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| Sunday, 24 August 2003 |
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Small investors welcome : Incentive scheme to boost day share trading by Hiran H. Senewiratne The Colombo Stock Brokers Association (CSBA) in cooperation with the Colombo Stock Exchange (CSE) will introduce a new incentive scheme for investors in a move towards increasing the number of day share trading activities. At present, every brokering house charges 1.4 per cent as commission for every transaction the investor or client makes. It will no longer prevail in day trading with the new system. According to the proposed system, any investor who buys and sells stocks from the same broker within a day will be entitled to a 50 per cent discount from the brokerage, as they will not have to pay the brokerage for each transaction. "This is an excellent opportunity for small and specially speculative investors to play an active role in the CSE," said Chairman CSBA Deva Ellepola.He said that a group of CSBA members made a study tour to Korea and Malaysia recently and found out it is one of the most effective ways of popularising day trading activities in the Colombo bourse. Millennium Information Technologies is presently upgrading the CSE's software system, and the new system will become effective once the upgrading is completed, Ellepola added. Research Analyst of CT Smith Stockbrokers (Pvt) Ltd Eranjan Kulathunga said the new incentive scheme will encourage specially small buyers and investors dealing with the CSE. He said it will give a big boost to the CSE, since the majority of investors are involved in the day trading activities. The CSBA is also in discussion with authorities to introduce a negotiated brokerage system between the investor and the brokering house instead of the present 1.4 per cent commission or brokerage.Meanwhile, for a monthly subscription of Rs 150, investors can now track a portfolio of stocks at the CSE. The new service is part of CSE's efforts to improve investor services and boost interest in equity specially in day trading. Real time trading information will also be available on the CSE's new website which was launched recently, with real time indices movements available free of charge. The new website at www.cse.lk will host a live market tracker with weekly, monthly, quarterly and annual comparison graphs for the All Share Price Index as well as the Milanka Price Index. A CSE official said the website has recorded a very high response from investors since its launch. With the services and real time information, officials expect more and more users to access the site and obtain information. The new service will also increase CSE's revenue with a number of online subscription services being introduced. |
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