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 rd [email protected] 23 January 2012

PRICE INDICES INDEX 23-Jan 20-Jan CHANGE % CHANGE ASPI 5,663.09 5,781.13 -118.04 -2.04% MPI 4,811.71 4,916.89 -105.18 -2.14%

Market Statistics 23-Jan 20-Jan Value of Turnover(Rs.) 827,338,212 741,684,864 Domestic Purchases 774,623,312 658,673,664 Domestic Sales 816,527,128 611,497,543 Foreign Purchases 52,714,900 83,011,200 Foreign Sales 10,811,084 130,187,322

Volume of Turnover (No.) 61,000,372 51,348,464 PER 14.82 15.12

PBV 1.87 1.91

PRICE INDEX TURNOVER SECTOR SECTOR SECTOR TODAY PREVIOUS VALUE (Rs) VOLUME TRADES P/E PBV BANK FINANCE AND INSURANCE 12,827.31 13,208.94 225,791,776.00 16,849,527 3,594 12.40 1.90

BEVERAGE FOOD AND TOBACCO 11,747.28 11,941.22 37,109,088.00 1,509,888 661 15.00 4.10 CHEMICALS AND PHARMACEUTICALS 10,768.08 11,097.77 49,322,824.00 1,816,448 159 10.20 1.40 CONSTRUCTION AND ENGINEERING 3,198.79 3,252.58 1,913,560.00 73,904 77 9.50 2.10 DIVERSIFIED HOLDINGS 1,779.78 1,798.25 102,632,712.00 14,067,643 874 16.20 1.60 FOOTWEAR AND TEXTILE 1,047.68 1,092.51 7,039,460.00 102,547 153 28.40 1.30 HEALTH CARE 546.21 561.52 9,748,159.00 919,210 187 17.30 1.90 HOTELS AND TRAVELS 3,447.62 3,581.23 93,376,544.00 6,208,177 615 25.10 1.70

INFORMATION TECHNOLOGY 205.55 214.00 6,012,390.00 576,900 211 19.60 2.50 INVESTMENT TRUSTS 26,639.01 27,605.12 89,297,808.00 1,124,325 751 14.40 1.80 LAND AND PROPERTY 568.56 591.96 26,328,396.00 1,111,468 611 19.30 1.10 MANUFACTURING 3,057.02 3,117.25 76,793,680.00 2,477,192 1,062 14.70 2.10 MOTORS 25,708.62 25,866.12 5,742,991.00 16,462 53 16.60 3.70

OIL PALMS 131,404.10 131,238.55 235,915.00 234 9 35.40 2.60 PLANTATIONS 761.91 788.22 18,558,172.00 384,892 190 4.50 0.90 POWER & ENERGY 123.00 126.12 10,743,590.00 1,789,000 337 12.00 1.60 SERVICES 23,496.84 23,663.75 457,245.00 47,906 14 8.00 2.60 STORES SUPPLIES 34,546.83 36,281.29 595,830.10 842 14 10.60 0.80

TELECOMMUNICATIONS 154.07 156.30 801,756.50 71,989 62 24.90 1.80 TRADING 22,016.68 23,071.69 15,781,446.00 1,837,605 303 11.10 1.20

Market Highlights

TOP GAINERS

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

SWARNAMAHAL FIN 89.30 99.60 10.30 11.53 104.90 88.80 835,100 82,137,780.00 GESTETNER 251.00 265.00 14.00 5.58 265.00 265.00 100 26,500.00 SIGIRIYA VILLAGE 77.20 80.00 2.80 3.63 80.00 80.00 100 8,000.00 CDB [X] 65.80 67.80 2.00 3.04 67.90 67.00 17,900 1,213,610.00 HAYLEYS - MGT 22.10 22.70 0.60 2.71 23.70 22.00 1,900 43,040.00

