Another untimely move by SEC - Foreign listings in Sri Lanka

dineshfernando

dineshfernando

Senior Manager - Equity Analytics

Posts : 573
Join date : 2011-02-05

Please note that I'm not against for IPOs or introductions. But concerned of their timing. I have stopped subscribing for IPOs sometime back.

SEC has to take immediate action to limit the number of IPOs / introductions within a time frame. Some of our investors chase behind overprices IPOs and burn their fingers. Surprisingly they never learn.
As a group we have to boycot overvalued IPOs and introductions.

The market is slowly dying day-by-day. SEC is helping it to die faster as they are going to list foreign firms at CSE. It should be the other way round where our companies must be listed abroad so that our investors will be benefited. It is like repeatedly stabbing a dying person to expedite the death.

http://www.lankabusinessonline.com/fullstory.php?nid=1109642904

You could clearly notice that on Friday 75% of the turnover was VONE and investors didn't even bother for the other undervalued shares.

People are having different views and this is my personal opinion. Please note that I'm not against for IPOs and I always avoid overpriced IPOs.

Sun Jul 10, 2011 9:34 am by ShareShares · Sun Jul 10, 2011 9:34 am by ShareShares

There are a limited number of investors, available funds have limits, and all new listings also come down from the initial price after few days. Having experienced losses in new listings investors with actual ability to invest with new funds now focus on shares with good corporate earnings.

Sun Jul 10, 2011 10:56 am by kumudu · Sun Jul 10, 2011 10:56 am by kumudu

it is taking some time to realize for the sri lankan people that they have done mistake over and over again. many foreign investors are staying away from our market now. you see foreign out flow is very high. if administrators bring this IPO s from everywhere everyone will burn their fingers irrespective of big or small. I will say very soon in next IPOs under subscription will happen. It is time to act soon.

Sun Jul 10, 2011 11:43 am by manula · Sun Jul 10, 2011 11:43 am by manula

Yes.. i think it will be better with many foreign companies in the CSE. but only thing we have to know which type of foreign company's will be listed in the CSE. Their has to have some control

In these days i don't think there is any control in the CSE. Many not good financial institutions coming to the market and central bank wants to wash their hands of monitoring given burden to poor investors. Many companies shares are manipulating ...with out any control from the regulators

See how many IPOs for this year. This also has to have some control.

What i feel, is their must be a limit of companies in Stock market and same way only good foreign companies too introduce to the market.

As of now many retails with big losses and how they can participate market activities.. though many SL or foreign companies introduce.

Sun Jul 10, 2011 6:33 pm by Aamiable · Sun Jul 10, 2011 6:33 pm by Aamiable

player wrote:foreign bankrupt companies may get listed and you can see sky rocket prices in first day trades,defa

Right issues,.. new listings, speculative counters subjected to force
selling recently due to lack of funds,… foreign companies going to be listed here,.. IPOs, debentures ..are all different ways of collecting more and more funds from
retailers, …..where as well established businesses continue to report increasing
profits may bring more funds to their own PLCs in CSE.

Colombo Stock Exchange cannot dream of those profit making PLCs to volunteer and inject funds to rescue bankrupt counters…. right issues, IPOs, new listings etc.. Cannot expect any gains from those PLCs looking for more funds from poor retailers in the near future…Do they offer anything with corporate earnings, they just collect.

Investors really looking for currently profitable PLCs which actually make substantial profits at this moment… not just PLCs with great plans for future. Who knows whether those dreams are going to be realized? …Stagnant foreign companies also start begging here in CSE….generally investors tend to concentrate on currently profit making PLCs at the moment.

Smile

Sun Jul 10, 2011 7:11 pm by **Antonym** · Sun Jul 10, 2011 7:11 pm by **Antonym**

Foreign companies listing on the CSE are likely to be part of a reciprocal deal, i.e. Lankan companies will also list on foreign exchanges. In such arrangements, smaller countries tend to benefit more - because the companies get exposed to a much larger investor base. Therefore, I am happy about the deal with the LSE.

Incidentally, there are just four companies listed on the Maldives Stock Exchange! There isn't much in it for us...

Sun Jul 10, 2011 10:41 pm by bullrun · Sun Jul 10, 2011 10:41 pm by bullrun

Re: Another untimely move by SEC - Foreign listings in Sri Lanka

Dear Friends,
The SEC never learns lessons by practice. I feel that they do not have market sense. I don’t know whether they have got in to the market even for a shelter in a rain. Shall we convince to the His Excellency MR to instruct so called regulators to not to interfere with the free market. Investors have entered to the CSE having known very well that it is the most risky investment. No any other solution than this. Otherwise they will play their trumpet until the market die.
See, what they have achieved since they came to the driving sheet. How many foreign investors did they fetch down here? What happened to the indexes? How much time they change their actions? Do they want to chase away all small scale investors? We can’t expect justice from them. Shall we get together and meet MR. That is the only option available as I feel.

