Another untimely move by SEC - Foreign listings in Sri Lanka

dineshfernando

dineshfernando

Senior Manager - Equity Analytics

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Join date : 2011-02-05

Please note that I'm not against for IPOs or introductions. But concerned of their timing. I have stopped subscribing for IPOs sometime back.

SEC has to take immediate action to limit the number of IPOs / introductions within a time frame. Some of our investors chase behind overprices IPOs and burn their fingers. Surprisingly they never learn.
As a group we have to boycot overvalued IPOs and introductions.

The market is slowly dying day-by-day. SEC is helping it to die faster as they are going to list foreign firms at CSE. It should be the other way round where our companies must be listed abroad so that our investors will be benefited. It is like repeatedly stabbing a dying person to expedite the death.

http://www.lankabusinessonline.com/fullstory.php?nid=1109642904

You could clearly notice that on Friday 75% of the turnover was VONE and investors didn't even bother for the other undervalued shares.

People are having different views and this is my personal opinion. Please note that I'm not against for IPOs and I always avoid overpriced IPOs.

Sat Jul 09, 2011 9:22 pm by **player** · Sat Jul 09, 2011 9:22 pm by **player**

foreign bankrupt companies may get listed and you can see sky rocket prices in first day trades,defa

Sat Jul 09, 2011 9:24 pm by nkalansu · Sat Jul 09, 2011 9:24 pm by nkalansu

dineshfernando wrote:Please note that I'm not against for IPOs or introductions. But concerned of their timing. I have stopped subscribing for IPOs sometime back.

SEC has to take immediate action to limit the number of IPOs / introductions within a time frame. Some of our investors chase behind overprices IPOs and burn their fingers. Surprisingly they never learn.
As a group we have to boycot overvalued IPOs and introductions.

The market is slowly dying day-by-day. SEC is helping it to die faster as they are going to list foreign firms at CSE. It should be the other way round where our companies must be listed abroad so that our investors will be benefited. It is like repeatedly stabbing a dying person to expedite the death.

http://www.lankabusinessonline.com/fullstory.php?nid=1109642904

You could clearly notice that on Friday 75% of the turnover was VONE and investors didn't even bother for the other undervalued shares.

People are having different views and this is my personal opinion. Please note that I'm not against for IPOs and I always avoid overpriced IPOs.

I agree. It is time to boycott overvalued IPOs. After FLCH i did not subscribe to any IPOs or did not purchase from any of the Introductions.

Sat Jul 09, 2011 9:44 pm by lokuayya · Sat Jul 09, 2011 9:44 pm by lokuayya

it is apparent from sec bosses speeches ,their thinking is listing more and more companies as faster as possible is the best thing that can happen to colombo stock exchange.

he is going all around to find more more companies.listing colombo in london , listing london in colombo ,listing maldives in colombo, oh my god,..
Same time cut credit.no capital ,so Share prices are going down the pallam.what we need at this stage is not new companies,we need more funds /capital in to the market.if capital is flowing then he can go shopping for new companies world over.the private placement guys raking remaning portion of available capital from the secondary market by diluting. buy at 7 rupees from private sell at 29 in secondary market ,take money and vanish.this money will not return to market.

But the bank regulators are very cunning.They dumped all the good ,bad and ugly finance companies in the colombo exchange and washed their hands.now its up to the public to shoulder when they fail.the central bank escaped from responsibility.

please stop new ipos for a two three month, let market to behave normally.do not let down the newly brought investors to the market .CSE gone all around and brought many new retail investors,dont loose their trust and confidence in the capital market.

Sat Jul 09, 2011 9:59 pm by Aamiable · Sat Jul 09, 2011 9:59 pm by Aamiable

@ loku ayya
Next to maldives is madagaskar ...what are the other countries? madagaskar , ithiopia etc... etc..

