Capital Markets Archives

November 9, 2023

“This partnership would provide an opportunity for our undergraduates to have a sound knowledge of the capital markets.” – Vice Chancellor, University of Sri Jayewardenepura

“This is an initiative to promote financial literacy among Sri Lankans, especially among undergraduates, who are a key segment of the population equipped to contribute to an economically stable future.” -CEO, CSE

The Colombo Stock Exchange (CSE) recently signed a Memorandum of Understanding (MoU) with the University of Sri Jayewardenepura, to formalize collaborative efforts to improve the knowledge of capital markets among undergraduates in Sri Lanka.

The collaboration proposes to promote capital market education among undergraduates by working together on a number of mutually beneficial strategic initiatives. Accordingly, the initiative would offer practical educational training and internship opportunities for students of the University of Sri Jayewardenepura who are engaged in accountancy and finance, business management, and economics-related degree programmes with the CSE.

Further, under the terms of the MoU, the CSE will grant an award to the student who performed outstanding performance in the research and commercialization of inventions in university.

The University of Sri Jayewardenepura will also collaborate with the ongoing educational initiatives of the CSE, including the Advanced Diploma in Financial Markets (ADFM), as well as in future educational activities by providing the required expertise and resource persons for the seminars and workshops organized by the CSE to investors around the country in promoting the capital market investments.

Commenting on the partnership, the CEO of the CSE, Rajeeva Bandaranaike, stated, ” This is an initiative to promote financial literacy among Sri Lankans, especially among undergraduates, who are a key segment of the population equipped to contribute to an economically stable future. We are pleased to partner with the University of Sri Jayewardenepura, promote engage in multiple collaborative capital market related initiatives with the undergraduate population.

The Vice Chancellor of the University of Sri Jayewardenepura, Senior Professor Pathmalal M. Manage, also shared his views and thanked the Colombo Stock Exchange, for signing the Memorandum of Understanding with the University of Sri Jayewardenepura to bring more opportunities to both parties.

“This strategic alliance between the University of Sri Jayewardenepura and the CSE would no doubt offer good opportunities to both parties; our undergraduates will stand a chance to be financially literate, while the CSE would be able to obtain resource personnel from our University for their educational initiatives.”

“Though Sri Lanka has a high literacy rate, financial literacy in the country stands at a lower rate, which should be a prime concern of the local Government. Our graduates who are going out from the University must know what the stock market is. So proper awareness of the stock market should be created among our youth, no matter which field they are from. So, this partnership would provide an opportunity for our undergraduates to have sound knowledge of the capital markets,” Snr Prof. Manage added.

April 4, 2022

Given the short term uncertainty prevailing in the capital markets as well as the power outages expected to continue during the month of April, the Board of CL Synergy have decided to postpone its Initial Public Offering which was scheduled to open on the 7^th of April. New dates will be notified once the short-term uncertainties prevailing in the market subside.

The Board of Directors of CL Synergy are encouraged by the overall investor interest and response towards the IPO, specially from the High Net Worth Individuals who have seen the value proposition and business model of CL Synergy.

Whilst market conditions may have deteriorated, particularly in the last week, the Synergy business model is well intact, and is ideally positioned in the present economic environment, with a majority of its revenue derived from USD earnings. Given that 70% of the company’s business volume comes from Exporters, it is expected that the recent devaluation to significantly improve the competitiveness of their customers in global markets and in turn will result in substantial freight volumes increase for CL Synergy.

Speaking to the press, Managing Director, Roshan Silva expressed, “When embarking on the IPO journey, it was not clear to us how much marketing queries and sales inquiries would increase on the back of the public profiling of CL Synergy, through the IPO process. For a group that has built its business on long-term customer relationships, we are indeed encouraged by the new relationships we have created during this journey towards the IPO. No sooner market positions improve we will re-double our efforts and bring CL Synergy to the investor public. We will communicate our quarterly performance and business highlights in the public domain and are happy to note that we have exceeded analyst expectations for the year that we just concluded on 31^st March 2022. On behalf of the Synergy family, I would like to take this opportunity to Thank our friends, well-wishers and the new investor community who rallied around us during this journey towards the IPO”.

December 15, 2021

The shares of Capital Alliance Limited (CODE: CALT-N-0000) commenced trading on the Colombo Stock Exchange (CSE) today. The shares have been listed on the Diri Savi Board of the CSE under the “Investment Banking & Brokerage” sector. The occasion was marked with a special Bell Ringing Ceremony

Chairman and Non- Executive Director of Capital Alliance Limited Mr. Dinesh De Zoysa, Chief Executive Officer of CAL Group and Executive Director of Capital Alliance Limited Mr. Ajith Fernando, Non- Executive Director of Capital Alliance Holdings Limited Ms. Shiromal Cooray, Non- Executive Non- Independent Director Mr. Sanjeewa Anthony, Non- Executive Independent Director Ms. Aruni Siriwardene, Chief Risk and Compliance Officer of CAL Group Ms. Sharmali Perera and Managing Director of Capital Alliance Limited Mr. Somadasa Palihawadana joined the event.

