source - CAL Research
Friday, August 10, 2012
Wednesday, August 8, 2012
Locals blinded as net foreign inflow tops Rs. 26 b
The Colombo Bourse’s silver lining – net foreign inflow – continues to strengthen, with the year-to-date figure having now topped the Rs. 26 billion mark.
The first two days of the fresh week had seen a net inflow of over Rs. 100 million each in addition to marking the 12th straight session of such inflows.
Independent analysts remain dismayed by the lack of local investor interest when foreigners continue to be bullish, seizing attractive buying opportunities.
Softlogic Stockbrokers said the Bourse extended its bearish momentum despite the release of the monetary policy review, indicating that the current policy stance is appropriate in order to reach the growth estimates.
The benchmark index took a volatile path as it merely gained 0.08% at its intraday high of 4932.24 points yet lost ground to close with a dip of 30 points. Similarly the MPI took a sluggish trend losing 15 points as 11 out of 25 counters recorded dips.
It said diversified conglomerate John Keells Holdings, with its contributions to Monday’s net foreign inflow, secured momentum, spearheading the turnover yesterday backed by a boost following a large off-market transaction of 251,000 at Rs. 185.
Tokyo Cement, which was seen reaching a 52-week low of Rs. 27.40 recently, crept up the turnover renewing its 52-week low at Rs. 26.90. Backed by recent foreign accumulation, both its voting and non-voting shares gained interest.
The former witnessed two onboard blocks amounting to 950,000 shares being transacted at Rs. 27 while the latter saw a block of 300,000 shares being picked on board at Rs. 19.80. Both the counters closed flat at Rs. 27 and Rs. 19.80 respectively.
Softlogic also said high market calibre counter Ceylon Tobacco followed breathing in Rs. 28 million via an off-board transaction where 700,000 shares were dealt at the 52-week high block trade price of Rs. 700. The counter closed flat at Rs. 700.10 after reaching an intra-day high of Rs. 720 (+2.9%).
Banking sector players Sampath Bank and Hatton National Bank were seen among the top slots of the turnover list. The latter gained investor interest with its earnings growth (+32% YoY, +11% QoQ) as it saw an intra-day high at Rs. 134.00 (+1.7%) whilst the former witnessed active participation closing with an appreciation of 0.6% for the day at Rs. 156.
Both counters impacted the S&P SL20 index’s slide to the green during trading hours with their respective weightages being 7.27% and 5.63% before the index closed with a marginal dip.
Renewed participation was seen in Colombo Dockyard with the majority of its volumes (25,000 shares) traded at a stagnant price of Rs. 190. Dialog Axiata regained interest during the final trading hour, registering two blocks of 1.2 million shares in total at Rs. 6, pushing up the turnover beyond the Rs. 200 million mark.
Liquid counter Piramal Glass, which witnessed some foreign selling yesterday, saw three blocks amounting to 175,000 shares across the board being dealt at Rs. 6 before closing flat at Rs. 5.30. Further, Power and Energy sector penny stock Panasian Power recorded several sizeable blocks across the board, Softlogic Stockbrokers said.
source - www.ft.lk
The first two days of the fresh week had seen a net inflow of over Rs. 100 million each in addition to marking the 12th straight session of such inflows.
Independent analysts remain dismayed by the lack of local investor interest when foreigners continue to be bullish, seizing attractive buying opportunities.
Softlogic Stockbrokers said the Bourse extended its bearish momentum despite the release of the monetary policy review, indicating that the current policy stance is appropriate in order to reach the growth estimates.
The benchmark index took a volatile path as it merely gained 0.08% at its intraday high of 4932.24 points yet lost ground to close with a dip of 30 points. Similarly the MPI took a sluggish trend losing 15 points as 11 out of 25 counters recorded dips.
It said diversified conglomerate John Keells Holdings, with its contributions to Monday’s net foreign inflow, secured momentum, spearheading the turnover yesterday backed by a boost following a large off-market transaction of 251,000 at Rs. 185.
Tokyo Cement, which was seen reaching a 52-week low of Rs. 27.40 recently, crept up the turnover renewing its 52-week low at Rs. 26.90. Backed by recent foreign accumulation, both its voting and non-voting shares gained interest.
