Friday, November 01, 2013

Today 5,954.36 3,280.33 Point Change - 0.26 - 1.74 % Change 0.00 % q -0.05 % q

ASPI S&P SL 20 Index YTD Performance ASPI S&P SL 20 Index

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5.5% 6.3% 1,092.4 845.7 40.6 37.5 2,476.2 167.0 204.1 37.1 23.2

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]

Lackluster Performance on bourse...

CSE Diary for 01.11.2013

Indices traded on a narrow band: The benchmark index traded on a narrow band during the day and ended with a marginal dip of of 0.3 points at 5,954.36. Gains recorded in Sri Lanka Telecom (+2.1%), John Keells Holdings (+0.6%) and the losses denoted in Carsons Cumberbatch (-2.6%) held the index on marginal grounds. Turnover levels were strong backed by the heavy off-board transactions recorded in Lanka Tiles. S&PSL20 too traded on a lackluster ground and settled with a marginal dip of 2 points at 3,280.3. Lanka tiles dominated daily turnover: Lanka Tiles spearheaded the turnover adding 53% to turnover supported by 12 off-board transactions which accumulated to 6.5mn shares at LKR80.0. The counter also topped the on-board turnover mainly backed by a single trade of 717k shares at LKR80.0. TILE closed at LKR75.0 with an intra-day

gain of 2.9%. John Keells Holdings too crossed 641k shares which changed hands at LKR225.0. The counter attracted significant on-board investor interest and ended at LKR224.9 with a gain of 0.6% On board interest on CINS and AEL: Ceylinco Insurance attracted on-board investor interest with heavy turnover levels. The counter closed at LKR1, 297.6 with a dip of 0.2%. Investor interest was also surrounded on the value counter Access engineering and settled at LKR22.8 with a 0.4% drop. The counter currently trades at a trailing P/E of 7.8x.

Active retail investor interest on selected counters: Retail investor interest was surrounded on Dankotuwa Porcelain and Touchwood investments. DPL extended its gains and closed at LKR15.6 with an intra-day gain of 8.3%

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Oct-13 as at 31.10.2013 YoY Change Annual Avg Week ending 30.10.2013 8.56 9.00 9.83 11.30 -29.86 6.7 7.6

6000 5950 5900

Index

5850
5800 5750 5700

ASPI
3320 3300 3280 3260 3240 3220 3200 3180 3160

Turnover LKR ('mn)

3,000 2,500 2,000 1,500 1,000 500 0

140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 5,954.4 3,280.3 1,092.4 8.3 40.6 237 2,476.2 204.1 37.1 167.0 15.8 2.1 2.8 Today 12,896.2 19,489.9 2,837.2 1,801.7 702.8 3,247.6 572.6 2,938.7 736.9 161.9

Pre Day 5,954.6 3,282.1 632.6 4.8 47.1 214 2,476.3 311.4 190.0 121.5 15.8 2.1 2.8 Pre Day 12,877.2 19,457.1 2,855.6 1,804.3 691.9 3,251.7 570.8 2,936.7 734.6 161.2

Change % 0.00% q -0.05% q 72.68% 72.68% -13.68% 10.75% 0.00% -34.45% -80.47% 37.49% -0.01% 0.00% 0.00% % Change 0.15% 0.17% -0.64% -0.14% 1.58% -0.12% 0.32% 0.07% 0.32% 0.44% p p q q p q p p p p

Last Week 5,948.8 3,280.5 1,480.6 11.3 71.8 219 2,473.8 47.7 36.4 11.3 16.0 2.2 2.6 Last Week 12,831.4 19,584.7 2,846.8 1,804.5 705.0 3,239.6 572.1 2,924.7 737.5 159.4

% WoW Change 0.09% 0.00% -26.22% -26.22% -43.45% 8.22% 0.10% 327.91% 1.81% 1382.65% -1.35% -3.20% 7.69% % WoW Change 0.50% -0.48% -0.34% -0.16% -0.31% 0.25% 0.09% 0.48% -0.08% 1.59% 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 7.8% 8.5% 3.0% 4.2% 2.9% 3.8% 2.8% 3.0% 1.9% 1.9% 2.2% 1.2% 1.3% 1.3% 1.2% 1.3%

