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

» IS it right time to stick to warren buffett's most famous saying ???
by Mr. X Today at 4:02 pm

» GLAS will be winner with Super Gain.
by Promoney Today at 3:58 pm

» CSE - The World's best performer!
by Vishwanarth Today at 2:42 pm

» EXPO EXPO EXPO
by Gowri123 Today at 2:34 pm

» Best Broker
by Wickyz Today at 2:32 pm

» Game Changed! SUPER GREEN
by Karthick Today at 12:24 pm

» Blue Diamond
by thavam_Eu Today at 12:07 pm

» GALORE OF GOOD NEWS TO THE CSE
by Bakkabwoi Today at 11:58 am

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by Trading Jockey Today at 10:26 am

» Daily Foreign Transactions
by Promoney Today at 8:27 am

» DIPD/HAYC/HAYL
by Eranga87 Today at 1:54 am

» EBCR group of companies
by Wolf86 Yesterday at 10:30 pm

» Use the Ten Principles of Value Investing to spot value stocks in the oversold market
by EquityChamp Yesterday at 5:44 pm

» HATTON NATIONAL BANK PLC
by ADVENTUS Yesterday at 4:22 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 4:19 pm

» The strong learn to hang in there and keep bouncing back until they win. Stock market for beginners
by Asoka Samarakone Yesterday at 4:04 pm

» Everybody talks about huge selling. That means there are buyers in the market to buy these shares. Stock market for beginners
by samaritan Yesterday at 4:00 pm

» SHOESHINE BOYS!
by Bakkabwoi Yesterday at 2:36 pm

» CSE - Market status
by stockie Yesterday at 1:06 pm

» Guardian Investment Trust (GUAR) could Sky Rocket
by RJ1010 Yesterday at 9:41 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™ » FINANCIAL CHRONICLE™ » Watch out the Next 3 days - Cheaper CSE to be cheerful with credit

Watch out the Next 3 days - Cheaper CSE to be cheerful with credit

Go down  Message [Page 1 of 1]

Marketinvest

Marketinvest
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Most analysts insist credit critical to give capital market its due place in post-war rebounding economy

