FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» SGH buys EXPO from retailers
by blindhog Today at 11:04 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Surajmp Today at 8:44 pm

» L G I L - Maharaja special
by Chula Today at 8:13 pm

» HAYLEYS PLC (HAYL.N0000)
by cseboss Today at 11:34 am

» NO FURTHER INCREASE IN TAXES-PRES. RANIL WICKRAMASINGHE
by ADVENTUS Yesterday at 3:48 pm

» AAIC 100 = SCAP 16
by Equity Win Yesterday at 2:11 pm

» CARGO BOAT DEVELOPMENT COMPANY PLC (CABO.N0000)
by Dasun Maduwantha Yesterday at 12:10 pm

» Nestle‚ declares highest ever dividend
by Shiranli Yesterday at 11:24 am

» PRIME LANDS RESIDENCIES PLC (PLR.N0000)
by Anushka Perz Yesterday at 11:15 am

» Buy lofc tomorrow - Maharaja
by Maharaja Yesterday at 9:47 am

» MULTI FINANCE PLC (MFL.N0000)
by Eleven Mon Aug 08, 2022 9:28 pm

» AGSTAR PLC (AGST.N0000)
by Thushara Ayya Mon Aug 08, 2022 4:18 pm

» ACL; MELS; HHL; BIL; LWL- STOCKS TO WATCH
by ADVENTUS Mon Aug 08, 2022 1:43 pm

» LIOC ....Get in soon
by samaritan Mon Aug 08, 2022 11:49 am

» Sinopec likely to enter Lankan fuel market
by samaritan Mon Aug 08, 2022 9:41 am

» RW - Rescue Warrior of Sri Lanka's Economy
by reyaz Mon Aug 08, 2022 8:17 am

» Should Central bank increase Interest rates?
by reyaz Mon Aug 08, 2022 7:52 am

» LPRT and CHOT old and profitable businesses, yet severely undervalued
by sheildskye Sun Aug 07, 2022 12:05 pm

» Day Trader may find a stock attractive if it moves a lot during the day. Stock market for beginners and day traders
by Asoka Samarakone Sat Aug 06, 2022 11:54 am

» Foundation laid for Nestlé Lanka’s Rs.5bn factory expansion
by nilantha suranga Sat Aug 06, 2022 1:57 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Reforms to increase market capitalisation vital

Reforms to increase market capitalisation vital

3 posters

Go down  Message [Page 1 of 1]

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

The Colombo Stock Exchange needs to work with all stakeholders diligently on reforms to increase the market cap to GDP ratio which is about 30% today to around of 50% of GDP by 2020, a capital market expert, CFA Candor Group CEO and Director, Ravi Abeysuriya said.
“This is certainly not a stretched target when we compare with India’s 75% market cap to GDP ratio. With proper reforms, we could reach around US $ 110 billion by 2020, thus we should have a market cap of around $ 55 billion by 2020,” he said.
At present, Sri Lanka’s total market capitalisation stands at approximately US $ 22.7 billion.
Therefore, market capitalisation needs to grow by about 4.4 times from 2015-2020, for Sri Lanka to achieve the US $ 100 billion target, he said. According to a Securities and Exchange Commission presentation in 2013, the channels by which the set objective was to be achieved included increased investments (from foreign and local sources), increased liquidity in the market, developing the corporate debt market, developing new products (derivatives and commodity market), growing the unit trust industry, education and awareness programs. Promoting the Colombo bourse alone is unlikely to get us there, he said. Currently, the market cap to GDP ratio stands at nearly 30%.
To achieve the targeted market cap of US $ 100 billion, the GDP has to reach US $ 200 billion by 2020 from its current US $ 76 billion.
This needs an economic growth rate of nearly 22% annually which is unrealistic.
If Sri Lanka is to achieve a realistic target, concerted efforts of the government, regulators and market intermediaries and market participants are imperative to broaden the depth and breadth of our capital market.
A Government policy change is necessary in certain areas. “We have to get Sri Lanka into the MSCI Emerging Market Index, which could be a major catalyst to attract foreign investors to our capital market.
This can be achieved by listing two large profitable State institutions and establishing a public float of over 20%. US $ 9.5 trillion in assets is estimated be the benchmark to move into MSCI indexes,” Abeysuriya said.
When Sri Lanka is in the index, MSCI Emerging Market Index tracker funds will need to invest in Sri Lanka as they need to replicate the index. Further, making the Colombo bourse a regional bourse for the SAARC region would be another catalyst.
Companies in the region could be encouraged to list their debt and equity in the CSE by promoting the cost effectiveness of listing in the CSE. Such efforts will move Sri Lanka into the radar screens of global investors, he said.
Courtesy: The Sunday Observer 10 May 2015

VALUEPICK

VALUEPICK
Expert
Expert

If we analyse Sri-Lankan market there are plenty of government own organisations have listed partly or fully in the CSE during last 10 to 20 years. For example:
 
CCS
DIST
MBSL
PLC
PMB
Plantations
 
If I am correct both NDB and DFCC also were under the government and later listed in the CSE.
 

Time to time we could get above average capital gain by investing in above companies.  They have long term value. Some long term local and foreign investors have invested in above companies. Capitalization has increased gradually.  We should see improved capitalization once we see more and more listed companies own by both government and private sector in the coming years.

piras

piras
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

VALUEPICK wrote:
If we analyse Sri-Lankan market there are plenty of government own organisations have listed partly or fully in the CSE during last 10 to 20 years. For example:
 
CCS
DIST
MBSL
PLC
PMB
Plantations
 
If I am correct both NDB and DFCC also were under the government and later listed in the CSE.
 

Time to time we could get above average capital gain by investing in above companies.  They have long term value. Some long term local and foreign investors have invested in above companies. Capitalization has increased gradually.  We should see improved capitalization once we see more and more listed companies own by both government and private sector in the coming years.

True

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum