FXCM Review: Advantages Of FOREX Trading With FXCM

FOREX (FOReign currency EXchange) is a market that allows investors to trade currency from one country for that of another. Unlike most financial markets, this one operates 24/7 with different centers coming online at different times around the world. Until recently, it was the private market of banks and large corporations. Today, regular investors may trade on this market using a variety of different brokers and platforms. This FXCM review will show some of the advantages of FOREX trading with FXCM (FOREX Capital Markets).

Experience

No FXCM review would be complete without a brief discussion of its history. FXCM was formed in New York, USA in 1999. This company was one of the pioneers of online FOREX trading. This experience assures users of expertise in obtaining market signals and financial news releases that can affect their trading strategies.

Security

FXCM is a publicly traded company listed on the New York Stock Exchange. As such, it is regulated by the NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission) in the US. Being a multinational corporation, this firm is also regulated in the UK by the FSA (Financial Services Authority), the FSA in Japan, and the ASIC in Australia. This makes them one of the most heavily regulated FOREX brokers in the world.

Banks that provide the liquidity on currency pairs never see users’ names, personal information, financial data, or orders. They simply execute the orders anonymously. This helps to ensure the security of user accounts.

Industry leaders have criticized FOREX brokers in general. They say that most retail traders lack the experience to truly make money in this relatively new market. Some estimate that less than 15 percent of day traders actually show a profit. Studies show that FXCM customers fare well above average with 21 percent of traders holding accounts of less than 1000 USD and 37 percent of traders with accounts over 5000 USD profiting regularly on their trades.

Flexibility

Most brokers allow traders to use only their platform. Users of FXCM are able to take advantage of their platform, but have several other options as well. In addition to their Trading Station, users may choose from other popular platforms such as MetaTrader 4, Mirror Trader, or Active Trader.

Some brokers do not allow users to employ FOREX bots (Expert Advisors). Others will tolerate certain ones only. This broker allows users to make use of any of the available bots or scalpers they choose. This is in addition to providing a method of entering orders in advance to be executed when market conditions reach corresponding values.

Outside the US, users are not limited to the FOREX market when making investments. These individuals may also trade in CFDs (Contracts for Difference) on major market indices, futures, and commodities such crude oil or gold.

Users may operate standard or micro-accounts. Standard accounts use a leverage ratio of 1:200. Minimum deposits are 2000 USD and the minimum lot size for trading is 10k USD. Micro accounts allow leverage of 1:400 with minimum deposits of just 25 USD. Minimum lot size for a micro lot is just 1k USD.

Hedging is enabled on the FXCM platform. Users may take a long position or a short position on any currency pair. They even have the option of opening both positions simultaneously during news events in order to minimize losses and maximize gains based on the outcome of such events.

No Loss through Slippage

Slippage refers to the difference between the price of a currency pair at the time an order is placed and the price at the time the order is executed. This broker works to process orders in real time to avoid any negative slippage. If, on the other hand, there is an instance of positive slippage (the price is more favorable at the time of execution than when the order was placed), the client receives the benefit of the better price.

Direct Market Access

Most FOREX brokers use a “Market Maker” model whereby they may actually be in direct competition with users on any given trade. This one follows a “Direct Market Access” model. This means that they have different liquidity providers (banks) quoting prices on currency pairs. Customers are given the best price of the competing offers. This works whether entering a position or exiting. One bank may provide the best price when entering and another may have the best offer when exiting. Customers are not locked into a deal with a single provider.

Multiple Signal Sources

Users are not limited to just one provider of market signals. FXCM uses signals from both Zulutrade and Tradency. This means that users can count on getting the fastest updates on signals regardless of location.

Gain Experience without Risking Cash

FXCM offers users the opportunity to open a practice account and trade with virtual funds. This means that they can place orders and track their results in order to familiarize themselves with the market without actually risking any cash. It can also serve to help them dial in their own trading strategies based on the performance of their practice accounts.

It should be noted that the performance of practice accounts seldom is mirrored in actual trading. This is because the virtual funds used in practice accounts do not have any direct real impact on the market. Actual trades tend to affect the market directly as different currency pair lots are taken out of circulation or put back into circulation depending on whether one is buying or selling. This FXCM review has provided some of the strengths and weakness of FX trading.

