* Srilankan Stock Market Watch - Trading Monday - 07 Dec, 2009

Monday Sri Lankan shares closed up 0.83-pct.



The All Share Price Index closed at 3,025.37 up 0.83 percent (25.04 points) while the Milanka Price Index of more liquid stocks closed at 3,449.08, up 0.97 percent (33.12 points).

Turnover was 381.6 million rupees, according to provisional Colombo Stock Exchange statistics.

All Share Price Index Movements - 07.12.09

Milanka Price Index Movements - 07.12.09

There was a net foreign outflow of 14.77 million rupees as foreigners bought 34.91 million rupees worth of shares and sold 49.68 million rupees.

* Sri Lankan shares end bad week on high note - Trading Friday - 23 Oct, 2009

Sri Lankan stocks bounced backed strongly Friday, as retailer's regained confidence to hold their investments and were upbeat on future company performance, but trading was low.

The All Share Price Index closed up 2.13 percent (63.75 points) to end at 3,056.62, while the Milaka Index of more liquid stocks gained 2.02 percent (68.13 points) to close at 3,434.00, according to provisional stock exchange data.

Turnover was 398.3 million rupees.

There was a net foreign outflow of 28.2 million rupees as foreigners bought 23.0 million rupees worth of shares and sold 51.2 million rupees.

The market is slowly recovering and investor sentiment is also improving but turnover levels still remain low.

Rajaratnam was a big investor in the Colombo bourse with large stakes in blue chips such as Commercial Bank, DFCC Bank and National Development Bank, through his Galleon Fund.

He also has supposedly bought a big stake in conglomerate John Keells Holdings (JKH) with his personal funds, brokers said.JKH, whose share price was pummeled earlier in the week on news of Rajaratnam's arrest, closed at 144.50 rupees, up 4.25.

National Development Bank closed at 189.00 rupees, up 3.50, and DFCC Bank closed at 153.00 rupees, up 4.25.Commercial Bank of Ceylon closed at 184.50 rupees, up 6.00, and Sampath Bank closed at 185.00 rupees, up 2.75.

Dialog Telekom a unit of Telekom Malaysia closed flat at 7.25 rupees with almost 1.5 million shares changing hands, and Sri Lanka Telecom closed at 46.00 rupees, up 2.00.

Distilleries Company of Sri Lankan closed at 101.00 rupees, up 2.50

* Sri Lanka shares down on billionaire arrest, trade deal doubts - Trading Monday - 19 Oct, 2009

Sri Lankan shares ended lower Monday on news of the arrest of a US hedge fund manager with big stakes in the island and uncertainty over a trade deal with the European Union.

The All Share Price Index closed down 1.56 percent (49.00 points) to end at 3,082.91, while the Milanka Index of more liquid stocks dropped 1.93 percent (68.60 points) to close at 3,478.33, according to provisional stock exchange data. Market Activity - 19.10.2009

Turnover was 885.2 million rupees.

There was a net foreign inflow of 2.8 million rupees as foreigners bought 99.9 million rupees worth of shares and sold 97.1 million rupees.


Sri Lanka's stock market has risen sharply since May when government forces defeated the Tamil Tiger separatists, ending a 30-year war that had retarded the economy which could now be revived.

Sri Lankan-born Raj Rajaratnam and the Galleon Fund managed by him had investments of over 12 billion rupees in the Colombo bourse.He also has supposedly bought over 52 million shares of conglomerate John Keells Holdings (JKH) with his personal funds,

JKH closed at 148.00 rupees, down 5.00 with 371,600 shares traded.

Other significant investments made by the Galleon Fund include National Development Bank (NDB), Commercial Bank, Chemical Industries (Colombo) and DFCC Bank.Commercial Bank closed at 187.00 rupees, down 3.75, and DFCC Bank closed at 159.00 rupees, down 5.25.

Chemical Industries (Colombo) closed at 67.00 rupees, down 1.00, and NDB closed at 197.00 rupees, down 4.00.

Dialog Telekom closed at 7.25 rupees, down 25 cents, and Sri Lanka Telecom closed at 45.00 rupees, down 1.00.

Tokyo Cement non-voting closed at 17.50 rupees, down 50 cents with over one million shares changing hands.

Retailer favorites Lanka Cement closed flat at 30.25 rupees, while forestry company Touchwood Investments closed at 93.75 rupees, down 1.25.

