The market opened the day with the negative momentum and continued to exhibit a down trend throughout the trading day resulting in negative closures on both indices.

The All Share Price Index (ASPI) dropped 35.99 points to close the day at 5,042.07 while the liquid Milanka Price

Index (MPI) dropped 38.78 points to close at 4,507.30. The market capitalization was LKR 1.92Tn.

257 counters traded during the day to record a turnover of LKR 529.5Mn which is a reduction of 14.13% compared to

previous day. PLC (LKR 56Mn), Distilleries Company PLC (LKR 53.9Mn) and Dialog

PLC (LKR 39.9Mn) were the top contributors to the daily turnover. Diversified Holdings and Beverage Food and

Tobacco sectors were the best performing sectors for the day.

A total of 45.0Mn shares changed hands during the trading day which is a reduction of 34.33% against the previous day.

Dialog Axiata PLC (6.4Mn), PC House PLC (3.5Mn) and Blue Diamonds JW: PLC (X) (3.4Mn) were the top traded counters, capturing investors’ interest.

Price losers outnumbered the price gainers by 155:73. The price gainers were led by Tangerine Beach Hotels PLC (Price gain of 48.5%) on the contrary Ramboda Falls Limited (Price loss of 25.6%) led the price losers. The market recorded a net foreign outflow of LKR 16.9Mn.

Trade Share Turnover Company Code Vol Vol. (Rs) JOHN KEELLS HOLDINGS PLC 7.00 4,542,625 175,552,243.20 DISTILLERIES COMPANY PLC 7.00 1,505,084 47,184,230.00 COMMERCIAL BANK PLC 133.00 852,469 35,308,876.40 PLC 9.00 773,351 19,634,510.00 COMMERCIAL BANK PLC(X) 79.00 624,866 13,212,498.20 PLC 65.00 548,271 12,593,367.40 ROYAL CERAMICS LANKA PLC 14.00 545,550 10,647,295.00 C T HOLDINGS PLC 8.00 513,512 10,125,000.00 AMANA TAKAFUL PLC 140.00 463,350 9,049,327.50 CARSONS CUMBERBATCH PLC 19.00 338,880 8,669,980.80

De-Listing of the securities of Ferntea Limited

Subsequent to the receiving of the approval of the SEC, The securities of the above company have been de-listed from the official list from the CSE with the effect from 21st June 2012.

Capital Development and Investment Company PLC (CDIC) – Change of the Name

Shareholders of the company have approved the special resolution to change the company name to NDB Capital Holdings PLC.

Sri Lanka tea production down in May The State tea promotion office confirmed that 's tea production has fallen by 8.4 percent to 30.8 million kilograms in May

2012 from a year earlier, as the country was hit by dry weather. High grown tea fell to 7.36 million kilos from 9.0 kilos, mediums fell to 5.58 million kilos from 6.0 million and low growns fell to 17.8 million kilos from 18.6 million in May, from a year earlier. In the first five months of the year total production fell 3.7 percent to 135 million kilos of tea.Sri Lanka has produced 125.2 million kilos of orthodox tea (down from 129.2 million kilos), 9.1 million kilos of CTC (crush-tear-curl) tea (down from 10.2 million kilos) and 1.28 million kilos of green tea (down from 1.38 million), up to May 2012. (LBO)

Sri Lanka thermal power generation up

Sri Lanka's thermal power generation had picked up sharply in the first quarter of 2012 with total generation up 8.8 percent from a year earlier while hydro generation fell steeply. Total generation rose 8.8 percent to 2,956 GigaWatt hours (millions of units) indicating strong demand in the quarter. State-run Ceylon Electricity Board's own hydro generation fell 70 percent to just 475

GWh in the period from 1,625 a year earlier. Thermal generation rose to 958 GWh from 298 a year earlier. The CEB now also generates power from coal in addition to furnace oil and diesel. Power generated by private producers rose 91 percent to 1,524

GWh in the period. Private producers mainly use furnace oil and diesel.

Non-conventional renewable energy fell to 12 GWh from 15.5GWh in the first quarter. In dry periods small hydro power generation also falls. In the month of March, power generation up was 5.6 percent to 1,044GWh from a year earlier. CEB's own thermal generation was up 149 percent to 219GWh. Private power generation was up 42.3 percent to 518GWh. (LBO)

Sri Lanka selects Bank of America, Citi, HSBC, Barclays to sell sovereign bond The Central Bank confirmed that Sri Lanka has selected Bank of America, Citi, HSBC and Barclays Capital to sell sovereign bond of up to a billion US dollars this year while State-run Peoples' Bank will be co-lead manager. In past bond sales state-run Bank of Ceylon has been a co-lead manager. Sri Lanka last year sold a 10-year billion dollar bond to yield 6.25 percent which is now trading around 5.96 percent, lower than some European countries. In October, Sri Lanka's maiden 500 million US dollar sovereign bond is maturing. (LBO)

Spain's borrowing costs hit fresh highs

Spanish bond yields hit a 16-year high on Thursday amid calls for Eurozone ministers gathering in Luxembourg to back plans to reduce government borrowing costs. Madrid sold 2.2bn euros (£1.7bn) of bonds repayable in two, three and five years. The yield on 5-year bonds rose to 6.07% from 4.96% in May, and went up to 5.54% on three year bonds from 4.87%.On Monday, the yield on benchmark ten year debt hit a record high of 7.3%.Later on Thursday, independent auditors will detail the size of debts held by

Spanish banks ahead of an expected formal request by Madrid for Eurozone money at the meeting of ministers. (BBC)

Vice President – Business Development Manager - Research

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

Research Team Ranuka De Silva [email protected] 0094 112429137

Lasantha Senanayake [email protected] 0094 112429129

Head Office: Southern Region (Matara) Branch Office: Batticaloa # 24-1/3, A, 2nd Floor, E.H. Cooray Tower, #22B Bar Road, Batticaloa, Tel: 065 2228029 Anagarika Dharmapala Mw, Matara. Tel: 041 2235191-6

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# 465, Galle Road, Panandura. Tel: 038 2234780 Branch Office: Kandy

Ceybank House, # 88, Dalada Vidiya, Kandy. Tel. 081 4474118 Branch Office: Ambalanthota

# 153, Tissa Road, Ambalanthota. Tel: 047-2225170 Branch Office: Galle

# 16, Sri Dewamittha Mw, Galle. Tel. 091 2233558 Branch Office: Wattala

# 118, Negombo Road, Wattala. Tel: 011-2930099 Branch Office: Anuradhapura

# 9, Maithripala Senanayaka Mw, Bank Site, New Town, Anuradhapura. Tel. 025 2234705

Branch Office: Embilipitiya # 61, Bldg. Main Street, Embilipitiya. Tel. 047 2261950

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.