Index 25th July 24th July Change % Change The bourse sinks further… ASPI 6,038.16 6,079.14 (40.98) -0.67% S&P SL20 3,423.48 3,448.11 (24.63) -0.71% Deviating further from its three week’s apex reached on Market Statistics 25th July 24th July Tuesday, the bourse exhibited another drop today and Value of Turnover(Rs.) 290,254,290 291,609,248 again, the inactive market conditions fell down the ASPI Domestic Purchases 253,295,154 173,023,143 Domestic Sales 276,433,047 279,835,286 further to conclude the day within the negative terrain at Foreign Purchases 36,959,136 118,586,105 6,038.16, shedding 40.98 points (-0.67%). The S&P SL20 st Foreign Sales 13,821,243 11,773,962 (3,423.48) concluded negative for the 1 time during the

Volume of Turnover (No.) 13,600,278 13,198,661 week, losing 0.71% or 24.63 points; this was having gained PER 15.98 16.09 71.38 points or 2.10% during the past 4 trading days. As at PBV 2.15 2.16 the daily closure, the total market capitalization stood at

LKR 2.32Tn while reducing the year to date gain to 7.20%. 7,000 5,985.45 6,041.06 6,084.24 6,079.14 6,038.16 6,000 The daily turnover aggregated up to record LKR 290.25Mn; 5,000 nearly 42% of this flowed through the top 3 subscriber for

4,000 the day JKH, DIAL & CINS (X). John Keells Holdings PLC

3,000 (JKH), which dominated the turnover list during the past 4 3,378.73 3,409.16 3,438.51 3,448.11 3,423.48 2,000 trading days, once again stood out as the prime subscriber 1,000 for the day contributing LKR 59.85Mn; this accounted to

0 21% of the daily aggregate turnover. JKH was 18th July 19th July 23rd July 24th July 25th July Sch890111149ASPI S&P SL20 predominantly supported by an off-board block worth LKR

53.06Mn where a quantity of 198K shares were dealt at

price LKR 268/-. As at the day’s closure the counter stood

800 18 at LKR 267/-, dipping by LKR 2.70/- or 1%. Dialog Axiata PLC

700 16 (DIAL) stood next line providing LKR 39.72Mn.Notably,

600 14 DIAL witnessed a sizable on-board block today as well, 12 500 where a quantity of 4Mn shares were blocked at price LKR 10 400 8 8.80/-; the counter settled the day at LKR 8.60/- (down by 300 6 LKR 0.20/- or 2.27%). Ceylinco Insurance PLC (X) added LKR 200 4 21.61Mn to the daily turnover. 100 2 0 0

Rs.M 18th July 19th July 23rd July 24th July 25th July Volume Mn Turnover Foreign Purchases Volume

The day witnessed a total of 13.60Mn shares changing hands, indicating a trivial gain of 3.04%. The top traded counters for the day were Dialog Axiata PLC, Textured Jersey Lanka PLC & Hemas Holdings PLC with 4.51Mn shares, 739K shares & 523K shares respectively. Under the sectorial round-up, Bank Finance & Insurance (BFI) sector topped the list and provided LKR 92Mn, dominating the list while accounting to 32% of the total turnover. Diversified Holdings sector provided LKR 87.75Mn to the turnover.

Foreign participants were bullish during the day for the 03rd consecutive trading day where foreign buying of LKR

36.96Mn overtook foreign selling which amounted to LKR 13.82Mn; this added LKR 23.14Mn to the year to date net foreign inflow of LKR 16.86Bn.With regard to the local FOREX, the USD closed at LKR 133.17/- selling and LKR 129.97/- buying.

