DAILY STOCK MARKET HIGHLIGHTS ASHA SECURITIES LTD

Thursday, 02 January 2020 Sri Lanka

Daily Market Statistics Performance of the Market

Index 2nd Jan 31st Dec Change % Change  Colombo Bourse has started the year on positive
ASPI 6,108.53 6,129.21 (20.68) -0.34% note, but later due to higher selling on large caps
S&P SL20 2,929.09 2,936.96 (7.87) -0.27% turned negative.
Market Stats (LKR, Mn) 2nd Jan 31st Dec % Change
 LOLC group counters had dominated the market
Turnover 505.51 965.40 -47.6%
activities; BRWN & BIL appreciated while LOLC turned
Domestic Purchases 497.17 813.98 -38.9%
negative. Ban on ethanol has affected the price of
Domestic Sales 460.49 689.12 -33.2%
DIST.
Foreign Purchases 8.34 151.42 -94.5%
Foreign Sales 45.03 276.28 -83.7%  Benchmark index ASPI moved between 6,099.50 -
Share Volume 49.48 49.67 -0.4% 6,137.68 points and settled the day at 6,108.53 with
Trades (No.) 6,625 7,724 -14.2% a Loss of 20.68points (-0.34%).
Market capitalization (Bn) 2,842 2,851 -0.34%  During the session 57 counters were up and 79
PER 10.95 10.83 1.11%
were down.
PBV 1.13 1.14 -0.88%
 Major contributors for the movement in ASPI were
Market Indices BRWN (+6.26), BIL (+4.12), DIAL (+1.75), CLC (+1.37),
2,972 VONE (+1.17), JKH (-10.49), LOLC (-7.97), DIST (-
2,965 6,156
3.96), MELS (-3.51) & SLTL (-3.10).

6,129  S&P SL20 index also followed the same trend and
2,958 settled the day at 2,929.09 with a loss of 7.87 points
6,109
6,123 (-0.27%)
2,937  The day’s turnover was recorded as LKR 505.5Mn,
6,087 2,929 down by 48% from its previously recorded LKR
965.4Mn. Foreign investors remained net sellers for
the day.
26th Dec 27th Dec 30th Dec 31st Dec 2nd Jan
 The total market capitalization stood at LKR 2.84Tn.
ASPI S&P SL20
 The market PER & PBV were at 10.95x & 1.13x
Turnover, Volume and Foreign Purchase respectively.
1,200 60
Sectorial Overview
965
1,000
903
50  Diversified holdings (DIV) sector stood on top
providing LKR 232Mn capturing 46% of the total
800 40
turnover.
600 30
506
422 473  Bank finance and insurance (BFI) and Trading
400 20 (TRD) sectors stood second and third providing LKR
200 151 10
126Mn and LKR 47Mn respectively to the daily
7 30 8 aggregated turnover.
9
0 0
26th Dec 27th Dec 30th Dec 31st Dec 2nd Jan
Turnover Foreign Purchases Volume
 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Top Contributors – Turnover

Company Name Share Vol. Turnover Low High Close Prv. Close Change Change
BROWNS INVESTMENTS PLC 40,978,630 214,396,363 4.90 5.50 5.40 5.00 (0.40) -8.00%
LOLC HOLDINGS PLC 404,781 68,575,386 165.00 182.60 169.70 177.50 7.80 4.39%
BROWN & COMPANY PLC 554,791 46,273,809 71.00 89.90 86.60 72.90 (13.70) -18.79%
CEYLON TOBACCO COMPANY PLC 21,078 23,186,733 1,100.00 1,120.00 1,100.00 1,100.30 0.30 0.03%
COMMERCIAL BANK OF CEYLON PLC 212,306 20,169,560 94.70 96.00 95.00 95.00 - 0.00%