The former witnessed two onboard blocks amounting to 950,000 shares being transacted at Rs. 27 while the latter saw a block of 300,000 shares being picked on board at Rs. 19.80. Both the counters closed flat at Rs. 27 and Rs. 19.80 respectively.
Softlogic also said high market calibre counter Ceylon Tobacco followed breathing in Rs. 28 million via an off-board transaction where 700,000 shares were dealt at the 52-week high block trade price of Rs. 700. The counter closed flat at Rs. 700.10 after reaching an intra-day high of Rs. 720 (+2.9%).
Banking sector players Sampath Bank and Hatton National Bank were seen among the top slots of the turnover list. The latter gained investor interest with its earnings growth (+32% YoY, +11% QoQ) as it saw an intra-day high at Rs. 134.00 (+1.7%) whilst the former witnessed active participation closing with an appreciation of 0.6% for the day at Rs. 156.
Both counters impacted the S&P SL20 index’s slide to the green during trading hours with their respective weightages being 7.27% and 5.63% before the index closed with a marginal dip.
Renewed participation was seen in Colombo Dockyard with the majority of its volumes (25,000 shares) traded at a stagnant price of Rs. 190. Dialog Axiata regained interest during the final trading hour, registering two blocks of 1.2 million shares in total at Rs. 6, pushing up the turnover beyond the Rs. 200 million mark.
Liquid counter Piramal Glass, which witnessed some foreign selling yesterday, saw three blocks amounting to 175,000 shares across the board being dealt at Rs. 6 before closing flat at Rs. 5.30. Further, Power and Energy sector penny stock Panasian Power recorded several sizeable blocks across the board, Softlogic Stockbrokers said.
source - www.ft.lk
Seylan Bank 1H pre-tax profit up 142% to Rs. 2 b
Seylan Bank said yesterday it has recorded an impressive first half performance with a profit after tax of Rs. 1.02 billion for the six months ended 30 June 2012.
Profit before VAT and income tax rose to Rs. 2.01 billion, as opposed to Rs. 832 million (before the exceptional VRS costs), a 142% growth over the corresponding period last year.
The bank’s strong performance was driven by growth in its core banking operations despite raising interest rates and controlled credit growth.
Net interest income increased by 15% to Rs. 4,276 million in 1H 2012, arising from selective growth in quality advances and effective management of margins.
The bank’s portfolio grew by 18% (annualised) in the six months of the year.
Non-interest income increased from Rs. 1,171 million to Rs. 1,237 million in 1H 2012. The main contributor to this was the growth in foreign exchange income which increased by 20% over the corresponding period last year.
During the six months under review the bank focussed considerably on controlling its overhead costs. The efforts on improving cost efficiencies have resulted in the improvement of the cost to income ratio to 67%, a reduction of 6% from December 2011.
The bank grew its deposit base by Rs. 10.3 billion despite a fiercely competitive environment and due to sustained and effective recovery strategies was able to reduce the NPA ratio (net of IIS) from 14.2% to 12.3%
General Manager/CEO Kapila Ariyaratne stated: “These results prove beyond doubt that the business expansion strategies backed by improvement in operational processes and focus on customer service and risk management are beginning to yield desired results, and now provides us an excellent platform to achieve sustained growth and improved profitability.”
During 1H 2012 the bank opened seven new branches/convenient centres and relocated three branches to more customer friendly locations. As at 30 June 2012, the bank network comprised of 138 branches/convenient centres and 139 ATMs.
Preparing for future growth, the bank has planned a debenture issue via a private placement for early October 2012. The bank intends to invest on identified key areas which are in line with the bank’s future growth strategies including new product development, branch expansion, service quality improvement, staff training and development and IT infrastructure.
Seylan Bank Chairman Mohan Pieris PC stated: “We are focused on achieving our Strategic Plan, which we formulated in the latter part of last year. We have also taken steps to improve our capital and governance structure for future growth strategies that have been planned.”
As a result of the strong half-yearly profits posted, earnings per share was at Rs. 6.04 (annualised), while return (profit before tax) on assets and return of equity was at 1.90% and 11.50% respectively.
source - www.ft.lk
Profit before VAT and income tax rose to Rs. 2.01 billion, as opposed to Rs. 832 million (before the exceptional VRS costs), a 142% growth over the corresponding period last year.