Market Capitalisation

Company Name Price Issued Qty Mkt Capitalization As a % (Total) JOHN KEELLS HOLDINGS PLC 267.00 857,758,072 229,021,405,224 9.73 CEYLON TOBACCO COMPANY PLC 985.10 187,323,751 184,532,627,110 7.84 NESTLE LANKA PLC 1,900.00 53,725,463 102,078,379,700 4.34 COMMERCIAL BANK OF CEYLON PLC 116.70 794,101,192 92,671,609,106 3.94

CARSON CUMBERBATCH PLC 420.00 196,386,914 82,482,503,880 3.50

SRI LANKA TELECOM PLC 40.90 1,804,860,000 73,818,774,000 3.14 DIALOG AXIATA PLC 8.60 8,143,778,405 70,036,494,283 2.98 THE BUKIT DARAH PLC 685.10 102,000,000 69,880,200,000 2.97 DISTILLERIES COMPANY OF SRI LANKA PLC 190.10 300,000,000 57,030,000,000 2.42 AITKEN SPENCE PLC 125.10 405,996,045 50,790,105,230 2.16

Highest Volume Highest Turnover

Company Name Share Turnover (Rs) Company Name Trade Share Turnover (Rs)

Vol. Vol. Vol. DIALOG AXIATA PLC 4,514,047 39,721,321.30 JOHN KEELLS HOLDINGS PLC 50 223,378 59,847,920.00 TEXTURED JERSEY LANKA PLC 739,460 9,327,914.00 DIALOG AXIATA PLC 27 4,514,047 39,721,321.30 HEMAS HOLDINGS PLC 523,300 17,322,420.00 CEYLINCO INSURANCE PLC (X) 26 54,017 21,606,678.00

PC HOUSE PLC 474,316 523,904.50 HEMAS HOLDINGS PLC 27 523,300 17,322,420.00

RICHARD PIERIS AND COMPANY PLC 458,221 3,143,061.00 COMMERCIAL BANK OF CEYLON PLC (X) 29 113,712 10,715,766.00 CHILAW FINANCE PLC 450,477 6,574,120.70 NATIONAL DEVELOPMENT BANK PLC 22 59,597 10,011,526.00 SIERRA CABLES PLC 411,007 827,684.90 SAMPATH BANK PLC 58 47,028 9,405,876.00 BROWNS INVESTMENTS PLC 373,881 1,045,804.90 TEXTURED JERSEY LANKA PLC 191 739,460 9,327,914.00

EXPOLANKA HOLDINGS PLC 292,105 1,928,903.10 E B CREASY & COMPANY PLC 14 5,875 7,343,709.90

ASIA ASSET FINANCE PLC 290,477 562,664.20 COMMERCIAL BANK OF CEYLON PLC 38 58,650 6,836,464.50

Top Gainers Company Name VWA Prev VWA Days Change Change High Low No. of Turnover Close Close (Rs.) % (Rs.) (Rs.) Shares (Rs.) S M B LEASING [X] 0.30 0.40 0.10 33.33 0.40 0.30 31,211 9,484.40

CEYLON PRINTERS 1,010.00 1,260.00 250.00 24.75 1,260.00 1,260.00 1 1,260.00

MULTI FINANCE 17.20 19.50 2.30 13.37 19.70 18.00 10,600 206,300.00 RENUKA SHAW [X] 15.30 17.00 1.70 11.11 17.00 17.00 50 850.00 HAPUGASTENNE 28.90 31.90 3.00 10.38 31.90 31.90 30 957.00 Top Losers

Company Name VWA Prev VWA Days Change Change High Low No. of Turnover

Close Close (Rs.) % (Rs.) (Rs.) Shares (Rs.)