Top contributors - Traded Volume

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

BROWNS INVESTMENTS PLC 40,978,630 214,396,363 4.90 5.50 5.40 5.00 (0.40) -8.00%
TESS AGRO PLC 1,207,198 727,489 0.50 0.70 0.60 0.50 (0.10) -20.00%
BROWN & COMPANY PLC 554,791 46,273,809 71.00 89.90 86.60 72.90 (13.70) -18.79%
SMB LEASING PLC [X] 537,602 161,281 0.30 0.40 0.30 0.30 - 0.00%
ACCESS ENGINEERING PLC 520,624 11,279,724 21.50 21.90 21.70 21.80 0.10 0.46%

Crossings
Name Symbol Price Trades T.Volume Turnover
N/A

Daily Foreign Transactions

Net Foreign Purchases Net Foreign Sales
Avg Net change Net Foreign Avg Net change Net Foreign
Company Name Company Name
Price in Qty Inflow Price in Qty Ouflow
HAYCARB 190.00 3,731 708,890 CEYLON TOBACCO (+) 1,100.00 (21,025) (23,127,500)
THREE ACRE FARMS (+) 121.90 2,432 296,461 L O L C HOLDINGS 169.70 (25,002) (4,242,839)
HAYLEYS 174.90 1,517 265,323 BROWNS INVSTMNTS 5.40 (578,341) (3,123,041)
DIPPED PRODUCTS 84.30 2,647 223,142 BROWNS 86.60 (35,610) (3,083,826)
DFCC BANK PLC 90.00 1,168 105,120 COMMERCIAL BANK (+) 95.00 (11,208) (1,064,760)
SOFTLOGIC 15.60 2,750 42,900 CHEVRON (+) 74.50 (11,734) (874,183)
NAMUNUKULA 82.0 500 41,000 RICHARD PIERIS 11.70 (32,022) (374,657)
SAMPATH (+) 163.20 100 16,320 CENTRAL FINANCE 102.50 (1,881) (192,803)
COLD STORES 795.00 9 7,155 PEOPLES LEASING 18.10 (8,902) (161,126)
Softlogic Life (+) 37.30 100 3,730 REGNIS (+) 85.30 (1,574) (134,262)

 Aggregate Foreign Purchases for the day totaled up to LKR 8.3Mn.

 Foreign sales for the day amounted to LKR 45Mn.
 Net foreign outflow for the day was LKR 36.7Mn.
 HAYC notched the “Top Net Purchasers” slot with a net inflow of LKR 0.71Mn whilst CTC notched the “Top net
Sellers” slot with a net outflow of LKR 23.1Mn.

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Market Highlights & Statistics

Top Gainers Top Losers

VWA Days Change Change Turnover VWA Days Change Change Turnover
Company Name Company Name
Close (LKR) % (LKR) Close (LKR) % (LKR)
S M B LEASING 0.60 0.10 20.00 137,108 SINHAPUTHRA FIN [P] 6.10 (0.60) (8.96) 27,237
TESS AGRO 0.60 0.10 20.00 727,489 CIT 74.10 (6.80) (8.41) 37,527
BROWNS 86.60 13.70 18.79 46,273,809 KAHAWATTE 33.80 (2.70) (7.40) 8,661
BLUE DIAMONDS 0.80 0.10 14.29 16,648 EASTERN MERCHANT 5.50 (0.40) (6.78) 329,506
BANSEI RESORTS 6.90 0.80 13.11 9,215 COLOMBO LAND 24.40 (1.60) (6.15) 523,681
AMANA LIFE 7.70 0.70 10.00 847 EDEN HOTEL LANKA 17.30 (1.10) (5.98) 6,768
ANILANA HOTELS 1.20 0.10 9.09 28,770 RENUKA HOLDINGS [X] 12.70 (0.80) (5.93) 31,276
BROWNS INVSTMNTS 5.40 0.40 8.00 214,396,363 MULTI FINANCE 12.30 (0.70) (5.38) 73,730
SINGHE HOSPITALS 1.60 0.10 6.67 169,760 RENUKA HOLDINGS 18.30 (1.00) (5.18) 24,081
PALM GARDEN HOTL 28.80 1.70 6.27 146,936 MARAWILA RESORTS 1.90 (0.10) (5.00) 11,790

