Market Indicators. Mkt Cap.(LKR Mn) 3,055,789 3,041, % 15.08% Volume (Mn) % Top 5 Gainers

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1 7-Jul-2017 Focus: Green end for the week Market started the week on a red note and indices moved between gains and losses during the week to mark a green end. Foreigners remained as net foreign buyers in all five days of the week. Highest turnover was recorded on Friday pertaining to crossings recorded by LION,BREW and JKH. Diversified Holdings sector contributed mostly to the market turnover during the week while Plantations sector became the highest gainer (+5.12%). RICH, CARG and LOLC moved up ASPI by points while AHPL, NEST and CCS dragged down the index by points. During the week ASPI was down by 10 points while S&P SL 20 was also down by 25 points. Market Indicators This Week Last Week % Change YTD ASPI 6,738 6, % 8.79% S&P SL 20 3,909 3, % 12.57% For. Pur(LKR Mn) 2,054 2, % 64,835 For.Sales(LKR Mn) 1,503 1, % 42,285 Mkt Cap.(LKR Mn) 3,055,789 3,041, % 15.08% Turnover (LKR Mn) 3,478 4, % Volume (Mn) % PE % PBV % Daily avg.turnover(lkr Mn) 696 1, % Rupee slightly depreciated during the week closed at LKR per USD. One-year T-bill rate slightly decreased to close at 10.45%. Gold prices decreased to close at $/Oz and oil price decreased to close at 44.39$/Barrel. Daily avg.for.pur(lkr Mn) % Daily avg.for.sales(lkr Mn) % YTD Net Foreign inflow/(outflow) - LKR Bn Top 5 Turnover ASPI, S&P SL 20 and Volume Company This Week Last Week % Change Price (LKR) ,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 JKH.N 922,074, ,730,296-1% RICH.N 215,737,984 38,412, % LION.N 156,370, , % HEMS.N 151,760, ,902,882-58% BREW.N 147,651, , % Top 5 Gainers Company This Week Last Week % Change Volume ASPI S&P SL 20 UDPL.N % 33,599 BLUE.X % 597,441 TAP.N % 629,098 ASPI Contributors for the Week RICH.N % 18,490,555 Points RICH.N 12 LLMP.X % 1,210, CARG.N LOLC.N BIL.N LIOC.N Top 5 Losers Company This Week Last Week % Change Volume KZOO.N % 23,269 KDL.N % JKH.N SLTL.N CCS.N NEST.N AHPL.N NIFL.N % 2,594 MFL.N % 12,113 TFC.X % 185,694 Top 5 Sector Gainers Research Contact Sector This Week Last Week Gain % Shehan Bartholomeuz PLANTATIONS % Gayan Rajakaruna INVESTMENT TRUST 13, , % Hiruni Perera POWER & ENERGY % STORES SUPPLIES 27, , % Important Disclosure and Contact Details: Page 5 FOOTWEAR TEXTILE 1, %

2 LKR per kg LKR//US $ % Billions Sri Lanka Equity Turnover and Foreign Trading Local Market ASPI S&P SL 20 % change 6, % 3, % 0.7 AWPR (Weekly) 10.15% 1.50% 0.5 USD:LKR % JPY:LKR EUR:LKR % % /3/2017 7/4/2017 7/5/2017 7/6/2017 7/7/2017 Foreign Purchase Foreign Sales Turnover World Market % change WTI Crude Oil (USD/barrel) % T-Bill and AWPLR Gold (USD/Ounce) % S & P % MSCI AC Index % /7/2016 9/7/ /7/2016 1/7/2017 3/7/2017 5/7/2017 7/7/2017 AWPLR (LHS) T Bill Rate- 12 months (RHS) Sector Multiples Sector PER(x) PBV(x) Banks, Finance and Insurance Beverage, Food and Tobacco Chemicals and Pharmaceuticals Construction and Engineering Diversified Footwear and Textiles Exchange Rate Healthcare Tea and Rubber Prices Telecommunication /7/2016 9/7/ /7/2016 1/7/2017 3/7/2017 5/7/2017 7/7/2017 Latex Rubber Low Grown Tea Source: Rubber Development Department of Sri Lanka/Forbes & Walker Tea Brokers Hotels and Travels IT Investment Trust Land and Property Manufacturing Motors Oil Palm Plantations Power and Energy Services Stores and Supplies Trading Quote of the Week: It s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. - Warren Buffett Page 2