This FXCM review has revealed many different advantages of FOREX trading with FXCM. This broker is among the most tightly regulated and secure brokers in the world with experience that goes back to the birth of online FOREX trading. They are among the most flexible, with different trading options including allowing users to choose their trading platform and make use of scalpers, bots, and trading algorithms. They minimize spreads by working with ten different banks to provide quotes on currency pairs and allow users to benefit from the best price on offer at the time of the trade. Slippage works to the advantage of the customer while they minimize negative slippage and trader losses through slippage.

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Most of March quarter corporate results released so far were showing profit growth specially in Banking sector. At the end of Wednesday’s trading the benchmark All Share Price Index was up by 87.82 points to close at 5213.68 while more liquid Milanka Index closed 4683.43, up 66.54 points. Day’s market turnover amounted to 542.52 million rupees.

It is prudent to focus on stocks with better results with long-term view. There are good stocks that fallen to very attractive levels mainly due to depressed condition of the overall market.

Total of 193 stocks closed positively while only 27 stocks ended in negative territory. Multinational food giant Nestle was up by 37.90 to close at Rs 1197.90 while Colombo Dockyard Plc (DOCK) closed at Rs 207.90, up 6.90. DOCK’s March quarter net profit was up by 60 percent to Rs 745.2 million.

11,028,501 shares of Asiri Surgical Hospital Plc traded and closed unchanged at eight rupees. 90100 shares of Hotel Sigiriya Plc changed hands within the price range of Rs 66.30 to 75.00 and closed 6.60 higher at Rs 74.70.

Foreigners were net buyers with net inflow of Rs 66,380,565.00.

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COMB Quarterly Statement

The Commercial Bank recorded a commendable growth in both pre & post tax profit of 40.04% and 37.99% for the three-month period ended March 31, 2012 compared to the corresponding period in 2011.The pre & post tax profit of the Bank reached Rs. 4,145.0 M n. and 2,843.3 Mn. respectively for the period. The net interest income of the Bank surpassed the Rs.5 Bn., mark and reached Rs. 5,0 65.5 Mn., recording a growth of Rs. 735.6 Mn., or 16.99% compared to the corresponding period in 2011. The main contributory factor for this increase was the increase in interest income on loans and advances portfolio of the Bank by Rs. 2,704.2 Mn. or 42.44%. This was mainly due to the increase in the performing loans and advances portfolio of the Bank by Rs. 19.361 Bn., or 7.11% during the three months period under review. The total interest expenses of the Bank increased by Rs. 1,686.3 Mn., or 37.49% during the period under review owing to the growth in the volume of deposits of the Bank by Rs. 32.580 Bn., or 10.23% and reached Rs.351.040 Bn., and an increase in the market interest rates.

The foreign exchange income of the Bank recorded an increase of Rs. 1,785.5 Mn., or 359.6% compared to the corresponding period in 2011 mainly as a result of translation gains consequent to the depreciation of the Sri Lanka Rupee against the US Dollar during the quarter under review. The other income of the Bank, which mainly comprise of commission income and investment income too recorded an increase of Rs. 140.5 Mn., or 14.29% and reached Rs.1,123.4 Mn. Provisions on account of Bad and Doubtful Debts (net of recoveries) increased by Rs. 704.6 Mn., during the period under review compared to the corresponding period in 2011.

The total deposits of the Bank stood at Rs. 351.040 Bn. as at March 31, 2012, reflecting a growth of 10.23% from Rs.318.461 B n. as at December 31, 2011. Gross loans and advances of the Bank stood at Rs. 308.670 Bn., reflecting a growth of 7.19%. Total assets of the Bank stood at Rs. 474.952 Bn., as at March 31, 2012, recording a growth of 7.67% compared to with Rs. 441.099 Bn., as at December 31, 2011. The Commercial Bank Group which comprises Commercial Bank, its subsidiaries and associates, recorded Pre-tax profit of Rs.4,155.6 Mn., for the three months period ended March 31, 2012 compared to Rs. 2,973.3 Mn. reported for the corresponding period in 2011. This reflected a growth of Rs. 1,182.3 Mn. or 39.76%. Further, the Group recorded a post tax profit of Rs. 2,849.9 Mn., during the first three months of 2012 when compared with the post tax profit of Rs. 2,065.3 Mn. recorded during the corresponding period in 2011. This represented a growth of Rs. 784.6 Mn. Or 37.99%.

