DAILY STOCK MARKET HIGHLIGHTS ASHA SECURITIES LTD

Monday, 10 May 2021 Sri Lanka

Daily Market Statistics Performance of the Market

Index 10th May 07th May Change % Change ➢ Colombo Bourse witnessed steep fall in indices,
ASPI 7,135.80 7,242.00 -106.20 -1.47% following the surge in confirmed Covid-19 cases in
S&P SL20 2,838.19 2,875.64 -37.45 -1.30%
the country. Speculation of a possible lock-down
weighed on the investor sentiments. Buying
Market Stats (LKR, Mn) 10th May 07th May % Change
interest noted on manufacturing sector counters
Turnover 2,474.39 2,783.67 -11.1% but sentiments faded towards the latter part of
Domestic Purchases 2,310.36 2,702.85 -14.5% the session.
Domestic Sales 1,597.05 1,787.63 -10.7%
➢ Benchmark index ASPI moved between 7,130.58 -
Foreign Purchases 164.03 80.82 103.0%
7,246.73 points and settled the day at 7,135.80 with
Foreign Sales 877.34 996.04 -11.9%
a loss of 106.2 points (-1.47%).
Net Foreign in / (out) Flow (713.31) (915.22) 22.1%
Share Volume 153.30 124.76 22.9%
Trades (No.) 18,649 17,536 6.3%
Market capitalization (Bn) 3,150 3,194 -1.4%
PER 14.10 14.35 -1.7%
PBV 1.11 1.12 -0.9%

Market Indices
2,876

➢ Off board deals on HNB.X & RCL contributed 34%

7,188 7,242
of the turnover.
7,146 2,838 ➢ During the session 28 counters were up and 148
2,839
were down.
7,111 7,136
2,833 ➢ Major contributors for the movement in ASPI were
2,816 ASIR (+2.32), GLAS (+1.29), PDL (+1.27), COMB
(+0.76), JKH (+0.75), LOLC (-11.04), BIL (-9.77), DIST
ASPI S&P SL20 (-6.26), EXPO (-6.21) & VONE (-5.94).
04th May 05th May 06th May 07th May 10th May ➢ S&P SL20 index settled the day at 2,838.19 with a
loss of 37.45 points (-1.30%).
Turnover, Volume and Foreign Purchase ➢ The day’s turnover was recorded as LKR 2.47Bn
Rs.Mn Volume Mn down by 11% from its previously recorded LKR
3,500 250 2.78Bn, foreign investors remained net sellers for
3,020 2,784
3,000 2,474 the day.
200
2,500 ➢ The total market capitalization stood at LKR
150
3.15Tn, indicating an YTD gain of 6.38%
2,000
1,249 ➢ The market PER & PBV were at 14.10x & 1.11x,
1,500 100 respectively.
890
1,000
50 GICS Sectorial Overview
500
57 71 56 81 164 ➢ Banks sector stood on top providing LKR 970Mn
0 0 capturing 39% of the total turnover.
04th May 05th May 06th May 07th May 10th May
Turnover Foreign Purchases Volume ➢ Capital Goods, and Food, Beverage & Tobacco
sectors stood second and third providing LKR
569Mn and LKR 443Mn respectively to the daily
aggregated turnover.
 [DAILY STOCK MARKET HIGHLIGHTS] 10 May, 2021

Top Contributors – Turnover

Company Name Share Vol. Turnover High Low Close Prv. Close Change Change
HATTON NATIONAL BANK (X) 8,869,847 845,187,840 95.50 94.10 95.00 95.00 0.00 0.0%
BROWNS INVESTMENTS PLC 52,474,445 344,121,622 6.70 6.40 6.50 6.80 (0.30) -4.4%
ROYAL CERAMIC PLC 5,742,058 209,228,880 37.50 35.60 35.90 37.00 (1.10) -3.0%
HAYLEYS PLC 2,301,293 181,233,692 80.50 76.10 77.20 79.60 (2.40) -3.0%
EXPOLANKA HOLDINGS PLC 1,670,264 74,506,805 45.50 44.10 44.20 45.60 (1.40) -3.1%
JOHN KEELLS HOLDINGS 544,172 73,635,976 139.50 135.00 135.25 135.00 0.25 0.2%

