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| Sunday, 1 June 2003 |
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| News Business Features Editorial
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Stock trading in the Hill Capital by Elmo Leonard The Colombo Stock Exchange (CSE) has long-term plans to facilitate trading on the Internet, which will be a catalyst for foreign participation, specially for non-resident Sri Lankans. Direct stock trading from Kandy on the CSE will be possible from June 4, with the long awaited commissioning of CSE's Kandy branch at 'Ceybank House', Dalada Vidiya. Two stockbroking firms are already involved in trading in Kandy. From June 4, six stockbrokers - Asia Securities, Bartleet Mallory Stock Brokers, DP Global Securities, HNB Stockbrokers, MMBL Phillips Securities and SC Securities - will help transact stocks. The Kandy branch will be used as a springboard to lure the public into stock trading from satellite towns like Kurunegala and Matale, CSE Director General, Hiran Mendis told the media. Daily stock transactions in Kandy and its environs make up around 1,500 to 2,000 trades, worth over one million rupees. With the opening of the Kandy branch, a 400 to 500 per cent increase in turnover is anticipated, the new CSE Chairman, Eraj Wijesinghe said. The CSE also intends opening a branch in Jaffna, with improvement in communications with the North. Wijesinghe said the CSE wishes to popularise stock trading throughout the country. Today, with interest rates falling, other investments do not bring high returns, Wijesinghe said, urging the public to enjoy better returns by investing in stocks. The Colombo stock market is currently exhibiting a fair volume of foreign investment, which signals that some of the stocks traded here are valuable. However, for concentrated foreign participation, a strong domestic investor base is necessary, he said. CSE opened a branch in Matara four years ago. The office, which opened with the participation of four member firms and online access to the stock market, has encouraged many to invest in the bourse and provided an important access point to investors in the Southern Province. Daily stock transactions from Matara are worth around one million rupees, HNB Stockbrokers' General Manager, Deva Ellapola said. Stockbrokers in Matara speak with investors in Sinhala. CSE reports and books are available in Sinhala and it is advisable that annual reports of companies also be available in Sinhala and Tamil, Bartleet MSB Director, R. Mouldharan said. The services offered by stockbrokers in Kandy will include order acceptance and online order execution; investment advice; pre- and post-trade documentation such as account openings, deposits, withdrawals and trade settlement services and research and other related stockbroker services, DP Global Securities, Manager, Prabath Wijetunge said. The CSE services will include access to the Automated Trading System (ATS) and Central Depository System services such as facilities to open an account the same day; a public gallery with online market information; stock market information services which include corporate announcements and other corporate actions; information on Initial Public Offerings, annual reports, quarterly accounts of listed companies and other historical market information and information on listed companies; and educational and market awareness programmes on investing in the stock market on a regular basis at the branch office where the public can participate free of charge. The CSE will also conduct seminars for professional institutes, staff of institutions and other groups. The awareness activities will focus on the aspects of investing in the stock market, basics of investing in the stock market, investor protection and market regulation, evaluating and selecting stocks and the importance of understanding and interpreting annual reports. The branch will provide opportunities for Central Province residents to invest and profit through the stock market. It will provide investors with the same level of access as in Colombo and Matara. Existing stock market investors from Kandy will find that it is easier and faster to obtain market information and execute their transactions through the ATS. For those aspiring to start investing in the stock market, the branch will offer free facilities and an opportunity to participate in educational and awareness programmes and learn about investing in the stock market, SC Securities, CEO Harsha Fernando said. Wijesinghe advised investors to be cautious of trading in stocks of companies which are reluctant to pay dividends. "It is prudent to seek the advise of stockbrokers when purchasing stocks. The Kandy branch would take pains to provide this service," he said. |
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