Market Capitalisation
Company Name Symbol Price Issued Quantity Market Capitalisation (as % of MKT Cap.)
JOHN KEELLS HOLDINGS PLC JKH.N0000 163.90 1,318,305,297 216,070,238,178 8.21
CEYLON TOBACCO COMPANY PLC CTC.N0000 1,100.00 187,323,751 206,056,126,100 7.83
DIALOG AXIATA PLC DIAL.N0000 12.40 8,143,778,405 100,982,852,222 3.84
COMMERCIAL BANK OF CEYLON PLC COMB.N0000 95.00 961,252,317 91,318,970,115 3.47
DISTILLERIES COMPANY OF SRI LANKA PLC DIST.N0000 18.10 4,600,000,000 83,260,000,000 3.17
LOLC HOLDINGS PLC LOLC.N0000 169.70 475,200,000 80,641,440,000 3.07
CEYLON COLD STORES PLC CCS.N0000 795.00 95,040,000 75,556,800,000 2.87
NESTLE LANKA PLC NEST.N0000 1,299.80 53,725,463 69,832,356,807 2.65
HATTON NATIONAL BANK PLC HNB.N0000 172.30 401,343,863 69,151,547,595 2.63
SAMPATH BANK PLC SAMP.N0000 163.20 381,457,985 62,253,943,152 2.37

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Market Highlights & Statistics

Sector Wise Summary
Price Index Turnover Sector
Sector
Today Previous Value (Rs) Volume Trades P/E PBV
BANK FINANCE AND INSURANCE 16,242.09 16,318.75 125,735,406 3,227,070 2,112 5.50 0.80
BEVERAGE FOOD AND TOBACCO 22,054.71 22,116.33 38,180,898 215,744 288 15.60 5.10
CONSTRUCTION AND ENGINEERING 1,950.05 1,965.35 15,057,365 652,092 145 34.00 0.80
CHEMICALS AND PHARMACEUTICALS 6,606.96 6,635.71 1,519,563 26,136 27 30.40 0.70
DIVERSIFIED HOLDINGS 1,623.84 1,640.29 232,019,587 41,295,524 1,326 15.10 0.90
FOOTWEAR AND TEXTILE 1,068.35 1,078.67 3,701,028 179,120 145 17.10 1.60
HOTELS AND TRAVELS 2,737.51 2,741.09 1,732,293 185,564 218 121.50 1.70
HEALTH CARE 757.22 754.68 622,865 142,126 48 18.80 1.60
INVESTMENT TRUSTS 12,575.13 12,637.28 736,251 59,534 60 - 0.70
INFORMATION TECHNOLOGY 32.55 32.55 64,625 11,750 2 21.70 2.90
LAND AND PROPERTY 584.87 583.88 2,258,325 157,085 119 9.20 0.60
MANUFACTURING 3,545.14 3,553.04 32,708,478 1,209,281 767 9.60 0.80
MOTORS 11,219.56 11,206.71 1,329,579 17,290 98 67.20 0.50
OIL PALMS 50,910.88 50,910.88 7,572 11 4 252.50 0.90
POWER & ENERGY 94.48 94.91 1,473,299 186,086 133 23.20 1.20
PLANTATIONS 768.07 774.87 652,971 36,624 97 14.60 0.80
STORES SUPPLIES 26,126.61 26,126.61 7,595 19 2 - 0.40
SERVICES 16,244.99 15,856.18 52,789 10,998 15 19.30 1.40
TELECOMMUNICATIONS 175.70 176.40 179,178 9,275 23 7.90 1.10
TRADING 15,890.09 14,462.07 47,474,595 1,861,782 962 14.70 0.90

