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 st [email protected] 21 November 2011

PRICE INDICES INDEX 21-Nov 18-Nov CHANGE % CHANGE ASPI 6,119.86 6,140.52 -20.66 -0.34% MPI 5,357.45 5,349.54 7.91 0.15%

Market Statistics 21-Nov 18-Nov

Value of Turnover(Rs.) 870,788,943 1,798,847,593

Domestic Purchases 855,525,483 1,741,205,723 Domestic Sales 803,808,550 1,558,305,873 Foreign Purchases 15,263,460 57,641,870 Foreign Sales 66,980,394 240,541,720 Volume of Turnover (No.) 29,299,057 86,352,969 PER 15.73 15.78

PBV 1.99 2.00

PRICE INDEX TURNOVER SECTOR SECTOR SECTOR TODAY PREVIOUS VALUE (Rs) VOLUME TRADES P/E PBV BANK FINANCE AND INSURANCE 14,355.76 14,361.11 88,314,552.00 1,585,962 824 13.00 2.00 BEVERAGE FOOD AND TOBACCO 11,630.54 11,734.60 53,890,648.00 892,766 544 14.90 4.00 CHEMICALS & PHARMACEUTICALS 10,143.15 10,122.46 7,124,607.00 282,231 78 9.20 1.20

CONSTRUCTION AND ENGINEERING 3,364.42 3,323.11 1,771,615.00 36,173 46 10.00 2.20 DIVERSIFIED HOLDINGS 1,955.54 1,965.68 535,936,064.00 5,167,508 568 17.80 1.80 FOOTWEAR AND TEXTILE 1,087.48 1,085.23 8,272,808.00 115,569 101 29.40 1.30 HEALTH CARE 553.71 558.72 4,136,120.00 822,900 108 17.50 1.90 HOTELS AND TRAVELS 3,882.64 3,869.64 10,905,322.00 293,390 345 27.40 1.90

INFORMATION TECHNOLOGY 219.63 225.44 8,541,240.00 954,900 332 21.00 2.60 INVESTMENT TRUSTS 33,479.05 33,026.27 8,949,957.00 106,805 135 17.80 2.20 LAND AND PROPERTY 630.75 631.61 10,098,423.00 344,559 316 21.40 1.20 MANUFACTURING 3,274.21 3,298.32 54,082,828.00 3,087,449 1,055 15.70 2.20 MOTORS 26,366.49 28,949.20 1,422,723.50 4,282 31 17.00 3.80

OIL PALMS 129,526.72 129,466.95 2,135,913.00 2,056 15 34.90 2.50 PLANTATIONS 885.85 878.40 3,821,146.50 111,843 140 5.30 1.10 POWER & ENERGY 136.32 138.39 7,090,030.00 1,392,700 247 13.30 1.70 SERVICES 26,111.72 26,319.62 2,199,160.00 215,300 54 8.90 2.80 STORES SUPPLIES 40,277.46 40,959.85 405,690.00 708 10 12.40 0.90 TELECOMMUNICATIONS 168.92 167.51 421,515.00 38,150 42 27.30 1.90 TRADING 24,767.72 24,461.12 19,922,300.00 543,383 206 12.50 1.40

Market Highlights

TOP GAINERS

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

ORIENT GARMENTS 31.50 34.30 2.80 8.89 35.10 32.00 538,100 18,131,550.00 DIPPED PRODUCTS 106.10 114.50 8.40 7.92 114.50 114.50 100 11,450.00 HUEJAY 168.00 178.20 10.20 6.07 181.00 168.00 3,000 522,490.00 MTD WALKERS 36.70 38.80 2.10 5.72 39.00 36.20 19,700 760,200.00 KANDY HOTELS 200.00 210.00 10.00 5.00 210.00 210.00 600 126,000.00

TOP LOSERS

VWA PREV VWA DAYS CHANGE CHANGE HIGH LOW No. of TURNOVER COMPANY CLOSE CLOSE (Rs.) % (Rs.) (Rs.) SHARES (Rs.) LANKA ASHOK 3,700.00 2,750.00 (950.00) (25.68) 2,750.00 2,750.00 100 275,000.00 KALAMAZOO 2,300.00 2,000.00 (300.00) (13.04) 2,000.00 2,000.00 200 400,000.00 S M B LEASING [W] 1.00 0.90 (0.10) (10.00) 1.00 0.90 640,500 636,950.00 BALANGODA 31.50 29.00 (2.50) (7.94) 32.00 29.00 1,700 53,740.00 MALWATTE [X] 5.40 5.00 (0.40) (7.41) 5.40 5.00 180,900 910,770.00

