ASHA PHILLIP SECURITIES LTD

DAILY STOCK MARKET HIGHLIGHTS Level 4, MillenniumJ House, 46/58, Navam Mw, Colombo 02 Tel 94 11 2429100 Fax 94 11 2429199 www.ashaphillip.net th [email protected] 19 January 2012

PRICE INDICES INDEX 19-Jan 18-Jan CHANGE % CHANGE ASPI 5,786.60 5,846.41 -59.81 -1.02% MPI 4,909.51 4,929.13 -19.62 -0.40%

Market Statistics 19-Jan 18-Jan Value of Turnover(Rs.) 952,469,337 1,413,702,535 Domestic Purchases 662,008,497 1,276,927,585 Domestic Sales 670,016,952 1,333,097,838 Foreign Purchases 290,460,840 136,774,950 Foreign Sales 282,452,384 80,604,697

Volume of Turnover (No.) 54,518,084 68,827,226 PER 15.14 15.29 PBV 1.92 1.94

PRICE INDEX TURNOVER SECTOR SECTOR SECTOR TODAY PREVIOUS VALUE (Rs) VOLUME TRADES P/E PBV BANK FINANCE AND INSURANCE 13,200.34 13,337.53 492,403,168.00 33,295,675 4,431 12.70 2.00

BEVERAGE FOOD AND TOBACCO 11,982.06 11,976.25 67,697,488.00 625,249 439 15.30 4.20 CHEMICALS AND PHARMACEUTICALS 11,120.04 11,072.50 58,098,768.00 2,224,473 188 10.50 1.40 CONSTRUCTION AND ENGINEERING 3,280.12 3,329.19 3,919,300.00 61,502 44 9.80 2.10 DIVERSIFIED HOLDINGS 1,797.30 1,798.51 87,573,488.00 4,092,487 707 16.40 1.70 FOOTWEAR AND TEXTILE 1,106.36 1,094.72 2,987,915.00 33,044 61 30.00 1.40 HEALTH CARE 568.57 569.50 2,023,239.80 57,975 112 18.00 2.00 HOTELS AND TRAVELS 3,626.87 3,675.73 9,135,353.00 449,799 385 26.40 1.80

INFORMATION TECHNOLOGY 215.96 217.24 2,598,460.00 248,350 113 20.60 2.60 INVESTMENT TRUSTS 27,910.70 28,688.63 69,318,800.00 2,162,585 1,188 15.10 1.90 LAND AND PROPERTY 598.56 616.18 37,270,384.00 997,681 488 20.30 1.20 MANUFACTURING 3,108.53 3,155.78 34,215,828.00 1,484,795 654 14.90 2.10 MOTORS 26,206.40 26,267.76 616,510.00 1,808 11 16.90 3.80

OIL PALMS 127,576.18 132,400.95 498,992.90 534 9 34.40 2.50 PLANTATIONS 797.31 813.07 2,774,122.50 174,856 206 4.70 1.00 POWER & ENERGY 127.96 130.17 7,501,564.00 1,493,102 265 12.40 1.60 SERVICES 24,437.10 24,109.09 8,794,860.00 1,104,247 72 8.30 2.70 STORES SUPPLIES 33,533.24 33,815.32 1,445,720.80 1,825 15 10.30 0.80

TELECOMMUNICATIONS 157.71 161.65 2,199,290.00 186,300 81 25.50 1.80 TRADING 22,977.84 23,217.88 4,477,819.50 893,498 145 11.60 1.30

Market Highlights

TOP GAINERS

VWA PREV VWA DAYS CHANGE CHANGE HIGH LOW No. of TURNOVER COMPANY CLOSE CLOSE (Rs.) % (Rs.) (Rs.) SHARES (Rs)

PARAGON 960.00 1,400.00 440.00 45.83 1,400.00 800.00 200 220,000.00 ASIA ASSET 5.50 7.10 1.60 29.09 7.50 4.70 23,529,800 156,061,890.00 ACL 117.30 128.00 10.70 9.12 128.00 128.00 200 25,600.00 CEYLINCO INS. [X] 300.70 327.50 26.80 8.91 327.50 327.50 100 32,750.00 NAMUNUKULA 53.00 57.00 4.00 7.55 57.00 57.00 100 5,700.00