GICS Industry Group Statistics

Price Index Turnover Sector
Industry Group
Today Previous Value (Rs) Volume Trades P/E PBV
Automobiles & Components 632.71 664.88 104,708 2,217 19 7.80 0.80
Banks 700.12 700.74 48,259,414 1,003,478 707 5.40 0.70
Capital Goods 892.95 898.74 87,332,046 1,829,064 1,338 13.90 0.80
Commercial & Professional Services 774.11 774.11 0 0 0 0.00 1.00
Consumer Durables & Apparel 991.52 998.21 4,536,838 605,923 224 16.00 1.20
Consumer Services 273.29 274.26 1,732,293 185,564 219 130.10 1.70
Diversified Financials 952.45 961.74 74,562,705 1,935,076 1,283 9.40 1.00
Energy 572.94 579.12 624,725 36,395 46 0.00 0.80
Food & Staples Retailing 1,209.21 1,208.72 751,955 1,243,992 87 25.10 2.10
Food, Beverage & Tobacco 873.61 875.44 260,150,949 41,400,849 1,712 16.20 2.30
Health Care Equipment & Services 818.06 815.38 687,965 154,403 52 19.70 1.70
Household & Personal Products 1,041.99 1,047.38 133,357 11,013 5 14.60 1.90
Insurance 1,391.05 1,392.45 3,269,778 319,578 158 3.00 1.00
Materials 679.26 681.21 18,051,667 323,245 352 12.50 1.10
Pharmaceuticals,Biotechnology & Life Sciences 1,982.01 1,982.01 0 0 0 16.50 1.50
Real Estate 812.85 814.64 2,309,107 158,461 128 8.50 0.70
Retailing 760.76 756.69 1,801,372 90,292 151 21.40 0.60
Technology Hardware & Equipment 0.00 - 0 0 0 0.00 0.00
Telecommunication Services 917.98 921.65 179,178 9,275 24 7.90 1.10
Transportation 867.61 867.61 183,300 36,640 21 8.10 0.90
Utilities 743.90 742.91 815,574 133,191 82 7.40 0.90

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Key Announcements
 The net asset value per unit of the Candor Opportunities Fund (COF.U) as at 31st December 2019, LKR 8.78 (Nov -
LKR 9.08)

 Nations Trust Bank PLC (NTB) said, Shareholders holding Ordinary Non-voting Convertible shares (NTB.X), who
decide to exercise the option to convert, are required to fill the "Application for Conversion" and "Letter of
Authorization to CDS" and submit same to be received by the: Registrars to the Conversion P W Corporate
Secretarial (Pvt) Ltd, within 03 Market days, from the end of the Calendar quarter ending on 31 st March, 2020.

 Board of Directors of The Finance Company PLC (TFC) has resolved on 31st December 2019 to call "Expressions of
Interests (EOI)" from prospective strategic investors for Equity Investment in TFC.

Companies under Trading Suspension / Halt

Company KAPI TFC ESL PCP & SING LLMP.N, X LCEM SFS CHOU NAVF.U
From 14-Feb-19. 18-Feb-19. 5-Jan-16 2-Apr-18 21-Oct-19 7-Sep 18. 2-July 18. 11 Mar 19. 27-Sep-19
Reason For clarification AQO Weak position CSE - Rules AQO AQO CBSL List rule Matured
Company HDEV HUEJ AINV, CFT, PCHH CSEC MORI OFEQ, CPRT, PARA
From 11-Nov-11 26-Nov-18. 10-12-2018. 30-Oct-19. 4-Sep-19 09 Dec 2019.
Reason Gov Take over *** No Annual Reports Voluntary Delist Non submission of Annual Report FY 18/19
***Non-submission of Interim Financial Statements 30th Jun 2018 Auditor's Qualified Opinion (AQO)

Companies on WATCH LIST

Non Submission of Annual Reports, Financial Statements Default Board
MEL LCEM CFT TESS PCP SING HDEV LLMP PCHH SFS

Qualified Opinion in the Independent Auditor’s Report

MFL ESL ALHP TFC CHOU

Non-compliance of CSE Listing Rules, minimum public holding & Corporate Governance
HUEJ LOFC ODEL ARPI ASPH BBH COMD CPRT DIST CLC
ASPM GOOD, INDO, SHAL HPFL TAP LAMB MADU MORI OFEQ NIFL
PARA PDL SELI MERC SFCL TFIL SLND AFSL AMCL