The Commercial Bank Group which comprises Commercial Bank, its subsidiaries and associates, recorded Pre-tax profit of Rs.4,155.6 Mn.,for the three months period ended March 31, 2012 compared to Rs. 2,973.3 Mn. reported for the corresponding period in 2011. This reflected a growth of Rs. 1,182.3 Mn. or 39.76%. Further, the Group recorded a post tax profit of Rs. 2,849.9 Mn., during the first three months of 2012 when compared with the post tax profit of Rs. 2,065.3 Mn. recorded during the corresponding period in 2011. This represented a growth of Rs. 784.6 Mn. Or 37.99%.

Source: COMB Financial Statements.

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NDB Bank’s Chairman’s Review

It is my pleasure to report on the strong financial results of National Development Bank PLC (NDB Bank) st for the 1 quarter ended March 31, 2012.

The reported earnings included one off equity income of Rs 271 million on the sale of its investment in a 100 percent owned subsidiary, NDB Investment Bank Ltd (NDBIB) and of the 5 percent direct holding in AVIVA NDB Insurance PLC, to its subsidiary Capital Development and Investment Company PLC (CDIC) in March 2012. NDB continues to position itself as the only Financial Services Group in the country, with subsidiaries and associates in Investment Banking (locally and regionally), Stock Broking, and Wealth Management, which make up the Capital Markets cluster, and Insurance. This divestment to the Bank’s 99.6 percent owned subsidiary CDIC was carried out as part of the overall Group’s corporate restructuring exercise, with which, CDIC now positions itself as the diversified financial services investment arm of NDB Group. Accordingly, these investments will complement CDIC’s existing strategic investments in AVIVA NDB Insurance PLC and NDB AVIVA Wealth Management Ltd.

The Bank’s Profit After Tax growth after excluding this one-off income shows an increase of 52 percent st compared to the 1 quarter of 2011. The Basic earnings per share were Rs 17.96, an increase of 68 st percent over the 1 quarter of 2011.

The NDB Group’s Profit Attributable to Shareholders for the quarter increased by 19 percent over the prior period. The growth in NDB group’s PAS was lower than the Bank’s Profit After Tax as the one-off equity income of Rs 271 million is eliminated in consolidating the NDB results. The Bank’s Return on Average Assets and Equity for the first quarter of 2012 were 2.1 percent and 22.8 percent respectively, st compared to 1.6 percent and 15.0 percent, respectively, over the 1 quarter of 2011.

The Bank’s loans and advances increased to Rs 105.2 billion as at March 31, 2012, an increase of Rs 27.4 billion, or 35 percent, compared to March 31, 2011. The NPLs to gross lending portfolio was 1.36 percent as at March 31, 2012 end compared to 1.82 percent as at March 31, 2011. The NPL ratio of the Bank continues to remain healthy and is well below the industry average. The Bank has been able to achieve this low level of delinquency due its proactive risk management practices. The Bank’s robust balance sheet and liquidity means that the Bank is able to continue its lending and maintain a strong capital adequacy. Additionally, total deposits increased to Rs 88.4 billion as at March 31, 2012, a 46 percent increase from the deposit level as at March 31, 2011. The growth in assets and deposits was the result of continuing organic growth through the Bank’s existing branch network.

The Bank also expanded its branch network to 62 branches with additional branches in Hambantota and Kaduwela. NDB continued its active engagement in SME banking with agriculture, handicrafts, manufacturing, trading & distribution, fisheries, and dairy sectors to develop the entrepreneurs in the country. During the first quarter, NDB also conducted SME capacity-building workshops in Moratuwa, Pilimathalawa, Ambalanthota and Kurunegala in an effort to enrich their knowledge base.