MARKET CAPITALISATION COMPANY NAME Price ISSUED QTY MKT CAPITALISATION As a % (Total) PLC 175.00 840,679,242 147,118,867,350 6.52 CARSONS CUMBERBATCH PLC 575.00 196,386,914 112,922,475,550 5.01 THE BUKIT DARAH PLC 1,020.00 102,000,000 104,040,000,000 4.61 TELECOM PLC 48.50 1,804,860,000 87,535,710,000 3.88 COMMERCIAL BANK OF CEYLON PLC 104.00 765,085,320 79,568,873,280 3.53 CEYLON TOBACCO COMPANY PLC 420.10 187,323,751 78,694,707,795 3.49 PLC 7.80 8,143,778,405 63,521,471,559 2.82 PLC 170.00 311,220,897 52,907,552,490 2.35 PLC 121.90 405,996,045 49,490,917,886 2.19

NESTLE LANKA PLC 890.00 53,725,463 47,815,662,070 2.12

HIGHEST VOLUME HIGHEST TURNOVER COMPANY NAME TRADED SHARE TURNOVER COMPANY NAME TURNOVER (Rs) VOLUME VOLUME (Rs) JOHN KEELLS HOLDINGS PLC 512,449,580.00 BLUE DIAMONDS JEWELLERY [X] 523 7,144,200 28,290,620.00 PLC 35,779,530.00 SMB LEASING PLC [W0016] 64 4,389,500 853,790.00 BLUE DIAMONDS JEWELLERY [X] 28,290,620.00

JOHN KEELLS HOLDINGS PLC 94 2,928,300 512,449,580.00 CARGILLS (CEYLON) PLC 20,300,000.00 BLUE DIAMONDS JEWELLERY 267 1,964,200 16,701,020.00 HVA FOODS PLC 18,234,890.00 PANASIAN POWER PLC 142 1,234,800 5,216,640.00 ORIENT GARMENTS PLC 18,131,550.00 FREE LANKA CAPITAL 91 916,500 2,843,030.00 BLUE DIAMONDS JEWELLERY 16,701,020.00 SOFTLOGIC HOLDINGS PLC 145 816,500 15,663,560.00 SOFTLOGIC HOLDINGS PLC 15,663,560.00 NAWALOKA HOSPITALS PLC 60 800,000 3,181,790.00 BROWN & COMPANY PLC 12,336,410.00 E-CHANNELLING PLC 187 755,400 5,880,300.00 ROYAL CERAMICS LANKA 9,261,400.00

SMB LEASING PLC [W0015] 12 640,500 636,950.00

Market Announcement

People’s Leasing Company – Trading Commences d ofA total 1,560,000,160 shares will be listed on the Main Board of CSE on 24th of November 2011. The security code will be PLC-

N-0000.

company

Market Comment

Market Comments

Market Comment s

The market opened the day with a positive28-Apr momentum;-2011 Interim thereafter financial mild statements of selling sentiment- HPFL came in, which drove the market in a downtrend . The volatile market closed the day having alternative closures on both the indices. The benchmark All Share Price

Index (ASPI)H lost 20.66 points to close the day at 6,119.86; the liquid (MPI) gained 7.91 points and closed the day atHPFL 5,357.45. - Financial The market Statements capitalization for the stands period at endedLKR 2.2 31Tn.- 03-2011 have been uploaded on the CSE website.

221 counters traded during the day to record a turnover of LKR 870.8Mn which is a reduction of 51% compared to the value recorded on previous trading day. John Keells Holdings (LKR 512Mn), Sampath Bank PLC (35.8Mn) and Blue Diamonds Jewellery 28-Apr-2011 2011 Warrants Conversion - GREG [X] (LKR 28Mn) were the major contributors to the daily turnover. A Crossing took place on JKH.N for the value of LKR 457.6Mn.

A total of 29Mn shares changed in hands during the trading day which is a reduction of 66% compared to the value recorded on

previous trading day. Blue Diamonds Jewellery [X] (7Mn), SMB Leasing PLC [W0016] (4.4Mn) and John Keells Holdings PLC Ket (2.9Mn) were the top traded counters. Price losers28-Apr outnumbered-2011 Price the Bands price gainers by 104:73. The price gainers were led by Orient garments (Price gain of 8.89%) on the contrary Lanka Ashok (Price loss of 25.7%) led the price losers. The foreign

investors reflected a selling sentiment recording a net foreign outflow of LKR 51.7Mn. 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 Private Credit Strong, CB Credit Up Amid Peg Defence Credit to private business from Sri Lanka's commercial banks rose 34.4 percent in the year to September marginally up from

34.1 percent in August with banks disbursing 53.8 billion rupees during the month. Meanwhile central banks credit the rocketed 66.9 billion rupees, overtaking private sector credit in the month. It was warned that central bank credit would

overtake private business as a key driver as the monetary authority bought domestic assets to offset reserve losses (sterilized intervention) due to peg defence and state loan settlements. Net foreign assets of the central bank fell about 95 billion rupees

(equivalent of about 860 million dollars) during the month, data showed. Reserves can also change due to valuation effects.