3 Weekly Crossings Dividend Announcements Security No Price(LKR) Quantity Security DPS(LKR) Type XD Date Monday JKH ,021 AAF 0.07 Final 13/7/2017 HHL ,873 AINS 0.40 Interim 17/7/2017 DIAL ,005,610 Tuesday HNB ,000 COMB ,927 Wednesday COMB ,838 DIAL ,862,001 HHL ,063 CCS ,000 Thursday AEL ,000 REXP ,775 Friday BREW ,300 LION ,094 JKH ,040 Corporate Disclosure Softlogic Holdings PLC (SHL) announced that Softlogic Retail (Private) Limited (a subsidiary of the company) has entered into a share and purchase agreement on 30th june 2017 in order to acquire all of the shares in issue of Suzuki Motors Limited, at a total consideration of Rupees Two Hundred and Fifty Million ( LKR 250, 000, 000). CSE CCorporate Announcements Kotagala Plantations PLC (KOTA) announced that in terms of section 8 of the listing rules, the parent company of KOTA, Lankem Plantation Holdings Ltd has changed its name to "Consolidated Tea Plantation Limited" with the effect from 29th June Page 3

4 Corporate News The Asian Development Bank has doubled its assistance to Sri Lanka, aiming to give up to a billion US dollars annually from 2017 with the government proposing railways, ports and roads as potential sectors to be developed. A finance ministry statement said that currently, the ADB provides around USD 400 to 500 million in annual assistance for road development, sanitation, fisheries, irrigation and skills and educational sector development projects. - economynext The Extra Ordinary General Meeting (EGM) held by Hatton National Bank PLC with regard to the issuance of shares by way of a Rights Issue was successfully concluded yesterday. As per the resolution passed by majority shareholders, the bank will issue one new share for every six shares held by ordinary voting and ordinary non-voting shareholders. The shares to be provisionally allotted to each shareholder would be based on the shares held as at the end of trading on the date of the EGM. - Daily Ft LB Finance accomplished a stellar performance overall for the year ended 31 March as total assets crossed the Rs. 100 billion milestone to reach Rs billion, a growth of 21.6% over the previous year.the company has been able to record compounded annual growth rates (CAGR) of 19.2%, 17.3% and 19.6% respectively in total assets, customer deposits and loans and advances over the past five years. Profit before tax on financial services grew by 17%, reaching Rs. 6.9 billion for the financial year 2016/17.-Daily Ft Economic News The rupee ended weaker on Tuesday as importer dollar demand outpaced greenback sales by exporters and banks, dealers said. Expectations of a rise in imports also weighed on the local currency, they added.the spot rupee ended at /70 per dollar, weaker from Monday s close of /63. The spot rupee resumed trading on June 19 for the first time since 5 May, when the Central Bank fixed its reference rate at We have seen some demand from state banks to cover oil bills, and there is demand from the construction sector as well, said a currency dealer, requesting anonymity. -Daily Ft Moody s Investor Service yesterday gave Sri Lanka s new Inland Revenue Act a thumbs up, saying it paves the way for revenue reforms and IMF loan disbursement, which would be a credit positive. On 19 June, Sri Lanka s (B1 negative) Government made public a new income tax bill that will replace the existing law with a more efficient, modern and broad-based tax framework, it said in its latest report. The proposed revisions to the Inland Revenue Act, which were gazetted by the Department of Government Printing, will contribute to an increase in Sri Lanka s very low level of government revenues, a key constraint on the sovereign credit profile. -Daily Ft The Sri Lankan government is to sign a deal with the International development Agency of the World Bank for a loan of US$75 million to modernise its financial sector. The Cabinet of Ministers this week approved the decision to get the loan, equivalent to 55.4 million SDR (special drawing rights), Gayantha Karunathilleka, cabinet spokesman and Minister of Land and Parliamentary Reforms, said. The interest rate on the loan had increased to 3.36% from 3.20%, when the original talks had been held, he said. - economynext Global Buzz Asian stocks climbed as Japanese and Hong Kong markets staged a turnaround. Geopolitical concerns in the wake of North Korea s missile test remained, though demand for haven assets ebbed. Japanese and Hong Kong equities reversed early declines, led by gains in automakers and technology companies. The yen and gold pared gains even amid lingering concerns that North Korea is closer to building a device capable of hitting the U.S. Oil retreated after climbing for eight straight sessions. U.S. equity and bond markets are set to reopen after the July 4 holiday The U.S. confirmed the rocket launched on July 4 was an intercontinental ballistic missile, with Secretary of State Rex Tillerson calling it a new escalation of the threat to the U.S. and its allies that would be brought before the United Nations Security Council.- Bloomberg Page 4