Annual general Meetings (AGMs) EGMs

Company Date Company Date Company Date Company Date Company Date
AGAL 24-Jan-20 HASU 27-Mar-20 DFCC 30-Mar-20 TESS 8-Jan-20
BLUE 30-Jan-20 HNB 30-Mar-20 COMB 30-Mar-20 AGAL 24-Jan-20
EAST 31-Jan-20 SEYB 30-Mar-20 PABC 31-Mar-20
SING 28-Feb-20

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Key Announcements

Cash Dividends (LKR)

DIVIDEND PER PAYMENT DIVIDEND PER PAYMENT
CODE TYPE XD DATE CODE TYPE XD DATE
SHARE DATE SHARE DATE
REXP 24.75 1st Interim 30 Dec 2019. 06 Jan 2019. MGT 0.20 Interim 13 Jan 2020. 21 Jan 2020.
HNB 1.00 Interim 30 Dec 2019. 08 Jan 2020. DIPD 1.50 2nd Interim 13 Jan 2020. 22 Jan 2020.
CTC 20.00 Interim 13 Jan 2020. 23 Jan 2020. HEXP 2.00 2nd Interim 13 Jan 2020. 22 Jan 2020.
PLC 0.70 1st Interim 13 Jan 2020. 23 Jan 2020. HAYC 3.00 2nd Interim 14 Jan 2020. 23 Jan 2020.

Capitalization of Reserves
Company Proportion EGM / Allotment XC Date Consideration (RS.)
Ceylon & Foreign Trades PLC (CFT) 1 for 1 To be notified To be notified 4.00

Mandatory Offer
Offeror Offeree Offer Closing Offer Price per Share
Singhe Capital Investment Limited Sinhaputhra Finance PLC (SFL.N) To be Notified LKR 9.50

Rights Issues
Company, Issue Price Issue Value Proportion XR Date Letter Dispatch Trading of Rights Acceptance
Agalawatte Plantations (AGAL) LKR 15.30 LKR 2Bn 21 for 4 27 Jan 2020. 31 Jan 2020. 7 Feb - 14 Feb 17-Feb-20

Rights Issues with pending dates

Company, Issue Price Proportion Company, Issue Price Proportion
Adam Investments PLC (AINV) LKR 1.00 01 for 01 The Colombo Fort Land (CFLB) LKR 10.00 01 for 03
Orient Finance PLC (BFN) LKR 14.40 01 for 05 Dialog Finance PLC (CALF) LKR 40.20 17 for 89
Lanka Realty Investment (ASCO) LKR 37.50 01 for 02

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Economic Indicators & Other Statistics

Exchange Rates Indicative Rates
2nd Jan 31st Dec 2nd Jan 31st Dec
Currency Currency
Buying Selling Buying Selling Ind: Value Ind: Value
Dollar (USA) 179.25 182.91 179.66 183.33 Yuan (Offshore) 25.9747 26.0277
Pound (UK) 236.26 243.58 234.70 242.00 Rupee (India) 2.5415 2.5467
Euro (EU) 199.80 206.61 200.08 206.89 Won (Korean) 0.1564 0.1569
Dollar (Australia) 124.48 129.64 124.58 129.73 Dinar (Kuwait) 597.1565 599.1358
Dollar (Canada) 137.19 142.10 136.71 141.60 Ringgit (Malay) 44.2936 44.3822
Franc (Switzerland) 183.98 190.27 184.47 190.78 Rial (Oman) 470.2087 471.7828
Renminbi (China) 25.42 26.60 25.43 26.61 Riyal (Qatar) 49.4571 49.5861
Yen (Japan) 1.6386 1.6972 1.6426 1.7012 Riyal (KSA) 48.2574 48.4189
Dollar (Singapore) 132.52 136.88 132.71 137.08 Dirham (UAE) 49.2841 49.4491