Mon Jul 11, 2011 10:09 am by lokuayya · Mon Jul 11, 2011 10:09 am by lokuayya

@bullrun,
exactly, someone should intervene to stop this destruction.billions wiped out.all these happen when country's growth rate,inflation control,interest rates,political stability are in favor of the market.there is no terrorism,no tsunamis,
.
see the difference of two regulators .bank regulator and stock regulator.
kabral has the intelligence and expertise.so financial system is stable,interest rate ,inflation under control.
but see the stock regulator set. billions wiped out,investors wiped out.this is the real example for danger of appointing "moda pahe" ,low intelligence people to high key positions.damage they do the country is immeasurable .
regarding going for shopping of foreign companies in to cse by stock regulator ,i see this is another immature work by regulator.salesman job is not regulators duty.let cse to do the selling.what we expect from regulator is level and stable play ground.

Mon Jul 11, 2011 10:24 am by Tiger · Mon Jul 11, 2011 10:24 am by Tiger

bullrun wrote:
Re: Another untimely move by SEC - Foreign listings in Sri Lanka

Dear Friends,
The SEC never learns lessons by practice. I feel that they do not have market sense. I don’t know whether they have got in to the market even for a shelter in a rain. Shall we convince to the His Excellency MR to instruct so called regulators to not to interfere with the free market. Investors have entered to the CSE having known very well that it is the most risky investment. No any other solution than this. Otherwise they will play their trumpet until the market die.
See, what they have achieved since they came to the driving sheet. How many foreign investors did they fetch down here? What happened to the indexes? How much time they change their actions? Do they want to chase away all small scale investors? We can’t expect justice from them. Shall we get together and meet MR. That is the only option available as I feel.

Hi if you were in the chair of Ms. Indrani Sugathadasa or in Malik cadar's. What would you do? What is your advice to those who regulate the market?
More credit? T+365 ? No price bands? No IPOs? Govt funds to support market? all IPOs to be made compulsory to undervalue?

It would be more interesting and useful to start a discussion as to how should the regulations be rather than JVP type hype.

According to me the worst mistake regulators did was keep on postponing credit clearance, by doing that they let the problem grow bigger and bigger. Otherwise we wouldn't have seen this onslaught now.

Mon Jul 11, 2011 11:22 am by lokuayya · Mon Jul 11, 2011 11:22 am by lokuayya

@bullrun,

Your idea of meeting HE Mahinda Rajapaksha is very good.can any senior person volunteer to takeup the role of convener? We will come.full support. This killing should not be allowed to continue.
These people cannot comprehend what is happening.comprehension need some intelligence.
Broker associations have already told what to be done as an advice to the SEC.I read from news papers about brokers representation.I fully agree as a trader /investor.
Only intelligent people can understand and make remedies.

Mahinda Rajapaksha recently told there are economic attacks on the country.Frankly tell me what is the worse attack than what is made to happen in CSE.Is this a case of attacks by own men and women.

Mon Jul 11, 2011 1:45 pm by bullrun · Mon Jul 11, 2011 1:45 pm by bullrun

Dear Tiger,

When did we have this stock market? In 2000s? It is coming from sudda’s period. Why do they want to put all barriers now? I feel that they may be a group from JVP. They want to rune everything. When did we have the best time? When did we have this nature of controllers? My feeling is that they want to do something. They do not worry about the result. Some of the countries allowed even the black money to come to the market in order to develop. But our gang is chasing all small fellows!!!!!!!!!!!!!!!

Mon Jul 11, 2011 1:55 pm by sapumal · Mon Jul 11, 2011 1:55 pm by sapumal

Mahinda chinthana - Kill Stock market retailers, introducing rules as much as possible

Dhaka chinthana - save retailers by pumping money as much as possible

Mon Jul 11, 2011 2:51 pm by Tiger · Mon Jul 11, 2011 2:51 pm by Tiger

sapumal wrote:Mahinda chinthana - Kill Stock market retailers, introducing rules as much as possible

Dhaka chinthana - save retailers by pumping money as much as possible

That is why Bangladesh is such a hopeless country.

All new investors are learning things hard way. In this market last thing that you should do is to sell at the bottom or panic selling. If you are with strong companies with good past results and in low p/e no need to panic.

However if you are with weak fundermentals and bough following rallies or fantastic growth fantasies, sell off even with loss.

This is my personal belief please obtain professional advice before making your investment decision.

Mon Jul 11, 2011 4:47 pm by sapumal · Mon Jul 11, 2011 4:47 pm by sapumal

Tiger wrote:

sapumal wrote:Mahinda chinthana - Kill Stock market retailers, introducing rules as much as possible

Dhaka chinthana - save retailers by pumping money as much as possible

That is why Bangladesh is such a hopeless country.

All new investors are learning things hard way. In this market last thing that you should do is to sell at the bottom or panic selling. If you are with strong companies with good past results and in low p/e no need to panic.

However if you are with weak fundermentals and bough following rallies or fantastic growth fantasies, sell off even with loss.

This is my personal belief please obtain professional advice before making your investment decision.

Fundamental or non fundamental, cash not coming to the market as fast as the value coming from IPO + right issues + introduction