As part of the NDB Group, the NDB Investment Bank had a positive start to the financial year, showing dominance in the country’s investment banking arena by successfully managing the only two IPOs to debut on the CSE in the first quarter of 2012. The Access Engineering IPO raised Rs. 500 million, while the Mackwoods Energy IPO raised Rs. 350 million; both were oversubscribed on the opening day. The Investment Bank also structured several securitization deals for Finance Companies in the first quarter of 2012 and collectively raised over Rs 1.1 billion, asserting ourselves as the leading investment Bank in the country. We are excited about our first quarter results. We were able to continue the strong momentum built in 2011, and will seek further growth opportunities for the Bank throughout 2012. Our discipline in the execution of our strategies has produced excellent first quarter results. Our focused management on all of our banking operations is expected to deliver solid growth into the future and enhance shareholder value .

Hemaka Amarasuriya

Chairman

11 May 2012

Source : NDB Bank Financial Statement for the quarter ended 31st March 2012.

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Nations Trust Bank Plc – Financial Review – 1st Quarter 2012

The Bank closed the quarter with a post tax profit of Rs. 406Mn surpassing the previous period by 8%. Current year quarter was driven by a noticeable growth in business volumes, modest growth in top line revenue and controlled growth in operating expenses. All business pillars

contributed to PBT in equal measure resulting in a well balanced result. With the mandatory credit ceiling coming into effect, business portfolios were re-positioned to optimize returns in a controlled growth environment. Core-earnings posted good growth over 2011 with revenue increasing at the higher rate of 9% compared to growth in expenses of 4%. In the current quarter, the Bank recorded a mark to market loss of Rs. 46Mn in contrast to the gain of Rs. 36Mn recorded in the corresponding quarter of previous year. Loan loss provisions which comprises of specific provision write-back and a general provision charge in line with asset growth for the quarter was comparatively higher than the previous period which recorded reversals on both categories. Net Interest Margins were challenging yet again with rising cost of funds and intensifying competition. Timely intervention in pricing across asset and liability portfolios and growth in business volumes resulted in net interest income recording a growth of 9% over the previous year. Non funds based (NFB) income too recorded a 9% growth over the previous period. Trade finance income recorded a drop due to IPO guarantee commission income generated during the previous period being absent in the current period. Credit cards recorded good growth of 29% stemming from acquiring commission income and card fees. Both local and destination spend increased over 20% compared to the 1Q of 2011 with the number of new cards issued doubling. Forex income also recorded a notable growth as a result of currency volatility in the market. A sizeable vacuum was created in NFB income as trading losses were recorded on the FIS portfolio for the current period compared to gains recorded for the previous period. The continuous upward movement in the yield curve negatively impacted the FIS trading portfolio which has been mitigated to some extent by shortening its duration. The Bank continued to manage costs, curtailing the increase in expenses to 4% despite rolling out an expansion strategy with investments made in people, premises, systems and the NTB brand. Group cost income ratio stood at 60% on par with the previous period. Cost efficiency and productivity has taken a predominant role in the day to day operations of the Bank with initiatives being implemented not only to reduce waste and consumption but also by exploring ways and means of inculcating a culture of working smarter amongst employees across all functions. The bank also took the first step in initiating the move into a paperless boardroom. With the introduction of the iPad Board Application, the Bank eliminated costs in terms of paper usage, printing and couriering whilst giving Board Members access to all past and current board papers at the click of a button, enabling both simpler and faster decision making.

A sound credit risk management framework coupled to an expanding loan portfolio resulted in a healthy NPL ratio of 2.81% compared to 2.79% reported in December 2011. The Bank also managed to grow its loan book by 7% to Rs 69Bn and deposits by 12% to Rs. 75Bn Whilst the

loan growth was on par with industry, deposit growth exceeded the market. The growth in credit was driven primarily by Retail SME, leasing and credit cards.

The capital position was at a sound Rs.8.5Bn. Accordingly the Bank was able to maintain comfortable Capital Adequacy Ratios both at Tier 1 and 2 levels.

Review of Operations

Retail & SME

The unit performed creditably in volume growth and profits. Its deposit mobilization drive attracted a significant number of new customers resulting in a Rs. 7.4Bn growth in total deposits. Loan growth was also commendable at Rs. 2.0Bn or 20%. The unit commenced the year with a focused approach to grow low cost funds and an attractive savings promotion was launched to grow the existing balances and acquire new customers. The benefits of the promotion are already visible with savings balances growing at a very healthy pace. Initiatives were also rolled out to scale up remittances’ business as the volume of inward remittances into the country continued to play a crucial role in supporting economic activity. The Retail team also visited Bahrain and Dubai to enhance relationships, and promote the Nations Trust brand as a key player to the Sri Lankan expatriate population. In keeping in line with the strategy of expanding customer touch points to enhance accessibility and convenience, the branch network expanded its footprint by opening a full service branch in Kaduruwela extending the network coverage to 49 branches.

