Daily Market Watch Page 1 of 5 Market Watch 18 th June 2013

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Benjamin Jackson
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1 Daily Market Watch Page 1 of 5 Market Watch 18 th June 2013 Local Market News Interest rates movement Average Weighted Prime Lending rate AWPLR Average Weighted Deposit Rate AWDR Average Weighted Fixed Deposit Rate AWFDR (As of 31 st May 2013) Treasury bill Auction Results T - Bills 3 Months 6 Months 12 Months 12/06/ /06/ Secondary Market 8.85/ / /10.85 (As of 12 th June 2013) Daily Market Review Overnight Call Money Borrowing Rate % Overnight Repo Borrowing Rate % Market Liquidity Bn USD/LKR (Opening) /75 USD/LKR (Closing) /58 Market Volume (USD/LKR) 53.15Mn Inflation - May 2013 Year on Year 7.30% Weighted Average 8.80% (-As of 17 th June 2013) Foreign Market News Commodity Prices Gold Price (USD/t oz.) 1, Oil Price Brent crude (USD/bbl.) Interest Rates Movement LIBOR Rates - USD 3 months months months 0.67 US Policy Rate 0.25% New York Prime 3.25% (-As at 17 th June 2013)

2 Daily Market Watch Page 2 of 5 MARKET COMMENTRY USD/LKR Market The rupee closed (17 Jun) steady at Rs /60 against its previous weeks closing levels subsequent to dropping to an intraday low of Rs The total USD/LKR traded volume for the previous day (14 June 2013) stood at US$ million. Some of the forward dollar rates that prevailed in the market were one month ; three months 131 and six months The rupee ended steady on Monday as the Central Bank intervened in the currency market for a second day to help ease depreciation pressure amid importer demand for dollars, dealers said. There was intervention as we were giving away some dollars we have bought early June, Central Bank Governor told Reuters. Money Market Sri Lanka's short term Treasuries yields eased at Wednesday's with the 3-month yield falling 03 basis points to 8.67 percent, the state debt office said. The 6-month yield fell 01 basis point to 9.80 percent and the 12-month yield was flat at percent. The state debt office said 943 million rupees in 3-month bills, 2.7 billion rupees in 6-month bills and 11.2 billion rupees in 12-mont bills totaling 14.9 billion rupees were sold. The debt office offered 12.0 billion rupees in maturing bills for auction. Activity in secondary bond markets dried up once again yesterday as market participants were seen adopting a wait and see approach at the start of this week following increases in yields throughout last week. Two way quotes were mainly seen on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018), with very thin volumes seen changing hands on the April 2018 maturity at levels of 11.23% as these maturities closed the day at levels of 11.21/24 and 11.25/28 respectively. In addition the eight year maturity was seen been quoted at levels of 11.50/60 while the 364 day bill quotes were seen at 10.80/85. In money markets yesterday, overnight surplus liquidity increased once again to Rs b as an amount of Rs b was mopped up from the system by way of a Repo auction at a weighted average of 7.76% on an overnight basis. Overnight call money and repo rates remained steady to average 8.65% and 8.15% respectively.

3 Daily Market Watch Page 3 of 5 Equity Market Sri Lanka's stocks closed up 0.19 percent on Friday following three straight days of losses with index heavy stocks continuing to drop and profit taking by some investors, brokers said. The benchmark Colombo All Share Index closed points higher at 6, and the S&P SL 20 Index closed 5.26 points higher at 3, higher 0.15 percent. Turnover was 577 million rupees up from 480 million day earlier. Foreigners brought 159 million rupees worth shares while selling 241 million rupees of shares, in a day that 96 stocks advanced and 87 stocks declined. Ceylon Tobacco Company contributed most to the index gain closing at rupees up 27,60 rupees. Sri Lanka Telecom closed at rupees up 1.00 rupee and Aitken Spence gained 4.30 rupees to close at rupees. Negative contributors included John Keells Holdings which lost 1.40 rupees to close at rupees and Nestle Lanka lost rupees to close at rupees. Pan Asia closed at rupees down 30 cents. Union Bank of Colombo closed flat at rupees and Sampath Bank closed at rupees down 1.80 rupees. Commercial Bank of Ceylon lost 0.20 rupees to close at rupees. Distilleries Company gained 60 cents to close at rupees, The Lion Brewery closed at up 2.40 rupees. EUR-USD: - This pair is starting off the new trading week quietly. The euro gained closed to one cent last week, and is trading in the mid-1.33 in Monday s European session. Taking a look at Monday s releases, it s a quiet start to the week. Euro zone releases started off with a whimper, as today s tow releases disappointed. Both Italian and Euro zone Trade Balances fell well short of their estimates. In the US, today s highlight is the Empire State Manufacturing Index. After a weak reading in May, the markets are expecting some improvement in the upcoming release. The pair is strongly bullish. AUD-USD:- AUD/USD has broken lower to reach , in a continuation from overnights drop zone around Last night, the AUD/USD fell under further pressure in the market following the RBA minutes which revealed that the RBA are giving a green light to Aussie dollar weakness, concerned in the main to Chinas slow down and uncertainty with their major trading partner. The pair is strongly bearish.

4 Daily Market Watch Page 4 of 5 USD-JPY:- The U.S. dollar traded higher against the Japanese yen during Tuesday s Asian session as traders appeared pensive ahead of the start of another Federal Reserve meeting later Tuesday. In Asian trading Tuesday, USD/JPY rose 0.42% to The pair was likely to find resistance at 95.81, Friday's high, and support at 93.80, Thursday's low. According to the Technical Analyst Team at ICN.com, The USD/JPY is fluctuating within a limited range below its linear regression indicator 34, keeping the possibility of a downside move valid. The pair will face a barrier before extending bearishness, which is 38.2% correction at Ultimately however, breaking levels might get the pair into a new downside wave. The pair is slightly bullish. GBP-USD:- The GBP/USD continues its march south on Tuesday, accelerated after the consumer prices in the British economy rose beyond expectations during May. The pair is slightly bearish.

5 Daily Market Watch Page 5 of 5 Movement of Major Currencies against USD Opening Closing EUR/USD USD/JPY AUD/USD GBP/USD USD/CAD Maturity No Days Premiums 1 week 7 15/20 2 weeks 14 32/40 3 weeks 21 50/60 1 month 33 80/90 2 months /160 3 months /235 4 months /305 5 months /375 6 months /460 (- As at 17 TH June 2013) Data to be Released on 19th June 2013 AUD EUR CHF GBP USD CAD RBA Bulletin German 10-y bond auction ZWE Economic expectations Monetary Policy meeting minutes, Bank of England Governor speaks FOMC Economic projections, Federal Funds rate, FOMC press conference Wholesale Sales m/m, BOC Governor speaks Stock Market Details Index Closing Change % ASPI 6, % S&P SL20 3, % NASDAQ 3, % DOW 15, % Any opinions, news, research, analyses, prices, or other information contained on this article is provided as general market commentary, and does not constitute investment advice. Pan Asia Banking Corporation PLC will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Above information was obtained from the following LBO, investing.com, Bloomberg, Trendsetter

Nivesh Daily Currency

Nivesh Daily Currency February 3, 2016 Currency Pivot Levels Currency % OI % Prev OI Close Pair Change Change %Change R * Pivot S* USDINR 68.27 0.20 6.75-3.2 68.3550 68.2025 68.1175 EURINR 74.50 0.67 20.16-10.6