The bank’s strong performance was driven by growth in its core banking operations despite raising interest rates and controlled credit growth.
Net interest income increased by 15% to Rs. 4,276 million in 1H 2012, arising from selective growth in quality advances and effective management of margins.
The bank’s portfolio grew by 18% (annualised) in the six months of the year.
Non-interest income increased from Rs. 1,171 million to Rs. 1,237 million in 1H 2012. The main contributor to this was the growth in foreign exchange income which increased by 20% over the corresponding period last year.
During the six months under review the bank focussed considerably on controlling its overhead costs. The efforts on improving cost efficiencies have resulted in the improvement of the cost to income ratio to 67%, a reduction of 6% from December 2011.
The bank grew its deposit base by Rs. 10.3 billion despite a fiercely competitive environment and due to sustained and effective recovery strategies was able to reduce the NPA ratio (net of IIS) from 14.2% to 12.3%
General Manager/CEO Kapila Ariyaratne stated: “These results prove beyond doubt that the business expansion strategies backed by improvement in operational processes and focus on customer service and risk management are beginning to yield desired results, and now provides us an excellent platform to achieve sustained growth and improved profitability.”
During 1H 2012 the bank opened seven new branches/convenient centres and relocated three branches to more customer friendly locations. As at 30 June 2012, the bank network comprised of 138 branches/convenient centres and 139 ATMs.
Preparing for future growth, the bank has planned a debenture issue via a private placement for early October 2012. The bank intends to invest on identified key areas which are in line with the bank’s future growth strategies including new product development, branch expansion, service quality improvement, staff training and development and IT infrastructure.
Seylan Bank Chairman Mohan Pieris PC stated: “We are focused on achieving our Strategic Plan, which we formulated in the latter part of last year. We have also taken steps to improve our capital and governance structure for future growth strategies that have been planned.”
As a result of the strong half-yearly profits posted, earnings per share was at Rs. 6.04 (annualised), while return (profit before tax) on assets and return of equity was at 1.90% and 11.50% respectively.
source - www.ft.lk
Stocks fall on policy inaction: Reuters
Stocks fell 0.6 per cent on Tuesday in thin trade after authorities delayed promised policy measures aimed at boosting sentiment according to a report filed by Reuters.
It said the Colombo Stock Exchange’s main index lost 0.61 per cent, or 30.28 points, to end at 4,898.22, its lowest since 26 July.
“The market fell due to the lack of positive news after waiting almost a week for the promised measures, including more retail credit,” a stockbroker said on condition of anonymity.
Treasury Secretary P.B. Jayasundera made the promises last week in what was seen as an effort to revive the stock market which has fallen 19.4 per cent since the start of the year.
The market shrugged off a Central Bank decision to hold key policy rates steady for a fourth straight month as expected.
Turnover was Rs. 319.9 million, around a third of this year’s daily average of Rs. 885.4 million.
The rupee closed steady at 131.95/132 for a third straight session as importer dollar demand was offset by greenback sales by banks, dealers said.
source - www.ft.lk
It said the Colombo Stock Exchange’s main index lost 0.61 per cent, or 30.28 points, to end at 4,898.22, its lowest since 26 July.
“The market fell due to the lack of positive news after waiting almost a week for the promised measures, including more retail credit,” a stockbroker said on condition of anonymity.
Treasury Secretary P.B. Jayasundera made the promises last week in what was seen as an effort to revive the stock market which has fallen 19.4 per cent since the start of the year.
The market shrugged off a Central Bank decision to hold key policy rates steady for a fourth straight month as expected.
Turnover was Rs. 319.9 million, around a third of this year’s daily average of Rs. 885.4 million.
The rupee closed steady at 131.95/132 for a third straight session as importer dollar demand was offset by greenback sales by banks, dealers said.
source - www.ft.lk
Browns ventures into hospitals biz; buys 60-bed private unit at Ragama
Browns Healthcare (Pvt) Ltd. has acquired St. Peter’s Hospital Ragama with the aim of developing a chain of secondary healthcare general hospitals and diagnostic centres in the island.
Browns Healthcare, a wholly owned subsidiary of Brown & Company PLC, is a new venture established with the aim of developing a chain of secondary care general hospitals and diagnostic centres to deliver quality care through comprehensive integrated clinical practice and personalised care to every patient.