Top contributors - Traded Volume

Company Name Share Vol. Turnover High Low Close Prv. Close Change Change

BROWNS INVESTMENTS PLC 52,474,445 344,121,622 6.70 6.40 6.50 6.80 (0.30) -4.4%
SMB LEASING PLC (Non Voting) 45,389,799 9,088,665 0.40 0.20 0.30 0.15 0.15 100.0%
HATTON NATIONAL BANK (X) 8,869,847 845,187,840 95.50 94.10 95.00 95.00 0.00 0.0%
SMB LEASING PLC 7,037,265 2,813,118 0.50 0.30 0.40 0.36 0.04 11.1%
ROYAL CERAMIC PLC 5,742,058 209,228,880 37.50 35.60 35.90 37.00 (1.10) -3.0%
PIRAMAL GLASS PLC 2,486,694 29,967,945 12.70 11.50 11.80 11.20 0.60 5.4%

Crossings
Name Symbol Price Trades T.Volume Turnover
HATTON NATIONAL BANK (Non Voting) HNB.X0000 95.30 3 8,560,462 815,812,029.00
ROYAL CERAMIC PLC RCL.N0000 37.00 1 550,000 20,350,000.00

Daily Foreign Transactions

Net Foreign Purchases Net Foreign Sales
Avg Net change in Net Foreign Avg Net change Net Foreign
Company Name Company Name
Price Qty Inflow Price in Qty Ouflow
MELSTACORP 44.50 1,126,063 50,109,804 HNB[X.0000] (+) 95.30 (7,932,456) (755,999,155)
SAMPATH (+) 50.00 421,660 21,082,581 JKH 135.08 (370,649) (50,065,674)
RENUKA CAPITAL 5.50 1,000,364 5,502,002 NESTLE (+) 1,010.00 (4,236) (4,278,360)
THREE ACRE FARMS (+) 192.51 26,949 5,188,058 HAYLEYS 79.54 (24,999) (1,988,423)
HEMAS HOLDINGS 80.40 50,000 4,020,189 DIALOG (+) 12.60 (100,211) (1,262,659)
SINGER FINANCE 15.12 261,528 3,955,418 VALLIBEL ONE 53.70 (18,771) (1,008,003)
TOKYO CEMENT 67.80 56,467 3,828,463 ACL 38.54 (19,600) (755,360)
TEEJAY LANKA 39.50 60,400 2,385,800 AITKEN SPENCE 49.50 (7,800) (386,100)
RICHARD PIERIS 15.70 100,400 1,576,280 COMMERCIAL BANK (+) 80.40 (4,129) (331,972)
RICH PIERIS EXP 345.75 2,812 972,249 ALLIANCE 46.50 (6,375) (296,438)

➢ Aggregate Foreign Purchases for the day totaled up to LKR 164.03Mn.

➢ Foreign sales for the day amounted to LKR 877.34Mn.
➢ Net foreign outflow for the day was LKR 713.31Mn; YTD net foreign outflow presently stands at LKR 24.23Bn.
➢ MELS notched the “Top Net Purchasers” slot with a net inflow of LKR 50.11Mn whilst HNB.X notched the “Top
net Sellers” slot with a net outflow of LKR 755.99Mn.

