Mega Capital Market Conference in Colombo next week

Friday, 3 October 2014 06:06 - - {{hitsCtrl.values.hits}}

The Colombo Stock Exchange (CSE) in collaboration with the Securities and Exchange Commission of Sri Lanka (SEC) will host a Capital Market Conference in Sri Lanka on Thursday, 9 October. The event is scheduled to be held at the Cinnamon Lakeside Hotel in Colombo. President Mahinda Rajapaksa will inaugurate this conference. The conference will bring together capital market industry participants and Institutional investors. The conference would provide an excellent opportunity to understand the potential investment opportunities available in the capital market and post war economic growth. Participants will be able to meet and interact with the Government, regulators, issuers and market intermediaries and hold one-to-one meetings with companies listed on the CSE.

Institutional fund managers from East Asia, South Asia, Middle East, UK, Europe and the US are expected to attend the event. A distinguished panel of speakers will address the gathering at the conference on investment opportunities available in the Sri Lankan capital market as well as experiences of investing in Sri Lanka. Treasury Secretary Dr. P.B. Jayasundera, Central Bank Governor Ajith Nivard Cabraal, Securities and Exchange Commission of Sri Lanka Chairman Dr. Nalaka Godahewa and Colombo Stock Exchange Chairman Vajira Kulatilaka have been invited to speak at the forum. During the post-war period, the broad market index of the CSE, the ASPI has recorded a growth of over 300% from 1,800 to 7,200 level. The total value of the market, market capitalisation too has appreciated significantly by over 350%. The average daily turnover of the CSE has risen from Rs. 464 m to Rs. 1,200 m in five years since 2009. During the post-war period the net asset value of unit trusts has rised from Rs. 6.7 b to Rs. 75.7 b (1,029%). The economy is expected to reach a level of over $ 4,000 per capita before 2016. Accordingly, gross investment needs to rise above 33% of GDP. Reducing the savings investment gap alone would not promote growth. It is equally important to recognise mechanisms that could mobilise savings to productive investments. The Government has recognised the crucial role of the local equity market in mobilising local and foreign investments towards productive and efficient investments in Sri Lanka. This forum is part of a series of activities planned by the CSE and the SEC to educate local and foreign investors of the investment opportunities available in the capital market of Sri Lanka. The two institutions recently concluded successful investor forums in Mumbai, Dubai, Hong Kong, Singapore, London and New York. In addition forums have been conducted throughout the country to educate the general public as well as other stakeholders. Forums of this nature had a positive impact on the market.

Bourse at over 3-year high on banks, diversified sharesReuters: Stocks climbed to their highest close in more than three years on Thursday, led by banking and diversified shares as investors had little option other than buying into risky assets because of lower interest rates. The main stock index ended up 0.79%, or 57.97 points, at 7,351.05, its highest close since 6 June 2011. “Heavy interest in blue-chips pushed the market up. We feel the market has gone above the earning levels,” said First Capital Equities Ltd. manager, research Dimantha Mathew. Mathew said the market’s gains could have an impact on earnings in the September quarter as the Bourse is already overheated. Analysts said local investors have no alternative but to buy stocks. Though the Central Bank has kept interest rates unchanged since January, yield in the one-year t-bill has fallen around 260 basis points so far this year The day’s turnover was Rs. 2.46 billion ($ 18.9 million), much above this year’s daily average of over Rs. 1.33 billion.s Foreign investors net bought Rs. 394.1 million of shares on Thursday, extending net foreign inflows to Rs. 7.44 billion so far this year. Market heavyweight John Keells Holdings Plc, which led the market gain, rose 1.92% to Rs. 260.60, while DFCC Bank Plc gained 4.62% to Rs. 215.30.

The CSE has recorded a YOY growth of 22% and has become one of the best-performing markets globally in 2014. Foreign investors account for nearly 30% of the total market turnover of the CSE and foreign investors continue to be the net buyers in the market with net purchases of Rs. 10 billion in 2014. The total net foreign inflow during the last three years exceeds Rs. 70 b. Platinum sponsors for the event are Ceylon Guardian, Citi Bank and NDB Capital Holdings, while the Silver sponsors are Deutsche Bank, Hong Kong Shanghai Banking Corporation and Sampath Bank PLC. The Bronze sponsor for the event is Hatton National Bank PLC and SriLankan Airlines is the Official Airline Partner. The forum comes at an important juncture when there is significant worldwide focus on Sri Lanka’s growth prospects and it is anticipated that the forum will generate an overwhelming response from fund managers based overseas. More details on the conference can be obtained via http://www.capitalmarketconference2014.com.