Volume 811,958 8 3 102 1,015 35,721 7 2,019 1,145 57,500 38,469 7,828 130 298 20,072 0

Turnover LKR ('000) 182,625.95 8.96 1.16 194.90 40.30 4,204.82 4.73 18.30 170.41 6,555.00 7,120.61 477.56 19.73 36.46 3,436.97 0.00

Turnover USD ('000) 1,395.54 0.07 0.01 1.49 0.31 32.13 0.04 0.14 1.30 50.09 54.41 3.65 0.15 0.28 26.26 0.00

Intraday High (LKR) 225.00 1,125.00 395.00 1,945.00 39.90 118.00 675.00 9.10 149.00 114.00 185.10 61.10 154.00 123.50 172.20 0.00

Intraday Low (LKR) 222.10 1,112.00 380.00 1,910.00 38.80 117.50 675.00 9.00 147.00 114.00 185.10 61.00 149.00 122.00 170.50 0.00

Close 224.90 1,120.10 380.00 1,945.00 39.60 118.00 675.00 9.00 149.00 114.00 185.10 61.00 149.00 122.30 172.00 74.50

Price Gainers
Company
OFFICE EQUIPMENT CEYLON LEATHER [W0014] PC HOUSE SOFTLOGIC CAP CFT

Price Losers
Today 2,694.80 2.10 0.90 4.80 7.00 Change + 494.60 + 0.30 + 0.10 + 0.50 + 0.70 % Change Company 22.48% 16.67% 12.50% 11.63% 11.11%
KALAMAZOO CIT PALM GARDEN HOTL UNION CHEMICALS SHALIMAR

Today 1,100.00 115.10 70.00 373.40 860.00

Change - 178.50 - 17.90 - 8.90 - 39.90 - 90.00

% Change -13.96% -13.46% -11.28% -9.65% -9.47%

Top 05 Performers for the Day

Company
LANKA FLOORTILES JKH CEYLINCO INS. TOUCHWOOD DANKOTUWA PORCEL

Today 75.00 224.90 1297.60 4.30 15.60

Pre Day 72.90 223.60 1300.30 4.20 14.40

% Change 2.88% 0.58% -0.21% 2.38% 8.33%

Volume (mn) 7.27 0.81 0.03 6.58 1.70

Contribution to Total T/O 23.5% 7.4% 1.7% 1.2% 1.0%

Turnover (LKR) 581,810,085 182,625,948 42,502,960 28,784,662 25,987,177

Most Active
Company
LANKA FLOORTILES TOUCHWOOD BLUE DIAMONDS LANKA CENTURY[WARRANTS] EXPOLANKA

Today 75.00 4.30 3.40 0.60 7.30

Pre Day 72.90 4.20 3.20 0.60 7.20

% Change 2.88% 2.38% 6.25% 0.00% 1.39%

Volume (mn) 7.27 6.58 3.32 2.01 1.94

Contribution to Total T/O 23.5% 1.2% 0.5% 0.0% 0.6%

Turnover (LKR) 581,810,085 28,784,662 11,579,674 1,206,182 14,192,689

Softlogic Equity Research

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Currency Board
Local - Indicative Rate against LKR
Currency Australia China EU India Japan UK USA Dollar Yuan Euro Rupee Yen Pound Dollar Indicative Rate 01.11.2013 123.90 21.47 177.40 2.13 1.33 209.77 130.86

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 1 for 20 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

Nanda Investments 0 0 Right Issue 0 0 28-11-2013 1/0/1900 1/0/1900 18-12-2013 1/0/1900 1/0/1900

Source: www.cbsl.gov.lk

New Listing
Company 0 0 Type of Security Code 1/0/1900 1/0/1900 Board 1/0/1900 1/0/1900 Offer Price 0.00% 0.00%

