Thursday, August 22, 2013

Today 6,085.88 3,422.27 Point Change - 30.79 - 12.1 % Change -0.50 % q -0.35 % 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

7.8% 10.9% 652.8 924.3 19.8 40.2 2,506.6 -92.5 403.7 496.2 18.3

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]

Crossings dominated bourse while indices extended downtrend

CSE Diary for 22.08.2013

Indices on a downtrend: Indices continued its dip as the benchmark index dipped 30 points at its close to 6,085.88. The dip was primarily driven by John Keells Holdings (-0.6%) and Ceylon Tobacco Company (-1.6%) which now collectively take up 18% of market capitalization. The S&P SL20 followed a similar path backed by dips in the above heavy caps. 8 crossings added 69% to the turnover: Diversified players attracted interest as John Keells Holdings spearheaded the turnover backed by 4 crossings which carried 720k shares at LKR247.9 and LKR248.0. The counter continued to be active on board as it touched LKR250.0 before closing with a dip at LKR248.0. Hemas Holdings registered two crossings which accumulated to 5.1 mn shares at LKR34.2 and LKR34.3 during early trading while onboard activity in the counter remained dormant.

Commercial Bank and Lion Brewery recorded one crossing each which added 600k shares and 67k shares to the crossings board respectively. Continued on-board interest in banking counters: BFI sector contributed 26% to the days turnover as banking sector counters depicted notable onboard interest. Hatton National Bank and Nations Trust Bank edged up to the top turnover slot while both touched LKR154.9 and LKR62.9 at their intraday high levels. Commercial Bank and Sampath Bank also saw some buying interest. Retailers took a cautious note: Retail activity was moderate with majority of activity surrounding; Sanasa Development Bank, Panasian Power, Nation Lanka Finance and Union Bank.

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) Inflation (%) Jul-13 as at 22.08.2013 YoY Change Annual Avg Week ending 23.08.2013 8.61 9.65 10.55 11.88 -6.49

6300 6200

Index

6100
6000 5900

6.1 8.3

ASPI
3520 3500 3480 3460 3440 3420 3400 3380

Turnover LKR ('mn)

2,500 2,000 1,500

100.0 80.0 60.0

Volume ('mn)

Index

1,000 500
0

40.0 20.0
0.0

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 6,085.9 3,422.3 652.8 5.0 19.8 234 2,506.6 403.7 496.2 -92.5 17.2 2.3 2.6 Today 12,902.9 21,554.2 2,794.2 1,867.5 652.9 3,183.5 555.8 3,000.9 706.0 158.1

Pre Day 6,116.7 3,434.4 954.1 7.2 26.7 244 2,519.3 632.9 295.9 337.0 17.3 2.3 2.5 Pre Day 12,941.6 21,749.5 2,858.2 1,876.7 651.5 3,188.1 563.1 3,008.6 711.0 158.1

Change % -0.50% q -0.35% q -31.58% -31.58% -26.09% -4.10% -0.50% -36.21% 67.68% -127.45% -0.50% -0.50% 4.00% % Change -0.30% -0.90% -2.24% -0.49% 0.21% -0.15% -1.30% -0.26% -0.70% 0.00% q q q q p q q q q p

Last Week 6,220.1 3,495.7 646.6 4.9 24.3 232 2,394.4 291.7 188.3 103.5 16.5 2.2 2.5 Last Week 13,044.2 22,469.8 2,909.0 1,923.9 651.0 3,209.5 575.6 3,022.5 721.9 160.7

% WoW Change -2.16% -2.10% 0.95% 0.95% -18.78% 0.86% 4.68% 38.39% 163.59% -189.39% 4.68% 4.68% 4.00% % WoW Change -1.08% -4.08% -3.95% -2.93% 0.29% -0.81% -3.44% -0.72% -2.20% -1.57% 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 8.5% 9.5% 3.1% 5.0% 2.9% 3.8% 2.8% 2.8% 2.0% 2.0% 2.3% 0.9% 1.3% 1.4% 1.3% 1.2%

Volume 819,152 348 306 163 164 690,847 44 89,382 117,621 2,602 26,582 27,300 1,400 6,211 55,160 2,310

Turnover LKR ('000) 203,131.08 442.20 119.53 380.66 6.55 81,686.40 30.32 759.81 18,051.97 314.84 5,130.33 1,365.26 211.52 795.15 10,491.54 159.68

Turnover USD ('000) 1,541.79 3.36 0.91 2.89 0.05 620.01 0.23 5.77 137.02 2.39 38.94 10.36 1.61 6.04 79.63 1.21

Intraday High (LKR) 250.00 1,300.00 392.10 2,340.00 40.00 119.00 690.00 8.60 154.90 121.00 194.50 51.00 152.00 128.10 191.90 70.00

Intraday Low (LKR) 247.50 1,250.00 389.00 2,311.00 39.40 118.00 680.00 8.50 150.00 121.00 192.80 49.50 150.00 127.50 189.30 68.30

Close 248.00 1,268.50 390.00 2,326.50 40.00 118.60 680.00 8.50 154.00 121.00 193.00 50.00 150.20 128.10 189.70 69.20

Price Gainers
Company
ENVI. RESOURCES [W 0003] SINHAPUTHRA FIN DUNAMIS CAPITAL PC PHARMA MULLERS

Price Losers
Today 0.40 94.00 12.00 1.20 1.30 Change + 0.10 + 11.70 + 1.10 + 0.10 + 0.10 % Change Company 33.33% 14.22% 10.09% 9.09% 8.33%
SERENDIB ENG.GRP CEYLON LEATHER [W 0013] KALAMAZOO SATHOSA MOTORS MET. RES. HOL