The CSE was represented by Chairman Mr. Dumith Fernando, Chief Regulatory Officer Mr. Renuke Wijayawardhane and Head of Listings Ms.

Vinduni Dullewe at the event.

Chairman of the CSE, Mr. Dumith Fernando, speaking at the ceremony, welcomed the company to the CSE. “The core function of our capital market is always to match savings with those who need capital. And with today’s capital raising, we have the 9th equity IPO for the year. We have about five more rushing before the end of this year to list and I’m happy to say we have crossed the 100 billion-rupee mark in terms of capital raising, both in debt and equity this year.

It is a delight and an honour for us to welcome a firm of the repute and track record of Capital Alliance onto the listed company platform. We are looking forward to a couple more IPOs related to capital markets. But, we hope that you will be a trendsetter here. And I think, proven to us by the eight and a half times subscription of the IPO. But most notably the three and a half times retail over subscription, that there is great interest in this sector in the quality of companies like Capital Alliance.”

Speaking at the event, Chief Executive Officer of CAL Group and Executive Director of Capital Alliance Limited Mr. Ajith Fernando thanked the Central Bank, Board of Directors, clients and the team and added “It’s a very special occasion for us. “A journey that started 21 years ago, as a very small company with just three employees to be here today to be a listed entity.”

Addressing the shareholders, he remarked “This was a privately held company and most of the shareholders are also involved in the company. So, it’s a unique opportunity to see the kind of interests that we have attracted from other shareholders, particularly retail.

I think in a way this is the whole purpose of having a stock exchange and having a capital market. It is to allow all types of investors to take part in a business that’s otherwise restricted to institutional and corporate investors only. So, I look forward to working with all our new investors and enhancing their value and enhancing all shareholder value and enhancing our plans going forward. Once again, thank you very much and I look forward to exciting journey ahead as a listed company in the prestigious Colombo Stock Exchange.”

Established in the year 2000, Capital Alliance Limited, fondly known as CALT, began its journey as a Debt Securities Dealer and was appointed as a Primary Dealer by the CBSL in 2003. CALT is one of the 5 non-bank Primary dealers in the country. CALT is a constituent of the larger CAL Group and forms the Securities Trading arm of the Group, dealing predominantly in Government Securities. With over two decades of experience, the Capital Alliance Group has graduated to become a leading Investment Banking group in Sri Lanka. The Group has diversified into asset management, stock brokering, corporate debt and equity advisory, private equity and research services to suit the needs of their wide-ranging clients.

March 20, 2019

CSE

The Colombo Stock Exchange (CSE) and the Global Reporting Initiative (GRI) will be hosting a forum on providing guidance to listed companies on ESG disclosures. The theme of the Forum is ‘Sustainability Reporting for Sustainable Development’. This high-level engagement will be exclusive to companies listed on the CSE and will be held on 28^th March 2019, from 10.00 AM to 13:30 PM at the Kingsbury hotel.

The GRI Chief Executive Mr. Tim Mohin will be the keynote speaker on the topic ‘Evolution of Corporate Reporting: Sustainability and Integration’ and he will be joined by an eminent line up of speakers including the First Secretary for Development at the Australian High Commission Sri Lanka Dr. Thomas Davis, CSE CEO Mr. Rajeeva Bandaranaike, Chief Economist at the Ceylon Chamber of Commerce Mr. Shiran Fernando, Director of GRI South Asia Dr. Aditi Haldar and Senior Coordinator of GRI South Asia Ms. Rubina Sen. These speaking engagements will be followed by a panel discussion on how sustainability reporting can drive change in South Asia.

As a key feature of the event, CSE and GRI will also jointly launch the second version of an ESG Guidance document on Communicating Sustainability, which will help listed companies to address topics related to environmental, social and governance (ESG) in their capital market communication. Managing Director of the Dhaka Stock Exchange Mr. K. A. M Majedur Rahman will also be present to launch a version of the guidance document that will be used in Bangladesh.

Listed companies are welcome to nominate representatives to attend these workshops, ideally those who would have a direct involvement in CSR and sustainability projects implemented by the company. Nominations and more information could be obtained via contacting 0112 356519 or chamikat@cse.lk

February 4, 2018

The shares of Hatton Plantations Ltd (CODE: HPL) commenced trading on the Colombo Stock Exchange (CSE) today. The shares, which were listed by way of an introduction on the Diri Savi Board of the CSE have been classified under the ‘Plantations’ sector. The occasion was marked through a Bell Ringing ceremony hosted by the CSE.

Chairman Mr. Sunil Wijesinha and Directors Mr. Shyam Sathasivam, Mr. B. A. Hulangamuwa, Mr. Nirmal Fernando and Mr. Lallith Ramanayake represented Hatton Plantations Ltd at the ceremony. The CSE was represented by Chairman Mr. Ray Abeywardena, CEO Mr. Rajeeva Bandaranaike and its Senior Management.