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 [DAILY STOCK MARKET HIGHLIGHTS] 10 May, 2021
Market Highlights & Statistics
Market Capitalisation
Issued Market CTC.N JKH.N LOLC.N
Company Name Symbol Price Quantity Capitalisation 5.8% 5.7% 4.8%
DIAL.N
(Mn) (LKR Bn)
3.3%
CEYLON TOBACCO CTC.N 970.00 187.3 181.70
BIL.N
JOHN KEELLS JKH.N 135.25 1,319.7 178.49 3.0%
LOLC HOLDINGS LOLC.N 318.00 475.2 151.11
DIST.N
DIALOG AXIATA DIAL.N 12.60 8,200.6 103.33 2.9%
BROWNS INVESTMENTS BIL.N 6.50 14,369.7 93.40
COMB.N
DISTILLERIES COMPANY DIST.N 19.80 4,600.0 91.08
2.9%
COMMERCIAL BANK COMB.N 80.40 1,124.4 90.41
EXPO.N
EXPOLANKA HOLDINGS EXPO.N 44.20 1,954.9 86.41
2.8%
VALLIBEL ONE PLC VONE.N 53.70 1,138.9 61.16 CARG.N
Others VONE.N
1.9%
CARGILLS (CEYLON) PLC CARG.N 230.50 257.7 59.39 65.0% 2.0%

Top Gainers Top Losers

VWA Days Change Change Turnover VWA Days Change Change Turnover
Company Name Company Name
Close (LKR) % (LKR) Close (LKR) % (LKR)
BERUWALA RESORTS 0.80 0.10 14.29 23,210 BLUE DIAMONDS 0.70 (0.10) (12.50) 1,402
PDL 123.00 8.50 7.42 12,300 TAL LANKA 11.60 (1.40) (10.77) 6,200
PIRAMAL GLASS 11.80 0.60 5.36 29,967,945 ABANS FINANCIAL 26.00 (3.00) (10.34) 197,023
HNB FINANCE [X] 5.90 0.30 5.36 21,283 ANILANA HOTELS 1.00 (0.10) (9.09) 201,061
DOLPHIN HOTELS 22.20 1.10 5.21 131,273 EASTERN MERCHANT 5.10 (0.50) (8.93) 664,170
ODEL PLC 19.00 0.90 4.97 1,900 ORIENT FINANCE 14.00 (1.10) (7.28) 249,108
BOGALA GRAPHITE 24.80 0.80 3.33 33,240 E - CHANNELLING 5.10 (0.40) (7.27) 266,401
ASIRI 28.50 0.90 3.26 8,923,155 CFI 60.10 (4.00) (6.24) 142,550
CEYLON TEA BRKRS 3.30 0.10 3.13 485 LANKEM DEV. 3.10 (0.20) (6.06) 37,819
ACME 6.70 0.20 3.08 448,767 MARAWILA RESORTS 1.80 (0.10) (5.26) 521,635

ASPI Movement 2019, 2020, 2021

8812
8,800 8694
8,500
8275
8,200
7923 7985
7,900 8005 7798
7644
7809
7,600 7476 7355
7588 7297
7,300
7329 7136
7,000 7121 7067
7002
6,700 6774 6854 6,656 6,774
6,629
6,400 6,109 6,215
5,991 5,995 6,050 5,990
6,100 5,848 5,946
6,156
5,800 5,653 4,847 5,715 6,061
5,342
5,899 5,885 5,678
5,500 5,593 5,600
5,514
5,200 5,200 5,051
5,122
4,900
4,572 4,795 5,039
4,600 4,572 ASPI 19 ASPI 20 ASPI 21
4,300 4,655
4,248
4,000
2-Jan 26-Jan 19-Feb 15-Mar 8-Apr 2-May 26-May 19-Jun 13-Jul 6-Aug 30-Aug 23-Sep 17-Oct 10-Nov 4-Dec 28-Dec

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Market Highlights & Statistics

