Wednesday, July 31, 2013

Today 6,037.22 3,428.96 Point Change - 18.26 - 3.07 % Change -0.30 % q -0.09 % 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

7.0% 11.1% 906.3 909.9 14.5 39.8 2,323.3 -461.3 147.2 608.5 16.1

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]

Volatility in the index; JKH dictated a turnover boost

CSE Diary for 31.07.2013

ASPI on a volatile note: The Colombo bourse displayed a volatile behavior and traded on an approximately 13 points range. At the end of the day ASPI closed at 6,037.22 with a dip of 18 points. Gains denoted in Sri Lanka Telecom (+1.5%) and Ceylon Tobacco (+0.5%) pulled up the index performance and the losses recorded in John Keells Holdings (1.4%) and Finlay Colombo (-12.0%) dragged the overall performance of the index down. However, S&P SL20 ended on a marginal ground at 3,432.93 with a loss of 3 points. JKH spearheaded turnover: John Keells Holdings topped the turnover with a notable 65% contribution to turnover supported by 5 off-board transactions totaling 1.9mn shares which changed hands at LKR260.0-269.8. JKH also led the on-board turnover with the backing of a single large block of 110k shares transaction at LKR260.0. The counter closed at 260.4 with a dip of 1.4%. Sampath Bank denoted some off-board interest with a single crossing

amounting to 251k shares which was traded at LKR200.0. The counter closed at LKR200.1 with a drop of 0.9%. Banking counters stay active: Banking counters National Development Bank, Commercial Bank and Hatton National Bank Non-Voting attracted investor interest during the day. NDB denoted a single large on-board block of 200k shares which was transacted at LKR165.0. The counter ended at LKR167.0 with a gain of 0.4%. The interest on Commercial Bank was diverse with large number of small transactions and the counter closed with a marginal gain of 0.3% at LKR 117.1. Heavy on- board interest was also seen in Access Engineering and Aitken spence led by single large on-board blocks where the former recorded a transaction of 604k shares at LKR20.40 and the latter recorded a block of 150k shares at LKR122.9.

Retail activity was low: Retail interest concentrated on Nation Lanka Finance Swarnamahal Financial Services.

was and

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 31.07.2013 YoY Change Annual Avg Week ending 02.08.2013 8.63 10.56 11.79 -2.18 6.1 8.3 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 6,037.2 3,429.0 906.3 6.9 14.5 245 2,323.3 147.2 608.5 -461.3 16.0 2.1 2.6 Today 13,184.6 19,367.7 2,802.5 1,941.5 657.4 3,243.7 578.7 3,061.4 728.8 157.9

Pre Day 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 Pre Day 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

Change % -0.30% q -0.09% q 29.46% 29.46% 10.57% 2.51% -0.30% -43.69% 20.87% 90.62% -0.30% -0.30% 0.00% % Change -0.05% -0.07% -1.13% -0.97% -0.09% -0.42% -0.56% -0.29% -1.48% 0.77% q q q q q q q q q p

Last Week 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 Last Week 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

% WoW Change -0.69% -0.56% 210.91% 210.91% 10.22% 4.26% -0.69% 24.17% 5068.54% -531.88% -0.69% -0.69% 0.00% % WoW Change -0.43% 2.37% -0.04% -2.36% 1.54% -1.67% -2.82% -0.36% -4.03% -3.04% 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% 8.6% 3.5% 4.5% 3.1% 4.0% 3.0% 3.0% 2.1% 2.1% 2.5% 1.2% 1.5% 1.5% 1.4% 1.3%

Volume 2,286,917 4,365 165 80 317 136,716 53 30,070 10,193 150,261 1,828 10,190 14,880 31,392 274,017 12,001

Turnover LKR ('000) 595,808.24 4,671.00 68.57 156.02 12.66 16,000.17 36.53 258.31 1,576.99 18,467.12 348.11 573.56 2,306.41 4,018.55 54,804.17 840.07

Turnover USD ('000) 4,527.42 35.49 0.52 1.19 0.10 121.58 0.28 1.96 11.98 140.33 2.65 4.36 17.53 30.54 416.45 6.38

Intraday High (LKR) 263.00 1,080.00 417.00 1,951.00 40.00 117.30 690.00 8.60 155.00 124.00 192.00 57.00 157.20 129.00 202.00 70.00

Intraday Low (LKR) 255.20 1,060.10 415.00 1,950.00 39.80 117.00 686.00 8.50 153.10 122.50 189.00 56.00 155.00 128.00 199.40 69.00

Close 260.40 1,070.10 415.10 1,951.00 39.90 117.10 690.00 8.50 154.70 122.90 192.00 56.40 155.00 128.20 200.10 70.00

Price Gainers
Company
HUEJAY BERUWELA WALKINN AMANA TAKAFUL BIMPUTH FINANCE CEYLINCO INS. [X]

Price Losers
Today 69.70 75.00 1.50 18.20 427.70 Change + 9.60 + 6.70 + 0.10 + 1.20 + 27.60 % Change Company 15.97% 9.81% 7.14% 7.06% 6.90%
S M B LEASING TEA SMALLHOLDER FINLAYS COLOMBO ENVI. RESOURCES [W 0003] CHEMANEX