Sat Jul 09, 2011 10:17 pm by Rajaraam · Sat Jul 09, 2011 10:17 pm by Rajaraam

Well said lokuayya,+rep from me .The first +rep to you I believe. No one can understand their strategy. How are they going to rebuild investor confidence? Have they undestand the problem correctly? Or are they running blindly ? Only God knwos.

Sat Jul 09, 2011 10:20 pm by nkalansu · Sat Jul 09, 2011 10:20 pm by nkalansu

Well said. +rep from me too. Let this be an eye opener.

Sat Jul 09, 2011 10:46 pm by **wallstreetguy** · Sat Jul 09, 2011 10:46 pm by **wallstreetguy**

Well said, exactly, our blue chip companies should be listed in other countries. I wouldnt advise to buy any foreign company shares if it was listed in our exchange, who know what happens in that country and how the business performs,
Those companies can have excellent impressive websites, maybe reputed but thats not goiing help us judge how their business is. We need envormental information. About the country and the sector of the business and eveything. Specualting our own country is it self is tiring by the end of the day, imagine specualting some other country now. If that foreign business is establishing a base here, then its more than welcome.

We read the news which will be manupilated as always.

I have personally given up on IPOs, its such a waste of time
Eventually if we have patience, it will come down to the intial price or close, then we should start buying in. IPO's, Introductions arent attractive anymore. Secondary MArket is very attractive at the moment.

Sat Jul 09, 2011 10:53 pm by stumpy · Sat Jul 09, 2011 10:53 pm by stumpy

Pissu ahh!

Loku Ayya + Rep from me too Very Happy

But how can we take this idea to the next level?

Sat Jul 09, 2011 11:06 pm by RichDad · Sat Jul 09, 2011 11:06 pm by RichDad

It's time that wise investors boycott the over priced IPOs which earns HNWIs 400% return with PPs. I can't understand why the retailers don't learn a lesson.

A way to alarm the authorities is not to subscribe for these crap!

Sat Jul 09, 2011 11:08 pm by Quibit · Sat Jul 09, 2011 11:08 pm by Quibit

Hey guys... You need to look at the global picture. All Chinese companies are listed on the Hongkong stock exchange. Why can't we have all Indian and Maldivian companies listed on the Colombo Stock Exchange. After all Colombo is the gateway to South East Asia, just like Hong Kong to China... Dubai to the Middle East..

More opportunities to local investors. More foreign funds will look at CSE as a global stock marke. More foreign investment in Sri Lanka, this is how you could take Sri Lanka to the next level. Hats off to SEC!

Sat Jul 09, 2011 11:12 pm by RichDad · Sat Jul 09, 2011 11:12 pm by RichDad

Quibit, what's your opinion about the down trend? I need your experience to speak out please...

Sat Jul 09, 2011 11:33 pm by Tiger · Sat Jul 09, 2011 11:33 pm by Tiger

Hi all, why dont you think this way. When the market is down its for all of us, big and for small. When things become cheap why you only wants to cry and howl, instead you should be happy and dancing in the streets.

Believe me in few years time non of these shares wont be so cheap. If fundermentally sound stocks are going down you should all send thanking letters to SEC for listing more and more IPOs, for making it cheap for us.

Hat's off to SEC.

Sun Jul 10, 2011 5:47 am by Aamiable · Sun Jul 10, 2011 5:47 am by Aamiable

So many begging right issues….. after right issues value comes down SEYB SMLL all came down. ….IPOs beg for funds….Begging all the time... London stocks listed here and Maldives stocks listed here also start begging…. next Ethiopia... With the boom in tourism in Sri Lanka Maldives is not doing well, …so all the beggars come to CSE and they might come with rights issues...

Mae Mona mala illawakda Question

Stock market is really meant for corporate earnings, growth, dividend and profits etc.... Cool

Sun Jul 10, 2011 8:07 am by wiki · Sun Jul 10, 2011 8:07 am by wiki

Tiger wrote:Hi all, why dont you think this way. When the market is down its for all of us, big and for small. When things become cheap why you only wants to cry and howl, instead you should be happy and dancing in the streets.

