19th January 2009.

Both All share & Milanka indices gained 90.46 points (5.48%) & 147.87 (8.35%) respectively. ASI closed at 1740.41 & MPI closed at 1919.52.

Turnover was also healthy at Rs 263.9 million. Today’s heavily traded stock was Seylan Bank (Non Voting) with over four million shares traded. Seylan Bank (N/V) closed 25 cents higher at Rs 6.25.

Another significant transaction was John Keels Holdings which was closed at 5.50 (8.40%) higher at Rs 70.75. Over 1.1 million shares of JKH traded during the day contributing Rs 84.16 million to the total market turnover.

International investors should give their attention to Colombo Stock Market as it is performing better than other Stock markets Worldwide.

Announcements

COMMERCIAL BANK OF CEYLON PLC – NEWSPAPER ARTICLE

The company forwarded the following statement with regard to the above.”Peoples Bank obtained from the Colombo Commercial High Court an Enjoining Order on the 29th December 2008 restraining Commercial Bank of Ceylon PLC from appropriating and/or setting off the sum of USD 15 Million deposit of People’s Bank which it holds.Subject to the final determination by Court, Commercial Bank will hold the said deposit in connection with People’s Bank obligations under a WTI Crude Oil Hedging Contract which expires on the 31st August 2009. People’s Bank has failed to honour its November and December payment for 2008 amounting to USD 3,925,850/=. If People’s Bank continues to fail to make payments under this Contract and if the WTI Crude Oil price remains at the present level of USD 35 per barrel, our additional credit exposure would be approximately USD 21,600,000/= for the balance period of the Contract. If set off is permitted by the Court, the balance counterparty credit exposure by People’s Bank will be USD 10,525,850/= (Rs. 1,199,946,900/= at an exchange rate of Rs. 114/=).Commercial bank has obtained all required legal documentation to support this Contract and will take necessary action to safeguard the interest of the Bank and vigorously defend the action taken by People’s Bank.”

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