Today 0.70 43.60 274.00 0.80 66.90

Change - 0.10 - 5.80 - 35.90 - 0.10 - 6.70

% Change -12.50% -11.74% -11.58% -11.11% -9.10%

Top 05 Performers for the Day

Company
JKH SAMPATH NAT. DEV. BANK ACCESS ENG SL AITKEN SPENCE

Today 260.40 200.10 167.00 20.40 122.90

Pre Day 264.10 202.00 166.40 20.80 124.50

% Change -1.40% -0.94% 0.36% -1.92% -1.29%

Volume (mn) 2.29 0.27 0.30 1.97 0.15

Contribution to Total T/O 25.6% 2.4% 2.1% 1.7% 0.8%

Turnover (LKR) 595,808,242 54,804,168 49,669,082 40,363,813 18,467,124

Most Active
Company
JKH ACCESS ENG SL PANASIAN POWER RENUKA AGRI SWARNAMAHAL FIN

Today 260.40 20.40 2.30 4.00 1.80

Pre Day 264.10 20.80 2.30 3.90 1.80

% Change -1.40% -1.92% 0.00% 2.56% 0.00%

Volume (mn) 2.29 1.97 0.92 0.54 0.52

Contribution to Total T/O 25.6% 1.7% 0.1% 0.1% 0.0%

Turnover (LKR) 595,808,242 40,363,813 2,114,208 2,148,215 935,156

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 31.07.2013 118.96 21.47 174.57 2.16 1.34 200.48 131.60

CSE Announcements
Dividends
Company Lanka Walltiles Lanka Ventures 0 0 0
Company Description

DPS (LKR) 2.00 1.00 0.00 0.00 0.00

Proportion 0 0

XD Date 12-08-2013 24-09-2013 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 22-08-2013 02-10-2013 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 15,520.6 2,755.9 6,609.1 13,668.3

Change -1.4 -3.3 38.2 -201.5

Change % -0.01% q -0.12% q 0.58% p -1.45% q

Time* 16:32 06:56 06:57 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 103.29 85.10 657.00 1,331.60 306.85

Change 0.21 -0.04 1.75 6.80 2.65

Change % 0.20% p -0.05% q 0.27% p 0.51% p 0.87% p

Time* 06:47 06:46 07:07 06:48 06:48 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka's inflation up 6.1-pct in July 2013 Consumer prices in Sri Lanka's capital Colombo rose 6.1 percent in July 2013 from year earlier with the index gaining 0.2 percent in the month, the state statistics office said. The Colombo Consumer Price Index gained 0.3 points to 176.8 points in the month. Inflation data came as the state hiked taxes on cigarettes and alcohol. The index however does not count alcohol or tobacco as it is against the 'Mathata thither' of full stop to intoxicants strategy of the current administration. The food and non-alcoholic beverages index gain 0.2 percent while non foods rose just 0.1 percent. [Source: www.lbo.lk] Sri Lanka raises fag taxes to boost revenues ri Lanka has raised taxes on cigarettes to which will bring in an additional 1.4 billion rupees in revenues for the rest of the year, an official said. The price of cigarettes based on length has been raised by 2.00 rupees and 3.00 rupees with the tax increase.Deputy Treasury Secretary S R Attygalle said the tax increase will bring in 1.4 billion rupees in revenues for the rest of the year, making up for any shortfalls. [Source: www.lbo.lk] Sri Lanka raises alcohol, beer taxes ri Lanka has raised taxes on alcohol by 75 rupees a proof litre and beer by 10 rupees per litre along with cigarettes which will help keep revenue targets on track, an official said. The price of a bottle of arrack is expected to go up by about 25 to 30 rupees as a result of the new duty. Deputy Treasury Secretary S R Attygalle said today's measures will bring in 2.5 billion rupees in revenue to help keep to targets established in the budget last November. [Source: www.lbo.lk] Sri Lanka 12-month Treasuries yield falls Sri Lanka's 12-month Treasuries yield fell 04 basis points to 10.52 percent at Wednesday's auction, data from the state debt office said. The debt office offered 12 billion rupee in bills for roll-over and accepted 24.8 billion in bids. In a rare move 3 and 6 month tenors were not offered at today's auction. In the secondary market 3-month bills were quoted at 8.65/85 percent levels and 6-month bills were quoted around 9.65/75 percent levels, dealers said. The 12-month bill was quoted around 10.50/53 percent immediately after the auction dealers said. [Source: www.lbo.lk]

Global
Euro-Area July Inflation Holds at 1.6% as Recession Lingers Euro-area inflation held steady in July after accelerating for two months, adding leeway for the European Central Bank to loosen monetary policy as the 17-nation currency bloc struggles to pull out of a record-long recession. The annual inflation rate was 1.6 percent, the same as in June, the European Unions statistics office in Luxembourg said today. Thats in line with the median of 42 economists estimates in a Bloomberg News survey. Its the sixth straight month that the rate has been less than the ECBs 2 percent ceiling. [Source: www.bloomberg.com] Chinas Leaders Vow Steady Growth With Economic Reforms Chinas ruling Politburo pledged to stabilize growth while pressing on with economic reforms after exports fell by the most since the global financial crisis and manufacturing and investment cooled. Authorities will maintain steady second-half expansion amid extremely complicated domestic and international conditions, the official Xinhua News Agency said. China will keep a prudent monetary policy and a proactive fiscal stance, Xinhua said. China is targeting 7.5 percent growth this year, a goal that could be under threat after a second straight quarterly slowdown. [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.