BERUWELA WALKINN 84.70 72.80 (11.90) (14.05) 75.10 70.10 150 10,915.00 HUEJAY 70.90 62.00 (8.90) (12.55) 62.00 62.00 775 48,050.00 S M B LEASING 0.80 0.70 (0.10) (12.50) 0.80 0.70 3,302 2,621.50 PC PHARMA 1.60 1.40 (0.20) (12.50) 1.60 1.40 45,750 70,160.00

NAMUNUKULA 84.50 75.00 (9.50) (11.24) 75.10 64.00 17,844 1,293,692.40

Market Highlights - Sector Wise Sector Price Index Turnover Sector Today Privious Value (Rs) Volume Trades P/E PBV BANK FINANCE AND INSURANCE 13,160.34 13,241.33 92,000,902 2,503,222 1,160 9.90 1.70 BEVERAGE FOOD AND TOBACCO 18,785.17 18,918.70 7,962,346 210,337 157 21.00 6.10

CONSTRUCTION AND ENGINEERING 2,824.90 2,803.57 2,023,963 118,130 56 13.80 1.60

CHEMICALS AND PHARMACEUTICALS 7,125.37 7,302.94 1,473,388 154,092 63 8.30 1.40 DIVERSIFIED HOLDINGS 1,971.80 1,988.42 87,749,563 2,229,223 371 24.50 2.40 FOOTWEAR AND TEXTILE 838.10 832.29 527,456 33,021 37 0.00 1.00 HOTELS AND TRAVELS 3,281.88 3,298.69 3,900,808 307,382 195 32.00 1.90 HEALTH CARE 649.42 647.46 413,496 55,113 45 25.50 2.50 INVESTMENT TRUSTS 19,017.14 19,005.81 1,643,460 158,595 114 30.90 1.40

INFORMATION TECHNOLOGY 53.89 51.77 636,665 492,216 44 8.80 0.80

LAND AND PROPERTY 592.13 595.48 7,244,250 321,356 176 10.10 0.90

MANUFACTURING 3,071.57 3,072.35 22,537,560 1,722,170 568 13.10 1.90 MOTORS 15,779.89 15,876.33 207,309 1,077 18 4.00 1.40 OIL PALMS 95,423.16 95,520.54 495,176 717 13 82.30 6.80 POWER & ENERGY 109.96 110.47 4,522,948 418,992 134 14.50 1.40 PLANTATIONS 741.55 759.43 8,493,858 282,482 227 9.60 0.80 STORES SUPPLIES 24,072.52 23,917.65 3,858,549 3,163 15 33.10 2.10

SERVICES 24,638.13 24,679.00 100,931 20,291 17 9.70 1.90

TELECOMMUNICATIONS 160.87 162.89 39,849,801 4,517,247 40 15.00 1.50 TRADING 15,742.13 15,989.91 4,136,621 44,327 76 12.40 1.50

Exchange Rates Indicative Rates

25th July 24th July 25th July 24th July Currency Currency Buying Selling Buying Selling Ind: Value Ind: Value

Dollar (USA) 129.97 133.17 130.00 133.20 Yuan (China) 21.43 21.43

Pound (UK) 198.59 204.42 199.13 204.97 Rupee (India) 2.22 2.20 Euro (EU) 170.74 176.44 170.77 176.50 Won (Korean) 0.12 0.12 Franc (Sw itzerland) 137.67 143.00 137.88 143.22 Dinar (Kuw ait) 461.32 461.22 Dollar (Canada) 125.30 129.88 125.33 129.90 Ringgit (Malay) 41.08 41.35 Dollar (Australia) 118.05 122.66 119.54 124.23 Rial (Oman) 341.60 341.45 Dollar (Singapore) 101.92 105.51 102.20 105.76 Riyal (Qatar) 36.12 36.10

Yen (Japan) 1.29 1.34 1.30 1.34 Riyal (KSA) 35.07 35.05

Dirham (UAE) 35.81 35.79 Central Bank's Policy Rates

Description Rate ( Per Annum)

Central Bank Repurchase (Repo) Rate 7.00

Central Bank Reverse Repurchase (Reverse Repo) Rate 9.00

Bank Rate 15.00 Statutory Reserve Ratio (SRR) 6.00

Treasury Bills AWPLR AWDR

This week Last week This Week Last week This Month Last Month

91 Days - 8.63 Weekly 11.79 11.91 Monthly 10.56 10.74 182 Days - 9.66 Monthly 12.47 13.11 6 Months 10.61 10.53 364 Days 10.56 10.59 6 Months 13.59 13.89 1 Year 13.61 13.90

