.1% 0.6% 0.1% 2.7%

Turnover (LKR) 468,489,897 1,250,760 13,374,539 1,371,949 62,748,713

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 30.07.2013 120.49 21.45 174.33 2.21 1.34 201.65 131.57

CSE Announcements
Dividends
Company Associated Motor Finance 0 0 0 0
Company Description

DPS (LKR) 10.00 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 08-08-2013 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 21-08-2013 1/0/1900 1/0/1900 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

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 NO MATERIAL DEALINGS. Name 0 0 Relationship 0 0 Transaction 0 0 Quantity 0 0 Price (LKR) 0.00 0.00 Date 0 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 15,522.0 2,751.6 6,573.3 13,869.8

Change -36.9 9.8 13.0 208.7

Change % -0.24% q 0.36% p 0.20% p 1.53% p

Time* 16:33 06:42 06:42 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 103.79 84.84 655.50 1,322.50 306.95

Change -0.76 0.13 4.00 -7.10 -3.80

Change % -0.73% q 0.15% p 0.61% p -0.53% q -1.22% q

Time* 06:31 06:31 06:51 06:31 06:32 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Dialog dials more investments Sri Lankas largest foreign direct investor and leader in mobile telecommunication, Dialog Axiata Plc yesterday rang more investments, committing $ 150 million and bringing the total since 2006 to a staggering $ 1.5 billion. The investment agreements signed yesterday with the BOI will over three years encompass the expansion of the multifaceted ICT infrastructures of the Dialog Group, including but not limited to 4G and 3G high speed broadband, fibre optic, fixed telecommunication and international telecommunication networks. [Source: www.ft.lk] Rupee steadies on exporter dollar sales The rupee firmed marginally on Monday as exporters sold dollars, but it still ended near a 10-month closing low. The rupee finished at 131.55/65, recovering from Fridays close of 131.60/70. On Thursday it hit its lowest close since Sept. 19 of 131.65/75. Exporter flows helped the rupee to strengthen with less demand for dollars, said a currency dealer. Dealers expect the rupee to move in a range of 131.50 to 132 in the short term and said the currency would continue to depreciate unless the Central Bank took some monetary tightening measures. [Source: www.ft.lk] Sri Lanka FDI flows reach $430mn in first half 2013 Foreign direct investment flows to Sri Lanka in the first half of 2013 reached 430 million US dollars and the full year was expected to bring 2.0 billion US dollars, investment promotion minister said. The money had come mainly from Chinese and Hong Kong based companies with top sectors being tourism, mixed development projects and manufacturing, Lakshman Jayaweera, head of the Board of Investment of Sri Lanka said. Officials said they were keeping a target of 2.0 billion US dollars because a large volume of FDI tended to come in the third and fourth quarter. [Source: www.lbo.lk] Sri Lanka's Nanda Investment on positive rating watch: RAM Nanda Finance Investment Plc, a small finance company that was recently acquired by Bangladesh-based BRAC micro finance group and Sri Lanka's LOLC group has been placed on positive rating watch on a possible upgrade by RAM Ratings. RAM said the firm was small, lacked of a clear strategic direction. "However, given the change in its ownership, it is envisaged that the Companys future growth strategies would be guided by the new shareholders expertise in the financial services sector," the rating agency said. [Source: www.ft.lk]

Global
Euro-Area Economic Confidence Jumps to Highest in 15 Months Economic confidence in the euro area improved for a third month in July, reaching the highest in 15 months and adding to indications the 17-nation currency bloc is emerging from a record-long recession. An index of executive and consumer sentiment rose to 92.5 from 91.3 in June, the European Commission in Brussels said today. That matched the median estimate in a Bloomberg News survey of 31 economists. Europes economy is showing increasing signs of revival after six quarters of contraction. [Source: www.bloomberg.com] Japan Output Falls Most Since 2011 in June After May Surge Japans industrial production fell in June by the most since March 2011, when the nation was hit by a record earthquake, as automakers cut output for a second month after a surge in April. Output declined 3.3 percent from the previous month, the Trade Ministry said today in Tokyo, after climbing in May by the most since December 2011. Production slid 4.8 percent from a year earlier in June. The jobless rate was 3.9 percent, the lowest since 2008, a separate report showed. [Source: www.bloomberg.com] Softlogic Equity Research Page | 5.

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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 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

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+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

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