Week ending 30-Mar 23-Mar +/- ASPI 6, , % S&P SL20 3, , % Banking & Finance 17, ,

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1 (Turnover LKR Bn) ASPI ACUITY STOCKBROKERS RESEARCH SRI LANKA EQUITIES Weekly Market Turnover hits 6-Year High Indices vs. Turnover (26 th Mar 29 th Mar) LKR Records Highest Appreciation for 2018 YTD 6,520 6,500 ASPI S&P SL20 3,700 3,680 ASPI 0.51% S&P SL % The Bourse reversed Cont. P2 Foreign Investors Closed the Week in... Cont. P3 Equity markets received a boost Cont. P4 Economic Snapshot P5 6,480 6,460 6,440 6, ,660 3,640 3,620 3, Mar 27-Mar *28-Mar 29-Mar 26-Mar 27-Mar *28-Mar 29-Mar S&P SL20 *Turnover of LKR13.4 Bn for 28/03/2018 not displayed KEY STATISTICS Week ending 30-Mar 23-Mar +/- ASPI 6, , % S&P SL20 3, , % Banking & Finance 17, , % Food & Beverage 23, , % Diversified 1, , % Hotel & Travel 2, , % Plantations % Manufacturing 3, , % Turnover (LKR Bn) % Foreign Buying (LKR Mn) 4, , % Foreign Selling (LKR Mn) 14, , % Daily Average Turnover (LKR Bn) % Daily Average Foreign Buying (LKR Mn) 1, % Daily Average Foreign Selling (LKR Mn) 3, % TOP 10 GAINERS TOP 10 LOSERS Code Opening Closing WoW % Change NUWARA ELIYA NEH N % BIMPUTH FINANCE BLI N % ASIRI ASIRN % HUNTERS HUNTN % CHEMANEX CHMXN % SWARNAMAHAL FIN SFS N % MULLERS MULLN % ODEL PLC ODELN % RAMBODA FALLS RFL N % ASIA ASSET AAF N % Code Opening Closing WoW % Change COLOMBO TRUST CALFN % BLUE DIAMONDS[NV] BLUEX % OFFICE EQUIPMENT OFEQN % KELSEY KDL N % C T LAND CTLDN % SIGIRIYA VILLAGE SIGVN % CEYLON PRINTERS CPRTN % BANSEI RESORTS BRR N % AMANA TAKAFUL ATL N % PEOPLE'S MERCH PMB N % 1

2 ACUITY STOCKBROKERS RESEARCH SRI LANKA EQUITIES Market Review Indices The Bourse reversed the negative trend & ended on a positive note this week as the ASPI increased by points (or +0.51%) to close at 6, points, while the S&P SL20 Index also increased by points (or 0.73%) to close at 3, points. Turnover & Market Capitalization LOLC was the highest contributor to the week s turnover value, contributing LKR12.85Bn or 66.3% of total turnover value. Bukit Darah followed suit, accounting for 8.97% of turnover (value of LKR1.74Bn) while Carsons contributed LKR0.83Bn to account for 4.28% of the week s turnover. Total turnover value amounted to LKR19.39Bn (cf. last week s value of LKR3.64Bn), while daily average turnover value amounted to LKR4.85Bn ( % W-o-W) compared to last week s average of LKR 0.73Bn. Market capitalization meanwhile, increased by 0.83% W-o-W (or LKR 25.07Bn) to LKR 3, Bn cf. LKR 3,007.64Bn last week. Liquidity (in Value Terms) The Banking, Finance & Insurance Sector was the highest contributor to the week s total turnover value, accounting for 71.98% (or LKR 13.95Bn) of market turnover. Sector turnover was driven primarily by LOLC, Sampath Bank & Commercial Bank which accounted for 97.38% of the sector s total turnover. The Diversified Sector meanwhile accounted for 13.87% (or LKR 2.69Bn) of the total turnover value with turnover driven primarily by Carsons, Aitken Spence, JKH, Hemas Holdings & Richard Pieris which accounted for 90.37% of the sector turnover. The Oil Palms Sector was also amongst the top sectorial contributors, contributing 8.97% (or LKR 1.74Bn) to the market driven by Bukit Darah which accounted for 99.99% of the sector turnover. Liquidity (in Volume Terms) The Banking, Finance & Insurance Sector dominated the market in terms of share volume, accounting for 61.65% (or Mn shares) of total volume, with a value contribution of LKR 13.95Bn. The Diversified Sector followed suit, adding 20.26% to total turnover volume as 72.35Mn shares were exchanged. The sector s volume accounted for LKR2.69Bn of total market turnover value. The Land & Property Sector meanwhile, contributed 26.36Mn shares (or 7.38%), amounting to LKR0.30Bn. Top Gainers & Losers Nuwara Eliya was the week s highest price gainer; increasing 22.4% W-o-W from LKR to LKR Bimputh Finance gained 19.6% W-o-W to close at LKR Asiri Hospitals(+19.6% W-o-W) and Hunters (+16.5% W-o-W) were also amongst the gainers. Colombo Trust was the week s highest price loser, declining 31.5% W-o-W to close at LKR25.00 while Blue Diamonds [NV] (-25.0% W-o-W), Office Equipment (-21.4% W-o-W), Kelsey Developments (-15.4% W-o-W) were also amongst the top losers over the week. TOP 10 TURNOVERS Code Opening Closing Value (Rs. Mn) *LOLC LOLCN , BUKIT DARAH BUKIN , CARSONS CARSN AITKEN SPENCE SPENN SAMPATH SAMPN JKH JKH N HEMAS HOLDINGS HHL N MILLENNIUM HOUSE MHDLN RICHARD PIERIS RICHN COMMERCIAL BANK COMBN *Purchase of 142.4Mn shares of LOLC. N(~30% of the Issued Cap.) by LOLC Holdings(Pvt Ltd) from ORIX corporation, Japan. 2