Colombo Consumers’ Price Index (CCPI)

2013 2012 Description April May June April May June

Year on Year Change 6.40 7.30 6.80 6.10 7.00 9.30

Annual Average Change 8.80 8.80 8.60 5.70 5.60 5.80 SLIBOR & LIBOR

Description Over Night 7 Days 1 M 3 M 6 M 12 M

SLIBOR (25th July ) (%) 8.79 9.31 10.02 11.31 12.16 12.87

LIBOR - GBP (24th July ) (%) 0.47813 0.48688 0.49250 0.51025 0.58925 0.87063

LIBOR - USD (24th July ) (%) 0.11965 0.15423 0.18933 0.26430 0.39650 0.67544 (CBSL.lk, Global-rates.com, CBSL )

Country Foreign Markets- Index 24-Jul-13 % Change 23-Jul-13 % Change 22-Jul-13

USA Dow Jones Indus. AVG 15,542.24 -0.16% 15,567.74 0.14% 15,545.55 USA NASDAQ Composite Index 3,579.60 0.01% 3,579.27 -0.59% 3,600.39 Europe Euro Stoxx 50 Pr 2,752.25 1.08% 2,722.90 -0.09% 2,725.40

UK FTSE 100 6,620.43 0.35% 6,597.44 -0.39% 6,623.17

Japan Nikkei 225 14,731.28 -0.32% 14,778.51 0.82% 14,658.04 Hong Kong Hang Seng Index 21,968.93 0.24% 21,915.42 2.33% 21,416.50 China CSI 300 Index 2,249.15 -0.74% 2,265.84 2.89% 2,202.19

Pakistan Karachi 100 Index 23,776.22 0.39% 23,683.27 0.11% 23,657.81

India BSE Sensex 30 Index 20,090.68 -1.04% 20,302.13 0.71% 20,159.12 Singapore Straits Times Index 3,274.76 0.65% 3,253.76 0.60% 3,234.35 Malaysia FTSE Bursa Malaysia EMAS 12,618.33 0.23% 12,589.88 0.42% 12,537.34

Bangladesh DSE General Index DGEN 4,408.79 4.37% 4,224.36 -3.08% 4,358.65 Mongolia MSE Top 20 Index 14,819.13 0.12% 14,801.62 -0.07% 14,811.25 Bloomberg

Rubber Prices - 18 July 2013 World Commodity Prices Grade Price Range (Rs) Commodity 25-Jul-13 24-Jul-13 23-Jul-13

LC No.1X 395.00 - 395.00 Brent Crude Oil 107.19 108.42 108.15

LC No.1 385.00 - 395.00 WTI Crude Oil 105.39 107.23 106.91 LC No.2 365.00 - 375.00 Gold 1,319.70 1,335.10 1,336.40 LC No.3 340.00 - 355.00 Silver 20.01 20.25 20.50 LC No.4 325.00 - 328.00 Copper 3.18 3.20 3.19

SC (Br) No.1 315.00 - 315.00 Tourist Arrivals to Sri Lanka SC (Br) No.3 265.00 - 265.00

Flat Bark 235.00 - 235.00 Month 2011 2012 2013 RS Sheet No.1 390.00 - 390.00 January 74,197 85,874 97,411 RS Sheet No.2 380.00 - 390.00 February 65,797 83,549 93,232 March 75,130 91,102 98,155 April 63,835 69,591 79,829 May 48,943 57,506 70,026

June 53,636 65,245 73,628

Tea Prices July 83,786 90,338 Elevation Sale No : 27 Sale No : 26 August 72,463 79,456 Uva High 338.27 339.50 September 60,219 71,111 Western High 377.35 359.39 October 69,563 80,379

Uva Medium 360.12 374.99 November 90,889 109,202

Western Medium 348.49 352.60 December 97,517 122,252 Low Grow n 433.79 434.61 Total 855,975 1,005,605 512,281