Close-ended-fund, NAMAL Acuity Value Fund closed at 49.00 rupees, one rupee below its issued value.

* Market Activity - 19.10.2009

Market Activity At 02.30 pm

Share Volume | 47,863,300
Turnover | 885,271,382.25
ASI | 3,082.91 | -49.00 | -1.56%
MPI | 3,478.33 | -68.60 | -1.93%

Market Activity At 02.00 pm

Share Volume | 45,608,509
Turnover | 844,614,419.50
ASI | 3,089.28 | -42.63 | -1.36%
MPI | 3,479.27 | -67.66 | -1.91%

Market Activity At 01.30 pm

Share Volume | 43,022,885
Turnover | 805,172,087.50
ASI | 3,095.32 | -36.59 | -1.17%
MPI | 3,497.91 | -49.02 | -1.38%

Market Activity At 01.00 pm

Share Volume | 40,604,004
Turnover | 726,805,966.50
ASI | 3,096.06 | -35.85 | -1.14%
MPI | 3,498.06 | -48.87 | -1.38%

MarketActivity At 12.30 pm

Share Volume | 37,883,967
Turnover | 677,744,513.75
ASI | 3,088.85 | -43.06 | -1.37%
MPI | 3,493.87 | -53.06 | -1.50%

Market Activity At 12.00 pm

Share Volume | 33,280,351
Turnover | 613,942,729.75
ASI | 3,068.72 | -63.19 | -2.02%
MPI | 3,466.63 | -80.30 | -2.26%

Market Activity At 11.30 am

Share Volume | 28,542,522
Turnover | 523,837,886.25
ASI | 3,030.19 | -101.72 | -3.25%
MPI | 3,415.67 | -131.26 | -3.70%

Market Activity At 11.00 am

Share Volume | 21,486,876
Turnover | 416,023,171.25
ASI | 3,014.82 | -117.09 | -3.74%
MPI | 3,400.76 | -146.17 | -4.12%

Market Activity At 10.30 am

Share Volume | 13,099,170
Turnover | 265,447,806.50
ASI | 3,060.74 | -71.17 | -2.27%
MPI | 3,445.74 | -101.19 | -2.85%

Market Activity At 10.00 am

Share Volume | 8,092,446
Turnover | 147,757,614.00
ASI | 3,071.57 | -60.34 | -1.93%
MPI | 3,466.38 | -80.55 | -2.27%

* Sri Lanka brokers shocked by charges against fund manager

Sri Lankan traders reacted with shock at the weekend to US fraud charges laid against a billionaire Sri Lankan-born hedge fund manager who had big interests in the island's stock market.

The US Justice Department filed insider trading charges against Raj Rajaratnam, who spent his childhood years in Sri Lanka, and five others on Friday following an extensive wiretapping investigation.

Sri Lankan brokers said Raj, founder and head of the New York-based Galleon Management hedge fund, was a major investor in Sri Lanka's small 10-billion-dollar bourse which is among the world's best performing markets.

Rajaratnam and his fellow alleged conspirators were accused of earning 20 million dollars from illegal trading in what US media reports said was the biggest ever hedge fund insider dealing scheme.

He attended primary school in Sri Lanka before going abroad with his parents.

He was reported by the US magazine Forbes to have studied in Britain and the United States before creating the hedge fund, believed to manage at least six billion dollars in assets.




According to public documents, Rajaratnam is the single largest investor in Sri Lanka's biggest quoted firm, John Keells Holdings, a conglomerate with interests from banking to ports and hotels.

John Keells Holding (JKH) - 9.2%

People Merchant Bank (PMB) - 13%

Commercial Bank (COMB) - 3.2%

Figures compiled from the stock exchange showed Rajaratnam also has large holdings in other Sri Lankan blue-chips firms such as Commercial Bank and two brokerage houses either through Galleon or personally.

The billionaire, who is the world's 559th richest person according to Forbes magazine with a net worth of 1.3 billion dollars, had also donated money to local charities.

"It's a setback for the Colombo stock market which was proud to show him off as one of the biggest foreign investors in the country," said a fund manager who also asked not to be named.

Rajaratnam's company released a statement saying it was "shocked to learn" of his arrest and would cooperate fully with US authorities.

* Sri Lankan shares close flat, foreign inflows top Rs1.0bn - Trading Friday - 16 Oct, 2009

Sri Lankan share closed down Friday as the market was taking a slow technical correction, while net foreign inflows had topped one billion rupees.