Today 135.00 1.30 1,066.00 225.00 21.20

Change - 40.00 - 0.20 - 118.50 - 25.00 - 2.00

% Change -22.86% -13.33% -10.00% -10.00% -8.62%

Top 05 Performers for the Day

Company
JKH HEMAS HOLDINGS COMMERCIAL BANK LION BREWERY HNB

Today 248.00 33.20 118.60 360.10 154.00

Pre Day 249.40 33.40 118.50 360.10 154.50

% Change -0.56% -0.60% 0.08% 0.00% -0.32%

Volume (mn) 0.82 5.17 0.69 0.07 0.12

Contribution to Total T/O 8.1% 7.1% 3.3% 1.0% 0.7%

Turnover (LKR) 203,131,078 176,925,973 81,686,403 24,899,510 18,051,966

Most Active
Company
HEMAS HOLDINGS PANASIAN POWER AMANA TAKAFUL CIFL JKH

Today 33.20 2.50 1.40 0.80 248.00

Pre Day 33.40 2.40 1.40 0.80 249.40

% Change -0.60% 4.17% 0.00% 0.00% -0.56%

Volume (mn) 5.17 1.30 0.89 0.86 0.82

Contribution to Total T/O 7.1% 0.1% 0.0% 0.0% 8.1%

Turnover (LKR) 176,925,973 3,240,468 1,247,723 698,901 203,131,078

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 22.08.2013 118.31 21.51 175.70 2.05 1.34 205.50 131.75

CSE Announcements
Dividends
Company E Chanelling 0 0 0 0
Company Description

DPS (LKR) 0.50 0.00 0.00 0.00 0.00

Proportion 0 0

XD Date 01-10-2013 0 0 00-Jan-00 00-Jan-00

XR Date

Payment Date 09-10-2013 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 Coporate 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 14,897.6 2,805.6 6,438.5 13,365.2

Change -105.4 31.0 47.7 -59.2

Change % -0.70% q 1.13% p 0.75% p -0.44% q

Time* 00:00 06:40 06:41 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 104.32 85.00 644.25 1,366.40 336.95

Change 0.47 0.76 -5.00 -3.70 5.70

Change % 0.45% p 0.90% p -0.77% q -0.27% q 1.72% p

Time* 06:52 06:52 06:49 06:52 06:52 Page | 4.

Source: www.bloomberg.com

Softlogic Equity Research

TOP STORIES
Local
Sri Lanka bond yields up Sri Lanka's bond yields spiked Thursday with a 5-year bond popular among foreign investors quoted as high as 11.70/75 percent, dealers said. The 5-year bond maturing on 15 August 2018 was quoted around 11.30/35 percent last week. The bond closed 11.45/55 percent levels yesterday. A 3.5-year bond maturing on 01 Jan 2017 was quoted around 11.50/55 percent Thursday up from 11.42/45 percent, dealers. [Source: www.lbo.lk] Sri Lanka external trade expands in June Sri Lanka's exports rose 6.8 percent to 807.4 million US dollars in June 2013 from a year earlier with apparel exports up 14.9 percent to 356.8 million US dollars, official data showed. Apparel exports to the US rose 24.8 percent while exports to the EU rose 6.7 percent in June, the Central Bank said. Exports of machinery and mechanical items had risen 25.5 percent and rubber products had risen 7.7 percent to 69 million US dollars. [Source: www.lbo.lk] Colombo Dockyard builds its largest vessel for India Colombo Dockyard Ltd, PLC (CDL) has built the biggest vessel in their 39 year history of shipbuilding. This vessel is a 400 passenger cum 250T vessel exclusively build for the Indian government. The launch takes place today at their premises in Colombo. This vessel was built for the Administration of Union of Lakshadweep and was built to meet all applicable IMO, SOLAS and Special Trade Passenger Ship rules of the Indian flag administration. The ship would be a dual classed vessel and would be classified by both the Indian Register of Shipping and Lloyds Register of Shipping, a company sources said [Source: www.dailynews.lk] NDB, Union Bank respond to Daily FT story In response to the Daily FT story yesterday titled NDB eyeing Union Bank, the two banks issued separate statements. Union Bank Director and CEO Anil Amarasuriya said the bank had not had any discussions with NDB Bank PLC regarding a possible merger/acquisition and the information stated therein was inaccurate. NDB in a clarification pertaining to certain content set out in the article said: We wish to state that no formal discussions pertaining to such an acquisition/investment have taken place as at date as suggested by the article. [Source: www.ft.lk]

Global
Chinas Manufacturing Gains on Stronger Domestic Demand: Economy A Chinese manufacturing index jumped in August from an 11-month low, adding to signs the worlds second-biggest economy is strengthening after a two-quarter slowdown. The preliminary reading of 50.1 for a Purchasing Managers Index (EC11FLAS) released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 47.7 in July. The number exceeded all 16 estimates in a Bloomberg News survey and was the first reading since April above the 50 mark that divides contraction from expansion. [Source: www.bloomberg.com] Sales of U.S. Existing Homes Rise to Highest Since 2009 Sales of previously owned U.S. homes jumped in July to the second-highest level in more than six years as buyers rushed to lock in mortgage rates before they increased any more. Purchases advanced 6.5 percent to a 5.39 million annual rate last month, beating the 5.15 million median forecast of economists surveyed by Bloomberg, figures from the National Association of Realtors showed today in Washington. Sales were the strongest since a government tax credit temporarily boosted demand in November 2009, and second-highest since March 2007. [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 Negombo Krishan Williams No. 121, St. Joseph Street Negombo 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 No.8A, 2nd Floor, FN Building, Station Road, Matara +94 41 7451000

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.