Speaking on the acquisition, Browns Group Managing Director and CEO Murali Prakash said: “Sri Lanka has a rapidly ageing population as well as increased incidence of non-communicable diseases brought about by affluence and changing lifestyle habits. Demand for private healthcare is expected to rise and therefore, Browns will focus on expanding its presence in the healthcare sector. This is the first of such investments in this sector.”
This new acquisition aims at providing a 60-bed multi-specialty hospital offering curative, preventive and rehabilitative services. The hospital will have a 24 hour OPD/ETU, modern theatre facilities, general surgery, obstetric, gynaecological and paediatric units and a 24 hour pharmacy as well as several diagnostic services among others.
Browns Healthcare Director/General Manager Dr. Sajeeva Narangoda said: “St. Peter’s Hospital Ragama has a history of well over 30 years, where it had catered to the ever-increasing demand for healthcare in the Gampaha District. It is with this background that Browns Healthcare has decided to acquire St. Peter’s Hospital Ragama. Keeping in line with the concepts of Browns Healthcare, a keen focus will be given to provision of affordable, high touch, quality, and patient-centric hospital care.”
The current hospital will undergo a major refurbishment process. The upgraded facility will be designed to offer quality care while assuring safety in modern, purpose-built facility. Staff and management aim to provide quality and safe services to consumers and are keen to work with patients to achieve best possible outcomes.
Browns Hospitals will always encourage the medical, nursing and other allied health staff to adhere to highest standards of ethics and practice evidence-based medicine.
Plans are underway to have this upgraded hospital fully operational by early 2013. The hospital will also be renamed suitably with clear indications of the Browns tie-up.
Using their deep understanding of Sri Lankan consumer needs derived from over 135 years in business, Browns has grown quietly yet exponentially into the active and valuable company it is today – simply and unobtrusively by greatly expanding its portfolio and delivering excellence in products, services and value to Sri Lankans everywhere.
source - www.ft.lk
Browns Healthcare, a wholly owned subsidiary of Brown & Company PLC, is a new venture established with the aim of developing a chain of secondary care general hospitals and diagnostic centres to deliver quality care through comprehensive integrated clinical practice and personalised care to every patient.
Speaking on the acquisition, Browns Group Managing Director and CEO Murali Prakash said: “Sri Lanka has a rapidly ageing population as well as increased incidence of non-communicable diseases brought about by affluence and changing lifestyle habits. Demand for private healthcare is expected to rise and therefore, Browns will focus on expanding its presence in the healthcare sector. This is the first of such investments in this sector.”
This new acquisition aims at providing a 60-bed multi-specialty hospital offering curative, preventive and rehabilitative services. The hospital will have a 24 hour OPD/ETU, modern theatre facilities, general surgery, obstetric, gynaecological and paediatric units and a 24 hour pharmacy as well as several diagnostic services among others.
Browns Healthcare Director/General Manager Dr. Sajeeva Narangoda said: “St. Peter’s Hospital Ragama has a history of well over 30 years, where it had catered to the ever-increasing demand for healthcare in the Gampaha District. It is with this background that Browns Healthcare has decided to acquire St. Peter’s Hospital Ragama. Keeping in line with the concepts of Browns Healthcare, a keen focus will be given to provision of affordable, high touch, quality, and patient-centric hospital care.”
The current hospital will undergo a major refurbishment process. The upgraded facility will be designed to offer quality care while assuring safety in modern, purpose-built facility. Staff and management aim to provide quality and safe services to consumers and are keen to work with patients to achieve best possible outcomes.
Browns Hospitals will always encourage the medical, nursing and other allied health staff to adhere to highest standards of ethics and practice evidence-based medicine.
Plans are underway to have this upgraded hospital fully operational by early 2013. The hospital will also be renamed suitably with clear indications of the Browns tie-up.
