Sri Lankan stock market capitalization climbed to a record on Sep 17th as the end of the 26-year civil war boosted stocks, making the island’s benchmark index the best performer in Asia this year.
The South Asian country’s Colombo All-Share Index has gained 96 percent this year as the army defeated the Liberation Tamil Tigers of Eelam in May. The Colombo All-Share Index was the region’s third-worst performer in the past two years as record spending on defense strained government finances, and the country sought an International Monetary Fund loan.
The market value of the 238 stocks that constitute the All- Share Index climbed to 942.6 billion rupees ($8.2 billion) yesterday, the exchange said in a release posted on its Web site. That surpassed the earlier high set on Feb. 13, 2007, the bourse said.
Sri Lankan stocks may offer better returns as the end of civil war frees up government spending for investments in infrastructure and agriculture, investor Jim Rogers said last month. The end of almost three decades of civil war in May and a $2.6 billion loan from the International Monetary Fund helped restore investor confidence and attracted foreign flows, the central bank said July 23.
Standard & Poor’s raised its outlook on the island’s credit rating on Aug. 25 to stable from negative, citing improved foreign-exchange reserves.
The nation’s central bank raised its 2009 growth forecast to as much as 4.5 percent in July from an earlier estimate of 2.5 percent after the separatists’ defeat. Sri Lanka plans to raise $500 million from overseas investors to help rebuild the nation, central bank Governor Nivard Cabraal said in an interview on July 31.
Saturday, September 19, 2009
Sri Lanka's stock market (CSE) slip on retail profit taking
CSE slipped from its over 30-month high on Friday as investors booked profits on retail shares amid heavy buying of market heavyweight John Keells Holdings (JKH.CM), traders and analysts said.
The market fell over 0.5 percent to 2,926.79 points in intra-day trade before closing down 0.16 percent or 4.61 points weaker at 2,939.44.
The bourse, on its website www.cse.lk, said the market capitalisation hit a record high of 942.6 billion rupees on Thursday, surpassing the previous peak of 938.6 billion rupees on Feb. 13, 2007.
The bourse rose 3.5 percent this week, after the central bank cut its key policy rates by 50 basis points last week and the central bank governor on Thursday said he wanted commercial banks to reduce lending rates further.
The Sri Lankan stock index has been rising since mid July on declining interest rates, high growth expectations, more market liquidity, increased confidence after an IMF loan, an upgraded rating outlook and foreign inflows.
The market is still one of the best performing stock markets in the world in 2009 with an average return of over 95 percent so far. It has risen 54 percent since the end of the war in mid-May.
Leading fixed-line phone operator Sri Lanka Telecom closed 2.1 percent weaker at 46 rupees a share, while Asian Hotels and Properties fell 1.96 percent to 75 rupees.
The rupee was unchanged for a fifth straight week at 114.80/85 a dollar as the central bank intervened to mop up dollars to prevent appreciation and build up its reserves. The central bank on Friday said it had bought $1.96 billion from the market since end-March, while the trade deficit for the first seven months of 2009 narrowed 57.2 percent. [ID:nCOL449635]
The central bank on Friday named J.P. Morgan Chase (JPM.N), HSBC (0005.HK) and Royal Bank of Scotland as lead managers of the Sri Lankan government's planned $500 million sovereign bond issue.
The market fell over 0.5 percent to 2,926.79 points in intra-day trade before closing down 0.16 percent or 4.61 points weaker at 2,939.44.
The bourse, on its website www.cse.lk, said the market capitalisation hit a record high of 942.6 billion rupees on Thursday, surpassing the previous peak of 938.6 billion rupees on Feb. 13, 2007.
The bourse rose 3.5 percent this week, after the central bank cut its key policy rates by 50 basis points last week and the central bank governor on Thursday said he wanted commercial banks to reduce lending rates further.
The Sri Lankan stock index has been rising since mid July on declining interest rates, high growth expectations, more market liquidity, increased confidence after an IMF loan, an upgraded rating outlook and foreign inflows.
