NDB Securities Weekly market Recap 4 September 2015

The weekly average market turnover hit a 21 week low with ASPI and S&P SL20
recording weekly losses of 1.84% and 2.26% respectively. The footwear and
textiles sector recorded the highest return for the week of 3.70% whilst the oil
palms sector was the second highest, increasing by 0.09%. Meanwhile, the largest
price gain was witnessed in Kalamazoo Systems whilst John Keells Holdings
Warrant 22 recorded the largest price loss. Foreigners remained active and closed
as net sellers for the week.

The weighted average (w. avg.) yields at T-Bill auction were seen increasing for
the 10th consecutive week to six month highs, with 182 day T-Bill and 364 day TBill
breaking the 7.00% physiological barriers for the first time since 11th March.
The 91 day Bill led the sprint, reflecting an increase of 26 basis points (bps) to
6.79% whilst the 182 day and 364 day bills both increased by 20 bps each to 7.07%
and 7.17% respectively. The total accepted amount dipped to a 17-month low of
LKR 3.9 Bn against a total offered amount of LKR 12.0 Bn.

In the primary T-bond auctions on 31st August, the yields continued their upward
trend. A total amount of LKR 31.318 Bn was offered for all three maturities. More
than 75% of the proceeds were accepted on the 01-06-2026 at a w. avg. yield of
10.34%. Meanwhile, the 01-05-2020 was accepted at a 9.35% w. avg. yield and
the maturity of 01-08-2021 was accepted at a 9.71% w. avg. yield. However, the
Monetary Board of CBSL kept the monetary policy rates unchanged in August
2015.

LKR fell over 3% to trade a record low of LKR 137.50 - 138.00 per USD on Friday
after the Central Bank of Sri Lanka (CBSL) effectively floated the currency by
ceasing to quote its own reference rate.