TOP LOSERS

VWA PREV VWA DAYS CHANGE CHANGE HIGH LOW No. of TURNOVER COMPANY CLOSE CLOSE (Rs.) % (Rs.) (Rs.) SHARES (Rs.) RIVERINA HOTELS 109.90 90.60 (19.30) (17.56) 90.60 90.10 900 81,290.00 S M B LEASING [X] 0.70 0.60 (0.10) (14.29) 0.70 0.60 495,900 305,120.00 UDAPUSSELLAWA 31.50 27.30 (4.20) (13.33) 27.40 27.30 300 8,200.00 PDL 60.50 53.00 (7.50) (12.40) 53.10 53.00 700 37,110.00 BERUWELA WALKINN 167.00 150.20 (16.80) (10.06) 150.20 150.20 100 15,020.00

MARKET CAPITALISATION COMPANY NAME Price ISSUED QTY MKT CAPITALISATION As a % (Total) PLC 160.10 841,663,019 134,750,249,342 6.23 CARSONS CUMBERBATCH PLC 523.10 196,386,914 102,729,994,713 4.75 THE BUKIT DARAH PLC 1,000.00 102,000,000 102,000,000,000 4.72 CEYLON TOBACCO COMPANY PLC 500.00 187,323,751 93,661,875,500 4.33 SRI LANKA TELECOM PLC 45.20 1,804,860,000 81,579,672,000 3.77 COMMERCIAL BANK OF CEYLON PLC 99.90 765,085,320 76,432,023,468 3.54 DIALOG AXIATA PLC 7.30 8,143,778,405 59,449,582,357 2.75 NESTLE LANKA PLC 915.00 53,725,463 49,158,798,645 2.27 PLC 147.20 311,406,247 45,838,999,558 2.12

AITKEN SPENCE PLC 111.00 405,996,045 45,065,560,995 2.08

HIGHEST VOLUME HIGHEST TURNOVER COMPANY NAME TRADED SHARE TURNOVER COMPANY NAME TURNOVER (Rs) VOLUME VOLUME (Rs) COMMERCIAL BANK 221,859,650.00 ASIA ASSET FINANCE 3,231 23,529,800 156,061,890.00 ASIA ASSET FINANCE 156,061,890.00 SMB LEASING PLC 189 4,947,300 7,900,600.00 ENVIRONMENTAL RESOURCES 65,840,210.00

COMMERCIAL BANK 53 2,218,700 221,859,650.00 HATTON NATIONAL BANK 58,176,800.00 ENVIRONMENTAL RESOURCES 1,106 2,131,700 65,840,210.00 PC PHARMA LIMITED 53,123,230.00 BLUE DIAMONDS JEWELLERY [X] 111 1,597,600 6,099,570.00 JOHN KEELLS HOLDINGS 38,170,600.00 PANASIAN POWER PLC 163 1,312,800 5,251,320.00 CEYLON TOBACCO COMPANY 37,947,600.00 VALLIBEL ONE PLC 63 1,309,200 28,749,110.00 COLOMBO LAND & DEV:COM 30,249,550.00 BROWNS INVESTMENTS 137 1,226,200 4,927,560.00 VALLIBEL ONE PLC 28,749,110.00 MULLER AND PHIPPS 59 1,188,900 3,127,750.00 DISTILLERIES COMPANY 14,887,010.00

CEYLON TEA BROKERS 38 1,104,000 8,474,800.00

Market Announcement

AgStar Fertilizers Limited - Introduction d ofThe above Company has been approved by the CSE to list their 307,526,310 Ordinary Voting Shares and 17,473,690 Ordinary

Non-Voting Shares on Diri Savi Board of the CSE by a way of an Introduction. Listing dates will be given shortly.

company

Market Comment

Market Comments Market Comment

Market Comment s The Colombo Bourse continued to experience the negative momentum today as well; hence it further slid of 1.02% on its benchmark All Share Price Index (ASPI) and 0.40% on liquid Milanka Price Index (MPI). The ASPI dipped 59.81 points to close the 28-Apr-2011 Interim financial statements - HPFL day at 5,786.60 whereas the liquid Milanka Price Index (MPI) dropped 19.62 points and closed the day at 4,909.51. The ASPI records its all-time low since September 02, 2010(5,785.17) while the Milanka index recorded its 19 months low to date. The H market capitalizatHPFL - Financialion was LKR Statements 2.11Tn. for the period ended 31-03-2011 have been uploaded on the CSE website.

