Index 06th Aug 05th Aug Change % Change The bourse concludes within the positive terrain… ASPI 6,121.45 6,114.18 7.27 0.12% The Market recovered to some extent from its bear run as S&P SL20 3,477.04 3,471.47 5.57 0.16% Market Statistics 06th Aug 05th Aug the indices reversed the gear, to conclude within the green Value of Turnover(Rs.) 531,860,948 288,422,418 terrain; this was having lost 42 points during the previous Domestic Purchases 168,004,358 174,315,050 trading day. The benchmark ASPI gathered 7.27 points or

Domestic Sales 318,363,207 145,061,106 0.12% to conclude at 6,121.45. The S&P SL20 too closed Foreign Purchases 363,856,590 114,107,369 positive gaining 5.57 points or 0.16% to settle the day at Foreign Sales 213,497,741 143,361,313 3,477.04. As at the day’s close, the total market Volume of Turnover (No.) 23,209,194 16,202,478 capitalization stood at LKR 2.36Tn, charting a year to date PER 16.20 16.18 gain of 8.68%. The market PER & PBV stood at 16.20 and 2.18 PBV 2.18 2.17 respectively.

The day witnessed an aggregate turnover of 531.86Mn, 7,000 6,037.22 6,156.60 6,155.82 6,114.18 6,121.45 6,000 indicating a rise of 84.40% against its previously recorded;

5,000 nearly 55% of this was accounted by the top three contributors for the day. PLC (JKH) 4,000 3,000 dominated the turnover providing LKR 163.88Mn backed by 3,432.93 3,477.57 3,490.57 3,471.47 3,477.04 2,000 an off-board block where 353K shares were crossed at price

1,000 LKR 268/-. Having accounted to nearly 31% of the daily aggregated turnover, JKH closed the day at LKR 270/- (up by 0 31stSch890111149 July 01st Aug 02nd Aug 05th Aug 06th Aug LKR 2.10/- or 0.78%). Chevron Lubricants Lanka PLC (LLUB) ASPI S&P SL20 stood next in line contributing LKR 63.05Mn, where most of

it flowed by way of a negotiated transaction of LKR 46.04Mn, resulted by a quantity of 149K shares being

1,800 80 blocked at price LKR 308.50/-. As at the daily closure, LLUB 1,600 70 settled at its intraday peak of LKR 308.50/- gaining LKR 2.50/- 1,400 60 or 0.82 %. Nestle Lanka PLC (NEST) added LKR 62.67Mn to 1,200 50 the daily turnover; NEST was also supported by an off- 1,000 40 800 market transaction worth LKR 45Mn, where 20K shares 30 600 were dealt at LKR 2,250/-. Furthermore, NEST witnessed 20 400 significant foreign interest during the day, to record a net 200 10 foreign inflow of LKR 51.23Mn. 0 0 Rs.Mn 31st July 01st Aug 02nd Aug 05th Aug 06th Aug Volume Mn

Turnover Foreign Purchases Volume

Under the sectorial review, Diversified Holdings (DIV) dominated the list, providing LKR 188.89Mn. Bank Finance & Insurance (BFI) sector too provided a notable LKR 110.71Mn; further, BFI managed to capture the highest investor interest during the day noting 1,654 trades which resulted in a total quantity of 8.65Mn shares changing hands.

During the day, a total of 23.21Mn shares changed hands, indicating an increase of 43.24% against the previous trading day. The top traded counters for the day were Central Investments & Finance PLC (CIFL), PC House PLC (PCH) & Holdings PLC (EXPO) with 3.92Mn, 3.39Mn & 1.98Mn shares respectively being traded. Notably, witnessing significant investor interest CIFL closed at its highest traded price for the day LKR 1.20/- (up by LKR 0.20/- or 20%). Furthe r on, the limelight fell on Textured Jersey Lanka PLC capturing the highest retailer interest during the day charting 444 trades whilst being amidst the top traded counters during the day with a volume of 1.35Mn shares changing hands. TJL reached its new 52 week apex (LKR 13.70/-) within the day gaining nearly 4%, however settled the trading day slightly lower at LKR 13.50/- (up by LKR 0.30/- or 2.27%).

Price losers outstripped the price gainers by 105:67; where, SMB Leasing PLC (14.29%) took the lead under the list of gainers and Beruwela Walk Inn PLC (-18.24%) led the price losers. Foreign participants were bullish during the day, where foreign buying of LKR 363.86Mn overtook foreign selling which amounted to LKR 213.50Mn; this added LKR 150.36Mn to the year to date net foreign inflow of LKR 16.10Bn. The local FOREX market for the day closed with, the USD selling at LKR 133.21/- and buying LKR 130.01/-.