TOP LOSERS

VWA PREV VWA DAYS CHANGE CHANGE HIGH LOW No. of TURNOVER COMPANY CLOSE CLOSE (Rs.) % (Rs.) (Rs.) SHARES (Rs.) CITRUS LEISURE [W0018] 17.60 15.00 (2.60) (14.77) 16.30 14.60 135,600 2,041,350.00 HUNTERS 527.00 451.30 (75.70) (14.36) 494.00 430.00 300 135,400.00 SAMSON INTERNAT. 137.90 118.30 (19.60) (14.21) 128.00 118.00 900 107,310.00 KEELLS FOOD 124.50 109.50 (15.00) (12.05) 112.00 109.00 1,000 109,500.00 CAL FINANCE 36.00 31.70 (4.30) (11.94) 34.90 31.20 118,900 3,810,290.00

MARKET CAPITALISATION COMPANY NAME Price ISSUED QTY MKT CAPITALISATION As a % (Total) PLC 164.00 841,663,019 138,032,735,116 6.53 THE BUKIT DARAH PLC 1,009.00 102,000,000 102,918,000,000 4.87 CARSONS CUMBERBATCH PLC 517.50 196,386,914 101,630,227,995 4.81 CEYLON TOBACCO COMPANY 487.00 187,323,751 91,226,666,737 4.32 SRI LANKA TELECOM PLC 44.30 1,804,860,000 79,955,298,000 3.78 COMMERCIAL BANK OF CEYLON 99.00 765,085,320 75,743,446,680 3.58 DIALOG AXIATA PLC 7.10 8,143,778,405 57,820,826,676 2.74 NESTLE LANKA PLC 910.00 53,725,463 48,890,171,330 2.31 PLC 141.80 311,446,495 44,163,112,991 2.09

AITKEN SPENCE PLC 108.00 405,996,045 43,847,572,860 2.07

HIGHEST VOLUME HIGHEST TURNOVER COMPANY NAME TRADED SHARE TURNOVER COMPANY NAME TURNOVER (Rs) VOLUME VOLUME (Rs) SWARNAMAHAL FINANCIAL 82,137,780.00 FREE LANKA CAPITAL 95 11,405,900 31,939,539.00 WASKADUWA BEACH RESORT 56,175,060.00 ASIA ASSET FINANCE 867 5,991,400 35,911,810.00 JOHN KEELLS HOLDINGS 46,764,210.00

SMB LEASING PLC 223 4,382,600 6,596,900.00 PC PHARMA LIMITED 44,387,980.00 WASKADUWA BEACH RESORT 27 4,329,500 56,175,060.00 ASCOT HOLDINGS PLC 39,811,240.00 SMB LEASING PLC [X] 148 3,868,600 2,321,310.00 ASIA ASSET FINANCE 35,911,810.00 BLUE DIAMONDS JEWELLERY [X] 192 2,383,700 8,828,010.00 SINGER INDUSTRIES 33,061,530.00 CENTRAL INVESTMENTS & FINANCE 32 1,938,900 15,131,820.00 FREE LANKA CAPITAL 31,939,539.00 TESS AGRO PLC 180 1,692,500 6,655,220.00 CEYLON GUARDIAN INVESTMENT 26,562,990.00 PANASIAN POWER 187 1,524,200 5,883,010.00 ENVIRONMENTAL RESOURCES 20,732,520.00

BROWNS INVESTMENTS 128 1,242,000 4,736,650.00

Market Announcement

d of

company

Market Comment

Market Comments Market Comment

Market Comment s The Colombo Bourse experienced an enormous negative momentum today to contract the benchmark All Share Price Index (ASPI) by 2.04% and to diminish the liquid Milanka Price Index (MPI) by 2.14%. All most all the counters had reached their 28-Apr-2011 Interim financial statements - HPFL 52weeks low prices. The ASPI plunged down by 118.04 points to close the day at 5,663.09 whereas the liquid Milanka Price Index (MPI) shrank by 105.18 points and closed the day at 4,811.71. The market capitalization was LKR 2.07Tn. H

HPFL - Financial Statements for the period ended 31-03-2011 have been uploaded on the CSE website. 230 counters traded during the day to record a turnover of LKR 827.3Mn which is an increase of 11.5% compared to the value recorded on previous trading day. Swarnamahal Financial (LKR 82.1Mn), Waskaduwa Beach Resort (56.2Mn) and John Keells

Holdings (LKR 46.7Mn) were the major contributors to the daily turnover. Crossings were recorded on GUAR.N, CITW.N and 28-Apr-2011 2011 Warrants Conversion - GREG FLCH.N for the value of LKR 24Mn, LKR 55.5Mnand LKR 29.8Mn.