GICS Industry Group Statistics
Price Index Turnover Sector
Industry Group
Today Previous Value (Rs) Volume Trades P/E PBV DY
Automobiles & Components 1,113.94 1,130.03 2,156,959.0 25,682.0 64.0 5.90 1.20 6.00
Banks 597.77 602.78 970,037,091.8 11,506,736.0 1,552.0 5.80 0.50 3.70
Capital Goods 1,152.61 1,172.16 568,734,949.8 10,826,111.0 5,226.0 44.10 1.00 1.50
Commercial & Professional Services 673.44 693.09 416,101.4 13,516.0 29.0 11.70 0.80 0.00
Consumer Durables & Apparel 1,145.28 1,161.30 40,988,640.1 2,892,468.0 606.0 19.50 1.30 2.20
Consumer Services 228.42 230.90 3,591,929.5 709,768.0 290.0 0.00 0.60 0.70
Diversified Financials 1,206.71 1,231.25 99,006,773.2 55,912,204.0 1,842.0 10.70 1.20 1.00
Energy 586.09 599.83 2,010,571.3 108,489.0 94.0 0.00 0.90 0.00
Food & Staples Retailing 1,358.41 1,359.86 292,785.0 1,692.0 7.0 24.10 2.30 3.10
Food, Beverage & Tobacco 929.91 944.58 443,310,410.3 54,612,620.0 2,615.0 21.30 2.20 4.00
Health Care Equipment & Services 1,068.46 1,061.18 9,574,934.4 513,919.0 132.0 25.70 1.90 2.20
Household & Personal Products 1,260.95 1,287.90 3,976,410.6 274,140.0 54.0 15.70 2.00 1.80
Insurance 1,324.91 1,355.51 21,055,344.0 1,034,626.0 435.0 5.20 0.70 2.30
Materials 1,553.46 1,589.20 193,098,957.5 8,481,430.0 3,180.0 9.90 2.00 3.10
Real Estate 761.36 758.06 3,913,388.8 230,428.0 191.0 4.90 0.60 1.60
Retailing 902.46 912.68 3,507,265.2 341,041.0 235.0 23.30 0.70 1.00
Telecommunication Services 944.41 951.28 10,630,682.4 816,693.0 134.0 8.10 1.00 5.00
Transportation 7,408.68 7,642.84 74,506,805.1 1,670,264.0 1,085.0 66.70 7.90 0.00
Utilities 909.55 915.47 23,576,839.8 3,327,879.0 347.0 18.00 2.80 2.50

Key Announcement
➢ Asia Asset Finance PLC (AAF) on 6 May 2021, subject approvals, resolved, to increase its Core Capital by way of a
Rights Issue of 41.4Mn Convertible Irredeemable 05 year Preference Shares at a consideration of LKR 10/- per
Preference Share, in the ratio of 01 Preference Share for every 03 Ordinary Shares held, with a fixed Non-
Cumulative Dividend of LKR 0.70 in any financial year. [Payment of Dividend could be reduced or waived off
permanently in the event of profit being inadequate to support such payment in part or in full]
Convertible Price - average of the daily volume weighted average price (VWA) of the Ordinary Shares as
published by CSE over the 60 trading days immediately preceding the maturity, determined by dividing the
applicable Original Issue Price of such Preference Shares by the aforesaid applicable Conversion Price. Preference
Shares to be deemed converted, immediately upon the completion of 05 years from the date of issue and to be
listed subsequently. The primary purpose of this issue is to enable the Company to meet its Central Bank
stipulated Core Capital requirement of Rs. 2.5 Bn and to enhance gold loan portfolio.

➢ Board of Diesel & Motor Engineering PLC (DIMO) has decided to authorize a distribution by the issue of 355,057
shares credited as fully paid up by way of Capitalization of Reserves in the proportion of 01 new ordinary share
for every 25 ordinary shares held. The consideration for the issue is Rs. 550/- per share.

Dealing by Directors

Counter Nature Director / Company involved No of Shares Price Date

VLL Purchase MR. RIYAZ SANGANI 14,608 5.50 05 May 2021.