The market is still one of the best performing stock markets in the world in 2009 with an average return of over 95 percent so far. It has risen 54 percent since the end of the war in mid-May.
Leading fixed-line phone operator Sri Lanka Telecom closed 2.1 percent weaker at 46 rupees a share, while Asian Hotels and Properties
The rupee was unchanged for a fifth straight week at 114.80/85 a dollar as the central bank intervened to mop up dollars to prevent appreciation and build up its reserves. The central bank on Friday said it had bought $1.96 billion from the market since end-March, while the trade deficit for the first seven months of 2009 narrowed 57.2 percent. [ID:nCOL449635]
The central bank on Friday named J.P. Morgan Chase (JPM.N), HSBC (0005.HK) and Royal Bank of Scotland
FAQ when open CDS accout
What is the purpose of my CDS account?
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.
Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.
Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 6 trading member firms authorized to buy and sell shares
What do I deposit in a CDS account?
Shares and bonds
Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.
Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize. Be sure you have already opened an account or are ready to do so. You will be issued with and assisted to complete a Security Deposit Form. Sign your form with the signature used when buying the shares. Return the form to the participant together with the certificates you have included on the form to be deposited. You will be given a receipt as evidence of your deposit. The participant will forward the form and the certificate to CDS CDS will forward the certificates and forms to the company’s shares registrar for verification. When the registrar confirms the certificates as genuine, the shares will be deposited in your account. Once the shares are in your account you can trade in them. How do you withdraw shares from CDS
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.
How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.
The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer
How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.
What do I get to prove I have deposited securities?
You get the receipt of the deposit form You get a monthly statement if you have a deposit or a trade that month. You get a quarterly statement if you have not had a trade for three months. The statements are issued directly to your address as indicated on the account opening form. How Safe Is CDS?
CDS has taken measures to ensure the security of your shares. The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises. CDS has taken precautions to ensure its system is not interfered with. CDS has employed staff of high integrity and keep very high levels of confidentiality.
For more info..
Colombo Stock Exchange
Level 4,
West Block, World Trade Center, Echelon Square,
Colombo 01, Sri Lanka.
Tel:+94(11)2446581 (Hunting)Fax:+94(11)2445279
E-mail: info@cse.lk
Website: http://www.cse.lk/
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.
Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.
Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 6 trading member firms authorized to buy and sell shares
What do I deposit in a CDS account?
Shares and bonds
Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.
Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize. Be sure you have already opened an account or are ready to do so. You will be issued with and assisted to complete a Security Deposit Form. Sign your form with the signature used when buying the shares. Return the form to the participant together with the certificates you have included on the form to be deposited. You will be given a receipt as evidence of your deposit. The participant will forward the form and the certificate to CDS CDS will forward the certificates and forms to the company’s shares registrar for verification. When the registrar confirms the certificates as genuine, the shares will be deposited in your account. Once the shares are in your account you can trade in them. How do you withdraw shares from CDS
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.
How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.
The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer
How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.
What do I get to prove I have deposited securities?
You get the receipt of the deposit form You get a monthly statement if you have a deposit or a trade that month. You get a quarterly statement if you have not had a trade for three months. The statements are issued directly to your address as indicated on the account opening form. How Safe Is CDS?
CDS has taken measures to ensure the security of your shares. The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises. CDS has taken precautions to ensure its system is not interfered with. CDS has employed staff of high integrity and keep very high levels of confidentiality.
For more info..
Colombo Stock Exchange
Level 4,
West Block, World Trade Center, Echelon Square,
Colombo 01, Sri Lanka.
Tel:+94(11)2446581 (Hunting)Fax:+94(11)2445279
E-mail: info@cse.lk
Website: http://www.cse.lk/
Friday, September 18, 2009
How to buy Shares in Colombo Stock Exchange (CSE)?