A total of 61Mn shares were changed in hands during the trading day which is an increase of 18.8% compared to the value

recoded on previous trading day. Free Lanka Capital (11.4Mn), Asia Asset Finance (5.9Mn) and SMB Leasing PLC (4.4Mn) were

the top tradedKet counters for the day. Price losers28- Apr outnumbered-2011 Price the Bands price gainers by 192:22. The price gainers were led by Swarnamahal Fin (Price gain of 11.5%) on the contrary Citrus Leisure [W0018] (Price loss of 14.7%) led the price losers. The

foreign investors reflected a buying sentiment recording a net foreign inflow of LKR 41.9Mn.

In terms of the SEC directive dated 14th September 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 to Look For Alternatives to Iran Crude Sri Lanka will be able to import crude from Iran for at least six months before US sanctions make it impossible for payments to

be made to that country. Sri Lanka's The Sunday Times newspaper quoted petroleum minister as saying that talks would be held with Oman soon on oil imports after the US had informed the foreign ministry that there was a six month window before

sanctions came into effect. Earlier reports said Sri Lanka would also attempt to seek a waiver from the sanctions. Sri Lanka's state-run Ceylon Petroleum Corporation has long used Iranian light crude for its refinery, which produces a major share of the

firm's retailed products. The balance is imported. The ageing refinery produces a lower proportion of light distillates, compared

to more modern ones and higher proportions of heavier fuels like furnace oil which are cheaper. (LBO)

Sri Lanka to Discourage Raw Commodity Exports Minister of Industry and Commerce said that Sri Lanka's decision to raise taxes on exports in raw form and reduce those for raw material imports is to encourage local manufacture and value addition. The island intends to make it more expensive to export rubber, timber and minerals in raw form and has removed taxes on imports of raw materials to reduce the apparel export

industry's costs. The new law stipulates the imposition of export cesses on natural minerals like graphite, clay, ilmenite, rutile,

titanium, and zirconium as well as increases of export cess raw rubber, phosphate, granite, mica and timber logs. A commerce ministry statement said that to reduce manufacturing costs, import taxes on several raw materials used by apparel exporters

have also been removed. These include starch, polymers and ethelyne in primary form and fabrics. The slapping of penal export duties on products by rulers penalizes and oppresses citizens engaged in that industry by denying them the fair international

price available to producers in other countries. (LBO)

International Market News

Vietnam Forecasts Lower Pepper Exports This Year on Bad Weather According to the Ministry of Agriculture and Rural Development, Vietnam's export pepper yield this year is forecast to fall due

to unfavorable weather conditions. The total pepper exported this year may reach 86,000 tonnes, worth nearly US$619 million. These figures would be down by 30 per cent in volume and 16 per cent in value. Since 2001, Vietnam has been the largest

pepper producer and exporter in the world. The ministry reported that in 2011, the country exported 125,000 tonnes of

pepper, valued at US$736 million. Although the year-on-year volume increased by only 7.2 per cent, the value surged by 74.6 per cent. Demand for pepper has risen year-on-year in most markets. Demand from Spain increased the most, at 270 per cent,

earning the country's pepper industry US$25.6 million in 2011. Spain was followed by Singapore with growth of 231.4 per cent, worth more than US$21 million. (AsiaPulse)

