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


ADVERTS

Poll

EXCHANGE RATE PREDICTION: 2022

Why investors should prefer Treasury Bonds instead of CSE? Vote_lcap16%Why investors should prefer Treasury Bonds instead of CSE? Vote_rcap 16% [ 43 ]
Why investors should prefer Treasury Bonds instead of CSE? Vote_lcap21%Why investors should prefer Treasury Bonds instead of CSE? Vote_rcap 21% [ 57 ]
Why investors should prefer Treasury Bonds instead of CSE? Vote_lcap30%Why investors should prefer Treasury Bonds instead of CSE? Vote_rcap 30% [ 83 ]
Why investors should prefer Treasury Bonds instead of CSE? Vote_lcap34%Why investors should prefer Treasury Bonds instead of CSE? Vote_rcap 34% [ 93 ]

Total Votes : 276

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Sri Lanka bond yields extend fall on DDR comments
by K.R Yesterday at 6:12 pm

» The rupee was now ‘heavily undervalued’ based on fundamentals - Central Bank Governor Nandalal Weerasinghe
by K.R Yesterday at 3:02 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Riz123 Yesterday at 1:45 pm

» CIC going to next level
by suku502 Yesterday at 12:13 pm

» PMB/PLC/PINS
by K.R Yesterday at 12:03 pm

» What will happen tomorrow?
by K.R Thu Nov 24, 2022 7:56 am

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by ErangaDS Wed Nov 23, 2022 6:34 pm

» KZOO.N SHAW WALLACE INVESTMENTS PLC TP 10/
by cheetah Wed Nov 23, 2022 11:16 am

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Wed Nov 23, 2022 6:53 am

» SRI LANKA TELECOM (SLTL.N0000) - Reawakening the Giant
by Equity Win Tue Nov 22, 2022 12:10 pm

» EXTERMINATORS PLC (EXT.N0000)
by ErangaDS Tue Nov 22, 2022 10:35 am

» Focus on Government controlled entities
by K.R Sun Nov 20, 2022 10:45 am

» Singapore based Kreate Design to invest USD 1 Billion to Colombo Lotus Tower
by K.R Sat Nov 19, 2022 1:40 pm

» China working with other lenders on ‘easing’ Sri Lanka debt
by K.R Sat Nov 19, 2022 1:31 pm

» Billionaire owned listed companies faces insolvency issues in Sri Lanka
by God Father Sat Nov 19, 2022 10:11 am

» Wahts going on with Expo
by sanjayaK Fri Nov 18, 2022 2:23 pm

» REGULATORS - DUTY OF CARE
by God Father Fri Nov 18, 2022 1:47 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by K.R Tue Nov 15, 2022 8:03 pm

» LANKA HOSPITAL + SRI LANKA TELECOM + HOUSING DEVELOPMENT COOPERATION
by nish84 Tue Nov 15, 2022 4:29 pm

» SEYLAN DEVELOPMENTS PLC (CSD.N0000)
by Thushara Ayya Tue Nov 15, 2022 10:16 am

EXPERT CHRONICLE™

MARKET CHAT


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Why investors should prefer Treasury Bonds instead of CSE?

Why investors should prefer Treasury Bonds instead of CSE?

2 posters

Go down  Message [Page 1 of 1]

DeepFreakingValue

DeepFreakingValue
Senior Equity Analytic
Senior Equity Analytic

Why would a prudent investor invest in more volatile and high risk stock market with an average yield of less than 8% per annum that comprises of companies with ROI/NP margins of less than 20% p.a instead of investing in risk free government treasury bonds with a guaranteed yield of 30% per annum for next 5 years?

- During last 5 years CSE value has appreciated only 44% with an average growth of 8.8% per annum. (Details given below)
- Latest 5 Year Treasury Bond rates reached 31% per annum at the latest auction held on 13th October 2022. (Details Given below)
- Net Profit margins of an average Sri Lankan company is less than 20% per annum (without adjusting for increased taxation)
- Stock market investment carry high risk whereas government bonds are risk free.

CSE Growth during last 5 years
Why investors should prefer Treasury Bonds instead of CSE? Screen34

ASPI on 14th October 2017 - 6380
ASPI on 13th October 2022 - 9148
% yield/gain during 5 years - (9148-6380)/6380 = 44%
Average per year = 44%/5 = 8.8% p.a

https://www.investing.com/indices/cse-all-share

Treasury Bill/Bond Yield for next 5 years
Annual yield for next 5 years by investing in Government treasury Bonds reached 31% per annum at the latest bond auction. Press realease given below.

Why investors should prefer Treasury Bonds instead of CSE? Screen35

https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20221013_treasury_bond_issuance_held_on_13_october_2022_e.pdf

Forecast Operating Margins of JKH up to year 2025

Please find below the operating margins of Sri Lanka most diversified conglomerate John Keells Holdings PLC. It indicates an operating margin of 5.7% p.a forecast for 2025.

Why investors should prefer Treasury Bonds instead of CSE? Scree106
https://m.marketscreener.com/quote/stock/JOHN-KEELLS-HOLDINGS-PLC-6491987/financials/

ChooBoy likes this post

Citizen Silva


Stock Analytic
Stock Analytic

DeepFuckingValue wrote:Why would a prudent investor invest in more volatile and high risk stock market with an average yield of less than 8% per annum that comprises of companies with ROI/NP margins of less than 20% p.a instead of investing in risk free government treasury bonds with a guaranteed yield of 30% per annum for next 5 years?

Why would you keep SL Rs bonds when there is real risk of the currency losing value?


- During last 5 years CSE value has appreciated only 44% with an average growth of 8.8% per annum. (Details given below)
- Latest 5 Year Treasury Bond rates reached 31% per annum at the latest auction held on 13th October 2022. (Details Given below)

What is the average yield over the last 5 years?

- Net Profit margins of an average Sri Lankan company is less than 20% per annum (without adjusting for increased taxation)
- Stock market investment carry high risk whereas government bonds are risk free.

DeepFreakingValue

DeepFreakingValue
Senior Equity Analytic
Senior Equity Analytic

Citizen Silva wrote:
DeepFuckingValue wrote:Why would a prudent investor invest in more volatile and high risk stock market with an average yield of less than 8% per annum that comprises of companies with ROI/NP margins of less than 20% p.a instead of investing in risk free government treasury bonds with a guaranteed yield of 30% per annum for next 5 years?

Why would you keep SL Rs bonds when there is real risk of the currency losing value?


CBSL Governor has guaranteed that that there will be no further devaluation of the LKR in the near future. We are suppose to believe him Smile

- During last 5 years CSE value has appreciated only 44% with an average growth of 8.8% per annum. (Details given below)
- Latest 5 Year Treasury Bond rates reached 31% per annum at the latest auction held on 13th October 2022. (Details Given below)

What is the average yield over the last 5 years?


With last 5 year average 8% p.a return from stock market you need to rotate your portfolio 4 times to reach 32% per annum. Generally there are only 3-4 rallies within a year. You think you will win all 4 trades. Why risk your money, sit back and earn 32% p.a. Time and stress can be invested elsewhere and get additional return.

- Net Profit margins of an average Sri Lankan company is less than 20% per annum (without adjusting for increased taxation)
- Stock market investment carry high risk whereas government bonds are risk free.

Back to top  Message [Page 1 of 1]

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