The All Share Price Index closed down 0.10 percent (3.22 points) to end at 3,131.91, while the Milanka Index of more liquid stocks gained 0.26 percent (9.08 points) to close at 3,546.93, according to provisional stock exchange data.

Turnover was 836.7 million rupees.

There was a net foreign outflow of 10.7 million rupees as foreigners bought 184.3 million rupees worth of shares and sold 195.0 million rupees.

This week end foreign inflows had reached 1.07 billion rupees, one of the weekly highest in the recent past.

Diversified JKH closed flat at 153.00 rupees, down 1.00 on 244,600 shares traded, and Distilleries Company of Sri Lanka closed at 107.50 rupees, down 1.25.

Building and construction sector shares saw active trading. Sierra Cables closed flat at 2.20 rupees with 1.76 million shares traded, and Tokyo Cement non-voting shares closed at 18.00 rupees, up 50 cents with 1.24 million shares changing hands.

Lanka Cement closed at 30.25 rupees, down 25 cents.

National Development Bank closed at 201.00 rupees, up 1.00, and Commercial Bank of Ceylon closed at 190.25 rupees, down 1.75.Sampath Bank closed at 193.00 rupees, down 75 cents, and Seylan Bank closed at 44.75 rupees, down 25 cents.

Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.50 rupees, and fixed line operator Sri Lankan Telecom closed at 46.00 rupees, up 25 cents.

* Sri Lankan shares fall on profit taking - Trading Wednesday - 07 Oct, 2009

Sri Lankan stocks ended a two-week bull-run Wednesday as retail investors took profits from a market that’s heading towards a correction, while John Keells Holdings (JKH) shares were heavily traded today.

The All Share Price Index closed down 0.35 percent (11.00 points) to end at 3,136.56 while the Milanka index of more liquid stocks lost 0.52 percent (18.36 points) to close at 3,529.02, according to provisional stock exchange data.

Turnover reached 1.17 billion rupees.

On Wednesday there was a net foreign inflow of 448.9 million rupees worth of shares today as foreigners bought 534.6 million rupees and slod 85.7 million rupees.

Conglomerate JKH closed at 154.00 rupees, up 2.00 with 2.91 million shares changing hands today, and Distilleries Company of Sri Lanka, unit of unlisted tea company Stassens closed flat at 91.00 rupees.

Nation Lanka Finance, formerly known as Ceylinco Finance Company closed at 29.75 rupees, up 2.00 on 1.15 million shares traded.

Commercial Bank of Ceylon closed at 180.00 rupees, up 25 cents, and Hatton National Bank closed at 170.00 rupees, up 50 cents. National Development Bank closed at 195.00 rupees, down 25 cents, and DFCC Bank closed at 152.50 rupees, down 1.50.

"We can expect a technical correction to come soon," a market analyst said

Dialog Telekom a unit of Telekom Malaysia closed at 8.25 rupees, down 50 cents, and Sri Lanka Telecom 45.75 rupees, down 25 cents.

Retailer favorite Touchwood Investments closed at 93.75 rupees, down 1.00.Tokyo Cement closed at 214.50 rupees, up 2.75.

ACL Cables closed at 79.25 rupees, down 2.25, while Sierra Cables closed at 2.10 rupees, down 10 cents on over 1.3 million shares traded.

* Sri Lankan shares close up; stock values top Rs1,003bn - Trading Tuesday - 06 Oct, 2009

Sri Lankan stocks closed at a new all time high with stock values topping 1,000 billion rupees, and the market up 108.1 percent from the beginning of the year, according to Colombo Stock Exchange data.

The All Share Price Index closed up 0.95 percent (29.32 points) to end at 3,127.56 while the Milanka index of more liquid stocks gained 1.10 percent (38.61 points) to close at 3,547.09, according to provisional stock exchange data.

Market capitalization at the end of the day was 1003.1 billion rupees, the first time stock values had topped 1000 billion rupees.

Prime minister Ratnasiri Wickremanayake made a surprise visit to the trading floor, soon after.

Turnover was 1.18 billion rupees.

There was a net foreign inflow of 82.5 million rupees worth of shares today as foreigners bought 146.5 million rupees and slod 64.0 million rupees.

Dialog Telekom, an index heavy celco closed 8.75 rupees, up 50 cents, with 15 million shares traded, while fixed line operator Sri Lanka Telecom closed at 46.00 rupees, down 25 cents.

