Thursday, January 09, 2014

Today 6,069.34 3,362.39 Point Change + 14.87 + 12.08 % Change 0.25 % p 0.36 % 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

2.6% 3.0% 1,572.9 824.0 58.3 37.6 2,525.0 109.0 882.9 773.9 0.2

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]

Heavy activity in blue chips drives the index; Turnover highest since 8th November

CSE Diary for 09.01.2014

Positive sentiment returns: Following yesterdays break of 6,000, the benchmark index gained further registering heavy turnover in blue-chip counters. The turnover for the day was the highest since 8th November 2013. The ASPI upward trended towards mid-day before profit taking brought in some selling pressure, but finally closed with a gain of 15 points. Carsons Cumberbatch, Ceylon Tobacco and Nestle weighted positively on the index. 10 crossings for the day: Chevron Lubricants Lanka topped the turnover list for today with the 3 crossings it registered accounting for 1.4mn shares which changed hands at LKR273.5. John Keells Holdings witnessed a further 3 crossings as 581k shares were dealt at LKR232.0 and 235.0. On-board interest in the counter was heavy as some selling pressure brought the counter down by 1.1% to LKR232.5. 4 more crossings were recorded in banking counters with 2 being in Hatton National Bank and 1 each in DFCC and Commercial Bank.

BFI sector leads investor interest: Similar to yesterday significant buying interest was noted in Sampath Bank as 703k shares traded while the counter was flat for the day. Strong investor attention was generated in The Finance [Voting] and [Non-Voting] counters as they gained 0.8% and 20% respectively. Expolanka, Tokyo Cement [Voting] and [Non-Voting] all counters recorded 52-week high prices while they entered the top turnover list. Retail buying interest continues: Retail participation improved dramatically during the last few days with the positive sentiment of the market. Retail interest primarily concentrated on counters led by The Finance [Voting] and [Non-Voting], Expolanka and Tokyo Cement [Non-Voting].

Statistical Look Up
Treasury Bill (%) 3 months 6 months 12 months AWPLR Excess Liquidity (LKR 'bn) as at 08.01.2014 Inflation (%) Dec-13 YoY Change Annual Avg Week ending 10.01.2014 7.00 7.42 10.13 -64.48 4.7 6.9 7.20

6100 6000

Index

5900 5800
5700 5600

ASPI
3400 3350 3300 3250 3200 3150 3100 3050

Turnover LKR ('mn)

2,000 1,500 1,000 500

70.0 60.0 50.0 40.0 30.0 20.0 10.0 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 6,069.3 3,362.4 1,572.9 12.0 58.3 237 2,525.0 882.9 773.9 109.0 16.3 2.0 2.9 Today 13,328.7 20,944.4 2,767.1 1,815.6 712.3 3,199.3 587.7 2,953.2 751.5 158.7

Pre Day 6,054.5 3,350.3 849.1 6.5 49.2 250 2,518.9 280.7 65.3 215.4 16.3 2.0 2.9 Pre Day 13,292.3 20,791.1 2,760.1 1,816.2 707.9 3,196.8 597.5 2,937.8 752.7 158.6

Change % 0.25% p 0.36% p 85.24% 85.24% 18.32% -5.20% 0.25% 214.54% 1085.27% -49.39% 0.25% 0.24% 0.00% % Change 0.27% 0.74% 0.25% -0.04% 0.63% 0.08% -1.64% 0.52% -0.16% 0.06% p p p q p p q p q p

Last Week 5,968.0 3,285.4 944.1 7.2 28.2 233 2,482.9 223.5 574.3 -350.8 16.1 2.0 2.9 Last Week 13,064.2 20,549.6 2,827.9 1,780.0 684.9 3,209.2 575.1 2,895.8 730.8 156.6

% WoW Change 1.70% 2.34% 66.60% 66.60% 106.28% 1.72% 1.70% 295.10% 34.76% -131.07% 1.70% 1.70% 0.00% % WoW Change 2.02% 1.92% -2.15% 2.00% 4.01% -0.31% 2.20% 1.98% 2.82% 1.29%

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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 9.1% 9.0% 2.9% 4.6% 2.7% 3.9% 2.5% 3.0% 1.9% 1.7% 2.4% 1.4% 1.3% 1.5% 1.1% 1.1%

Volume 1,311,929 11,482 1 462 13,100 827,243 182 1,581,603 562,753 13,063 43,650 9,250 1,034 585,710 703,090 50,509

Turnover LKR ('000) 306,017.66 14,001.88 0.37 1,001.06 490.39 103,404.41 112.84 14,259.77 84,808.42 1,368.54 8,729.20 665.53 149.94 83,158.43 121,023.86 3,284.56

Turnover USD ('000) 2,339.48 107.04 0.00 7.65 3.75 790.52 0.86 109.01 648.35 10.46 66.73 5.09 1.15 635.74 925.22 25.11

Intraday High (LKR) 235.00 1,230.00 369.90 2,187.00 37.70 125.40 620.00 9.30 152.00 106.20 201.00 72.00 146.00 143.00 174.00 68.00

Intraday Low (LKR) 230.10 1,181.00 369.90 2,126.50 37.10 124.00 620.00 9.00 150.00 103.60 199.00 71.50 144.00 140.00 171.80 65.00

Close 232.50 1,219.50 369.90 2,166.80 37.10 125.00 620.00 9.20 152.00 104.80 200.00 72.00 144.50 142.00 172.00 65.00

Price Gainers
Company
THE FINANCE CO. [X] GOOD HOPE CEYLON LEATHER [W0014] HUEJAY DURDANS [X]