5 Head Office Branches LOLC Securities Limited No.481, T.B.Jayah Mawatha Colombo 10, Sri Lanka Tel: Fax: Kurunegala Branch No 06, 1st Floor, Union Assurance Building, Rajapilla Mawatha Kurunegala, Sri Lanka Tel: Fax: Matara Branch Kandy Branch 1 st floor, 88, Dalada Weediya, E.H. Cooray Towers, Kandy. No 24, Anagarika Dharmapala Mw. Matara, Sri Lanka Tel: Contact Us Sriyan Gurusinghe Manjula Kumarasinghe Sales Head Office Maniesh Rodrigo Imesh Fernando Naleen Sadeesh Damith Chaminda Dushan Rajaguru Dinuka Niwantha Niraj Jayamanne John Ravindu Ushan De Silva CEO/Managing Director / COO - Sales & Marketing / Assistant General Manager- Sales / Assistant Manager Sales / / / / / / Investment advisor / / sriyang@lolcsecurities.com manjulak@lolcsecurities.com manieshr@lolcsecurities.com imeshf@lolcsecurities.com naleensa@lolcsecurities.com damithc@lolcsecurities.com dushanr@lolcsecurities.com dinukan@lolcsecurities.com nirajj@lolcsecurities.com johnr@lolcsecurities.com ushand@lolcsecurities.com Kurunegala Branch Rohana Chandrasiri Assistant General Manager / rohanac@lolcsecurities.com Anurudda Rajakaruna / anuruddhar@lolcsecurities.com Bandula Senarathne Investm / bandulase@lolcsecurities.com Nuwan Fernando / nuwanfe@lolcsecurities.com Matara Branch Bimal Malinda Ahamed Aadil Thilina Sameera Branch Head / bimalm@lolcsecurities.com / aadila@lolcsecurities.com / thilinawa@lolcsecurities.com Kandy Branch Samadhi Jayasinghe Manager Institutional Sales samadhij@lolcsecurities.com RESEARCH Shehan Bartholomeuz Head of Research / Gayan Rajakaruna Senior Research Analyst / Hiruni Perera Associate Research Analyst / shehanb@lolcsecurities.com gayanraj@lolcsecurities.com hirunipe@lolcsecurities.com General Disclaimer: LOLC Securities Limited is a company incorporated in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka to operate as a stockbroker/stock dealer in Sri Lanka. LOLC Securities Limited is a trading member of Colombo Stock Exchange. This research is based on information from sources that LOLC Securities Limited believes to be reliable. Whilst reasonable care has been taken to ensure accuracy of the information presented in the research, LOLC Securities Limited does not give a guarantee on the accuracy of the information presented in the paper nor will take the responsibility on investment decisions taken based on the information provided by the research and hence LOLC Securities Limited nor its employees accepts any liability whatsoever for any loss arising from investments decisions taken using the information provided in this paper. The reader also should note this paper does not give recommendations to any particular category of investors and investor should consult investment advisors for further clarifications regarding risks involved in investing in equity market. Investing in securities has inherent risks with no guaranteed return and price may be subjected to significant volatilities. No part of this report should be considered as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. LOLC Securities Limited or its employees may or may not hold positions in the securities discussed in the research and the information provided in the research should not be construed as a buy or sell instruction for any securities mentioned in the research, Unless otherwise specifically mentioned. This research is intended for general use for clients of LOLC Securities Limited and must not be copied in whole or in part or distributed to any third party for commercial use without permission from LOLC Securities Limited. If the reader is not the intended recipient please inform LOLC Securities Limited immediately by return to research@lolcsecurities.com. LOLC Securities Limited s other staff including sales people, traders and other professionals may provide oral or written market commentaries or trading strategies to our clients which reflect opinions which are contrary to the opinions expressed in this research which may be influenced by different circumstances. OLC SEC Research Reports are also available at Bloomberg LOLC <GO> Page 5