Key Corporate Diclosures

Vidulllanka has completed the construction of 2.5MW Madugeta Mini Hydro Power Plant in Neluwa and the plant was grid conncected on 1st November 2013

Material Dealings by Related Parties of Listed Companies

Company NO DEALING BY DIRECTORS 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 15,545.8 3,053.8 6,716.8 14,201.6

Change -73.0 -14.2 -14.6 -126.4

Change % -0.47% q -0.46% q -0.22% q -0.88% q

Time* 16:30 06:46 06:46 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 96.32 77.44 666.25 1,314.80 331.80

Change -0.06 0.26 -1.25 -8.70 1.75

Change % -0.06% q 0.34% p -0.19% q -0.66% q 0.53% p

Time* 06:36 06:35 06:55 06:37 06:36 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka's Aitken Spence to up Oman hotels to six Sri Lanka's Aitken Spence Hotels will add another hotel to properties under its management in Oman, taking the total to six, an official said. The firm operates Al Falaj Hotel and Ruwi hotel in Muscat, Sur Plaza Hotel in Sur, Desert Night Camp in Al Wasil and Al Wadi Hotel in Sohar. The latest hotel is a smaller hill country property with about 50 rooms, managing director Malin Hapugoda told LBO. [Source: www.lbo.lk] Over 800 expected buyers for 'Reflection of Sri Lanka' The biggest trade, tourism and investment exposition in history is drawing increasing numbers of participants-including one from Canada as of October 30. "As of now 660 Lankan and international exhibitors have confirmed for the 'Reflection of Sri Lanka' event. Also more than 800 expected buyers we have now ", said Rishad Bathiudeen, Minister of Industry and Commerce in Colombo. Minister Bathiudeen was addressing his top officials at the Ministry of Industry and Commerce on October 30 acknowledging the updates on 'Reflection of Sri Lanka'. [Source: www.dailynews.lk] Rupee rises to near 1-week high The rupee strengthened to a near one-week high on Thursday as exporters sold dollars, but downward pressure on the currency is expected in the near term because of the year-end seasonal demand, dealers said. The spot rupee closed at 130.85/92 per dollar, its highest since 25 October and firmer than Wednesdays close of 130.95/131.05. Dealers said yearend import demand for dollars could put downward pressure on the local currency. [Source: www.ft.lk] Sri Lanka completes constructing the second phase of Lak Wijaya coal plant Sri Lanka has completed construction work of the second phase of the Norochcholai coal power plant, the first ever coal powered plant built in the country, announced the Ministry of Power and Energy. The second phase once in operation will add another 300 megawatts of power to the national grid. Minister of Power and Energy Pavithra Devi Wanniarachchi who has made an inspection tour to the newly built plant on Monday has directed officials to take steps to quicken the process towards adding the second phase to the national grid. [Source: www.news360.lk]

Global
China Home Prices Jump by Most This Year as Demand Defies Curbs Chinas new home prices jumped by the most this year in October as homebuyers defied the governments property curbs and developers offered more high-priced apartments to tap demand. The average price surged 10.7 percent last month from a year earlier to 10,685 yuan ($1,753) per square meter (10.76 square feet), SouFun Holdings Ltd. (SFUN), the nations biggest real estate website owner, said in a statement after a survey of 100 cities. Prices rose 1.24 percent from September, the 17th consecutive month of increases. [Source: www.bloomberg.com] Euro Extends Drop on Rate Cut Speculation as Copper Gains The euro depreciated, heading for the biggest weekly drop against the dollar since February, and German two-year yields fell on speculation slowing inflation will prompt the European Central Bank to cut interest rates. Industrial metals rose as Chinas manufacturing strengthened. Europes shared currency weakened 0.4 percent to $1.3531 at 10 a.m. in New York, taking its decline for the week to 2 percent. German two-year yields dropped to 0.09 percent, the lowest level since July. [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

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