Inflation Colombo Consumers’ Price Index (CCPI) & National Government Securities - Secondary Market Yield
Consumer Price Index (NCPI)
11.2 %
8
10.7
5.9
5.8 5.6 10.54
6
4.5 5.0 5.0 4.8 10.2 10.21 10.26 10.36
4.0 4.3 4.4 10.11 10.12
3.4 5.0 5.4 9.7 9.94
4 3.8 3.3 3.4 4.1 2.8 9.2
3.7 2.9 3.6 3.5 9.24
2 2.4 1.0 8.7
2.1 2.2
1.2
1.6
0.1
0.4
8.2 8.47 8.70 25-Sep 23-Oct
0 7.95
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7.7 27-Nov 24-Dec
7.55
-2
2018 CCPI 2019 CCPI 2018 NCPI 2019 NCPI 7.2
3 M 6 M 12 M 2Y 3Y 5Y 6Y 8Y 10Y 15Y 20Y 30Y

Central Bank's Policy Rates Treasury Bill Issuance

Description 23-08-2019. 31-05-2019. 01.01.2020 24.12.2019 18.12.2019 10.12.2019
Standing Deposit Facility (SDF) 7.00% 7.50% 91 Days % 7.51 7.51 7.51 7.45
Standing Lending Facility (SLF) 8.00% 8.50% 182 Days % 8.02 8.02 7.97 7.65
Bank Rate 15.00% 15.00% 364 Days % 8.45 8.45 8.45 8.23
Statutory Reserve Ratio (SRR) 5.00% 5.00% Amount 25Mn 13.5Bn 18Bn 27Bn
Treasury Bond Issuance
Date 15.10.2019 17.07.2018 16.12.2019 17.07.2018 17.09.2018 01.11.2019 16.12.2019 16.09.2019
Maturity 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 10 Years 15 Years
Current Yield 9.65 11.14 9.87 11.21 10.32 10.24 10.23 10.59
Previous Auction 13.06.2019 15.06.2017 27.06.2019 15.06.2017 16.07.2018 13.06.2019 12.03.2019 15.10.2018
Previous Yield 9.79 11.37 9.83 11.38 10.53 10.63 11.35 11.90

11.1 10.76
SLIBOR - LKR % 2.3 2.2555
LIBOR - USD %
2.1963
10.33
2.1980
10.1 10.22
9.81
9.57 2.1
9.1 1.9963
1.9121
8.39 1.9084
8.1 1.9
30 Aug. 30-Sep 31-Oct 29-Nov 31-Dec 2-Jan 29 Jul. 29 Aug. 30 Sep. 30 Oct. 29 Nov. 31 Dec.
3 month 6 month 12 month 3 months 6 months 12 months

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020
Economic Indicators & Other Statistics
1,550
Tea Prices (LKR/ kg) 77 Gold & Crude Prices bloomberg.com
1,523
1,520 1,530
670 1,514 1,513
1,508
624.66 1,496 1,510
620 72
68.13 68.32 1,490
570 67.38
66.48 66.78 66.33 1,470
67
520 1,450
531.21 61.92 61.74 61.65
60.57 61.28 61.23
62 1,430
470
1,410
Western High Low Grown Brent Crude WTI Crude Gold
420 57 1,390
05-09-

02-01-

20-08-
01-05-

28-08-

23-04-
25-12-

17-12-
2019
2018
2018

2018

2019

2019
2018
2017

31- 12 -

31- 12 -
- 2019.

- 2019.

- 2019.

- 2019.
30- 12
26- 12
24- 12

27- 12

2019.

2019.
244 252 253 220
244 Tourist Arrivals to Sri Lanka 245
210 Rubber RSS3 Futures
230 239 218
236 200 200 SGD/Tonnes
233 196
219 180 190
205 180
180 177
188
147 149 153 170 164
152
167 129 160
Thousands

130 144 145

119 150
123
116 109 140
80 130 investing.com
63
120
38 2017 2018 2019 Jun Aug Sep Nov Dec Jan Mar Apr May Jul Aug Oct Nov Dec
30 28, 08, 20, 01, 13, 27, 07, 17, 29, 10, 22, 03, 14, 26,
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2019 2019 2019