Conglomerate John Keells Holdings (JKH) closed at 152.00 rupees, down 2.00, Distilleries Company of Sri Lanka closed at 91.00 rupees, up 25 cents, and Hayleys an export heavy diversified group, closed at 160.00 rupees, up 5.00.

Commercial Bank of Ceylon closed at 179.75 rupees, up 50 cents, National Development Bank closed at 195.25 rupees, up 2.75, Sampath Bank closed at 183.50 rupees, up 1.50, DFCC Bank closed at 154.00 rupees, up 1.00.Nations Trust Bank closed at 34.00 rupees, down 25 cents on 422,300 shares changing hands.

Tokyo Cement closed up 211.75 rupees, up 3.00. Lanka Ventures closed at 14.50 rupees, down 25 cents.

Diversified Richard Pieris and Company closed 40.50 rupees, down 50 cents, while Riverina Hotels closed at 66.00 rupees, down 2.00.

Sri Lanka shares soar to record high, foreigners sell - Trading Monday - 05 Oct, 2009

Sri Lankan shares closed at a record high Monday with foreign investors being net sellers.

The All Share Price Index (ASPI) was up 2.66 percent (80.23 points) to end at 3,098.24 while the Milanka index of more liquid stocks gained 3.36 percent (113.91 points) to close at 3,508.77, according to provisional stock exchange figures.

The total market turnover for the day was 1.06 billion rupees.

There was a net foreign outflow of 92.2 million rupees worth of shares today as foreigners sold 230.4 million rupees and bought 138.2 million rupees.

The market broke the previous intra-trade record of 3038.48 points achieved on February 19, 2007 as certain foreign institutional funds bought heavily into blue chips.

Dialog Telekom attracted a lot of attention at both, retail and institutional levels.

Dialog Telekom 11.5 million shares changed hands. It closed at 8.50 rupees, up 1.50, while fixed line operator Sri Lanka Telecom closed 46.25 rupees, up 1.25.

Analysts said the small nature of the market with a turnover of around 10 million dollars made it easy for big investors to move the market.

"Certain specific shares are being pushed up by speculators," said an analyst.

Some of them were believed to be Sri Lankan investors with foreign accounts.

Index heavy conglomerate John Keells Holdings (JKH) closed flat at 154.00 rupees, while Distilleries Company of Sri Lanka closed at 91.00 rupees, up 1.75.

Commercial Bank of Ceylon closed at 179.00 rupees, up 2.75, while National Development Bank closed at 192.50 rupees, up 1.75.Sampath Bank closed at 182.25 rupees, up 2.75, while DFCC Bank closed flat at 153.00 rupees.

Chevron Lubricants Lanka Limited closed at 179.50 rupees, up 14.50, while Ceylon Tobacco Company, the Sri Lankan unit of British American Tobacco closed at 183.00 rupees, down 2.00.

Sri Lanka stocks hit new high ASPI - Trading Friday - 02 Oct, 2009

Sri Lankan shares closed at a record high Friday, as investors expecting the bull run to continue on the short term with periodical profit taking, while upcoming quarterly results will point at the bourses long term direction.

The All Share Price Index (ASPI) was up 0.68 percent (20.41 points) to end at 3,018.01 while Milanka index liquid stocks gained 1.25 percent (42.00 points) to close at 3,394.86, according to provisional stock exchange figures.

Turnover was 1.07 billion rupees, with a year-to-date turnover of 89.2 billion rupees, the stock exchange said.

The ASPI has shot up 100.8 percent this year, while the Milanka is up 108.1 percent, a stock exchange statement said.

On Friday there was net foreign outflows worth 33.0 million rupees, with foreign investors buying 199.0 million worth shares and selling shares valued at 232.0 million rupees.

According to Bloomberg Newswire the Colombo Stock Exchange is the best performing market in Asia and the fourth best performing index in the world, the exchange said.

Today is a day that goes down in history with the ASPI reaching 3,018 points and a market capitalization of 967 billion rupees reflecting the positive attitude of investors.

Index heavy conglomerate John Keells Holdings (JKH) closed at 154.00 rupees, up 1.00, while Distilleries Company of Sri Lanka closed at 89.25 rupees, up 2.25.

Seylan Merchant Bank 18 million non-voting shares changed hands. It closed at 80 cents, up 10 cents.