Eurozone Finance Ministers To Focus on Greek Debt

Eurozone finance ministers are to meet later, with the Greek debt crisis likely to dominate proceedings. On the agenda will be what form Greek debt restructuring should take as part of a second bailout package for Athens. It comes after negotiators for private creditors left Greece without a deal to write off some of the country's debts. The Institute of International Finance (IIF),

which represents the creditors, said a technical team would remain to work further on the details. European leaders agreed in principle last year that private lenders would voluntarily write off 50% of their loans to Greece, but private creditors still need to agree to the terms of the deal. (BBC)

Economic Indicators & Other Statistics

Exchange Rates Indicative Rates

23-Jan-12 20-Jan-12 23-Jan-12 20-Jan-12 Currency Currency Buying Selling Buying Selling Ind: Value Ind: Value Dollar (USA) 113.01 114.88 113.01 114.88 Yuan(China) 17.98 18.04 Pound (UK) 175.05 179.34 174.38 178.66 Rupee(India) 2.26 2.26 Euro (EU) 144.79 148.96 145.55 149.74 Won(Korean) 0.10 0.10 Dollar (Canada) 110.59 114.07 110.79 114.28 Dinar(Kuwait) 408.66 408.82 Dollar (Australia) 117.36 121.34 116.72 120.66 Ringgit(Malay) 36.65 36.73

Dollar (Singapore) 88.20 90.85 88.20 90.84 Rial(Oman) 295.82 295.85 Yen (Japan) 1.46 1.50 1.46 1.50 Riyal(Qatar) 31.28 31.28 Riyal(KSA) 30.37 30.37 Dirham (UAE) 31.01 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 (23-Jan) 8.9400 9.1300 9.3300 9.5500 9.8200 10.0800

LIBOR - GBP(20-Jan) 0.5750 0.6268 0.7779 1.0896 1.3931 1.8908 LIBOR - USD(20-Jan) 0.1443 0.1977 0.2773 0.5611 0.7918 1.1099

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 20-Jan-12 % Change 19-Jan-11 % Change 18-Jan-12 USA Dow Jones Indus. AVG 12,720.50 0.76% 12,624.00 0.36% 12,579.00 USA NASDAQ Composite Index 2,786.70 -0.06% 2,788.33 0.67% 2,769.71 Europe Euro Stoxx 50 Pr 2,426.96 -0.33% 2,435.04 1.86% 2,390.64

UK FTSE 100 5,728.55 -0.22% 5,741.15 0.68% 5,702.37 Japan Nikkei 225 8,766.36 0.00% N/A 0.00% 8,550.58 Hong Kong Hang Seng Index 20,110.40 0.84% 19,942.95 1.30% 19,686.92

China CSI 300 Index 2,504.09 1.45% 2,468.35 1.91% 2,422.19 Pakistan Karachi 100 Index 11,774.68 2.25% 11,515.59 -0.28% 11,547.71 India BSE Sensex 30 Index 16,739.01 0.57% 16,643.74 1.17% 16,451.47

Singapore FTSE Straits Times Index 2,849.38 1.36% 2,811.20 0.57% 2,795.40 Malaysia FTSE Bursa Malaysia EMAS 10,526.90 0.45% 10,479.86 0.04% 10,476.13

Bangladesh DSE General Index DGEN N/A 0.00% 4,946.50 5.34% 4,695.57 Mongolia MSE Top 20 Index 20,179.70 -0.23% 20,226.60 0.91% 20,044.70

Commodity Prices & Other Statistics

Rubber Prices-Auction 18th Jan World Commodity Prices Grade Price Range (Rs) Commodity 23-Jan 20-Jan 19-Jan LC No.1X 350.00-353.00 Brent Crude Oil 109.51 111.55 110.65 LC No.1 340.00-355.00 WTI Crude Oil 98.00 100.90 101.32 LC No.2 340.00-355.00 Gold 1,668.55 1,655.28 1,661.35

LC No.3 335.00-345.00 Silver 32.18 30.57 30.41 LC No.4 330.00-348.00 Copper 3.73 3.81 3.78 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

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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.