Weekly Market Review. Week Ending 9 th September Market Review. Level 04, Millennium House, 46/58, Nawam Mw, Colombo 02

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1 Weekly Market Review 1 Asha Phillip Securities Ltd Weekly Market Review Asha Phillip Securities Ltd Week Ending 9 th September 2011 Level 04, Millennium House, 46/58, Nawam Mw, Colombo 02 Market Review The market opened the week by reflecting a buying sentiment amongst investors. The market recorded heavy selling during Tuesday to recover on Wednesday and maintained a flat movement till the end of the week. The market recorded heavy institutional activity with JKH been the hot pick for the institutional investors. An increase in investor activity was noticed throughout the week. The Diversified Holdings sector was the best performing sector for the week. The ASPI closed the week at 6,990.33, gaining points or 0.57% compared to the previous week, the MPI on the contrary dropped points or % to close the week at 6, The total market turnover for the week was LKR 19.7 billion, an increase of 2% compared to the previous week. John Keells Holdings PLC (4.2Bn), Blue Diamonds Jewellery [X] (1.4Bn) and Browns Investments Limited (874Mn) were the top contributors to the weekly turnover. The market activity increased by 130%, with 1.6 Billion shares changing hands, Blue Diamonds Jewellery [X] recorded the highest volumes traded for the week. Mr K D D Perera has acquired a further 9.2% of Hayleys PLC which led to increase his personal holding of Hayleys PLC to 34.5%. Therefore in line with the compliance rules of the SEC Mr K D D Perera has made a mandatory offer for Hayleys PLC, acting in concert with Royal Ceramics Lanka PLC, Vallibel One PLC and LB Finance PLC. Further, as a consortium they hold around 40% of the total shareholding of Heyleys PLC. The foreign investor participation decreased during the week, reordering a heavy net outflow of LKR 4.4Bn, which is an increase of 11,660% in the outflow compared to the previous week s net Outflow of LKR 37.8 Mn. The foreign investor contribution to the weekly turnover increased to 6.7% in comparison to the previous week s 2.88%.

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3 3 Asha Phillip Securities Ltd Weekly Market Review Crossings Market Announcement Capitalization of Reserves CFIN 3,383,333 ordinary voting shares of the company were listed on 5th September 2011, pursuant to a capitalization of reserves in the proportion of 1:30. Trade Finance and Investments Limited Offer for Subscription The CSE has approved in principle an application for listing the ordinary voting shares of the above company for a Diri Savi Board listing. Offer for subscription of 6 Mn shares at a price of LKR per share. Date of opening of the subscription list is 28th September 2011.

4 4 Asha Phillip Securities Ltd Weekly Market Review Cargills Agriculture and Commercial Bank C T Holdings PLC announced that an application made by its subsidiary Cargills (Ceylon) PLC and C T Holdings PLC as joint promoters to establish an Agricultural and Commercial Bank was granted provisional approval by the Bank Supervision Department of the Central Bank of Sri Lanka. The purchase of 51% of Peoples Media Network (PVT) Ltd East West Properties PLC has purchased 4.9Mn shares of Peoples Media Network (PVT) Ltd for a consideration of 49.3Mn; which represents 51% of the mentioned company. Economic Indicators

5 Asha Phillip Securities Ltd Weekly Market Review Inflation Crude Oil Prices (US $ per barrel) Tourist Arrivals Research Division Thakshila Hulangamuwa Pasindu Perera Vice President Business Development Manager - Research thakshi@ashaphillip.net pasindu@ashaphillip.net Lasantha Senanayake Research Analyst lasantha@ashaphillip.net Ranuka De Silva Research Analyst ranuka@ashaphillip.net 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. 5