Chinese firm to build $1.4 Bn Sri Lanka city complex

Sri Lanka has finalized a deal with a Chinese company to build a $1.4 billion city complex on reclaimed land near the harbor of the capital Colombo. The state-run Sri Lanka Ports Authority (SLPA) will reclaim 230 hectares (568 acres) next to the new Colombo South port. The SLPA finalized a deal under which China Communications Construction

Company Limited (CCCC) will invest $1.43 billion to build a "Port City" that will change the coastline in the capital. SLPA planned a new 22-floor headquarters, hotels, apartments and recreational activities on the reclaimed land. The

CCCC will be given 50 hectares (123 acres) of the land on a 99-year lease. Several international hotels, including Hong Kong-based Shangri La are building hotels in Sri Lanka to cash in on the island's post-war growth after troops crushed Tamil rebels and ended 37 years of ethnic war in May 2009. Chinese companies have emerged as key infrastructure partners and have already built air and sea ports, highways and railroads in the Indian Ocean Island, which is strategically located along East-West trade routes. (lankabusinessonline.com)

South Korea economic growth beats forecasts

South Korea's economy grew by more than forecast in the April to June period, boosted by a jump in domestic consumption and government spending. Growth was 1.1% higher in the quarter than in previous three months.

Compared with the same period last year, the economy expanded by 2.3% South Korea has unveiled a series of stimulus moves over the past few months in an attempt to spur economic growth. These measures, including a

17.3tn won ($15.3bn; £10bn) stimulus plan announced in April, were introduced in an attempt to boost domestic consumption to offset the slowing demand for the country's exports. Demand for South Korean exports has dipped amid a slowdown in key markets such as the US and Europe. That triggered concerns that its growth may decline sharply, not least because exports account for nearly half of South Korea's overall economic output. The government had supposed that its latest stimulus move would help create 40,000 jobs, boost a stagnant property market and cover a shortfall in tax revenue and that it expected it to help boost annual growth by 0.3 percentage point this year. (bbc.co.uk)

Eurozone industry 'growing again'

Private sector industry in the Eurozone returned to growth in July, boosting hopes that the single currency area will soon emerge from recession. The Markit Eurozone Purchasing Managers' Index (PMI), which measures business output, was 50.4 in July. A figure above 50 indicates expansion. July's figure was up from 48.7 in June, and marks an 18-month high. The Eurozone has been in recession since the end of 2011. Markit's survey found that manufacturers reported the largest monthly increase in output since June 2011, and output in the sector grew for the first time since February 2012. Service sector activity fell, but the decline was the smallest in 18 months. The latest forecasts from the European Central Bank are for the Eurozone economy to contract by 0.6% over 2013 as a whole, but for it to recover with growth of 1.1% in 2014. (bbc.co.uk)

Vice President – Business Development Manager - Research

Thakshila Hulangamuwa Pasindu Perera [email protected] [email protected] 0094 113070494 0094 112429109

Research Team

Lasantha Senanayake [email protected] 0094 112429129 Anurudhdha Basnayake [email protected] 0094 112429137

Nishantha Warnakulasuriya [email protected] 0094 112429137

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This document has been prepared and issued by Asha Phillip Securities Ltd, on the basis of publicly available information, internally developed data and other sources, believed to be reliable. Whilst all responsible care has been taken to ensure that the facts stated are accurate and the opinions given are fair and reasonable neither Asha Phillip Securities Ltd, nor any Director Officer or employee, shall in any way be responsible for the contents. Asha Phillip Securities Ltd may act as a Broker in the investments which are the subject of this document or related investments and may have acted upon or used the information contained in this document, or the research or analysis on which it is based, before its publication. Asha Phillip Securities Ltd., Its Directors, Officers or Employees may also have a position or be otherwise interested in the investments referred to in this document. This is not an offer to sell or buy the investments referred to in this document.