221 counters traded during the day to record a turnover of LKR 952.5Mn which is a reduction of 32.6% compared to the value

recorded yesterday. Commercial Bank (LKR 221.8Mn), Asia Asset Finance (156Mn) and Environmental Resources (LKR 65.8Mn) 28-Apr-2011 2011 Warrants Conversion - GREG were the major contributors to the daily turnover. Crossings were recorded on COMB.N, HNB.N, VONE.N and PCP.N for the value of LKR 200Mn, LKR 58Mn, LKR 26.4Mn and LKR 52Mn.

A total of 54.5Mn shares were changed in hands during the trading day which is a reduction of 20.7% compared to the value

recoded yesterday.Ket Asia Asset Finance (23.5Mn),28 SMB-Apr Leasing-2011 PricePLC (4.9Mn) Bands and Commercial Bank (2.2Mn) were the top traded counters for the day. Price losers outnumbered the price gainers by 138:51. The price gainers were led by Paragon (Price gain

of 45.8%) on the contrary Riverina Hotels (Price loss of 17.5%) led the price losers. The foreign investors reflected a buying

sentimentIn terms ofrecording the SEC a netdirective foreign dated inflow 14th of LKR September 8Mn. 2010, the 10% price band has not been imposed on a new security considering the review period from 21st April 2011 to 28th April 2011 (Both days inclusive).

The full list of securities on which the 10% price band is applicable is attached.

Local Market News

Sri Lanka Treasuries Yields Flat Yields on Sri Lankan Treasury Bills remained mostly flat at Wednesday's auction for the fourth consecutive week, with 12,693

million rupees of bills sold. The 3-month yield fell one basis point to 8.67 while the 6-month yield stayed at 8.71 percent and the 12-month yield stayed at 9.31 percent. The debt office said it sold 6,488 million rupees of 3-month bills, 1,408 million

rupees of 6 -month bills and 4,797 million rupees of 12-month bills. The weekly primary auction for the re-issue of 12,000 million rupees of maturing Treasury bills was oversubscribed with bids amounting to 26,426 million rupees being received.

(LBO)

Sri Lanka Expressway Opens for Heavy Vehicles

Sri Lanka's road development agency has allowed heavy vehicles to use the island's first expressway opened late last year linking the capital Colombo with the southern town of Galle. Road Development Authority director said that Trucks with

containers and other goods will be allowed to use the southern expressway along with buses. (LBO)

Sri Lanka at Risk from Global Slowdown: World Bank

Sri Lanka's post -war economic rebound is slowing and financial problems in key Western markets could reduce demand for the island's exports and hit earnings from worker remittances and tourism. It has also lowered its forecast for economic growth in

the island, saying Sri Lanka is now expected to grow at 6.8 percent in 2012 and 7.7 percent in 2013. Earlier this month, Sri Lanka's central bank said Sri Lanka's economy is projected to grow at 8.0 percent in 2012 after having grown at about 8.3

percent in 2011. The forecast was lowered from the earlier forecast of nine percent in 2012. (LBO)

International Market News

IMF Seeking $500Bn Funding Boost

The International Monetary Fund (IMF) has said it will seek to increase its resources by $500bn (£325bn) to help stabilise the global economy. The extra money could be used to help countries in the eurozone struggling to pay their debts. But the IMF

said it may need up to $1tn "in the coming years". The $500bn includes the recent European commitment to commit 150bn euros (£125bn; $194bn) to the IMF, the 187-nation body said. The IMF currently has a total borrowing capacity of about $590bn, and the Fund's lending commitments are at a record $250bn. (BBC)

Goldman Sachs Cuts Pay and Bonuses As Profits Halve

US banking giant Goldman Sachs have cut its pay and bonus payments during 2011 - to $12.2bn (£7.4bn). It said its total compensation - including staff bonuses - was down 21% from 2010. The bank also said that its quarterly profits had more than

halved from the previous year, but still beat analysts' forecasts. Net income for the last three months of the year fell 58% to $1.01bn from the same period a year earlier. In the whole of 2011, Goldman said that it made 47% less in profits than in 2010.