Believe me in few years time non of these shares wont be so cheap. If fundermentally sound stocks are going down you should all send thanking letters to SEC for listing more and more IPOs, for making it cheap for us.

Hat's off to SEC.

i would dance if i have money but all my funds stuck that is why i am worrying..

Expansion of CSE is a good move but you cant do it withing a month or two.. SEC and Gov works like world is going to end in 2012...

Sun Jul 10, 2011 9:34 am by ShareShares · Sun Jul 10, 2011 9:34 am by ShareShares

There are a limited number of investors, available funds have limits, and all new listings also come down from the initial price after few days. Having experienced losses in new listings investors with actual ability to invest with new funds now focus on shares with good corporate earnings.

Sun Jul 10, 2011 10:56 am by kumudu · Sun Jul 10, 2011 10:56 am by kumudu

it is taking some time to realize for the sri lankan people that they have done mistake over and over again. many foreign investors are staying away from our market now. you see foreign out flow is very high. if administrators bring this IPO s from everywhere everyone will burn their fingers irrespective of big or small. I will say very soon in next IPOs under subscription will happen. It is time to act soon.

Sun Jul 10, 2011 11:43 am by manula · Sun Jul 10, 2011 11:43 am by manula

Yes.. i think it will be better with many foreign companies in the CSE. but only thing we have to know which type of foreign company's will be listed in the CSE. Their has to have some control

In these days i don't think there is any control in the CSE. Many not good financial institutions coming to the market and central bank wants to wash their hands of monitoring given burden to poor investors. Many companies shares are manipulating ...with out any control from the regulators

See how many IPOs for this year. This also has to have some control.

What i feel, is their must be a limit of companies in Stock market and same way only good foreign companies too introduce to the market.

As of now many retails with big losses and how they can participate market activities.. though many SL or foreign companies introduce.

Sun Jul 10, 2011 6:33 pm by Aamiable · Sun Jul 10, 2011 6:33 pm by Aamiable

player wrote:foreign bankrupt companies may get listed and you can see sky rocket prices in first day trades,defa

Right issues,.. new listings, speculative counters subjected to force
selling recently due to lack of funds,… foreign companies going to be listed here,.. IPOs, debentures ..are all different ways of collecting more and more funds from
retailers, …..where as well established businesses continue to report increasing
profits may bring more funds to their own PLCs in CSE.

Colombo Stock Exchange cannot dream of those profit making PLCs to volunteer and inject funds to rescue bankrupt counters…. right issues, IPOs, new listings etc.. Cannot expect any gains from those PLCs looking for more funds from poor retailers in the near future…Do they offer anything with corporate earnings, they just collect.

Investors really looking for currently profitable PLCs which actually make substantial profits at this moment… not just PLCs with great plans for future. Who knows whether those dreams are going to be realized? …Stagnant foreign companies also start begging here in CSE….generally investors tend to concentrate on currently profit making PLCs at the moment.

Smile

Sun Jul 10, 2011 7:11 pm by **Antonym** · Sun Jul 10, 2011 7:11 pm by **Antonym**

Foreign companies listing on the CSE are likely to be part of a reciprocal deal, i.e. Lankan companies will also list on foreign exchanges. In such arrangements, smaller countries tend to benefit more - because the companies get exposed to a much larger investor base. Therefore, I am happy about the deal with the LSE.

Incidentally, there are just four companies listed on the Maldives Stock Exchange! There isn't much in it for us...