Local News
Apparel industry eyes 6% export growth in 2020
According to Sri Lanka’s Joint Apparel Association (JAAF), Sri Lanka’s apparel exports grew 5.8 percent YoY to US $
4.8 billion during January-November, last year, surpassing the initial expectations. “We are expecting growth to be
around 6 percent overall for 2020, equally from both the United States (US) and European Union (EU) markets. The
industry expects a significant growth to come from once the fabric park in Eravur is established, as we can source
fabric locally, cutting down our lead times, instead of importing from overseas, specially from India and China. This is
our main target for the year,” SLAEA Chairman Rehan Lakhany told Mirror Business. In addition, Sri Lanka apparel
exports to other markets such as Canada, India, Australia, Japan and China grew 12 percent YoY to US $ 666.5 million.
The apparel and textile industry contributes to 6 percent of Sri Lanka’s GDP while accounting for 40 percent of the
country’s exports. (dailymirror.lk)

Government bans ethanol imports

The government yesterday announced a ban on ethanol imports to the country with immediate effect. The Finance,
Economy and Policy Development Ministry in a media communiqué said the decision was taken based on the
adequate availability of locally-produced ethanol. Ethanol, which is widely used in making arrack, is made at sugar
companies, both state and privately owned. Higher taxes on ethanol imports had created an ‘ethanol mafia’ in the
country, who smuggled ethanol with the backing of powerful persons. A total ban on ethanol imports used to make
alcohol could increase the production costs of liquor makers in the country, thereby the alcohol prices for the end
customers. (dailymirror.lk)

Business sentiment continues to improve in the aftermath of the presidential poll

the latest LMD-Nielsen Business Confidence Index (BCI), stood at 186 in December – its highest point since
September 2015 – recording an increment of 75 basis points from the previous month. The barometer therefore, is
close to being twice as high as its 12 month average (99), more than double its score of a year ago (90) and within
striking distance of the BCI’s all-time high of 204 – which incidentally, marked the formation of the previous coalition
government in September 2015. (adaderana.lk)

IRD issues circular to banks

A about
s h a new
S e Withholding
c u r i t i e s Tax
R estructure
search Page 8 of 10
Sri Lanka’s Inland Revenue Department has issued a new circular to banks and financial institutions detailing the new
Withholding Tax structure which will be effective from today to 31 March 2020. aggregate interest income from all
the accounts to an account holder up to 250,000 rupees per month is exempted from WHT. Further, as per the
instructions, the interest paid to any person shall not be subject to WHT with effect from 01 April 2020.
 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

Foreign News
Asian shares jump on China policy easing, trade deal hopes
Asian shares kicked off 2020 on a strong note on Thursday, spurred by Chinese markets after Beijing eased
monetary policy to support the slowing economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.43%, after rising 5.6% in
December.

U.S. President Donald Trump said on Tuesday that Phase 1 of trade deal with China would be signed on Jan. 15 at
the White House, though uncertainty surrounds details about the agreement.

In China, the blue-chip CSI300 index .CSI300, one of the world's best-performing indexes last year, jumped as
much as 1.86% on Thursday to its highest level since Feb. 7, 2018. It was last up 1.35%.
Investors were cheered after China’s central bank on Wednesday said that it would cut the amount of cash that
banks must hold as reserves, releasing around 800 billion yuan ($114.9 billion) in funds for lending, effective Jan.
6.
The Dow Jones Industrial Average .DJI rose 0.27% and the S&P 500 .SPX gained 0.29%. The Nasdaq Composite
.IXIC added 0.3%.[.N]

The dollar was 0.03% stronger against the yen at 108.73 JPY= while the euro EUR= shaved off 0.04% to 1.1205.
U.S. crude CLc1 was up 0.28% to $61.23 and global benchmark Brent crude LCOc1 rose 0.33% to $66.22 per barrel,
building on a rise that gave oil its biggest annual gain in three years in 2019.
Gold, which has benefited from a weaker greenback, was up 0.23% on the spot market despite the slightly strong
dollar. It last fetched $1,520.37 per ounce. XAU=[GOL/] (Reuters)

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 [DAILY STOCK MARKET HIGHLIGHTS] 02 January, 2020

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