February 2011 - Guide to CSE


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Friday, February 25, 2011

SEC sets stage for growth

12:07 PM 2
By Uditha Jayasinghe

In a bid to lay the groundwork for a growth focused 2011 the Securities and Exchange Commission (SEC) yesterday announced new regulations for price band affected companies and private placements while recording a high turnover for the first two months of the year.
SEC Chairperson Indrani Sugathadasa told the media that several regulations pertaining to the price band had been changed. Once a company has been slapped with the share price band their trading is limited for 15 days; this stipulation has been reduced to 10 days while the 50% credit issue has also been dropped enabling stocks to be bought on credit.  This will come into effect from 1 March.
Reuters reported that the SEC would introduce a minimum free float for all listed firms on the Colombo Stock Exchange this year.
Quoting the SEC Director-General it noted that lack of free float has been one of the main concerns in what has been Asia’s best-performing bourse for the last two years as many institutional investors and funds have shied away because they cannot get enough shares. “When companies get listed for the main board of the Colombo Exchange, they will have to float 25 percent of total shares, but there is no rule to prevent listed firms or related parties from buying back shares from the market.  
The SEC is now considering a regulation to maintain a minimum limit of free float after listing, aiming to increase liquidity in the bourse,” it said.
The decision will be across the board once it is taken and it is expected to be implemented in the second or third quarter this year.
“Despite the criticism from some quarters over the price band introduction we have seen the market become the best performing in the world. In 2010 the market turnover was Rs.570 billion and for the first two months it recorded Rs.127 billion. We are optimistic that this trend will continue,” stressed Sugathadasa adding that from 1 April private placement shares will have a locking period of one year. This means that transactions cannot be done for one year after the private placement has been made.
“We have noticed that sometimes those with private placement shares enjoy an advantage and we wish to control this; so this decision was taken. However since the regulation became official from 7 February it does not apply to placements before that date.
The CSE has seen foreign investors selling Rs.7 billion worth of shares this year followed by Rs.26.4 billion outflow last year. However Sugathadasa was upbeat of prospects insisting that money was not flowing out of the country and was being re-invested in other projects. She also emphasised that with a large number of Initial Public Offerings (IPOs) set to enter the market foreign investors would return. 
CSE eyes IPO growth
The Colombo Stock Exchange (CSE) is targeting a minimum of 50 Initial Public Offerings (IPOs) this year and expects several to enter the market within the next few months with at least two issues hitting Rs.5 billion.
 Securities and Exchange Commission (SEC) Director General Malik Carder told reporters that around 10 IPOs are expected to enter the market before April. He noted that at least two of them will hit Rs.5 billion with others expected to surpass the Rs.2.5 billion mark. State firms are also expected to enter the market according to Carder.
IPOs backed by bank guarantees are also “under consideration” by the regulator but the SEC Chairperson Indrani Sugathadasa pointed out that it created a level playing field by enabling small and large players to enter the market.    

Adopted from DailyFT
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Union Bank IPO 300 times oversubscribed, analysts say

10:06 AM 3
By Hiran H. Senewiratne

Union Bank’s Rs. 375 million initial public offering (IPO) was oversubscribed 300 times on the opening day yesterday (24), being the highest oversubscription rate for an IPO in the country’s capital market history, sources close to the offer said.

The announcement that the IPO was oversubscribed, as expected by the market, was relayed to the Colombo Stock Exchange within the first hour after subscription lists were opened yesterday.

According to market sources, a deposit of Rs 11 million allowed any prospective investor to apply for the entire Rs. 375 million IPO through a bank guarantee.

Union Bank offered 15 million shares at Rs. 25 each in three categories of 1.5 million for employees, 2.25 million for customers that have maintained accounts for a minimum of 6 months as at 31 January 2011 and 11.25 million shares for other investors.

Due to the Rs 11 million cash deposit bank guarantees, the demand for Union Bank’s shares have dramatically increased ,which resulted in it being oversubscribed by around 300 times, a source close to the offer told The Island Financial Review.

