The market continued with its previous day’s negative momentum across the day and closed the day recording negative closures on all indices. The main ASPI Index lost

21.97 points to close at 4,924.61, while the more liquid Milanka index dipped 15.39 points to close at 4,357.66.

The S&P SL20 Price Index lost 11.92 points and closed at

2,797.39. The market capitalization stands at LKR 1.88Tn.

The turnover for the day was LKR 332.7Mn which is an

11.98% decrease compared to the previous day. Dialog PLC, PLC and

Commercial Bank PLC (X) were the largest contributors recording turnovers of LKR 85Mn, LKR 55.3Mn and LKR

26.8Mn respectively. In addition DIAL.N recorded a crossing today which was LKR 46.5Mn in value.

A total of 25.6Mn shares were changed hands during the trading day which is an Increase of 79.73% against the previous day. PLC (13.7Mn), Panasian Power PLC (1.1Mn) and Richard Pieris and Company PLC

(0.71Mn) were the top traded counters, further capturing retailers’’ interest.

The price losers outnumbered the price gainers by

134:48. The market gainers were led by Industrial Asphalts PLC; on the contrary the losers were led by J.L.

Morison Sons & Jones PLC (X). The market continued to record a net foreign Inflow of LKR 79.4Mn.

Trade Share Turnover Company Code Vol Vol. (Rs) 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 DIALOG AXIATA 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

Fitch Affirms at 'BB-'; Outlook Stable Fitch Ratings has affirmed Sri Lanka's foreign and local currency IDRs at 'BB-'. The outlook for both ratings is stable.

The country ceiling has also been affirmed at 'BB-', and the short-term foreign currency IDR at 'B'. The ratings reflect Fitch's view that the authorities have taken the appropriate action to correct recent pressure on the balance of payments and place it on a more sustainable trajectory. Given the weakened state of Sri Lanka's external finances and a heavy external debt refinancing schedule through to 2013, the authorities' ability to persist with policies that address existing macroeconomic imbalances and improving external liquidity is crucial. Although Sri Lanka was able to record real GDP growth over 8% for the second consecutive year in 2011, such economic performance, coupled with policy missteps, resulted in the current account deficit rapidly widening to 7.8% of GDP from 2.2% in 2010. (LBO)

Sri Lanka power users asked to conserve energy

Power and Energy Ministry request that Sri Lanka's power users should cut energy use by 10 percent to help avoid power cuts until more rain comes in the inter monsoonal period. The ministry confirmed that continuous power supply and will be more comfortable if energy is conserved by another 5 percent. A Sri Lanka power ministry handout estimates that about 1.6 GigaWatt hours of energy from a daily demand of 32 GWh had been saved so far and entities that had large generators would be asked to generate power and provide them to the national grid. Sri Lanka's state-run power utility Ceylon Electricity Board is running on thermal maximum mode at a huge cost, losing 200 million rupees as prices are manipulated by the state. Hydro storage was falling and was now down to 301.6 GWh. May to July South-West monsoon this year, and both the South-West and North-East monsoons had failed. Inflows into during the year to June

2012 were down to 2123GWh, the lowest recorded over the last decade. (LBO)

House prices rose by 1% in June, says the Halifax UK house prices have risen by 1% in June compared with the previous month, but remained lower than a year earlier.

The Halifax, now part of the Lloyds Banking Group, expressed that the price of the average home was 0.5% lower than a year ago. This valued the average property in the UK at £162,417.The UK housing market has been relatively

stagnant in recent times owing to nervousness about the economy. (BBC)

Irish Republic 'encouraged' by successful bond auction

The Irish Republic, which received an 85bn euro (£68bn; $106bn) bank bailout in 2010, has returned to the bond

market after a near two-year absence. On Thursday, the country's debt agency raised 500m euros in a short-term debt

auction. The National Treasury Management Agency explained it was "encouraged" by the level of interest. The agency auctioned three-month Treasury bills at a yield of 1.8%, lower than the equivalent Spanish debt. (BBC)

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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

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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.