Weak US growth and uncertainty about European sovereign debt has hit banks hard globally. The bank said that it had cut total

staff numbers by 7% in 2011 - to 33,300 people, meaning the average compensation per member of staff is about $366,360. (BBC)

Economic Indicators & Other Statistics

Exchange Rates Indicative Rates

19-Jan-12 18-Jan-12 19-Jan-12 18-Jan-12 Currency Currency Buying Selling Buying Selling Ind: Value Ind: Value Dollar (USA) 113.01 114.88 112.97 114.82 Yuan(China) 18.04 18.03 Pound (UK) 173.80 178.05 172.72 176.86 Rupee(India) 2.27 2.25 Euro (EU) 144.45 148.61 143.50 147.50 Won(Korean) 0.10 0.10 Dollar (Canada) 111.01 114.49 110.71 113.74 Dinar(Kuwait) 408.25 407.77 Dollar (Australia) 116.53 120.46 116.16 120.08 Ringgit(Malay) 36.73 36.51

Dollar (Singapore) 87.88 90.52 116.52 120.03 Rial(Oman) 295.84 295.04 Yen (Japan) 1.46 1.51 1.47 1.51 Riyal(Qatar) 31.28 31.28 Riyal(KSA) 30.37 30.37 Dirham (UAE) N/A 31.01

Central Bank's Policy Rates % Per Annum Central Bank Repurchase (Repo) Rate 7.00 Central Bank Reverse Repurchase (Reverse Repo) Rate 8.50 Bank Rate 15.00

Statutory Reserve Ratio (SRR) 8.00

Treasury Bills AWPLR AWDR This week Last week This Week Last week This Month Last Month 91 Days 8.67 8.68 Weekly 11.33 11.00 Monthly 7.24 6.72 182 Days 8.71 8.71 Monthly 10.49 9.84 6 Months 6.63 6.47 364 Days 9.31 9.31 6 Months 9.63 9.43 Fixed Deposits 8.95 8.21

Colombo Consumers’ Price Index (CCPI) Year 2011 Year 2010 Description October November December October November December Year on Year Change % 5.10 4.70 4.90 6.50 6.90 6.80

Annual Average Change % 7.10 6.90 6.70 5.70 6.10 6.20

SLIBOR & LIBOR Over Night 7 Days 1 M 3 M 6 M 12 M SLIBOR (19-Jan) 8.9800 9.1800 9.4300 9.6700 9.9300 10.1400

LIBOR - GBP(18-Jan) 0.5750 0.6268 0.7778 1.0896 1.3906 1.8858 LIBOR - USD(18-Jan) 0.1464 0.1998 0.2809 0.5612 0.7918 1.1101

Medium Term Macroeconomic Framework (a) Projections

Indicator Unit 2009 2010 2011 2012 2013 2014 GDP at Market Prices Rs. bn 4,835.00 5,602.00 6,440.00 7,405.00 8,513.00 9,790.00 Real GDP Growth % 3.50 8.00 8.50 9.00 9.50 9.50 Per Capita GDP US$ 2,057.00 2,399.00 2,794.00 3,200.00 3,660.00 4,190.00 Total Investment % of GDP 24.40 27.80 29.50 32.00 33.00 34.00 National Savings % of GDP 23.70 24.70 25.80 29.10 30.70 32.30 Trade Gap US$ mn (3,122.00) (5,205.00) (6,762.00) (7,399.00) (7,993.00) (8,531.00)

Debt Service Ratio % 18.90 14.60 13.50 16.20 12.60 14.30 Government Debt % of GDP 86.20 81.90 80.00 75.00 71.00 67.00

(CBSL.lk, Global-rates.com, CBSL Annual Report 2010)

Foreign Stock Exchanges

Foreign Stock Exchanges Country Foreign Markets- Index 18-Jan-12 % Change 17-Jan-12 % Change 13-Jan-12 USA Dow Jones Indus. AVG 12,579.00 0.78% 12,482.10 0.48% 12,422.06 USA NASDAQ Composite Index 2,769.71 1.53% 2,728.08 0.64% 2,710.67 Europe Euro Stoxx 50 Pr 2,390.64 -0.25% 2,396.63 2.51% 2,338.01

