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The Colombo Stock
Exchange |
ASPI crosses 5,000 mark
CSE creating history:
By the Business Desk
Flash
CSE recorded the highest number of trades on
a given day by recording 30,728 on Friday
The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE)
closed above the 5,000 level for the first time in history on July 28.
The ASPI closed the day at 5,138.9 gaining 139.8 points (2.8 per cent).
The Milanka Price Index (MPI) gained 159.5 points (2.8 per cent) to
close the day at 5,828.7, also recording the highest level in history.
The total turnover recorded during the day was Rs. 3.2 billion.
The market capitalisation at the end of trading today of Rs. 1.68
trillion is the highest market capitalisation recorded in the history of
the CSE.
The ASPI has gained 1,753.3 points (51.8 per cent) for the year 2010
to date while the MPI has gained 1,979.3 points (51.4 per cent) for the
year to date.
According to Bloomberg News, the performance of the ASPI has led to
the CSE being ranked the second best performing stock exchange in the
world for the year 2010 to date. CSE was named the second best
performing Stock Exchange globally for the year 2009.
Though CSE is creating history elsewhere in Asia the situation is
very different. According to AFP report dated July 29 Asian markets were
pushed lower with Tokyo losing 0.54 percent by the break while Hong Kong
opened 0.28 percent lower, Sydney fell 0.45 percent and Seoul was off
0.12 percent while Shanghai and Singapore were flat due to the US
recovery. According to analysts the main reason is the economic and
political stability of the country as well as the peaceful situation in
the country which attracts investors to the stock market. The All Share
Price Index (ASPI) of the Colombo Stock Exchange (CSE) closing over the
5,000 mark on Wednesday was acclaimed by capital market experts as an
outstanding performance that augurs well for the growth of the economy.
Senior Banker and Capital market analyst, Mangala Boyagoda said the CSE
feat was remarkable but there is still room for growth.
“Sri Lanka’s capital market contribution is around 30 percent of the
country’s GDP compared to markets of developed countries which is over
100 percent of the GDP.
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CSE amends
ATS
* The Colombo Stock Exchange
(CSE) has amended Automated Trading Rules (ATS) with effect
from August.
* The crossing threshold has
been increased by Rs. 10 mln to Rs.20 mln. The Tick size
across the board has been reduced to 10 cents while
negotiable brokerage will be reduced from Rs 100 mln to Rs
50 mln. The minimum brokerage floor will be 0.20 percent.
* Accordingly, the revised
transaction costs up to Rs. 50 Mn are as follows: Brokerage
Fees 0.640 per cent, CSE Fees 0.084 per cent, CDS Fees 0.024
per cent, SEC Cess 0.072 per cent, Share Transaction Levy
0.200 per cent, Total 1.020 per cent For transactions over
Rs. 50 mln;
* Minimum Brokerage (floor)
0.2000 per cent, CSE Fees 0.0525 per cent, CDS Fees 0.0150
per cent, SEC Cess 0.0450 per cent, Share Transaction Levy
0.2000 per cent.
* SEC said that above
amendments to the ATS Rules and the revised transaction
costs will be effective from August 1. |
“We should encourage more corporates to list on the CSE that would
bring in more capital to the Stock Exchange.
The CSE should attract more companies to join the stock market”,
Boyagoda said.
Currently around 230 companies are listed in the CSE.
Managing Director, Ceylon Asset Management Co. Ltd., Dulindra
Fernando said the strong fundamentals of the Sri Lankan economy were the
salient contributor to the growth of the capital market.
“Our currency position is stable compared to developed countries
which have not still fully recovered from the economic crisis”, Fernando
said.
Stock market analysts commended the growth of the ASPI while being
optimistic of sustaining the momentum.
The CSE was rated the best performing stock market this year, a feat
reached amidst challenging times.
CSE created history on September 18, 2009 as well by recording the
highest ever market capitalisation (the total value of the CSE) of Rs.
942.6 billion.
The previous record was Rs. 938.6 billion, recorded on 13th February
2007.
Market capitalisation represents the aggregate value of a company or
stock.
It is obtained by multiplying the number of shares issued by their
current price per share.
The total market capitalisation of the CSE is an aggregation of the
market capitalisations of all listed companies. |