Sun Jul 10, 2011 10:41 pm by bullrun · Sun Jul 10, 2011 10:41 pm by bullrun

Re: Another untimely move by SEC - Foreign listings in Sri Lanka

Dear Friends,
The SEC never learns lessons by practice. I feel that they do not have market sense. I don’t know whether they have got in to the market even for a shelter in a rain. Shall we convince to the His Excellency MR to instruct so called regulators to not to interfere with the free market. Investors have entered to the CSE having known very well that it is the most risky investment. No any other solution than this. Otherwise they will play their trumpet until the market die.
See, what they have achieved since they came to the driving sheet. How many foreign investors did they fetch down here? What happened to the indexes? How much time they change their actions? Do they want to chase away all small scale investors? We can’t expect justice from them. Shall we get together and meet MR. That is the only option available as I feel.

Mon Jul 11, 2011 10:09 am by lokuayya · Mon Jul 11, 2011 10:09 am by lokuayya

@bullrun,
exactly, someone should intervene to stop this destruction.billions wiped out.all these happen when country's growth rate,inflation control,interest rates,political stability are in favor of the market.there is no terrorism,no tsunamis,
.
see the difference of two regulators .bank regulator and stock regulator.
kabral has the intelligence and expertise.so financial system is stable,interest rate ,inflation under control.
but see the stock regulator set. billions wiped out,investors wiped out.this is the real example for danger of appointing "moda pahe" ,low intelligence people to high key positions.damage they do the country is immeasurable .
regarding going for shopping of foreign companies in to cse by stock regulator ,i see this is another immature work by regulator.salesman job is not regulators duty.let cse to do the selling.what we expect from regulator is level and stable play ground.

Mon Jul 11, 2011 10:24 am by Tiger · Mon Jul 11, 2011 10:24 am by Tiger

bullrun wrote:
Re: Another untimely move by SEC - Foreign listings in Sri Lanka

Dear Friends,
The SEC never learns lessons by practice. I feel that they do not have market sense. I don’t know whether they have got in to the market even for a shelter in a rain. Shall we convince to the His Excellency MR to instruct so called regulators to not to interfere with the free market. Investors have entered to the CSE having known very well that it is the most risky investment. No any other solution than this. Otherwise they will play their trumpet until the market die.
See, what they have achieved since they came to the driving sheet. How many foreign investors did they fetch down here? What happened to the indexes? How much time they change their actions? Do they want to chase away all small scale investors? We can’t expect justice from them. Shall we get together and meet MR. That is the only option available as I feel.

Hi if you were in the chair of Ms. Indrani Sugathadasa or in Malik cadar's. What would you do? What is your advice to those who regulate the market?
More credit? T+365 ? No price bands? No IPOs? Govt funds to support market? all IPOs to be made compulsory to undervalue?

It would be more interesting and useful to start a discussion as to how should the regulations be rather than JVP type hype.

According to me the worst mistake regulators did was keep on postponing credit clearance, by doing that they let the problem grow bigger and bigger. Otherwise we wouldn't have seen this onslaught now.

Mon Jul 11, 2011 11:22 am by lokuayya · Mon Jul 11, 2011 11:22 am by lokuayya

@bullrun,

Your idea of meeting HE Mahinda Rajapaksha is very good.can any senior person volunteer to takeup the role of convener? We will come.full support. This killing should not be allowed to continue.
These people cannot comprehend what is happening.comprehension need some intelligence.
Broker associations have already told what to be done as an advice to the SEC.I read from news papers about brokers representation.I fully agree as a trader /investor.
Only intelligent people can understand and make remedies.

Mahinda Rajapaksha recently told there are economic attacks on the country.Frankly tell me what is the worse attack than what is made to happen in CSE.Is this a case of attacks by own men and women.

Mon Jul 11, 2011 1:45 pm by bullrun · Mon Jul 11, 2011 1:45 pm by bullrun

Dear Tiger,

When did we have this stock market? In 2000s? It is coming from sudda’s period. Why do they want to put all barriers now? I feel that they may be a group from JVP. They want to rune everything. When did we have the best time? When did we have this nature of controllers? My feeling is that they want to do something. They do not worry about the result. Some of the countries allowed even the black money to come to the market in order to develop. But our gang is chasing all small fellows!!!!!!!!!!!!!!!