BRS Morning Shout

15th November 2018

Market Indices Economy

Year
Current Previous Day's % YTD % • The Sri Lankan rupee fell to a record low of 176.60 to the U.S. dol-
open lar on Wednesday, as political uncertainty outweighed the positive
impact of a policy rate hike, sources said. (1)
ASPI 5,947.36 5,993.54 6,411.27 -0.8% -7.2%
• Central Bank (CBSL) yesterday said that its attention has been
S&P SL 20 3,087.48 3,128.87 3,702.63 -1.3%Source:
-16.6%CSE drawn to recent grievances received from the general public re-
Source: CSE garding financial scams spreading through phishing emails and
social media messages. (2)
Commodity Prices

Current Previous
Year Day's
YTD %
• Sri Lanka's economy could accelerate over 4.0 to 4.5 percent in
open % 2019, from an expected 3.6 percent in 2018, Central Bank Gover-
nor Indrajit Coomaraswamy said. (3)
Gold (USD/Ounce) 1,210.80 1,204.40 1,309.30 0.5% -7.5%

Copper (USD/Pound) 2.71 2.69 3.27 0.8% -17.1%

• In equities, Colombo's All Share index fell 0.77 percent, down
46.18 points to 5,947.36, and the S&P SL20 of more liquid stocks
Aluminium (USD/MT) 1,943.25 1,943.25 2,275.50 0.0% -14.6% ended 1.32 percent lower, down 41.39 points to 3,087.48. (4)

Crude Oil (USD/Barrel) 65.87 65.67 66.87 0.3% -1.5%

Business
Cotton (US ȼ/Pound) 76.48 76.17 78.63 0.4% -2.7%
• Nestlé Lanka PLC, the local unit of the world’s largest food com-
Sugar (US ȼ/Pound) 12.65 12.61 15.16 0.3% -16.6%
pany, saw its September quarter (3Q18) net profits increasing 15.6
Palm Oil (USD/MT) 470.66 478.42 615.97 -1.6% -23.6% percent year-on-year (YoY) to Rs.941 million, as the company
managed to contain its costs despite a drop in sales figures. (5)
Source:
Source: Nasdaq
Nasdaq

Forex market • Amana Takaful PLC (ATL) received the ISO 9001:2015 certification
for both its General and Family (Life) Takaful businesses as part of
Year Bid-Ask its endeavor to continuously provide high service standards to its
Buying Selling YTD %
open Spread discerning customers. (6)

USD 173.73 177.63 155.15 2.2% 14.5% • Sri Lanka’s life insurance market leader has reported profit before
tax of Rs. 3.734 billion for the period, reflecting growth of 48%
GBP 224.88 232.31 209.63 3.2% 10.8% over the corresponding nine months of 2017. Net profit improved
by an even stronger 62% to Rs. 3.28 billion. (7)
EUR 195.08 202.11 186.38 3.5% 8.4%
• The state banks are planning to raise between 750 million to 1,000
Source: CBSL million dollar by the end of the year. (8)
JPY 1.52 1.57 1.38 3.2% 13.8%
Source: CBSL • Former Monetary Board member Neil Umagiliya has been ap-
Market Rates pointed as Chairman of state-owned banking giant, Bank of Cey-
lon (BOC) with effect from November 13, 2018. (9)
Current Week ago Year open Yearly %

182 day T bill 9.69 9.67 8.27 17.2%

Political

364 day T bill 10.31 10.28 8.87 16.2%

• In a letter to Speaker Karu Jayasuriya, President Maithripala Siris-
ena yesterday rejected the No-Confidence Motion (NCM) brought
AWPR 12.82 12.41 11.46 11.9% against his nominee for Prime Minister Mahinda Rajapaksa and the
Government. (10)
AWLR 14.18 14.18 13.89 2.1%
• President Maithripala Sirisena last night escalated a war of words
AWDR 8.69 8.69 9.07 -4.2% with Speaker Karu Jayasuriya, accusing him of disregarding the
Constitution, Standing Orders of Parliament and conventions of
AWFDR 10.84 10.84 11.48 -5.6%
Source: CBSL the House in allowing the passing of a no confidence motion
Source: CBSL against Prime Minister Mahinda Rajapaksa and his Government.
(11)
Money markets
Year • JVP Leader Anura Kumara Dissanayake defended the process by
Current Previous YTD % which the no confidence motion against Prime Minister Mahinda
open
Rajapaksa and his Government was passed in Parliament yester-
Market liquidity - Surplus/(Deficit) (LKR bn) (82.98) (84.86) 37.02 -324.1% day, saying the due process was adopted by the House. (12)
CBSL holdings in govt securities (LKR bn) 67.44 67.44 9.91 580.5%
Source:
Source:CBSL
CBSL

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BRS Morning Shout
15th November 2018

International

• Asian stocks rose on Thursday, taking heart from a bounce in Chinese shares on news that China has delivered a written
response to U.S. trade demands, while oil prices resumed their retreat on fears of oversupply. (13)

• Oil prices fell on Thursday, pressured by rising supply going into a market in which consumption is expected to slow down
amid a glum economic outlook. (14)

• China’s state planner said on Thursday it approved nine fixed asset investment projects worth 91.8 billion yuan ($13.22
billion) in October. (15)

• The dollar weakened on Thursday against the pound and euro, which rose after Britain’s prime minister won cabinet ap-
proval for her draft Brexit plan, although concerns about whether the proposal can clear parliamentary hurdles capped
broader gains. (16)

References

1.http://www.ft.lk/financial-services/Rupee-hits-record--low-on-political-uncertainty--stocks-down/42-666910

2.http://www.ft.lk/financial-services/Central-Bank-warns-public-to-be-attentive-of-financial-scams--phishing-emails/42-666875

3.https://economynext.com/Sri_Lanka_expects_growth_to_speed_up_in_2019-3-12616-1.html

4.https://economynext.com/Sri_Lanka_rupee_ends_weaker,_stocks_down_0.77_pct-3-12606.html

5.http://www.dailymirror.lk/article/Nestl%C3%A9-Lanka-Q-bottom-line-helped-by-lower-costs-158371.html

6.http://www.ft.lk/financial-services/Amana-Takaful-successfully-transitions-itself-to-ISO-9001-2015-certification/42-666913

7.http://www.ft.lk/financial-services/Ceylinco-Life-s-9-month-net-profit-up-62--to-Rs--3-28-billion/42-666914

8.https://economynext.com/Sri_Lanka_state_banks_to_raise_up_to_a_billion_US_dollars_from_ME-3-12604-3.html

9.http://www.dailymirror.lk/article/Neil-Umagiliya-appointed-as-BOC-Chairman-158370.html

10.http://www.dailymirror.lk/article/President-rejects-NCM-brought-against-PM-Govt--158388.html

11.http://www.ft.lk/front-page/War-of-words-between-President--and-Speaker-escalates/44-666929

12.http://www.ft.lk/front-page/JVP-says-NCM-duly-passed/44-666931

13.https://www.reuters.com/article/us-global-markets/asia-stocks-lifted-by-china-u-s-trade-hopes-oil-resumes-retreat-idUSKCN1NK03P

14.https://www.reuters.com/article/us-global-oil/oil-prices-resume-decline-on-oversupply-worries-idUSKCN1NK02M?il=0

15.https://www.reuters.com/article/us-china-economy-projects/china-approves-13-2-billion-in-fixed-asset-investment-projects-in-october-
idUSKCN1NK07F?il=0

16.https://www.reuters.com/article/us-global-forex/euro-pound-firmer-after-brexit-deal-but-broader-concerns-support-dollar-idUSKCN1NJ042?il=0

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