CSE Chairman Mr. Ray Abeywardena speaking at the ceremony congratulated the Board and Management at HPL on a successful listing and noted that the listing will bring about new avenues through which both the company and shareholders could mutually benefit. He also stated that the CSE is pleased to welcome the third listing of a company under the Sunshine Holdings umbrella.

HPL Chairman Mr. Sunil Wijesinha speaking at the event stated that the listing and segregation has resulted in a new opportunity for the company to formulate strategies and offer greater emphasis and focus to the tea plantations under the Sunshine Group. “I request the investing public to have faith in HPL because our company is committed to good corporate governance and strong performance management” he added.

November 6, 2017

The Sri Lankan stock market has continued what has been an encouraging year in 2017, where both market indices continue to record positive returns. The Benchmark All Share Price Index (ASPI) has made a 2.78% gain in October alone and a 6.31% gain year-to-date, while the S&P SL 20 index, which features the CSE’s 20 largest and most liquid stocks has also improved consistently, making a 5.74% gain in October and a 11.50% gain since the start of 2017.

The positive growth of the indices mark a reversal of the declining trend recorded in 2015 and 2016, during which the ASPI recorded a decline of 5.54% and 9.66% respectively. The performance of the market has also resulted in an improved involvement among investors, where the Daily Average Turnover is recorded at Rs. 943 million year-to-date, which is a 28% increase from Rs. 737 million in 2016.

Commenting on market performance, CSE CEO Mr. Rajeeva Bandaranaike stated “2017 has offered encouragement as far as market performance is concerned and investors are starting to recognize long term value in the market. The foreign activity we have witnessed indicates that international investors have been quick to identify an opportunity in Sri Lankan stocks, and with the macro-economic environment continuing to improve we hope to see further advances where secondary market activity is concerned, especially among local retail and institutional investors.”

Capital raised through rights issues highest since 2007

The significant amount of capital raised via rights issues during the year presents another standout feature, with the figure of Rs. 37 billion raised as of end October recording the highest yearly figure since 2007. This development continues to indicate the confidence placed by listed companies in the capital market when addressing their additional capital requirements.

Shift to foreign capital inflow trend in 2017

The market has also continued to attract foreign investment throughout 2017, with Rs. 98 billion in foreign buying contributing to a net foreign inflow of Rs. 19.6 billion year-to-date, a figure that is substantial compared to foreign activity in 2015/16. 2017 also recorded an all-time high for foreign investor buying recorded in the first half of a calendar year.

An attractive market valuation (P/E), encouraging performance among listed entities and capital gains tax exemptions offered to share transactions are considered to be defining factors in attracting the level of foreign investor interest the market has witnessed so far in 2017.

A drive to create awareness on market opportunities

In the midst of the growth of the indices and a number of other positives so far this year, the market continues to trade at a discount compared to regional peers and offers further opportunities for investors – with a market P/E recorded at 10.99 as of the end of October.

The CSE through its market development activities has embarked on an awareness drive in 2017, reaching out to multiple investor segments around the country and in international markets. Such efforts have seen the CSE work with the Securities and Exchange Commission of Sri Lanka (SEC) on “Invest Sri Lanka” Investor Forums in the United States, Australia and New Zealand in 2017 and an island-wide local retail investor focused Investor Forum campaign to create awareness on stock market investment. The CSE branch network has also conducted over 500 educational programmes so far in 2017. In addition, CSE and the Colombo Stock Brokers Association (CSBA) is also presently conducting a series of events presenting investment research on companies featured on the S&P SL 20 Index, to an exclusive audience of Local Institutional Investors.

May 4, 2017

The Colombo Stock Exchange (CSE) seeks to obtain the views/observations of the general public and the stakeholders of the CSE, including Listed Companies, regarding the proposed amendments to certain Listing Rules of the CSE. The amendments have been proposed with a view to facilitate the implementation of an appropriate enforcement mechanism with the continuous listing rules by listed companies.

Rules have been revisited to establish an enforcement mechanism in relation to certain key continuous listing requirements including, Corporate Governance, timelines for submission of interim financial statements and annual report, submission of audited financial statements containing modified audit opinions and emphasis of matter on going concern, Related Party Transactions and minimum Public Holding requirements. Through this revision, the CSE also hopes to enhance the quality, transparency and the timeliness of the disclosure of information.

Members of the general public could access and learn more about the proposed amendments via the CSE website www.cse.lk and submit comments in writing, on or before the 28th of April, 2017, addressed to the Chief Executive Officer, Colombo Stock Exchange, #04-01, West Block, World Trade Center, Echelon Square, Colombo 01 or via Fax (011 2391128) or E-mail (public.comments@cse.lk).

CSE enters into partnership with the University of Sri Jayewardenepura

CL Synergy Limited Decides to Postpone IPO in Light of Current Crisis

Capital Alliance Limited lists on the Colombo Stock Exchange

CSE and GRI to host a Forum on Sustainability Reporting for Sustainable Development

Hatton Plantations Ltd commences trading at CSE

Stock Market continues encouraging performance in 2017

Proposed amendments to CSE Listing Rules open for public comment