Market Capitalisation Company Name Price Issued Qty Mkt Capitalization As a % (Total) JOHN KEELLS HOLDINGS PLC 269.20 857,775,904 230,913,273,357 9.70 CEYLON TOBACCO COMPANY PLC 1,200.00 187,323,751 224,788,501,200 9.44 NESTLE LANKA PLC 2,049.00 53,725,463 110,083,473,687 4.62 COMMERCIAL BANK OF CEYLON PLC 119.60 794,101,192 94,974,502,563 3.99

CARSON CUMBERBATCH PLC 411.50 196,386,914 80,813,215,111 3.39

SRI LANKA TELECOM PLC 39.10 1,804,860,000 70,570,026,000 2.96 THE BUKIT DARAH PLC 690.50 102,000,000 70,431,000,000 2.96 PLC 8.60 8,143,778,405 70,036,494,283 2.94 DISTILLERIES COMPANY OF SRI LANKA PLC 190.00 300,000,000 57,000,000,000 2.39 AITKEN SPENCE PLC 122.00 405,996,045 49,531,517,490 2.08

Highest Volume Highest Turnover

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

Vol. Vol. Vol.

CENTRAL INVESTMENTS & FINANCE PLC 3,915,852 4,540,736.40 JOHN KEELLS HOLDINGS PLC 84 610,938 163,878,643.90 PC HOUSE PLC 3,390,051 3,729,396.20 CHEVRON LUBRICANTS LANKA PLC 25 204,412 63,052,075.00 EXPOLANKA HOLDINGS PLC 1,984,929 13,345,017.80 NESTLE LANKA PLC 39 28,820 62,665,091.00 TEXTURED JERSEY LANKA PLC 1,353,414 18,254,936.70 DFCC BANK 22 238,990 31,054,629.00 NATION LANKA FINANCE PLC 1,338,761 10,549,081.00 TEXTURED JERSEY LANKA PLC 444 1,353,414 18,254,936.70

SIERRA CABLES PLC 1,025,578 2,153,714.60 EXPOLANKA HOLDINGS PLC 43 1,984,929 13,345,017.80

MULLER AND PHIPPS (CEYLON) PLC 891,977 1,190,828.00 SANASA DEVELOPMENT BANK PLC 194 138,722 11,778,280.70

ASIA ASSET FINANCE PLC 680,298 1,342,121.40 PLC 61 528,107 10,937,542.10 PEOPLE'S LEASING & FINANCE PLC 644,942 9,319,223.80 CEYLON TOBACCO COMPANY PLC 24 8,942 10,731,251.00 JOHN KEELLS HOLDINGS PLC 610,938 163,878,643.90 NATION LANKA FINANCE PLC 259 1,338,761 10,549,081.00

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 0.70 0.80 0.10 14.29 0.80 0.70 202,108 151,686.40 HUNAS FALLS 49.50 54.80 5.30 10.71 54.80 49.60 207 10,272.40 CIFL 1.00 1.10 0.10 10.00 1.20 1.10 3,915,852 4,540,736.40 SOFTLOGIC CAP 5.10 5.60 0.50 9.80 5.60 5.60 101 565.60

ACL PLASTICS 90.00 98.30 8.30 9.22 98.30 90.00 11,920 1,073,630.00

Top Losers Company Name VWA Prev VWA Days Change Change High Low No. of Turnover Close Close (Rs.) % (Rs.) (Rs.) Shares (Rs.) BERUWELA WALKINN 76.30 62.00 (14.30) (18.74) 76.30 62.00 3 200.30 CDB [X] 36.40 33.50 (2.90) (7.97) 36.30 33.40 51 1,706.30

ANILANA HOTELS 8.90 8.20 (0.70) (7.87) 8.70 8.10 27,518 229,979.70

ASIAN ALLIANCE 103.00 96.10 (6.90) (6.70) 96.10 96.00 800 76,861.50 CONVENIENCE FOOD 208.40 195.00 (13.40) (6.43) 195.00 195.00 253 49,335.00

Market Highlights - Sector Wise

Sector Price Index Turnover Sector

Today Privious Value (Rs) Volume Trades P/E PBV BANK FINANCE AND INSURANCE 13,105.47 13,083.47 110,710,459 8,652,241 1,654 9.80 1.70 BEVERAGE FOOD AND TOBACCO 20,503.71 20,324.74 89,489,935 573,257 247 23.00 6.60 CONSTRUCTION AND ENGINEERING 2,825.72 2,811.41 15,646,229 566,914 90 13.80 1.60 CHEMICALS AND PHARMACEUTICALS 6,885.65 6,864.54 3,848,140 990,710 109 7.90 1.40 DIVERSIFIED HOLDINGS 1,962.42 1,966.21 188,890,356 4,016,779 388 24.40 2.40 FOOTWEAR AND TEXTILE 818.93 830.24 253,604 38,031 60 0.00 1.00

