Government is positively looking at Broker proposals – Top State Official

A top state official says that the Government is positively looking at the possibilities of removing or relaxing some of the regulatory controls imposed by the Securities and Exchange Commission on share trading.
He said, this new development started taking place following a meeting, the heads of local Stock Brokerages held with President Mahinda Rajapaksa on [...]

Unscrupulous brokers often hype and promote penny stocks

By. R M B Senanayake
Many years ago my driver used to buy shares which were low priced thinking that they were cheap. Once he had bought Vanik shares and when he asked me if it was a good buy, I told him that the company was bankrupt. He was upset but I reassured him that [...]

“The UNP has lost the days they had in Colombo” – Fowzie

Senior Minister A.H.M. Fowzie who entered parliament in 1994 has held nearly ten ministerial portfolios covering sectors such as health, transport, highways, petroleum, environment, disaster management and Muslim affairs etc.
Currently functioning as one of the Senior Ministers of the Government, Fowzie who will reach his 74th Birthday in October says he has no plans to [...]

Will Company financial results continue to outshine ?

By: R.M.B. Senanayake
Long term investors are staying away from the market just as the foreign investors are selling and liquidating their portfolios. They say the market is over-priced because the market Price Earnings Ratio is 20, having declined from a much higher 25 a few weeks ago. But emerging markets are capable of unusually high [...]

Certain brokers unable to lend under new rules

By: Prasanna C. Rodrigo
Following the new rules announced by the Securities and Exchange Commission on governing broker credit to investors, nearly 8 to 10 Stock Brokers are finding it difficult to lend or regularly lend, says market sources.
This is owing to those brokers not having the required liquidity levels to be qualified to lend as [...]

The Tumble of Stocks in Wall Street – No impact on the local market

By. R.M.B. Senanayake
Yes Wall Street has stumbled and markets elsewhere in the regions have followed suit. There was a 60-point drop in the S&P. It just cut through a major support level (at about 1,220) to almost free-fall in the last hour of trading – losing all of its 2011 gains in the process. [...]

ERI appeals to SEC

Environmental Resources Investment PLC has made an appeal to the Securities and Exchange Commission not to go ahead with the “Notice of Action” issued to the firm by the regulator.
The SEC in the early parts of this month issued a “Notice of Action” against ERI indicating that it will take legal action against the firm [...]

Beware when buying shares of newly listed finance firms

R.M.B. Senanayake
The Central Bank has insisted that all registered Finance Companies should be listed on the Colombo Stock Exchange by the 30th June. Hence several Finance Companies including those of the Ceylinco Group which had shut the doors to depositors have been listed by way of an Introduction – an alternative way to listing apart [...]

Buying high to make profits

By: R. M. B. Senanayake

These days many stock market investors are anxious, particularly those who engaged in short term trading. Some of them may note that a part of their portfolio value has been wiped out. They may or may not sell but that makes no difference- unrealized gain or loss is as much a [...]

Pre-open Placement of shares should be made transparent

By R.M.B. Senanayake
In recent times several companies seeking listing on the Colombo Stock Exchange through an Initial Public Offering have previously sold such shares to private parties. These sales are made at a price much below the price for the shares in the Initial Public Offering.
One company had sold its shares at Rs 6 in [...]