Cards

The Unit recorded a good quarter with all key business parameters growing. While card receivables grew by 5% the card base expanded by 6% with spend also growing by 25%. Much emphasis was placed on building scale and enhancing top of the mind brand recall. Several spend promotions and activities were carried out across the full spectrum of consumer lifestyle needs as well as card activation programs. The Business also deployed its sales teams targeting new segments for acquisition. The rising cost of funds impacted portfolio NIMs negatively which resulted in slower NII growth despite growing receivables. However there is some respite with the interest rate cap being revised recently.

Consumer Assets

The Unit launched a twin strategy to build scale by originating loans via centralized sales teams and through the branches. It is cautiously moving into higher yielding customer segments whilst being continuously challenged by rapidly increasing cost of funds. Increased competition from peers coupled with early settlements owing to increased rates slowed portfolio growth. With the credit ceiling in place and portfolios being prioritized for growth, focus will be on generating returns on a risk-reward matrix than volume growth. Leasing The leasing activity recorded substantial growth with new business volumes surpassing the Rs. 3.0Bn mark and the portfolio growing by 10% in the quarter. Keeping in line with broad basing the leasing business, a campaign was launched to establish Nations Leasing as a machinery and equipment financier. The Unit sustained their sales drive from both centrally located teams and through branches. Localized promotions and brand activations were also carried out in the outstations. In light of the significant increase in import duty for all categories of vehicles and the increase in interest rates, the Leasing industry expects a slowdown in activities.

Corporate Banking

Focused on the larger corporate entities and given the backdrop of a credit ceiling, the business recorded a modest growth in assets at 6%. The Unit also experienced slow movement in trade related business especially importation of motor vehicles and consumer goods which impacted fee income. Despite increased competition and rising cost of funds, interest margins were managed by adopting a selective lending strategy. The Unit also actively participated in the deposit mobilizing efforts of the bank by focusing on transactional accounts.

Treasury

The Forex Desk was able to conclude the quarter on a satisfactory note. The market volatility on exchange rates that prevailed during the quarter was managed by increasing trading activity with customer volumes also increasing moderately. Treasury was also proactively engaged in re-pricing assets and liabilities and managing the pressure on interest rate risks and liquidity in a timely manner whilst actively supporting growth of the banking book.

Looking forward

The market forces operating today, both externally and internally, are no doubt challenging and the Bank continues to see volatility in Forex and Interest Rates. Based on what can be controlled, the Bank is focused on achieving the goals set out at the beginning of the year and remain optimistic about prospects for the remainder of the year. The distribution network now totaling 51 branches located in key cities and geographies of the country will uplift the Nations Trust brand to become a nationwide bank. Underpinned by such national coverage, the first quarter 2012 performance is a stepping stone for posting yet another record outcome for the year.

Source : Nations Trust Bank Plc – Quartely Stantement for the period ended 31st March 2012.

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Both ASI and MPI started positively but ended in red at the closing. The suspension of a Rs. 400 million The Finance deal added more fuel to the market downward run. However analysts warned this suspension will damage the credibility of the Market.

ASI lost 38.81 points to close at 5256.79 while MPI closed at 4714.78, down 26.91 points. Day’s total turnover amounted to 544.17 million rupees. Few crossings took place in JKH and PCH. Foreigners were net buyers with net inflow Rs 278,855,744.00.

156 stocks lost their value during the day’s trading while only 44 stocks closed higher. Hatton National Bank was up by 7.90 to close at Rs 159.00. Carsons Cumberbatch Plc closed at Rs 467.70, up 11.70. Illiquid Harshchandra Mills Plc was up by 825.50 to close at Rs 2480.70 but only 3 shares traded.

Ceylinco Insurance was down by 99.40 to end the day at Rs 900.50 while index heavy CTC lost 13.50 to close at Rs 685.50. Lanka Orix Leasing Company Plc closed at Rs 40.80, down 4.90.

