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.

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


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» UNHCR Fear is over 21 countries speak for us only 15 against
by Vishwanarth Today at 11:14 am

» Daily Foreign Transactions
by Mithooshan Today at 7:31 am

» SOFTLOGIC HOLDINGS PLC (SHL.N0000)
by suku502 Today at 12:58 am

» NATIONS TRUST BANK PLC (NTB.N0000)
by ColomboCSE Yesterday at 9:17 pm

» පෙබරවාරි මාසේ කොළඹ කොටස් වලට මොකක්ද වුනේ - බැසුවාද ? බැස්සාද ?
by xhunter Yesterday at 8:45 pm

» DFCC will be receiving Rs.594,538,285.50
by Wonderer Yesterday at 7:49 pm

» UNHCR එකේ ලොකූ ටෝක දැම්මට සමහර ඔස්තාර් ලා කියන ආර්තික සම්භාදක අරවා මේවා මුකුත් එන්නේ නැ
by Vishwanarth Yesterday at 6:27 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by samaritan Yesterday at 9:45 am

» GLAS will be winner with Super Gain.
by Eranga87 Yesterday at 2:00 am

» If you are one of those people who can sleep at night while someone else is in control of your destiny, then my advice would be to only invest in stocks
by Asoka Samarakone Thu Feb 25, 2021 9:58 pm

» Price prediction on GRAN and TAFL
by Bakkabwoi Thu Feb 25, 2021 6:22 pm

» SEMB SEMB
by stockchaser Thu Feb 25, 2021 2:57 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Vishwanarth Thu Feb 25, 2021 2:54 pm

» Bullish sentiment returns with market regulator's assurance
by Vishwanarth Thu Feb 25, 2021 2:52 pm

» DIPD/HAYC/HAYL
by Wickyz Thu Feb 25, 2021 1:19 pm

» Chart 25.02.2021
by stockback Thu Feb 25, 2021 12:41 pm

» is it a good time to sell expo shares
by Kipling Thu Feb 25, 2021 8:39 am

» Current 2021 Februray Unit Trust/Unit Fund Per Annum percentages
by agentnrox Thu Feb 25, 2021 8:13 am

» Leading brokers causing market downturn
by Mithooshan Thu Feb 25, 2021 7:40 am

» Must watch this video - unnecessary panic
by Jana Thu Feb 25, 2021 1:03 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Interest rates, inflation to go up, rupee to see steeper fall

Interest rates, inflation to go up, rupee to see steeper fall

Go down  Message [Page 1 of 1]

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
The interest rates are expected to go up in the short term as the cash-strapped government is fast absorbing the liquidity through government securities and the inflation too is expected to trend upwards amid higher energy prices, according to a research arm of a leading stock broking house.  

The excess liquidity which peaked at Rs.370 billion at the beginning of this year has come down to Rs.62 billion, by the second week of July 2015, demonstrating the rate at which the government had been borrowing through Treasury bills and bonds during the first six months. 

According to JB Securities, the banks are slowly increasing their fixed deposit rates in the order of 25-50 basis points. However, the banks which maintain a higher Current and Savings Account (CASA) ratio will benefit from the rising interest rate environment as these deposits are not repriced.  

The commercial bank Average Weighted Deposit Rate (AWDR) edged up to 6.02 percent by the end of June from 5.95 percent a month ago while the Average Weighted Fixed Deposit Rate (AWFDR) edged up to 7.29 percent from 7.12 during the same period, the Central Bank data showed.    

However, this is in contrary to Standard Chartered Bank which expected a further 50 basis point rate reduction during the second half of 2015 amid low inflation and moderate growth.   

JB Securities further said that the current benign inflation will also trend up towards the latter part of 2015 on the back of the higher energy prices, as the administered retail energy prices will have to be revised up due to higher Brent crude prices and weaker rupee.  

“Average inflation will trend up to 4 percent due to higher retail fuel prices –this is within CBSL stated target range of 3-5 percent,” JB Securities said in its equity strategy report for 2015/16.  

JB Securities expects a steeper depreciation of the rupee by between 3-4 percent post-election as the currency is already under pressure due to strong dollar and capital outflows.  

“CBSL continues to intervene in the market, propping up the currency-a policy without merit and one presumes it’s more to do with election posturing,” they said. 

All in all, JB Securities estimates the economy would not grow above 6.5 percent (as measured by the 2002 base) due to fall in construction growth which accounted for 20 percent during the post-conflict period.  

However, the research unit is of the belief that voting back the existing government into power will bode well for creating an investor-friendly environment.  

“If the current government is voted back into office there will be greater efforts in improving the investment climate through enacting legislation to improve investor protection, targeted incentives and more business-friendly procedures and policies with the aim of improving on the country’s ranking as per the World Bank’s doing business index,” JB Securities said.
Courtesy: Daily Mirror 22 July 2015

VALUEPICK

VALUEPICK
Expert
Expert
Sri-Lanka already had devaluation when one USD dollar was trading around Rs.113. After devaluation it shot up to Rs.137 and later it stabilized around Rs.130 to Rs.133.Therefore, Sri-Lankan rupee can have minor volatility against USD or can depreciate little bit up to Rs.134 /135 levels.
 
On the other hand over valued currencies such as AUD and NZD will depreciate at least until 2018 against both Sri-Lankan rupee and USD. Strong dollar will crush both oil and gold in 2016 and 2017 as well.
 
Iran also will release more oil to the market. There will be more pressure on oil prices in the coming quarters.
 
http://www.marketwatch.com/story/oil-prices-to-stay-lower-for-longer-says-goldman-sachs-2015-04-07
Oil prices to stay lower for longer, says Goldman http
 
http://www.bbc.com/news/business-33629292
 
Oil prices hit as US data raises oversupply fears
 
http://www.usatoday.com/story/money/2015/07/22/oil-prices-tumble/30538053/
 
Oil prices fall below $50 a barrel
 
Not only advanced economies but also frontier markets such as Sri-Lanka and Pakistan should benefit lot due to lower oil, gas prices and other raw materials. Therefore, we cannot expect higher inflation like those days. Still we are not in the era of oil trading above $120. I can remember some investment bankers and top analysts predicted oil will go to $200. Some predicted gold will go to  $10,000. I think it is going to go to $500 now. Gold money also will flow back to undervalued assets including undervalued stocks and emerging commodities.

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Good luck, CSE

nimantha80


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@Quibit wrote:Good luck, CSE
onna ai awilla,dan index watenne 7000? or 6500?

policy rates unchanged
http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20150724e.pdf

VALUEPICK

VALUEPICK
Expert
Expert
@Quibit wrote:Good luck, CSE
Thank you!

Sri-Lankan rupee will appreciate against overvalued currencies such as AUD, NZD and CAD. These three currencies will have bear market and can last at least until 2018 as they went up rapidly against USD and other currencies during last five years.
 
http://www.cnbc.com/2015/07/15/bank-of-canada-cuts-main-interest-rate.html
 

Bank of Canada cuts main interest rate to 0.5

 
http://www.wsj.com/articles/oil-weak-after-overnight-losses-oversupply-weighs-1437617638
 
Oil Prices Enter Bear Market Amid Global Glut of Crude
 
http://www.theguardian.com/business/2015/jul/24/australian-dollar-hits-fresh-six-year-low-as-chinese-factories-continue-to-falter
 
Australian dollar hits fresh six-year low as Chinese factories continue to falter

Sponsored content


Back to top  Message [Page 1 of 1]

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