HOTELS AND TRAVELS 3,252.02 3,249.89 3,131,221 282,803 243 31.60 1.90

HEALTH CARE 650.99 661.26 2,009,702 101,400 63 25.30 2.50 INVESTMENT TRUSTS 18,724.19 18,765.29 1,701,603 253,090 68 30.50 1.40 INFORMATION TECHNOLOGY 50.65 51.21 3,784,662 3,399,262 74 8.50 0.80 LAND AND PROPERTY 570.22 570.24 3,531,761 444,710 174 9.70 0.90 MANUFACTURING 3,055.03 3,041.41 96,997,714 3,250,385 819 13.00 1.90 MOTORS 15,641.51 15,773.88 1,079,441 5,816 38 3.90 1.30 OIL PALMS 96,686.82 96,209.64 426,939 618 11 83.50 6.90 POWER & ENERGY 114.07 114.66 6,645,463 325,312 159 15.00 1.50

PLANTATIONS 726.29 727.05 1,621,390 111,572 145 9.50 0.80

STORES SUPPLIES 23,625.09 23,526.19 365,345 1,191 8 32.50 2.10

SERVICES 23,771.48 24,398.11 29,110 4,524 26 9.30 1.80 TELECOMMUNICATIONS 157.24 158.95 1,067,946 118,609 29 14.80 1.50 TRADING 15,367.97 15,345.28 626,477 71,920 43 12.30 1.50

Exchange Rates Indicative Rates

06th August 05th August 06th August 05th August Currency Currency Buying Selling Buying Selling Ind: Value Ind: Value

Dollar (USA) 130.01 133.21 130.00 133.20 Yuan (China) 21.49 21.48

Pound (UK) 199.09 204.94 198.05 203.87 Rupee (India) 2.16 2.15

Euro (EU) 171.57 177.32 171.72 177.47 Won (Korean) 0.12 0.12 Franc (Sw itzerland) 139.26 144.66 138.83 144.20 Dinar (Kuw ait) 462.87 462.81 Dollar (Canada) 124.68 129.22 124.22 128.74 Ringgit (Malay) 40.75 40.47 Dollar (Australia) 115.22 119.72 114.39 118.87 Rial (Oman) 341.81 341.80 Dollar (Singapore) 102.04 105.63 101.61 105.18 Riyal (Qatar) 36.14 36.14

Yen (Japan) 1.32 1.37 1.31 1.35 Riyal (KSA) 35.09 35.09

Dirham (UAE) 35.83 35.83

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 - - Weekly 11.79 11.79 Monthly 10.43 10.56

182 Days - - Monthly 12.47 13.11 6 Months 10.61 10.61

364 Days 10.57 10.52 6 Months 13.59 13.89 1 Year 13.36 13.61 Colombo Consumers’ Price Index (CCPI)

2013 2012 Description May June July May June July Year on Year Change 7.30 6.80 6.10 7.00 9.30 9.80

Annual Average Change 8.80 8.60 8.30 5.60 5.80 6.00

SLIBOR & LIBOR

Description Over Night 7 Days 1 M 3 M 6 M 12 M SLIBOR (06th August) (%) 8.75 9.25 10.15 11.39 12.19 12.86 LIBOR - GBP (05th August) (%) 0.47875 0.48563 0.49250 0.51125 0.59050 0.87125

LIBOR - USD (05th August) (%) 0.11860 0.15033 0.18603 0.26540 0.39550 0.66639

(CBSL.lk, Global-rates.com, CBSL )

Country Foreign Markets- Index 5-Aug-13 % Change 2-Aug-13 % Change 1-Aug-13

USA Dow Jones Indus. AVG 15,612.13 -0.30% 15,658.36 0.19% 15,628.02

USA NASDAQ Composite Index 3,692.95 0.09% 3,689.59 0.38% 3,675.74 Europe Euro Stoxx 50 Pr 2,809.08 -0.07% 2,811.00 0.08% 2,808.64

UK FTSE 100 6,619.58 -0.43% 6,647.87 -0.51% 6,681.98

Japan Nikkei 225 14,258.04 -1.44% 14,466.16 3.29% 14,005.77 Hong Kong Hang Seng Index 22,222.01 0.14% 22,190.97 0.46% 22,088.79 China CSI 300 Index 2,278.33 1.38% 2,247.26 0.08% 2,245.36

Pakistan Karachi 100 Index 22,701.30 -1.69% N/A N/A 23,091.86

India BSE Sensex 30 Index 19,182.26 0.10% 19,164.02 -0.79% 19,317.19 Singapore Straits Times Index 3,241.79 -0.38% 3,254.13 0.33% 3,243.29 Malaysia FTSE Bursa Malaysia EMAS 12,429.17 0.20% 12,404.58 0.29% 12,368.98

Bangladesh DSE General Index DGEN 4,342.31 N/A N/A N/A N/A

Mongolia MSE Top 20 Index 14,273.52 -0.02% 14,276.57 -0.62% 14,365.05 Bloomberg

Rubber Prices - 01 August 2013 World Commodity Prices Grade Price Range (Rs) Commodity 6-Aug-13 5-Aug-13 2-Aug-13 LC No.1X 400.00 - 400.00 Brent Crude Oil 108.70 108.95 109.54

LC No.1 395.00 - 400.00 WTI Crude Oil 106.56 106.94 107.89

LC No.2 375.00 - 385.00 Gold 1,302.60 1,310.60 1,311.00 LC No.3 345.00 - 350.00 Silver 19.71 19.90 19.62 LC No.4 320.00 - 328.00 Copper 3.17 3.17 3.16 SC (Br) No.1 315.00 - 315.00 Tourist Arrivals to Sri Lanka RS Sheet No.1 400.00 - 405.50 RS Sheet No.4 350.00 - 350.00 Month 2011 2012 2013 January 74,197 85,874 97,411 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 : 28 Sale No : 27 August 72,463 79,456 Uva High 358.85 338.27 September 60,219 71,111 Western High 395.90 377.35 October 69,563 80,379 Uva Medium 378.66 360.12 November 90,889 109,202

Western Medium 351.92 348.49 December 97,517 122,252

Low Grow n 444.61 433.79 Total 855,975 1,005,605 512,281

Sri Lanka Treasuries yields edge up

Sri Lanka's12-month Treasuries yield edged up 05 basis points to 10.57 percent at Wednesday's auction. There were no offers or sales of three and six month bills. The debt office offered 12.0 billion rupees in bills for rollover and sold

17.6 billion rupees in bills. (lankabusinessonline.com)

Sri Lanka deficit to move down with lower rates, PPPs

Sri Lanka's budget deficit will narrow and debt will slow with falling domestic interest rates and public private partnerships in infrastructure . In 2014 the budget deficit is likely to be about 5.2 percent of gross domestic product. Private investments in infrastructure would also increase. The Colombo port has already seen an investment by a port company. Public Private Partnerships will also increase in the future, especially in roads.

(lankabusinessonline.com)

Sri Lanka debt sales to expand 3-fold in five years

Sri Lanka domestic and foreign currency issues will expand three fold over the next five years. The excitement in the bond market is a step in the right direction for Sri Lanka to become a financial hub for South Asia. Sri Lanka saw a surge in listed bond issues as they were made tax free. Banks were among the top buyers of debt issues by some highly rated corporates as small investors were kept out with a 10,000 dollar minimum threshold.

(lankabusinessonline.com)

Australia cuts key interest rate to record low

Australia's central bank has cut its benchmark interest rate to a new record low, in an attempt to spur a fresh wave of economic growth. The Reserve Bank of Australia (RBA) cut its key rate to 2.5% from 2.75%.Last week; the government cut its growth forecasts and warned that unemployment in the country could rise amid slowing growth.

The rate cut comes just days after Prime Minister called a general election for 7 September. The state of the economy is expected to be a key poll issue, along with asylum and climate change. Australia's economic growth over the past few years has been powered mainly by the success of its resources sector. Demand from countries such as

China resulted in a commodities boom, which helped the country sustain its growth even through the global financial crisis. However growth in those economies has slowed recently, driving down demand for commodities as well as their prices. That led to the government lowering its forecast for growth. On Friday, it said that it now expected the economy to grow by 2.5% in the current financial year, down from its previous projection of 2.75%.

(bbc.co.uk)

UK house prices rising steadily

The UK housing market is continuing to see prices and activity rise. Prices in the three months to July rose by 2.1% compared with the previous three months, with prices up 0.9% in July itself. Prices in the three months to July were up 4.6% from a year earlier, the highest annual rate since August 2010. Sales also picked up, with transactions up 6% in the first half of the year. (bbc.co.uk)

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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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