Price Losers
Today 6.00 1,249.90 1.90 67.00 76.00 Change + 1.00 + 184.60 + 0.20 + 7.00 + 7.00 % Change Company 20.00% 17.33% 11.76% 11.67% 10.14%
LANKA CENTURY [W0003] S M B LEASING [X] CEYLON LEATHER [W0013] CEYLINCO INS. CITRUS LEISURE [W0019]

Today 0.10 0.40 1.10 1,206.50 1.40

Change - 0.10 - 0.10 - 0.10 - 93.50 - 0.10

% Change -50.00% -20.00% -8.33% -7.19% -6.67%

Top 05 Performers for the Day

Company
CHEVRON JKH SAMPATH COMMERCIAL BANK HNB

Today 273.50 232.50 172.00 125.00 152.00

Pre Day 274.40 235.00 172.00 124.60 151.00

% Change -0.33% -1.06% 0.00% 0.32% 0.66%

Volume (mn) 1.44 1.31 0.70 0.83 0.56

Contribution to Total T/O 15.6% 12.1% 4.8% 4.1% 3.4%

Turnover (LKR) 394,527,726 306,017,663 121,023,865 103,404,411 84,808,422

Most Active
Company
ASIA ASSET THE FINANCE CO.[NON VOTING] EXPOLANKA PC HOUSE THE FINANCE CO.

Today 1.80 6.00 8.40 0.60 12.30

Pre Day 1.90 5.00 8.30 0.60 12.20

% Change -5.26% 20.00% 1.20% 0.00% 0.82%

Volume (mn) 10.40 9.02 3.44 2.76 2.67

Contribution to Total T/O 0.8% 2.1% 1.2% 0.1% 1.3%

Turnover (LKR) 19,408,679 52,316,868 29,109,622 1,656,731 33,497,959

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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 09.01.2014 116.06 21.60 177.56 2.10 1.25 215.23 130.81

CSE Announcements
Dividends
Company 0 0 0 0 0
Company Description

DPS (LKR) 0.00 0.00 0.00 0.00 0.00

Proportion 0 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

0 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 0.00% 0.00%

Key Corporate Diclosures

No Annoucements

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 16,462.7 3,125.1 6,743.3 15,880.3

Change -68.2 14.5 21.5 -241.1

Change % -0.41% q 0.47% p 0.32% p -1.50% q

Time* 16:32 05:10 05:09 01:28

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 92.67 83.44 590.00 1,226.40 331.10

Change 0.34 0.30 1.25 0.90 -3.15

Change % 0.37% p 0.36% p 0.21% p 0.07% p -0.94% q

Time* 04:54 04:30 04:55 04:55 04:56

Source: www.bloomberg.com

Softlogic Equity Research

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TOP STORIES
Local
Sri Lanka reaches 2013 tourism target after data revision Sri Lanka said it had received 1.27 million tourists, topping a 1.2 million target for 2013 after changing the method of calculation, as concern grows over the credibility of state data. Up to November Sri Lanka welcomed 1,016,228 million tourists, and had to get 200,000 tourists in December to reach the target, which would have been almost double the 122,000 arrivals in the month in December. But the tourism office said Wednesday it had comfortably topped 1.2 million after the "latest validation" of data attracting 1,274,593 tourists. [Source: www.lbo.lk] Sri Lanka thermal energy generation up Thermal generation at Sri Lanka's state-run power utility has reached 70 percent with a sharp drop in cheap hydro generation amid dry weather, official data shows. On January 07, Ceylon Electricity Board generated 69.9 percent of its daily 32.5 GigaWatts (millions of units of electricity) from thermal sources with hydro at 27.9 percent. Hydro reservoir storage had dropped to 50 percent of the total or enough to produce 629.7 percent of energy. [Source: www.lbo.lk] Govt. to change inflation index to cover whole nation Sri Lanka will change its inflation index to change the basket of items and broaden coverage to the whole nation rather than just the capital city, the State-run statistics office said on Wednesday. The current index does not reflect the whole country, head of the Department of Census and Statistics, told Reuters. It represents only 17% of the Sri Lankan population. He said the change will be made this year and that the base year for calculating the consumer price index will be 2010. The current Colombo Consumer Price Index was introduced in June 2008 with a base year of 2006/7. [Source: www.ft.lk] Sri Lanka new 5-year sovereign bond pricing will help private firms: Standard Chartered A 6.0 percent benchmark yield on a billion US dollar sovereign bond will help corporates seeking foreign finance this year, Standard Chartered Bank said. Sri Lanka sold the bond following some uncertainty in international markets as the Federal Reserve's dangerous easy money policies which had encouraged risky behaviour were expected to end and US Treasuries yields edged up. Standard Chartereds head of origination and client coverage said the bond at 6.0 percent was sold "inside the theoretical fair value for a new 5-year bond" based on already issued bonds of a longer tenors. [Source: www.lbo.lk]

Global
Euro-Area Economic Confidence Increases More Than Forecast Euro-area economic confidence increased more than economists forecast in December, buoying up policy makers as they grapple with the legacy of the currency blocs longest recession. An index of executive and consumer sentiment rose to 100 from a revised 98.4 in November, the European Commission in Brussels said today. That beats the median estimate of 99.1 in a Bloomberg News survey of 24 economists, and is the highest reading since July 2011. [Source: www.bloomberg.com] Indonesia Extends Rate Pause as Price Pressures-to-Imports Ease Indonesia kept interest rates unchanged for a second straight meeting, extending a pause in monetary tightening as inflation held steady and imports fell. The central bank maintained the reference rate at 7.5 percent, it said in Jakarta today, a decision predicted by 15 of 18 economists surveyed by Bloomberg News. The rest expected a 25 basis-point increase. It kept the deposit facility rate at 5.75 percent. [Source: www.bloomberg.com]

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