The chorus for ‘relaxed credit rule is critical for capital market’ is echoing greater in Colombo Browse with hopes firmly set on a probable meeting of SEC Commissioners this week.
“The stock market certainly needs relaxed credit rules for a more emphatic rebound and a boost of confidence,” analysts said.
Industry estimates that around 80% of the market is currently dominatedby retailers whose share portfolio is below Rs. 500,000 and given the factthat this category of investors have been the livewire of the CSE since this year the Commissioners of the Securities and Exchange Commission(SEC) have to give due recognition and support to written proposals putforwarded by Colombo Stock Brokers’ Association.
It was also pointed out that margin providers leveraging up to four times which was also regulated by the SEC mainly caters to high networth investors. Retailers were left with little or no leeway and brokers triggering force selling after T 5. This had aggravated the slide ofthe market.
There was much hope over Commissioner’s making a favourabledecision during their last week’s meeting but for want of more facts and information a final ruling was deferred.
This disappointed the Bourse which dipped by 0.7% on Thursday after a late rally Wednesday. However the Bourse closed on the up on Friday.
“Colombo (Bourse) is cheaper but isn’t cheerful because of brokers not being allowed to lend their own capital to clients with fairly good safeguards and systems in place,” a senior broker told the Daily FT.
Since an all time high Rs. 2,600 billion (Rs. 2.6 trillion) market capitalisation in mid-February, the CSE’s value had plunged to Rs. 2,449 billion, whilst ASPI which was at a peak of 17.7% year to date return on14 February, has by Friday last week provided a return of only 3%. MPI continues to languish with negative return of 12%. From the 2011’s peak, ASI has dropped by 12.5% or 978 points. The MPI has dropped sharply by 1433 points or 19.5%.
Analysts said that CSBA proposals were fair though a few brokers are comfortable operating in the currentstatus quo hence the latter have saidcredit rules shouldn’t be relaxed.
Analysts said that credit based on net capital and perhaps addition of liquid capital as a safeguard will improve the overall financial strength of broking firms.
CSBA have two options to SEC. One was zero time leveraging and one time leveraging on their net capital. The consensus has since narrowed it to the first.
Last week the market was highly volatile. It finished the week with the ASI gaining 82 points and MPI by 34 points.
Asia Wealth Management said the main contributor for the week was the property sector which appreciated 97 points during the week. It said SEC with its Wednesday’s announcement to postpone the final decision to the subsequent week on relaxing the credit rules, created heavy unrest especially among the retail calibre. “This compelled them to select the property sector in order to pursue onanother speculative rally to make a quick gain,” it added.
Asia also pointed to the fact that year to date net foreign outflow expanded to Rs. 9.88 billion highlighting a negative foreign investor sentiment on the bourse.
“Nevertheless, macro fundamentals are robust; Moody’s sovereign rating moving from stable to positive; 6.25% Dollar bond oversubscribed by7.5 times; Bourse currently trades at trailing PE of 17.9x; Hence as mentioned in a prior week, with a 40% minimum earnings expectations the forward PE is expected to be 12.9x,” Asia Wealth said.
The broker also said that even if SEC relaxes on credit rules, it is solemnly advising investors to confine to trade on cash and abide by the T 5 rule. “This prevents a future credit bubble, hence not witnessing lengthy bearish periods,” Asia Wealth opined.
Acuity Stockbrokers said that the market’s see-sawed over the week as regulators deferred the much anticipated decision on the broker credit-easing rule. Bourse gains over the week were driven mainly by retail investors, with Land & Property stocks in particular seeing aslight run on speculative trading.
“Markets closed the week on a positive note as retail sentiment improved in anticipation of a final decision over the relaxation of margin buying rules by early next week,” Acuity said in its report for the week.
“Strong corporate earnings are likely to continue flooding in over the course of the upcoming week. However, the outcome of the SEC’s decision on credit easing is likely to dominate sentiment and overshadow the thus far strong corporate earnings,” Acuity added.
Whilst consensus is growing for relaxed credit rule, independent analysts opine that the more robust way forward for Colombo Bourse was greater participation of institutional investors, both foreign and local.
“Supportive credit rules will help in the short to medium term but CSE needs greater play by institutions who are unfortunately mysteriously remain inactive and the few in the market are actually behaving like retailers which is a shame,” analyst lamented.
Despite post-war Sri Lanka increasingly improving its profile as a sound economy with great prospects analysts also were disappointed that the CSE wasn’t promoting Colombo aggressively overseas. “Ideally CSE should have done roadshows from early this yearand had it happened investors exiting from other volatile markets as evident from last month, would have identified Colombo as a better option. It is not too late to market Colombo as global markets will remain fragile whereas Sri Lanka story is far better and credible,” they added.
Colombo in late July lost its long heldposition as Asia’s best performer as by week ended 22 July ASI produced a negative 1.5% year to date return. On Tuesday it regained lost status and closed the week as Asia’s number two. In 2009 and 2010 it was world’s second best performer clearing establishing itself as world’smost consistent.

Source FT

duke


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Industry estimates that around 80% of the market is currently dominatedby retailers whose share portfolio is below Rs. 500,000

80% retailers running the show. That's a sorry sight. How long can they run it. It looks like all these articles are written by brokers. The problem is they're the experts the newspapers ask for opinion.

For something different read this out.
Stabilizing the stock market
http://forum.srilankaequity.com/t8314-stabilizing-the-stock-market

RockStock


Manager - Equity Analytics
Manager - Equity Analytics
@duke wrote:
Industry estimates that around 80% of the market is currently dominatedby retailers whose share portfolio is below Rs. 500,000

80% retailers running the show. That's a sorry sight. How long can they run it. It looks like all these articles are written by brokers. The problem is they're the experts the newspapers ask for opinion.

For something different read this out.
Stabilizing the stock market
http://forum.srilankaequity.com/t8314-stabilizing-the-stock-market

80% of CDS accounts might belongs to retailers but for sure not the 80% of the turnover Evil or Very Mad Time to time brokers make "kabaraya into Thalagoya" and vice verse when they want to eat it.

Sponsored content


Back to top  Message [Page 1 of 1]

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