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Key Announcements

Companies under Trading Suspension / Halt

Company KAPI TFC PARA, OFEQ, CPRT LLMP.N, X LCEM SFS CHOU NAVF.U
From 14-Feb-19. 18-Feb-19. 23 - Dec - 2020. 21-Oct-19 7-Sep 18. 2-July 18. 11 Mar 19. 27-Sep-19
Reason *** AQO *** AQO AQO CBSL List rule Matured
Company HUEJ AINV, CFT, PCHH
From 26-Nov-18. 10-12-2018.
Reason *** No Annual Reports
***Non-submission of Interim Financial Statements Auditor's Qualified Opinion (AQO)

Companies on WATCH LIST

Non Submission of Annual Reports, Financial Statements
SFL LCEM CFT JINS ALHP AFSL BLI TESS SING

Qualified Opinion in the Independent Auditor’s Report

MFL LDEV CSF BLUE
Companies on SECOND BOARD
Non-compliance of CSE Listing Rules, minimum public holding & Corporate Governance
AMCL ACAP AFSL ARPI ASPM BBH CALF CLC DIST PMB
LOFC GOOD, INDO, SHAL LAMB MADU MERC NIFL ODEL PDL
SLND SFCL SELI SINS TAP KDL CFVF

Stocks in the S&P Sri Lanka 20 in alphabetical order (Effective from 21 Dec 2020)
Access Engineering PLC (AEL) Expolanka Holdings PLC (EXPO.N) National Development Bank PLC (NDB)
Chevron Lubricants Lanka PLC (LLUB) Hatton National Bank PLC (HNB) People's Leasing & Finance PLC (PLC)
Commercial Bank of Ceylon PLC (COMB) Hayleys PLC (HAYL) Royal Ceramics Lanka PLC (RCL)
DFCC Bank PLC (DFCC) Hemas Holdings PLC (HHL) Sampath Bank PLC (SAMP)
Dialog Axiata PLC (DIAL) John Keells Holdings PLC (JKH) Teejay Lanka PLC (TJL)
Dipped Products PLC (DIPD) LOLC Holdings PLC (LOLC) Tokyo Cement Co. (Lanka) PLC (TKYO)
Distilleries Company of Sri Lanka PLC (DIST) Melstacorp PLC (MELS)

Annual general Meetings (AGMs) EGMs

Company Date Company Date Company Date Company Date Company Date
LLUB 24-May-21 MEL 28-May-21 INDO 31-May-21 GOOD 2-Jun-21 SDB 28-May-21
CTC 25-May-21 SDB 28-May-21 AINS 31-May-21 NEST 10-Jun-21

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Key Announcements
Cash Dividends (LKR)
DIVIDEND PER PAYMENT DIVIDEND PER PAYMENT
CODE TYPE XD DATE CODE TYPE XD DATE
SHARE DATE SHARE DATE
SLTL 1.49 1st & Final 27 Apr 2021. 17 May 2021. UCAR 14.00 Final 11 Jun 2021. 02 Jul 2021.
CINS 40.00 Final 06 May 2021. 18 May 2021. NEST 20.00 Final 11 Jun 2021. 02 Jul 2021.
HARI 20.00 1st interim 12 May 2021. 01 Jun 2021. AGST 0.20 Final 01 Jul 2021. 19 Jul 2021.
CTC 11.35 Final 28 May 2021. 17 Jun 2021. ALUM 0.10 Final 30 Jun 2021. 08 Jul 2021.
SDB 2.25 1st & Final 31 May 2021. 18 Jun 2021. DIAL 0.74 Final To be notified
PDL 3.50 1st & Final 10 Jun 2021. 01 Jul 2021. PINS 3.00 Final To be notified

