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

Latest images

Latest topics

» Why Foreign Sales have gone up during last few days
by D.G.Dayaratne Today at 10:21 am

» Market Performance (2022-2024)
by D.G.Dayaratne Today at 6:10 am

» Excellent Report pending From CTC (Keep eye on CTC )
by Nandana Withanage Yesterday at 9:57 am

» Richard Pieris Exports PLC (REXP.N0000) future looks bleak!
by God Father Wed Feb 21, 2024 3:34 pm

» ANALYSIS: Sri Lanka Car Market 2024
by D.G.Dayaratne Mon Feb 19, 2024 11:14 am

» LOLC Group's stunning performance goes beyond numbers!
by samaritan Mon Feb 19, 2024 10:57 am

» RED ALERT!! from Richard Pieris and Company PLC
by ChooBoy Sun Feb 18, 2024 10:28 pm

» Sri Lanka: China EXIM Bank Debt Moratorium to End in 2024
by God Father Sun Feb 18, 2024 8:29 am

» IPO Failures in Sri Lanka
by God Father Sun Feb 18, 2024 8:21 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Sat Feb 17, 2024 9:57 pm

» Treasury Bill is an option of Fixed income
by ResearchMan Sat Feb 17, 2024 2:31 pm

» How to defeat Ranil Wickramasinghe at the next Presidential Elections
by D.G.Dayaratne Fri Feb 16, 2024 12:50 pm

» CONSTRUCTION SECTOR
by Gaudente Thu Feb 15, 2024 7:40 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Equity Win Wed Feb 14, 2024 7:14 pm

» CENTRAL FINANCE COMPANY PLC (CFIN.N0000)
by Gaudente Wed Feb 14, 2024 3:28 pm

» Natural Gas Faces Steep Decline
by ResearchMan Wed Feb 14, 2024 1:17 pm

» CSE geared into BULL mode
by deli Tue Feb 13, 2024 8:31 pm

» FIRST CAPITAL HOLDINGS PLC (CFVF.N0000)
by Beyondsenses Fri Feb 09, 2024 10:30 am

» EXTERMINATORS PLC (EXT.N0000)
by K.R Thu Feb 08, 2024 9:28 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by K.R Thu Feb 08, 2024 9:21 pm

» Sri Lanka: Banking Sector Stability?
by God Father Wed Feb 07, 2024 10:35 pm

» What will be the First Capital holding's share price by end of 2024
by D.G.Dayaratne Wed Feb 07, 2024 2:31 pm

» TAFL is the most undervalued & highly potential counter in the Poultry Sector
by cseguide Tue Feb 06, 2024 3:11 pm

» Chat2Find Leads Global AI Revolution with Real-time Information
by God Father Sun Feb 04, 2024 11:55 pm

» FINANCE AND LEASING SECTOR
by ResearchMan Sun Feb 04, 2024 2:30 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Why investors should prefer Treasury Bonds instead of CSE?

2 posters

Go down  Message [Page 1 of 1]

DeepFreakingValue

DeepFreakingValue
Manager - Equity Analytics
Manager - Equity Analytics

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


Equity Analytic
Equity 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
Manager - Equity Analytics
Manager - Equity Analytics

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.

Sponsored content



Back to top  Message [Page 1 of 1]

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