3 LKR. Mn LKR. Mn ACUITY STOCKBROKERS RESEARCH SRI LANKA EQUITIES Market Review (Cont d) COMMERCIAL BANK SWARNAMAHAL FIN MELSTACORP NATION LANKA JKH KELANI CABLES SAMPATH CARSONS BUKIT DARAH* RICHARD PIERIS* Net Foreign Purchases (23 Mar-29 Mar) Volume Change ('000s) - 1,100 2,200 3,300 4,400 5,500 Net Foreign Sales (23 Mar-29 Mar) Volume Change ('000s) (1,000) (800) (600) (400) (200) - NAWALOKA CITRUS LEISURE LION BREWERY NATIONS TRUST BROWNS INVSTMNTS BROWNS CAPITAL LAUGFS GAS[X.0000] ASIRI AITKEN SPENCE* *Volume change of Richard Pieris(13.8Mn shares),bukit Darah(8.7 Man shares),lolc(142.5mn shares) & Aitken Spence(8.14Mn shares)from 23 rd Mar 29 th Mar not displayed. Foreign investors closed the week in a net selling position with total net outflows amounting to LKR 9.87Bn relative to last week s total net inflow of LKR 0.11Bn ( % W-o-W). Total foreign purchases increased by % W-o-W to LKR 4.69Bn from last week s value of LKR 1.22Bn, while total foreign sales amounted to LKR 14.55Bn relative to LKR 1.11Bn recorded last week ( % W-o-W). In terms of volume Richard Pieris & Bukit Darah led foreign purchases while LOLC & Aitken Spence led foreign sales. In terms of value Bukit Darah & Carsons led foreign purchases while LOLC & Aitken Spence led foreign sales. LOLC* Net Foreign Purchases (By Transaction Value) Foreign Holding (%) Net Change Value* 29/03/18 23/03/18 (LKR. Mn) BUKIT DARAH 30.14% 21.60% 8,705,336 1, CARSONS 22.87% 20.25% 5,152, SAMPATH 22.45% 21.70% 1,633, RICHARD PIERIS 73.63% 72.95% 13,805, JKH 58.77% 58.73% 539, KELANI CABLES 4.20% 1.57% 575, HNB 35.39% 35.37% 90, COMMERCIAL BANK 34.77% 34.76% 101, MELSTACORP 26.30% 26.28% 145, CEYLON TOBACCO 97.51% 97.51% 3, Net Foreign Sales (By Transaction Value) Foreign Holding (%) Value* Net Change 29/03/18 23/03/18 (LKR. Mn) LOLC 5.12% 35.12% (142,532,451) (16,818.83) AITKEN SPENCE 25.95% 27.95% (8,138,639) (411.82) ASIRI 37.51% 37.59% (920,922) (25.33) NESTLE 95.56% 95.58% (9,355) (16.36) LION BREWERY 37.13% 37.16% (27,261) (14.32) NATIONS TRUST 23.71% 23.73% (42,249) (3.41) LAUGFS GAS[X.0000] 10.52% 10.77% (125,986) (3.25) COLOMBO CITY 3.21% 3.46% (3,111) (2.38) HAYLEYS 3.98% 3.99% (3,700) (0.74) NAT. DEV. BANK 14.56% 14.56% (4,739) (0.63) Note: *Value based on closing price and not on actual traded price Please note that the foreign shares data displayed above include private transfers done outside of the market. 3,000 Foreign Purchases Foreign Purchases Vs. Sales Foreign Sales 1,100 Week Ending Net Position of Foreign Holdings 2, , , Mar 27-Mar *28-Mar 29-Mar Mar 16-Mar 23-Mar *29-Mar *Foreign Sale of LKR13.05Mn on 28/03/2018 & net outflow of LKR9.87Mn for the week ending 29/03/2018 not displayed. 3