Commercial Bank of Ceylon closed at 176.25 rupees, up 2.25, while National Development Bank closed at 190.75 rupees, down 1.00.Sampath Bank closed at 179.50 rupees, up 8.50, while DFCC Bank closed at 153.00 rupees, up 1.00.

Nestles Lanka, a unit of Swiss based food company Nestles closed at 411.50 rupees, up 1.75, while Ceylon Tobacco, Sri Lankan unit of British American Tobacco closed at 185.00 rupees, up 2.50.

Celco Dialog Telekom, the Sri Lankan unit of Telekom Malaysia closed at 7.00 rupees, up 25 cents, while Sri Lanka Telecom closed 45.00 rupees, down 50 cents.

* Sri Lankan shares close up 0.87-pct - Trading Wednesday - 30 Sep, 2009

Sri Lankan shares closed up Wednesday in an end-quarter rally with buyers chasing plantation sector stocks, and hotel stock extending gains.

The All Share Price Index was up 0.87 percent (25.39 points) to end at 2,938.64 while Milanka index liquid stocks gained 1.15 percent (37.47 points) to close at 3,297.43, according to provisional stock exchange figures.

Turnover was 1.24 billion rupees, with large volumes deals in Seylan Bank non-voting shares.

On Wednesday there was net foreign inflows worth 38.7 million rupees, with foreign investors buying 131.7 million worth shares and selling shares valued at 93.0 million rupees

Index heavy conglomerate John Keells Holdings (JKH) closed at 151.00 rupees, up 25 cents, while Distilleries Company of Sri Lanka closed at 85.00 rupees, down 1.25.

Kahawatte Planations closed at 34.75 rupees, up 4.75, while Coco Lanka closed at 42.00 rupees, up 4.00.Kelani Valley Plantations closed at 56.00 rupees, up 2.00, while Malwatte Valley Plantations closed at 31.50 rupees, up 1.25.

Maskeliya Plantations closed at 21.75 rupees, up 2.50, while Talawakelle Tea Estates closed at 27.75 rupees, 2.00.

Carsons Cumberbatch, which controls several oil palm firms, closed at 289.25 rupees, up 13.25.

Aitken Spence Hotel Holdings closed at 219.75 rupees, up 7.75, while Asian Hotels and Properties closed at 75.00 rupees, up 1.00.Confifi Hotel Holdings closed at 138.00 rupees, up 2.00, while Nuwara Eliya Hotels Company closed at 400.00 rupees, up 17.50 on thin volumes.


Commercial Bank of Ceylon closed at 171.25 rupees, down 75 cents, while National Development Bank closed flat at 189.75 rupees.Sampath Bank closed at 170.00 rupees, up 25 cents, while DFCC Bank closed at 151.00 rupees, flat.

Celco Dialog Telekom, the Sri Lankan unit of Telekom Malaysia closed at 6.50 rupees, up 25 cents, while Sri Lanka Telecom closed flat 44.75 rupees.

Tokyo Cement closed at 192.00 rupees, up 4.50.

* Boards at the CSE for Listing of Equity

There are two Boards at the CSE for Listing of Equity. They are the Main Board and the Diri Savi Board. Given below are the requirements that are needed to list on the said boards.

Main Board:

Eligibility to be listed

1. The stated capital representing shares for which a listing is sought should be not less than Rs. 100 Mn

2. A net profit after tax for three (3) consecutive years immediately preceding the date of application.

3. A Public Holding of 25 percent of the total number of shares for which listing is sought should be in the hands of a minimum of 1,000 shareholders holding not less than 100 shares each.

Diri Savi Board:

Eligibility to be listed

1. The stated capital representing shares for which a listing is sought should be not less than Rs. 35 Mn

2. Public Holding of 10 percent.

* How to apply for an IPO and listing on the CSE

The Colombo Stock Exchange offers a market for trading in Securities. Listing Rules govern the listing of Securities on the Exchange and continuing listing in order to ensure the creation and maintenance of a market in which Securities can be issued and traded in an orderly and fair manner and which secures efficiency and confidence of all stakeholders in the operation and conduct of the market.

Methods of Listing:

A company may obtain a listing by one of the two methods described below.

1. Initial Public Offering (IPO)

An IPO can be conducted in either of the two ways given below.

* Offer for Subscription

An Offer for Subscription is an invitation to the public by or on behalf of a company to subscribe for its un-issued equity or debt securities.