Peg defence and sterilization was high in September and had reduced in the following two months, according to other central bank data. Central Bank credit to government rose 62.4 percent in September 2011 accelerating from a negative 16 percent in

August. (LBO )

Sri Lanka Seen As Option in Japanese Factory Shift

Sri Lanka is one of the destinations being considered by Japanese industries looking to relocate their manufacturing plants; its envoy has told a business chamber. According to Japanese Ambassador, Japanese investors are attracted by the island's

geographical position, skilled labour and natural resources. But he told a meeting with the Ceylon Chamber of Commerce that it was important to have clear policies to attract Japanese investors. Japanese manufacturers are seeking to relocate their manufacturing plants abroad given a stronger yen and a shrinking home market owing to an aging population. A group of

Japanese travel agents recently concluded a visit to Sri Lanka. The number of Japanese tourists to Sri Lanka used to be one of the highest prior to the war and Sri Lanka can look forward to increased tourist arrivals from Japan in the future. (LBO)

International Market News

India to Privatize Oil Firm

India's Disinvestment Ministry says it has received in-principle clearance from the Petroleum Ministry to proceed with the sale of government equity in Oil India Ltd. According to Disinvestment Secretary, The total shares that the government will sell in OIL are yet to be decided. The government owns 78.43 per cent in OIL. OIL had in September 2009 hit the market with an initial public offer and had mopped up over Rs 4,900 crore (US$956.48 million). As part of the IPO, the government offloaded its 10

per cent equity, while company issued 11 per cent fresh equity. The government aims to raise Rs 40,000 crore through the sale

of stakes in state-run companies in the current fiscal year, but it has so far been able to mop up only Rs 1,145 crore due to weak market conditions. (AsiaPulse)

China's Economic Policy Should Not Be Relaxed

Report in China Securities Journal says, China's economic policy should not be relaxed in any comprehensive way until excess liquidity has been eliminated and economic restructuring completed. Generally speaking, only when inflation has eased and the

outlook for business profitability has improved should the government loosen liquidity in line with the natural growth of the economy. Data from the National Bureau of Statistics (NBS) makes it clear that inflation has clearly slowed, setting stage for policy fine-tuning to maintain stable economic growth. According to China Q3 Monetary Policy Implementation China will

continue following a prudent monetary policy while initiating a fine-tuning policy at a suitable time and to an appropriate degree. (AsiaPulse) Economic Indicators & Other Statistics

Exchange Rates Indicative Rates 21-Nov-11 18-Nov-11 21-Nov-11 18-Nov-11 Currency Currency Buying Selling Buying Selling Ind: Value Ind: Value Dollar (USA) 109.60 111.24 109.49 111.13 Yuan(China) 17.37 17.34 Pound (UK) 172.01 175.99 172 175.98 Rupee(India) 2.16 2.17 Euro (EU) 147.33 151.37 146.64 150.66 Won(Korean) 0.10 0.10 Dollar (Canada) 105.72 108.90 105.7 108.87 Dinar(Kuwait) 399.46 398.91 Dollar (Australia) 108.25 111.85 108.62 112.23 Ringgit(Malay) 34.78 34.89 Dollar (Singapore) 83.76 86.15 83.98 86.39 Rial(Oman) 285.92 286.23

Yen (Japan) 1.42 1.46 1.413 1.4563 Riyal(Qatar) 30.30 30.26 Riyal(KSA) 29.42 29.38 Dirham (UAE) 30.04 30.00

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 7.51 7.39 Weekly 9.71 9.96 Monthly 6.57 6.48 182 Days 7.54 7.45 Monthly 9.33 9.36 6 Months 6.40 6.34 364 Days - 7.59 6 Months 9.32 9.30 Fixed Deposits 8.12 8.11

Colombo Consumers’ Price Index (CCPI) Year 2011 Year 2010 Description August September October August September October Year on Year Change % 7.00 6.40 5.10 5.00 5.70 6.50

Annual Average Change % 7.10 7.20 7.10 4.90 5.30 5.70

SLIBOR & LIBOR Over Night 7 Days 1 M 3 M 6 M 12 M SLIBOR (21-Nov) 8.0500 8.1300 8.2300 8.3900 8.5300 8.7100