Using their deep understanding of Sri Lankan consumer needs derived from over 135 years in business, Browns has grown quietly yet exponentially into the active and valuable company it is today – simply and unobtrusively by greatly expanding its portfolio and delivering excellence in products, services and value to Sri Lankans everywhere.
source - www.ft.lk
Saturday, August 4, 2012
Thursday, August 2, 2012
Message clear: Market must move up
■At Tuesday’s meeting Finance Ministry Secy. reiterates united effort by all to revive Colombo Bourse
■To appoint all stakeholders-comprised Consultative Committee for regular dialogue and consensus
■Credit rule to be revised to boost retail participation; fresh support to brokers in the offing, among other measures
■Meeting with top listed blue chips to be convened next week to enlist their support and ideas
■SEC told to be professional over its regulation and investigations like the Central Bank rather than sensationalising via media or driving fear
■Record Rs. 25 billion net foreign inflow so far in 2012 to be further consolidated
By Nisthar Cassim
The message to stakeholders of the Colombo Bourse was loud and clear as it was repeated on Tuesday by Finance Ministry Secretary Dr. P.B. Jayasundera that the depressed market must be revived and on its part the Government has committed to spearhead this much-needed thrust.
Dr. Jayasundera told the Daily FT yesterday that the capital market stakeholder meeting on Tuesday was “positive and productive”.
This was as a follow-up to the 19 July forum chaired by President and Finance Minister Mahinda Rajapaksa, at which engagement too, the message from the country’s Chief Executive was that the “market must be revived”.
For Tuesday’s meeting, Dr. Jayasundera invited almost the same parties who attended the President’s Forum. They included Securities and Exchange Commission (SEC) Chairman Tilak Karunaratne, who was accompanied by Acting Director General H. Dissabandara, two Directors Chandu Epitawala and Vajira Wijegunawardane, Colombo Stock Exchange Chairman Krishan Balendra, Director Maxi Prelis and CEO Surekha Sellahewa, Colombo Stock Brokers Association President Sriyan Gurusinghe and his members as well as non-member brokers as well as investors Harry Jayawardena, Nimal Perera, K.C. Vignarajah and C.P. de Silva.
Tuesday’s engagement was after Dr. Jayasundera separately met with SEC Commissioners and CSE Directors last week.
“The market needs to be revived via a partnership by all stakeholders as opposed to them going in different directions. Such a collective effort will bring back confidence to the market and improve sentiments. This was communicated to all stakeholders present,” Dr. Jayasundera said.
Year-to-date the market is down by 19% with over Rs. 300 billion in value lost, whilst last year it was down by 8.5% after two years of a bull run, which made Colombo the world’s most consistent best performer. This achievement was linked to revival in investor sentiments and economic outlook following the end of the 30-year conflict.
To ensure a regular dialogue and to find consensus over short, medium and long term measures required to revitalise the capital market, a consultative committee under the chairmanship of Dr. Jayasundera will be set up shortly. Recommendations from the Committee will be considered for the upcoming 2013 Budget as well.
Dr. Jayasundera will also convene a meeting of top listed blue chips next week to get their views in terms of developing the capital market and get an update on their future investment profile.
He dismissed criticism from some quarters that the Finance Ministry shouldn’t get directly involved in revitalising the market but leave the responsibilities to different agencies such as the SEC, which also has a mandate to develop the capital market apart from regulating it, the CSE and the CSBA.
“The overall policy of the development of the capital market comes under the Finance Ministry and this initiative of bringing together all stakeholders is spearheaded in that spirit. The SEC and CSE can continue with their statutory functions such as regulatory and operational roles as well as address fundamental issues, all aimed at creating an enabling environment for a vibrant capital market,” Dr. Jayasundera pointed out, in addition to stressing that there was no political interference as well.
He said that the importance of reviving the market was acknowledged by all stakeholders at the meeting and the required policy support as well as incentives if required would be extended by the Government.
“We need to clear the mistrust if any among stakeholders and pursue a joint effort to revive the market and not destroy it and this was emphasised at the meeting. We also ironed out some of these issues and the Consultative Committee will take up any residual and future matters,” the Finance Secretary said, adding, “Positive sentiments must start from the very stakeholders before expecting it from investors.”
The SEC had been told to be more professional in its regulatory role, including the process of investigations. “The SEC can continue with its investigations, but as in the case of the Central Bank, greater professionalism along with directly dealing with the parties concerned with a level of discreetness was recommended rather than doing it via the media,” Dr. Jayasundera said.