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Press Release – CBSL

In February 2012, earnings from exports increased by 7.6 per cent to US dollars 879 million while the expenditure on imports increased by 27.9 per cent to US dollars 1,581 million over the corresponding month of the previous year.

The largest contribution to the export earnings in February 2012 was from industrial exports. Industrial exports grew by 3.3 per cent, year-on-year in February 2012 mainly driven by gem, diamonds and jewellery and rubber products. Export earnings from gems, diamonds and jewellery increased by 34.1 per cent. Earnings from rubber based products increased by 17.5 per cent due to the continuous high demand from major export destinations, particularly from the USA. Earnings from textiles and garments exports, which accounted for about 40 per cent of total export earnings, increased moderately by 1.4 per cent. Earnings from petroleum products, transport equipment, food, beverages and tobacco, leather, travel goods and footwear and ceramic products declined in February 2012.

Earnings from agricultural exports declined in February 2012, as a result of lower performance recorded in traditional agricultural exports of tea and rubber. Earnings from tea exports declined by 11.6 per cent, year-on-year, to US dollars 105 million mainly due to geo political uncertainties in major tea importing countries in the Middle East. Rubber exports declined by 32.9 per cent to US dollars 18 million due to elevated demand from the domestic rubber manufacturing industries. However, coconut exports increased by 46.5 per cent in February 2012, mainly due to higher production and favourable prices in the international market. Among the non-traditional agricultural exports, earnings from spices declined by 40.4 per cent in February 2012 due to a decrease in the volume of cinnamon, pepper and cloves exports. Vegetables and minor agricultural exports also declined during this period, while unmanufactured tobacco and sea food performed well.

Sources: Sri Lanka Customs and Central Bank of Sri Lanka

Expenditure on imports increased by 27.9 per cent in February 2012 compared to the same month of the previous year. Expenditure on intermediate goods increased by 36.8 per cent to US dollars 947 million mainly due to higher petroleum imports. Expenditure on petroleum imports increased by 111.7 per cent to US dollars 506 million in February 2012 compared to that of February 2011, reflecting substantial increase in both price and volume of imports. The average price of crude oil imports increased by 16.2 per cent to US dollars 119.86 per barrel in February 2012. Expenditure on imports of textiles and clothing, fertiliser, diamond and precious stones, vehicles and machinery parts and food preparations declined in February 2012. Reflecting continuous expansion in economic activities, investment goods imports grew by 41.3 per cent to US dollars 380 million in February 2012. All three major categories of investment goods; transport equipment, building materials and machinery and equipment recorded growth rates of 74.4 per cent, 38.6 per cent and 25.6 per cent, respectively. Expenditure on imports of consumer goods declined by 7.5 per cent to US dollars 251 million in February 2012. Import expenditure on food and beverages declined as prices of major imported food items such as sugar, lentils, onions, chilies and potatoes were lower in the international market.

In cumulative terms, earnings from exports increased marginally by 3.3 per cent to US dollars 1,797 million during January – February 2012 compared with the same period of 2011. Industrial exports, which accounted for 74.2 per cent of total exports, increased by 1 per cent during the first two months of 2012. Among the industrial exports, the textiles and garments and rubber products grew by 1.5 per cent and 19.1 per cent, respectively. Cumulative expenditure on imports during the first two months of 2012 increased by 24.7 per cent to US dollars 3,496 million. Expenditure on investment goods imports increased by 57.8 per cent to US dollars 903 million, mainly on account of machinery and equipment and transport equipment. Expenditure on imports of intermediate goods increased by 22.2 per cent to US dollars 2,044 million during the first two months of 2012. Expenditure on petroleum imports increased by 58.1 per cent to US dollars 1,021 million. However, expenditure on imports of textiles and clothing and gold decreased by 4.8 per cent and 37 per cent, respectively. Expenditure on consumer goods during the first two months of 2012 decreased by 2.2 per cent to US dollars 539 million. The trade deficit during the January-February 2012 stood at US dollars 1,699 million.

Tourist arrivals in February 2012 increased by 27 per cent to 83,549 while earnings from tourism grew at a healthy rate of 35 per cent to US dollars 86 million compared to the corresponding month of 2011.Worker’s remittances amounted to US dollars 470 million in February 2012 compared to US dollars 393 million in February 2011, recording a year-on-year growth of 19.6 per cent.