UK FTSE 100 5,702.37 0.15% 5,693.95 1.02% 5,636.64 Japan Nikkei 225 8,550.58 0.99% 8,466.40 -0.40% 8,500.02 Hong Kong Hang Seng Index 19,686.92 0.00% N/A 0.00% 19,204.42

China CSI 300 Index 2,422.19 -1.56% 2,460.60 2.77% 2,394.33 Pakistan Karachi 100 Index 11,547.71 2.15% 11,305.16 2.64% 11,014.46 India BSE Sensex 30 Index 16,451.47 -0.09% 16,466.05 1.93% 16,154.62

Singapore FTSE Straits Times Index 2,795.40 -0.73% 2,815.85 0.87% 2,791.54 Malaysia FTSE Bursa Malaysia EMAS 10,476.13 -0.05% 10,481.86 -0.29% 10,512.40

Bangladesh DSE General Index DGEN 4,695.57 0.00% N/A 0.00% N/A Mongolia MSE Top 20 Index 20,044.70 -1.06% 20,260.20 0.90% 20,080.00

Commodit y Prices & Other Statistics

Rubber Prices-Auction 18th Jan World Commodity Prices Grade Price Range (Rs) Commodity 19-Jan 18-Jan 17-Jan LC No.1X 350.00-353.00 Brent Crude Oil 110.65 111.53 111.53 LC No.1 340.00-355.00 WTI Crude Oil 101.32 101.31 101.02 LC No.2 340.00-355.00 Gold 1,661.35 1,655.93 1,653.34

LC No.3 335.00-345.00 Silver 30.41 30.13 30.05 LC No.4 330.00-348.00 Copper 3.78 3.72 3.73 SC (Br) No.1 330.00-335.00

SC (Br) No.2 328.00-330.00 Tourist Arrivals to Sri Lanka 2009 2010 2011 SC (Br) No.3 j 315.00-335.00 January 38,468 50,757 74,197 SC (Br) No.4 322.00-325.25 February 34,169 57,300 65,797 Skim Crepe 310.00-310.00 March 34,065 52,352 75,130 RS Sheet No.1 385.00-385.00 April 26,054 38,300 63,835 RS Sheet No.5 340.00-350.00 May 24,739 35,213 48,943 June 30,234 44,730 53,636

Tea Prices- Auction- 10th & 11th of January July 42,223 63,339 83,786 Elevation Price/Kg Price/Kg August 41,207 55,898 72,463 Uva High 295.47 293.70 September 37,983 47,339 60,219 Western High 346.62 327.84 October 37,575 52,370 69,563 Uva Medium 302.42 308.69 November 44,311 72,251 90,889

Western Medium 308.40 295.49 December 56,862 84,627 97,517 Low Grown 367.78 385.49 Total 447,890 654,476 855,975

(Oil Price.net, srilankastockpicks.blogspot.com, pureceylontea, LBO, rrisl)

Asha Phillip Securities Limited – Research

Thakshila Hulangamuwa Pasindu Perera Vice President – Business Development Manager - Research [email protected] [email protected] 0094 113070494 0094 112429109

Lasantha Senanayake Ranuka De Silva Kumuthini Sivathas Research Analyst Research Analyst Tr. Research Analyst [email protected] [email protected] [email protected]

Asha Phillip Securities Limited – Branch Network

Branch Office:Matara Branch Office:Negombo Branch Office:Gampaha

# 38, Station Road, # 142, Greens Road, # 21, Courts Road,

Matara. Negombo. Gampaha. Tel. 041 2223940 Tel. 031 2227474 Tel. 033 2234888

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Branch Office: Galle Branch Office: Anuradhapura Branch Office:Embilipitiya # 16, # 9, Maithripala Senanayaka Mw, # 61, Bldg. Sri Dewamittha Mw, Bank Site, New Town, Main Street, Galle. Anuradhapura. Embilipitiya. Tel. 091 2233558 Tel. 025 2234705 Tel. 047 2261950

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Branch Office: Panadura Head Office: Southern Region(Matara) Branch Office: Ambalanthota

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This document has been prepared and issued by Asha Phillip Tel: 041Securities-2235191 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.