The SEC and CSE also can proceed with their efforts to improve governance as well as simplify procedures aimed at creating a vibrant market. The need for pragmatic approach and a right balance with regard to regulation was also reiterated at Tuesday’s meeting.
Dr. Jayasundera told the Daily FT that broker credit rules would be revisited to make it more transparent and simplified with an emphasis on supporting more retailers to participate in the capital market.
“The Government will also look at incentivising the brokers to improve their capacities, risk management and market development,” Treasury Secretary said.
Tuesday’s stakeholder meeting was also told that it was important to take strength from the record net foreign inflow of over Rs. 25 billion so far this year, apart from further consolidating foreign interest.
Last year’s net outflow was Rs. 19 billion whilst in 2010 it was Rs. 26.3 billion.
Dr. Jayasundera said the high net inflow in 2012 was a clear testimony of the level of foreign investor confidence in the prospects of post-war Sri Lanka as well as the macro-policy framework of the Government.
At the meeting all stakeholders present were also told not to convey conflicting or wrong messages with regard to the outcome of Tuesday’s meeting. This was because the President’s Forum as well as Dr. Jayasundera’s meeting with the SEC and CSE saw conflicting reportage by the media.
Whilst there was a suggestion to have a joint press conference, it was later agreed that the Finance Ministry would be the spokesperson for Tuesday’s meeting.
source - www.ft.lk
■To appoint all stakeholders-comprised Consultative Committee for regular dialogue and consensus
■Credit rule to be revised to boost retail participation; fresh support to brokers in the offing, among other measures
■Meeting with top listed blue chips to be convened next week to enlist their support and ideas
■SEC told to be professional over its regulation and investigations like the Central Bank rather than sensationalising via media or driving fear
■Record Rs. 25 billion net foreign inflow so far in 2012 to be further consolidated
By Nisthar Cassim
The message to stakeholders of the Colombo Bourse was loud and clear as it was repeated on Tuesday by Finance Ministry Secretary Dr. P.B. Jayasundera that the depressed market must be revived and on its part the Government has committed to spearhead this much-needed thrust.
Dr. Jayasundera told the Daily FT yesterday that the capital market stakeholder meeting on Tuesday was “positive and productive”.
This was as a follow-up to the 19 July forum chaired by President and Finance Minister Mahinda Rajapaksa, at which engagement too, the message from the country’s Chief Executive was that the “market must be revived”.
For Tuesday’s meeting, Dr. Jayasundera invited almost the same parties who attended the President’s Forum. They included Securities and Exchange Commission (SEC) Chairman Tilak Karunaratne, who was accompanied by Acting Director General H. Dissabandara, two Directors Chandu Epitawala and Vajira Wijegunawardane, Colombo Stock Exchange Chairman Krishan Balendra, Director Maxi Prelis and CEO Surekha Sellahewa, Colombo Stock Brokers Association President Sriyan Gurusinghe and his members as well as non-member brokers as well as investors Harry Jayawardena, Nimal Perera, K.C. Vignarajah and C.P. de Silva.
Tuesday’s engagement was after Dr. Jayasundera separately met with SEC Commissioners and CSE Directors last week.
“The market needs to be revived via a partnership by all stakeholders as opposed to them going in different directions. Such a collective effort will bring back confidence to the market and improve sentiments. This was communicated to all stakeholders present,” Dr. Jayasundera said.
Year-to-date the market is down by 19% with over Rs. 300 billion in value lost, whilst last year it was down by 8.5% after two years of a bull run, which made Colombo the world’s most consistent best performer. This achievement was linked to revival in investor sentiments and economic outlook following the end of the 30-year conflict.
To ensure a regular dialogue and to find consensus over short, medium and long term measures required to revitalise the capital market, a consultative committee under the chairmanship of Dr. Jayasundera will be set up shortly. Recommendations from the Committee will be considered for the upcoming 2013 Budget as well.
Dr. Jayasundera will also convene a meeting of top listed blue chips next week to get their views in terms of developing the capital market and get an update on their future investment profile.
He dismissed criticism from some quarters that the Finance Ministry shouldn’t get directly involved in revitalising the market but leave the responsibilities to different agencies such as the SEC, which also has a mandate to develop the capital market apart from regulating it, the CSE and the CSBA.