Local InvestorsGo to any member (List of Brokers can be found at http://www.cse.lk/ ) of CSE & open CDS Account (The account which hold shares behalf of you until you sell it).Once your CDS Account is opened you are ready to buy & sell shares.
Foreign InvestorsFirst go to any commercial bank operating in Sri Lanka & open Share Investment External Rupee Account then contact a broker to open CDS account with your Passport Copy.
There are two ways to purchase shares
From a new issue of shares (Primary Market),The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company. On the Secondary Market through a stock broker.A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another investor, subsequent to the original issuance in the primary market.
Types of securities traded at the CSE
Shares Corporate Debentures Government Securities
What is Central Depository Systems (Pvt) Ltd?
Central Depositors Systems (Pvt) Ltd is wholly owned Subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.
How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organisation may call for documents establishing your identity. It is possible to open and operate an account on the same day.
Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number. Your CDS accounts should be operated through your Participant organisation, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.
Update : you can read further Getting Started - How to buy Shares in Colombo Stock Exchange
Foreign InvestorsFirst go to any commercial bank operating in Sri Lanka & open Share Investment External Rupee Account then contact a broker to open CDS account with your Passport Copy.
There are two ways to purchase shares
From a new issue of shares (Primary Market),The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company. On the Secondary Market through a stock broker.A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another investor, subsequent to the original issuance in the primary market.
Types of securities traded at the CSE
Shares Corporate Debentures Government Securities
What is Central Depository Systems (Pvt) Ltd?
Central Depositors Systems (Pvt) Ltd is wholly owned Subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.
How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organisation may call for documents establishing your identity. It is possible to open and operate an account on the same day.
Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number. Your CDS accounts should be operated through your Participant organisation, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.
For more info go to FAQ when open CDS accout
Update : you can read further Getting Started - How to buy Shares in Colombo Stock Exchange
What is a listed company?
When a company raises funds to support its growth by selling ownership interests (shares in itself) to the investing public, those shares need to be "listed" and traded on that country's stock exchange/s. These companies need to be in compliance with an Exchange's set of listing rules such as previous profit records, issued/paid up capital etc. in order to be admitted to the official list.
What is a Stock Exchange?
What is a Stock Exchange? and What is the Colombo Stock Exchange (CSE)?
Let's scan throughe cse.lk description abd get idea about what is this???
A Stock Exchange provides a liquid, open market for buying and selling of shares, debentures etc. of publicly owned companies. Companies, which use the mechanism of the stock market to raise debt or equity capital, commonly enter the stock market through issuing shares or debentures to the public. Sri Lanka's only stock exchange, the Colombo Stock Exchange (CSE) currently has 237 listed companies, 15 member firms, 5 trading members and one specialized debt trading member.
(want a dictionary or translator.. ??)
What is the Colombo Stock Exchange (CSE)?
The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee established under the Companies Act No. 17 of 1982 and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka.
Let's scan throughe cse.lk description abd get idea about what is this???
A Stock Exchange provides a liquid, open market for buying and selling of shares, debentures etc. of publicly owned companies. Companies, which use the mechanism of the stock market to raise debt or equity capital, commonly enter the stock market through issuing shares or debentures to the public. Sri Lanka's only stock exchange, the Colombo Stock Exchange (CSE) currently has 237 listed companies, 15 member firms, 5 trading members and one specialized debt trading member.
(want a dictionary or translator.. ??)
What is the Colombo Stock Exchange (CSE)?
The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee established under the Companies Act No. 17 of 1982 and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka.
History of Colombo Stock Exchange
Share trading in Sri Lanka Commenced in the 19th century. When British Planters needed funds to setup Tea Plantations in Sri Lanka. The Colombo Share Brokers Association commenced trading of shares in limited liability companies in 1896.A landmark event in the history of share trading in Sri Lanka was formation of “Colombo Securities Exchange (GTE) Ltd 1985, which took over operation of the stock market from the Colombo Share Brokers Association. It was renamed “ Colombo Stock Exchange (CSE) in 1990.
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