LIBOR - GBP(18-Nov) 0.5825 0.6275 0.7294 1.0187 1.3054 1.7962 LIBOR - USD(18-Nov) 0.1428 0.1933 0.2566 0.4878 0.6986 1.0181

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-Nov-11 % Change 17-Nov-11 % Change 16-Nov-11 USA Dow Jones Indus. AVG 11,796.20 0.22% 11,770.70 -1.13% 11,905.60 USA NASDAQ Composite Index 2,572.50 -0.60% 2,587.99 -1.96% 2,639.61 Europe Euro Stoxx 50 Pr 2,236.68 -0.27% 2,242.78 -1.11% 2,267.96

UK FTSE 100 5,362.94 -1.11% 5,423.14 -1.56% 5,509.02

Japan Nikkei 225 8,374.91 -1.23% 8,479.63 0.19% 8,463.16

Hong Kong Hang Seng Index 18,491.23 -1.73% 18,817.47 -0.76% 18,960.90 China CSI 300 Index 2,606.50 -2.09% 2,662.02 -0.30% 2,670.12

Pakistan Karachi 100 Index 11,937.81 0.20% 11,913.42 -0.66% 11,992.77 India BSE Sensex 30 Index 16,371.51 -0.55% 16,461.71 -1.87% 16,775.87 Singapore FTSE Straits Times Index 2,730.34 -1.72% 2,778.25 -1.04% 2,807.44

Malaysia FTSE Bursa Malaysia EMAS 9,985.55 -0.75% 10,061.02 -0.58% 10,119.82 Bangladesh DSE General Index DGEN N/A 0.00% 5,166.96 3.60% 4,987.56 Mongolia MSE Top 20 Index 21,077.80 -1.39% 21,375.00 1.41% 21,077.80

Commodity Prices & Other Statistics

Rubber Prices-Auction 15th Nov: World Commodity Prices Grade Price Range (Rs) Commodity 21-Nov 17-Nov 16-Nov LC No.1X 420.00-426.00 Brent Crude Oil 107.58 112.39 112.39 LC No.1 390.00-415.00 WTI Crude Oil 97.41 102.79 98.64

LC No.2 368.00-380.00 Gold 1,705.22 1,761.05 1,767.69 LC No.3 360.00-370.00 Silver 31.18 33.77 34.19 LC No.4 340.00-350.00 Copper 3.31 3.48 3.44 SC (Br) No.1 325.00-330.00 SC (Br) No.2 unquoted Tourist Arrivals to Sri Lanka 2009 2010 2011 j SC (Br) No.3 unquoted January 38,468 50,757 74,197 SC (Br) No.4 280.00-291.00 February 34,169 57,300 65,797 Skim Crepe unquoted March 34,065 52,352 75,130

RS Sheet No.1 410.00-410.00 April 26,054 38,300 63,835 RS Sheet No.4 340.00-345.00 May 24,739 35,213 48,943 June 30,234 44,730 53,636

Tea Prices- Auction- 08th & 09th of November July 42,223 63,339 83,786 Elevation Price/Kg Pre:Price/Kg August 41,207 55,898 72,463 Uva High 302.65 295.42 September 37,983 47,339 60,219

Western High 365.16 365.79 October 37,575 52,370 69,563 Uva Medium 324.48 314.84 November 44,311 72,251 -

Western Medium 321.48 318.91 December 56,862 84,627 - Low Grown 365.42 366.12 Total 447,890 654,476 667,569 (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

Branch Office:Kiribathgoda Branch Office:Kurunegala Branch Office: Kandy Udeshi City Shopping Complex, No. 6, 1st Floor, Ceybank House,

2nd Floor, 2-6, Union Assurance Bldg, # 88, Dalada Vidiya, No. 94, Makola Road, Rajapihilla Mawatha, Kandy. Kiribathgoda. Kurunegala. Tel. 081 4474118 Tel. 011 2908511 Tel. 037 2234777

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

Branch Office- Batticaloa Branch Office: Jaffna Branch Office:Vavuniya #22B Bar Road, 1st Floor, # 398/1, 1st Floor, # 60, Batticaloa. Hospital Road, 1st Cross Street, Tel: 065 2228029 Jaffna. Vavuniya. Tel: 021 2221614 Tel: 024 2226031

Branch office- Kollupitiya Branch Office:Badulla Branch Office: Wellawatte # 60,5th Lane, # 33/3, 2nd Floor, # 3-1/2, Collingwood Place, Colombo 03, Modern Complex, Badulla. Colombo 06. Tel: 011 3009826 Tel: 055 2222009

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.