Rights Issues
Company, Issue Price Issue Value Proportion XR Date Letter Dispatch Trading of Rights Acceptance
Lankem Ceylon PLC (LCEY) LKR 20.00 LKR 677Mn 1 for 1 29 Apr 2021. 05 May 2021. 11 May- 19 May. 20 May 2021.
Vidullanka PLC (VLL.X) LKR 3.50 LKR 250Mn 1 for 11.72 06 May 2021. 12 May 2021. 19 May- 28 May. 31 May 2021.
SMB Leasing PLC (SMB.N) LKR 0.35 LKR 2.09Bn 5 for 1 10 May 2021. 17 May 2021. 21 May- 01 Jun. 02 Jun 2021.
SMB Leasing PLC - non Voting (SMB.X) LKR 0.12 LKR 368Mn 5 for 1 10 May 2021. 17 May 2021. 21 May- 01 Jun. 02 Jun 2021.
Kotagala Plantation PLC (KOTA) LKR 3.00 LKR 790Mn 7 for 2 To Be Notified

Upcoming Listings Equity

Company Issue Price CSE Listing Number and Type of Securities to be Offered Issue Opening % on Offer Issue Size
PRIME LANDS RESIDENCIES LTD Main / Dirisavi
187.5Mn Ordinary Voting Shares 11th May 2021 20.00 LKR 1.95Bn
LKR 10.40 Board

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Economic Indicators & Other Statistics

Exchange Rates Indicative Rates
10th May 07th May 10th May 07th May
Currency Currency
Buying Selling Buying Selling Ind: Value Ind: Value
Dollar (USA) 197.60 201.95 197.55 201.90 Yuan (Offshore) 31.042 30.900
Pound (UK) 276.59 283.35 273.60 280.88 Rupee (India) 2.724 2.711
Euro (EU) 239.45 245.69 237.23 243.88 Won (Korean) 0.179 0.178
Dollar (Australia) 154.57 158.85 153.30 157.57 Dinar (Kuwait) 662.679 662.006
Dollar (Canada) 162.39 167.11 161.93 166.69 Ringgit (Malay) 48.571 48.467
Franc (Switzerland) 217.52 224.70 216.02 223.16 Rial (Oman) 518.211 518.236
Renminbi (China) 29.90 31.60 30.39 31.36 Riyal (Qatar) 53.693 54.797
Yen (Japan) 1.8108 1.8555 1.7981 1.8493 Riyal (KSA) 53.186 53.189
Dollar (Singapore) 148.60 152.48 147.71 151.71 Dirham (UAE) 54.315 54.317

Colombo Consumers’ Price Index (CCPI) & National

Inflation Government Securities - Secondary Market Yield
Consumer Price Index (NCPI)
9 8.1 8.39 8.46 8.55
7.6 %
8.17
7.0 8.4 7.87
6.4 7.69
7 6.3 6.1 6.2 7.38
6.2 5.9
5.7 5.5 7.4 6.99
5.4 5.2 5.2
5.2 4.6 6.60
5 4.2
4.2 5.1 4.0 3.9 4.1 4.0 4.0 4.1 6.4 6.08
3.7
4.1 3.9 4.2
3 5.16
3.0
3.3 5.4 5.07 5.11 24-Feb 31-Mar
2020 CCPI 2021 CCPI 2020 NCPI 2021 NCPI 30-Apr 05-May
1 4.4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3 M 6 M 12 M 2Y 3Y 4Y 5Y 6Y 8Y 10Y 15Y 20Y 30Y

Central Bank's Policy Rates Treasury Bill Issuance

Description 09-07-2020. 16-06-2020. 05.05.2021 28.04.2021 21.04.2021 12.04.2021
Standing Deposit Facility (SDF) 4.50% 5.50% 91 Days % 5.12 5.11 5.10 5.09
Standing Lending Facility (SLF) 5.50% 6.50% 182 Days % 5.14 5.14 5.13 5.12
Statutory Reserve Ratio (SRR) 2.00% 2.00% 364 Days % 5.18 5.18 5.18 5.15
BankRate 8.50% 9.50% Amount 34.91Bn 29.89Bn 36.57Bn 35.47Bn

Date 29.03.2021 27.01.2021 29.03.2021 11.12.2020 09.04.2021 10.03.2021 11.12.2020 16.09.2019

