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Tuesday, November 13, 2012

Bourse gains as broker association goes gaga over 2013 budget

The Colombo Stock Exchange continued to gain ground with indices closing in the green on Monday (12).

The All Share Price Index gained 0.18 percent, up 10.45 points to close at 5,599.88 while the Milanka Price Index of more liquid stocks closed 12.21 points higher at 5,176.19, up 0.45 percent.

Turnover reached Rs. 244.8 million.

All sectors closed in positive territory with the exception of the manufacturing sector which fell 20 points or 0.75 percent.

"The market opened the week on a mildly positive note with the ASPI rising by 0.2% to close the session at 5600, while the MPI also gained 0.5% to end at 5176. Turnover however remained low at LKR245 mn with trading in Browns Investments and Environmental Resources Investments (ERI) accounting for 29% of the day’s total, DNH Financial said.

"Amongst the winners for the day were SMB Leasing(X), Browns Investments and Miramar Beach rising by 25.0%, 13.5% and 13.4% and offsetting losses in Orient Finance, Sathosa Motors and Citizens Development(X) which declined by 13.1%, 12.0% and 7.9% respectively."

Meanwhile, the Colombo Stock Brokers’ Association (CSBA) releasing a statement yesterday hailed the 2013 budget praising the President, Treasury Secretary and SEC Chairman.

"We are elated that the important and the urgent need to develop the capital market has been duly recognized by His Excellency as the Finance Minister. The key proposals announced in the Budget impacting the capital market demonstrate the desire of the government to see a vibrant capital market in the immediate future. We are also grateful to Dr.P.B.Jayasundara ,the Secretary to the Treasury, , for giving due considerations to the urgent needs of the capital market when formulating the budget proposals for 2013."

The association said the budget proposals (see The Island Financial Review of November 9, 2012) would help the market intermediaries to evolve into full fledged brokerage houses on par with their peers in the international arena. "Proposals impacting the debt market and the unit trust industry are also very encouraging," it said.

"The CSBA is extremely happy that the H.E. President has proposed to appoint a Presidential Task Force to implement a Capital Market Development Master Plan. We see this as the most important proposal impacting positively on the capital market. Therefore we thank H.E. the President for the long term vision to create and nurture a capital market that would contribute towards nation building."

The CSBA was widely seen as one party among money that exerted pressure on the regulator during the tenure of Ms. Indrani Sugathadasa and Mr. Tilak Karunaratne, who both resigned on alleged pressure from certain high net worth individuals and their "crony brokers" when the regulator took tough measures to curb market irregularities.

Four broker firms had broken away from the association in disgust.

source - www.island.lk