By end February 2012, gross official reserves, excluding Asian Clearing Union (ACU) balances, amounted to US dollars 5,522 million. Further, by end February 2012 total external reserves, which include gross official reserves and foreign assets of commercial banks amounted to US dollars 6,774 million. In terms of months of imports, gross official reserves and total external reserves by end February 2012 were equivalent to 3.2 months and 3.9 months, respectively.

The performance of the external sector for the period under consideration is further illustrated in the table below.

External Sector Performance

Sources:CentralBankofSriLankaandSriLankaCustoms

(a)Revised

(b) Provisional

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Colombo stocks slipped further in to negative territory at the end of Thursday’s trading. ASI closed 27.70 points lower at 5389.47 while Milanka index fell 6.95 points to close at 4823.78. Day’s total turnover amounted to 470.29 million rupees. Despite the negativity foreign investors were net buyers with net inflow of Rs 103,951,363.00.

CTC was up by 9.50 to close at Rs 699.50 while 120,832 shares of Commercial Bank of Ceylon Plc (COMB) changed hands and closed 60 cents higher at Rs 105.70. The Finance Company Plc closed at Rs 34.30, up 1.30. More than 1.5 million shares of PC House traded and closed 20 cents higher at Rs 7.80. 3.3 million shares of People’s Leasing Company PLC traded and closed unchanged at Rs 11.50. People’s Leasing can be considered as an attractive long-term buy at current price.

Carsons Cumberbatch Plc was down by 13.60 to end the day at Rs 456.20. Lion Brewery, owned by the Carson’s Group closed at 220.00 and 219,865 shares changed hands.

DFCC Bank declared Rs 4.00 first and final dividend per share. DFCC Bank closed at Rs 120.50, up 50 cents.

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At the end of the Monday’s trading Colombo ASI dipped 21.32 points to close at 5419.20 while more liquid Milanka Index (MPI) lost 6.16 to end the day at 4851.24. Day’s total market turnover amounted to Rs 631.23 million.
105 stocks ended in negative territory while 84 stocks closed higher. Union Bank of Colombo Plc (UBC) was up by 2.10 to close at Rs 18.30. Asiri Hospital Holdings Plc closed at Rs 8.40, up 80 cents. In Hotels and Travels sector Renuka City Hotel Plc was up by 7.50 to close at Rs 203.90.Palm Garden Hotel Plc closed at Rs 150.00, up 3.90.
The Lighthouse Hotel Plc reported quarterly profit of 78.8 million rupees. It was a 64% growth compared to quarter ended 31st March 2011. Lighthouse Hotel closed 1.30 higher at Rs 46.30.
The Finance Company Plc lost 9.60 to end the day at Rs 34.40. Last Friday SL Government owned National Savings Bank (NSB) bought 13% stake in The Finance Company around Rs 40.00 to Rs 50.00 per share. The price paid by the NSB was above the market price of Rs 32.00 on last Friday.
Foreign investors sold Rs 225.33 million worth of stocks and purchased stocks valued at Rs 153.56 million.

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According to the Reuters Sri Lanka’s rupee slid to a record low of 132.90 to the dollar on Wednesday as importers bought the U.S. currency on fears the local currency weaken further.

The benchmark All Share Price Index (ASI) closed marginally lower at 5440.01, down 3.97 points. Milanka index lost 4.89 points to close at 4886.80. Day’s market turnover amounted to 312.75 million rupees.

109 stocks closed in negative territory while only 56 stocks managed to close higher. Index heavy Blue Chip John Keells Holdings Plc was down by 70 cents to close at Rs 205.30 while Fixed wire line telecom leader Sri Lanka Telecom Plc lost 1.50 to end the day at Rs 44.50. Carsons Cumberbatch Plc closed at Rs 460.10, down 9.50.

Nestle Lanka Plc gained sharply to close 144.30 higher at Rs 1194.40. Colombo Dockyard Plc was up by 24.10 to close at Rs 224.10. Shares of Mackwoods Energy Ltd (MEL.0000) commenced trading today. MEL stocks closed 14.70 or 70 cents higher than its IPO price after touching high of sixteen rupees.

Foreign investors were net sellers with net outflow of Rs 19,845,457.00.

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