Maturity 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 10 Years 15 Years
Current Yield 6.30 6.34 7.05 6.79 7.70 7.44 7.84 10.59
Previous Auction 11.01.2021 03.06.2020 10.03.2021 28.09.2020 29.03.2021 12.03.2020 16.01.2020 15.10.2018
Previous Yield 6.38 8.59 7.08 6.59 7.58 7.07 9.99 11.90

1,000
2.1 1.751 CBSL Gvt. Securites Holding 870.37
1.9 Face Value (Bn)
1.7 1.745 800
1.5 1.8066 LIBOR interest rates
1.3 - USD % 600
1.1
0.9
0.7 400
0.5 0.2829
0.3 0.2066
200
0.1
0.1754
Jan 20. May 20. Sep 20. Jan 21. May 21. -
3 months 6 months 12 months 17/1/20 18/4/20 19/7/20 19/10/20 19/1/21 21/4/21

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Economic Indicators & Other Statistics

71 Gold & Crude Prices - Bloomberg 1,838
800 69.7 1,835
70
750 Tea Prices 68.8 68.9 68.7 1,825
700 (LKR/ kg) 69 1,821
652.2
650 68 1,815
67
66.5 66.4 68.0
600 614.2 1,805
550
65.5 65.2
564.4 66
1,795
500 65 65.6 64.6
450 63.5 1,793 1,785
64
1,783
400 High Medium Low 63 1,779 1,779 1,775
350
62 Brent Crude WTI Crude Gold 1,765
15-Oct-19 5-Feb-20 3-Jun-20 16-Sep-20 06-JAN-21 28-APR-21 03-05-21. 04-05-21. 05-05-21. 06-05-21. 07-05-21. 10-05-21.

300 OVERNIGHT MARKET LIQUIDITY

200 199.51
(LKR BN) Exchange
USD to LKR
200 195

135.17
190
100
185

- 180
18-May-20 29-Jul-20 9-Oct-20 20-Dec-20 2-Mar-21
22-May-20 17-Aug-20 10-Nov-20 5-Feb-21 8-May-21

Local News
Sri Lanka inks US$500mn deal with Korea for Eximbank finance
ECONOMYNEXT – Sri Lanka has inked a deal to borrow 500Mn US dollars from the Eximbank of Korea for projects
from 2020 to 2022, at rock bottom interest rates, the Finance Ministry said. Under a framework agreement signed on
May 10, the Economic Development Cooperation Fund (EDCF) of the Export Import Bank of Korea (KEximbank) will
provide loans of up to 40-year payback with 10-year grace at rates of 0.15% and 0.20%. Sri Lanka and Korean had also
agreed to continue the Korean Exim Bank Representative Office, which was set up in 2016 to implement the projects,
the statement said.
Foreign reserves up in April on China Development Bank loan
Dailymirror -Sri Lanka’s foreign currency buffer rose in April after the country took receipt of the second tranche of
the China Development Bank (CDB) loan soon after the New Year holidays, propping up its foreign reserves.
According to the data available through April-end, Sri Lanka had US$ 4,476.5Mn in foreign exchange reserves, up
from US$ 4,055.2Mn by the end of March. Sri Lanka took receipt of the US$ 500Mn loan from CDB on April 19, as the
second tranche of the US$ 1.2Bn budget support loan approved over a year ago in March 2020 at the onset of the
pandemic as part of the financial support to fight virus-related economic hardships.