4 ACUITY STOCKBROKERS RESEARCH SRI LANKA EQUITIES Announcements for the Week Dividend Announcements DPS (Rs.) Type XD Date SANASA DEVELOPMENT BANK 2.50 Final LVL ENERGY FUND 0.40 Interim SMB LEASING(V & NV) 0.02 Interim THREE ACRE FARMS 3.00 First & Final CEYLON GRAIN 2.00 First & Final Point of View LKR Records Highest Appreciation for 2018 YTD Equity markets received a boost this week as LOLC Holdings (Pvt) Ltd. s purchase of a 29.97% stake in its own subsidiary, Lanka Orix Leasing (LOLC Plc) pushed markets away from its 8-week low and to its highest weekly turnover in 6- years. Weekly market turnover hit a 6 year high of Rs.19.4Bn (+432% W-o-W) as LOLC Holdings purchased a 29.97% stake in LOLC Plc from ORIX Corporation of Japan for a value of Rs.12.8Bn. The transaction, which helped push turnover levels to 6-year highs, is the highest since Mar 2012 when Khazanah Nasional bought an 8.85% stake in JKH for 14.5Bn, and surpasses both Singaporean company Group Lease Holding s Rs.10.9Bn acquisition of 29.99% stake in Commercial Credit & Finance Plc in December 2016, and Hayley s Rs.10.5Bn acquisition of Singer Sri Lanka in Sep Although the transaction led to a net foreign outflow of Rs.9.9Bn and dragged the YTD net outflow on the CSE to Rs.2.5Bn (cf. YTD net inflow Rs.7.4Bn on 23 rd March), the activity in the market helped the ASPI post a slight recovery after 4 consecutive weeks of W-o-W declines. The broad-share price Index consequently gained ~33 points (+0.51% W-o-W) despite hitting an eight week low of on Wednesday. The Index s ~37 point gain on Thursday (following the LOLC transaction) helped the ASPI end on positive note (on a W-o-W basis) for first time since the rise of communal tensions in early- March. Markets in the week ahead are likely to look for cues from the results of the upcoming no-faith motion against PM due mid next week and the CBSL s 2nd monetary policy meeting for the year. The CBSL this week called for proposals to raise upto $1Bn, adding that the Foreign Currency Term Financing Facility (FTFF) could be denominated in USD, Yen or Euro or any combination of these currencies. The FTFF is aimed at helping finance the country s bunched up external debt repayments beyond 2019 which are estimated at $3.6Bn per annum between 2019/ The CBSL added that rates on the 3 year maturity FTFF could be fixed or floating at a USD, JPY or Euro 6 Month LIBOR. The LKR meanwhile appreciated against the USD for the 1st time in 3-weeks as exporter dollar sales and inward remittances outweighed seasonal importer demand for the US currency. Worker remittances are typically higher during the traditional new year period while this year s seasonal importer demand has reduced somewhat providing greater support for the LKR. The LKR consequently strengthened 0.3% W-o-W against the USD following 3- consecutive weeks of weekly depreciation in the range of %. The LKR appreciation this week was the highest appreciation again the USD so far this year, as the previous instances of LKR appreciation ranged between 0.07% W-o-W (in late-jan) and 0.1% W-o-W (in early march). The LKR has lost ~1.5% of its value against the USD so far this year in line with the LKR depreciation in the comparable period last year (1.4% in Jan-Mar 17) but notably higher than the depreciation of 0.4% in Jan-Mar 16. With the approach of the traditional New Year in mid-april, currency dealers expect the LKR to remain under pressure on the back of continued importer demand for dollars. 4

5 Exports /Imports (USD Mn) Total Arrivals T- Bill (6M ) Rate (%) Rs. Per kilo(unweighted) Rs /USD CCPI ACUITY STOCKBROKERS RESEARCH SRI LANKA EQUITIES Economic Snapshot Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Interest Rates Prime Lending Rate Ave. Wtd. Deposit Rates Ave. Wtd. Fixed Dep. Rates CCPI Inflation Y-o-Y % (Base 2013) GDP Growth (Base 2010) 9.1% 3.4% 4.9% 4.8% 4.4% 3.1% Source Central Bank Exchange Rate, Rs. vs. US$ Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Inflation (CCPI-N) YoY% Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 6 Month T-Bill Yield Tea s Feb-15 Nov-15 Aug-16 May-17 Feb Mar-15 Dec-15 Sep-16 Jun-17 Mar-18 Source: Sri Lanka Tea Board Export & Trade Balance Trends in Tourist Arrivals Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Exports (LHS) Imports (LHS) Trade Balance (RHS) Trade Balance (USD Mn) 210, , ,000 84,000 42,000 80% 64% 48% 32% 16% 0% 0-16% Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Source: Sri Lanka Tourism Development Authority Y-o-Y Growth 5

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