The IPO comes in the wake of a Rights Issue and a private placement that attracted investor interest. The Rights Issue of December 2010 had 10 million shares issued to existing shareholders which was oversubscribed by four times.

Subsequently, 12.5 million shares were issued via a unique tender and book building process with another 7.5 million shares being allotted to a foreign institutional cornerstone investor resulting in a total of 20 million shares being issued through a private placement which was oversubscribed thrice, reaching record levels of investor confidence.

Adopted from The Island
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Thursday, February 10, 2011

ආයෝජකයින් දැනුවත් කිරීමේ වැඩසටහන - කුරුණෑගල ශාඛාව

10:12 PM 0
කොටස් වෙළඳපළ ආයෝජනය හා ප්‍රථිලාභ

දිනය : 2011 පෙබරවාරි 22 අඟහරුවාදා
වේලාව: ප. ව. 3.00
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ලියාපදිංචි වීම සඳහා හා විමසීම් සඳහා අමතන්න, 037-4691804/2

මේ වගේ වැඩමුළු ගැන දැනගන් අපේ feed එකට එකතු වන්න.

සියළු ලිපි සඳහා ඊ මේල් ලිපිනයෙන් අප හා එක්වන්න:  
අනෙකුත් RSS පෝෂක ලබා ගැනීමට මෙතනින් යන්න.
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Tuesday, February 1, 2011

Sri Lankan stock website shuts after SEC warning

9:57 PM 2
investnow.lk වෙබ් අඩවිය තාවකාලිකව වසා දමා තිබෙනවා. හේතුව වෙලා තිබෙන්නේ අයෝජකයින් නොමඟ යාන අයුරින් අඩවිය තුළ ලිපි අන්තර්ගත වීමයි. ඔවුන් අඩවිය නව්‍ය ආකාරයකින් ක්‍රියාත්මක කිරීමට අවශ්‍ය දේවල් කරමින් සිටිනව කියලයි අඩවියේ ඇඩ්මින් පවසන්නෙ. 
lbo.lk අඩවිය තුළ ඒ ගැන තිබූ ලිපියයි මේ.

Sri Lanka stock investment website has closed after warnings against misleading investors by the capital markets regulator, whose officials said they were cracking down on such sites.
An official at the Securities and Exchange Commission (SEC) said they warned the people operating the website, saying misleading advice that influence share prices could violate SEC regulations.
The operator of the site, investnow.lk, decided to close last week after the warning by the regulator.
A notice posted on the website said it was "temporarily suspending" the forum in order to "rework" its strategy and create a "professional entity that will continue to help investors navigate the great depths of the market and act to be a credible guide with the help of you all, the community."
It said it would act in a manner that "best serves the community . . . and be free from manipulative control through education and creating awareness."
The site offered to refund members for any services paid for that are still valid.
The SEC official said they were also monitoring other websites that offer advice on investing in the stock market which has been on a bull run since the island’s 30-year ethnic war ended in 2009.
The SEC was also investigating stock brokers believed to be behind some of the websites that offer advice to investors, he said.
The Colombo bourse was Asia’s second-best performing market last year.

ඉතින් මට කියන්න තියෙන්නෙ, අනාගත කොටස් මිල පිළිබඳ විස්තර වගේ දේවල්, stock recommendations එහෙම මේ අඩවියෙනුත්, අපගේ CSE Talk ෆෝරම් එකෙත් අහන්නෙපා.  (විශේෂයෙන්ම guidetocse.com වලින්) ෆොරමය තුළ කෙසේ වෙතත් මේ අඩවියෙන් අහන stock recommendations වගේ ඒවට නම් පිළිතුරු ලැබෙන එකක් නෑ. ඒවා අහන්න ඔබට ඉන්නව ආයෝජන උපදේශකයෙක්. ඔහු, ඒ ප්‍රශ්න වලට පිළිතුරු දෙන්න සුදුසුම පුද්ගලයා හා ඔහු ඒවට උත්තර දෙන්න ඒවා ඔබට ලබාදෙන්න බැඳී සිටිනවා.
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