Port City success will be determined by how investor-friendly it is: Cabraal

Dailymirror -The success of the highly debated Colombo Port City is all about implementation, for which relevant
agencies must step up their efforts to ensure the development project does not lose investors to regional
competition, a top minister said. State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard
Cabraal stressed greater emphasis is required to attract investments to the Colombo Port City that competes with
Dubai, Singapore, Malaysia, and Shenzhen. “We will have to attract new investments to come into Sri Lanka at this
juncture, and ensure that investing here is good for them. Any agency in authority to provide support to investors
who are coming into Sri Lanka, should be able to have their matters attended with speed.
March credit card spend increases for fourth straight month
Dailymirror - Sri Lanka’s credit card spend continued to advance through March, according to data released by the
Central Bank. Outstanding credit card balance of the licensed commercial banking sector increased by Rs.566 million,

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taking the first three months’ expansion in the outstanding balance to a little over Rs. 2.0 billion. People were seen
swiping their cards in droves ahead of the New Year when banks inundated them with irresistible offers,
promotions, discounts and attractive zero interest installment schemes, which in some cases ran up to five
years. March marked the fourth consecutive month of growth in outstanding credit card balance. The Central Bank
last year slashed credit card interest rates to 18 percent in line with the overall decline in market rates.

All essential services kept on alert as COVID-19 patients continue to rise.

Daily Mirror- All essential services have been kept on alert in case the COVID-19 pandemic worsens further, and
authorities decide to go in for further isolations or even a partial lockdown this week, the Daily Mirror learns. All
essential services have been told to be on the alert with minimum staff. An essential services task force meeting got
underway at Temple Trees yesterday, headed by Basil Rajapaksa where the existing health crisis was discussed at
length. The number of COVID-19 infected patients is on a staggering rise with over 2000 patients reported yesterday.
Health authorities have said that every district in the country has now reported COVID-19 patients.

No decision on islandwide lockdown, but provincial travel restrictions possible - Army Commander
Head of the National Operation Centre for Prevention of COVID-19 Outbreak (NOCPCO), Army Commander General
Shavendra Silva says that no decision has been taken regarding an islandwide lockdown. He therefore requested the
public not to panic due to certain rumours and misleading reports of a lockdown spreading through social media.
However, the Army Commander stated that travel restrictions could be imposed within the next few days
preventing travel between provinces. (adaderana.lk)

Foreign News
Stocks cheer prospects for low rates, oil rides pipeline outage higher
(Reuters) - Stocks rose on Monday amid speculation that interest rates will remain low due to receding inflationary
pressure, while oil and gas prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, while U.S. stock futures rose 0.14%. Australian
stocks hit their highest in more than a year, boosted by gains in miners, but shares in China fell 0.74%. Japanese
shares gained 0.53%.
U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, which gave equities a lift but
put downward pressure on the dollar and U.S. Treasury yields.
Oil and gasoline futures extended gains after a cyber attack shut down a U.S. pipeline operator that provides nearly
half of the U.S. east coast’s fuel supply
On Friday the Dow Jones Industrial Average and the S&P 500 rose to record closing highs after disappointing data
on the U.S. jobs market eased concerns about a spike in consumer prices.
In recent weeks, some investors had been placing bets that a robust U.S. economic recovery from the coronavirus
pandemic would force the Federal Reserve to raise interest rates earlier than the central bank has outlined.
However, the weak nonfarm payrolls report caused a rapid reversal in some of these trades, which rippled through
stocks, bonds, and major currencies.
The focus now shifts to U.S. consumer price data due on Wednesday, which will help investors determine whether
they need to scale back their inflation expectations even further. MSCI’s broadest index of global stock markets hit a
record high on expectations that low rates will continue to spur lending and economic growth.
The yield on benchmark 10-year Treasury notes steadied at 1.5931% in Asia on Monday after having plunged to a two-
month low of 1.4690% on Friday.
U.S. crude ticked up 0.51% to $65.23 a barrel. Brent crude rose to 0.53% to $68.64 per barrel in Asian trading as the
disruption to U.S. supplies rattled energy markets. [O/R] Gasoline futures on the New York Mercantile Exchange
rose 1.43% to $2.1574 a gallon, near a three-year high. The White House is working closely with top U.S. fuel pipeline
operator Colonial Pipeline on Sunday to help it recover from a ransomware attack that forced the company to shut
its main fuel lines.

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 [DAILY STOCK MARKET HIGHLIGHTS] 10 May, 2021

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