“The overall policy of the development of the capital market comes under the Finance Ministry and this initiative of bringing together all stakeholders is spearheaded in that spirit. The SEC and CSE can continue with their statutory functions such as regulatory and operational roles as well as address fundamental issues, all aimed at creating an enabling environment for a vibrant capital market,” Dr. Jayasundera pointed out, in addition to stressing that there was no political interference as well.
He said that the importance of reviving the market was acknowledged by all stakeholders at the meeting and the required policy support as well as incentives if required would be extended by the Government.
“We need to clear the mistrust if any among stakeholders and pursue a joint effort to revive the market and not destroy it and this was emphasised at the meeting. We also ironed out some of these issues and the Consultative Committee will take up any residual and future matters,” the Finance Secretary said, adding, “Positive sentiments must start from the very stakeholders before expecting it from investors.”
The SEC had been told to be more professional in its regulatory role, including the process of investigations. “The SEC can continue with its investigations, but as in the case of the Central Bank, greater professionalism along with directly dealing with the parties concerned with a level of discreetness was recommended rather than doing it via the media,” Dr. Jayasundera said.
The SEC and CSE also can proceed with their efforts to improve governance as well as simplify procedures aimed at creating a vibrant market. The need for pragmatic approach and a right balance with regard to regulation was also reiterated at Tuesday’s meeting.
Dr. Jayasundera told the Daily FT that broker credit rules would be revisited to make it more transparent and simplified with an emphasis on supporting more retailers to participate in the capital market.
“The Government will also look at incentivising the brokers to improve their capacities, risk management and market development,” Treasury Secretary said.
Tuesday’s stakeholder meeting was also told that it was important to take strength from the record net foreign inflow of over Rs. 25 billion so far this year, apart from further consolidating foreign interest.
Last year’s net outflow was Rs. 19 billion whilst in 2010 it was Rs. 26.3 billion.
Dr. Jayasundera said the high net inflow in 2012 was a clear testimony of the level of foreign investor confidence in the prospects of post-war Sri Lanka as well as the macro-policy framework of the Government.
At the meeting all stakeholders present were also told not to convey conflicting or wrong messages with regard to the outcome of Tuesday’s meeting. This was because the President’s Forum as well as Dr. Jayasundera’s meeting with the SEC and CSE saw conflicting reportage by the media.
Whilst there was a suggestion to have a joint press conference, it was later agreed that the Finance Ministry would be the spokesperson for Tuesday’s meeting.
source - www.ft.lk
Press conference ruled out for more positive press release
Treasury Secy. meets capital market stakeholders
The Ministry of Finance and Planning is expected to release a statement regarding the capital market stakeholder meeting chaired by Treasury Secretary Dr. P. B. Jayasundera last Tuesday.
Sources said the meeting was positive with officials and representatives from the Securities and Exchange Commission and Colombo Stock Exchange, broker community and investors in attendance.
Holding a press conference to outline the outcome of the meeting was ruled out as officials preferred to send a more positive message to the press.
It was highlighted at the meeting that the stock exchange was receiving negative press coverage in recent weeks, and this was causing negative sentiments among investors.
The country’s capital market stakeholders can be broadly divided into two factions: One side is seeking less regulation while the other wants to see more effective measures taken to stamp out market malpractice.
As widely reported in the press, some influential investors under the SEC radar for market malpractice are believed to be trying their best to demoralise the SEC.
source - www.island.lk
The Ministry of Finance and Planning is expected to release a statement regarding the capital market stakeholder meeting chaired by Treasury Secretary Dr. P. B. Jayasundera last Tuesday.
Sources said the meeting was positive with officials and representatives from the Securities and Exchange Commission and Colombo Stock Exchange, broker community and investors in attendance.
Holding a press conference to outline the outcome of the meeting was ruled out as officials preferred to send a more positive message to the press.
It was highlighted at the meeting that the stock exchange was receiving negative press coverage in recent weeks, and this was causing negative sentiments among investors.
The country’s capital market stakeholders can be broadly divided into two factions: One side is seeking less regulation while the other wants to see more effective measures taken to stamp out market malpractice.
As widely reported in the press, some influential investors under the SEC radar for market malpractice are believed to be trying their best to demoralise the SEC.
source - www.island.lk
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