* Offer for Sale

An offer for sale is an invitation to the public by, or on behalf of, holder(s) or allottees (s) of debt or equity securities already in issue.

2. Introduction

An Introduction is the listing of the Securities of an Entity on the Exchange without the requirement of an initial public offering. A company is entitled to be admitted to the official list of the Exchange through an introduction.

What is an Initial Public Offering (IPO)?

This is the first sale of securities by a company to the public. Colloquially, it is said that a company is going public. A company can raise money by issuing either debt (debentures) or equity. It can be through an Offer For Subscription or Offer For Sale. In the latter, existing shares are sold and the money collected will be directed to the existing shareholders while in the former new shares are crated and money collected is channelled towards the business of the company.

Public companies have a larger number of shareholders and are subject to rules and regulations. In Sri Lanka, listed public companies have to abide by the rules and regulations of the CSE in addition to complying with the provisions of the Companies Act. Additionally, they are subject to the regulation of the Securities and Exchange Commission of Sri Lanka (SEC). From an investor’s standpoint, the most exciting thing about a public company is that the stock is traded in the open market, like any other commodity.

Why go public?

By going public, companies can raise large amounts of capital. Being listed also has many other benefits.

* Because of the increased regulation and scrutiny, public companies can usually get better rates when they issue debt.

* As long as there is market demand, a public company can always issue more shares. Rights Issues and further IPO’s are conducted for this purpose.

* Trading in the open markets means liquidity. This makes it possible to implement things like employee stock ownership plans, which help to attract top talent, to the company.

* Most companies discover a value for their shares through a listing on a stock exchange.

* Access to a widespread shareholder base. The stock exchange puts forward companies a right of entry to a wide-ranging and mounting investor base, which contains both entity investors and plentiful local and international institutional investors.

* Low cost capital. The primary gain of raising capital from the market is that it eschews a number of the intermediation expenses apparent in the other forms of capital raising. Consequently, the market endows companies with capital at a cheaper cost.

How to buy shares from Listed Companies on the Secondary Market?

* If you want to invest in 1000 shares of “SAS” Company, you need to:

1. Inform your broker of the name of the company, price and amount of shares you want to purchase.

2. The broker will try and match your order.

3. Once the order is processed, he will inform you of the shares you were able to purchase at the price you required.

* Once the Buying process is complete, you will:

4. Receive a bought note by post.

Note:

- Please save all such paperwork

- This is very important in-case your order was not executed properly.

- This said documents will inform you if your broker has bought shares to your account without your knowledge.

What is Internet Trading?

Investors now have Web access to market data, company information, and educational materials, which greatly reduce the intermediation issues of investing.

The online investor gains convenience and saves time with direct access (through the stock broker) to trading systems and 24-hour access to information.

A benefit of online trading is the improvement in the speed of which transactions can be executed and settled, because there is no need for paper-based documents to be copied, filed and entered into an electronic format. Moreover, with the Online-Trading system, you can execute your trades online. Therefore, you have the benefit of making your own decisions. Eighteen member firms of the Colombo Stock Exchange (CSE) provide online trading facilities to investors. Therefore, you can invest in the Colombo Stock Market from your own home/office.

Online trading platforms offer

- Direct access to trading

- Access to market information 24x7

- Global Reach

- Stockbroker research on listed companies

The safety of transactions on the Internet depends on the systems used. Online stockbrokers of the CSE have implemented security, technology and fraud prevention methods to provide protection for all users of the online trading facilities. Once you open an online trading account, you will receive a secured user ID and password, the secrecy of which should be maintained by you.

* How do you place an order with a Stockbroker?

You can place an order through your Stockbroker by:

- Visiting them: at CSE Branches or their respective offices

- By calling your broker

- Internet Trading

* Transaction Costs

Transaction cost applicable for equity and debt securities given below:

Equity

Transactions up to Rs. 1 Million - 1.425 percent

Divided as follows:

Net amount to the broker - 1.000

S.E.C. - 0.090

C.S.E. - 0.105

C.D.S. - 0.030

Govt. Cess tax - 0.200

(Subject to a minimum brokerage of Rs. 10/- per contract and a minimum CDS fee of Rs. 5/-)

Transactions over Rs. 1 Million - 1.225 percent

Divided as follows:

Net amount to the broker - 0.800

S.E.C. - 0.090

C.S.E. - 0.105

C.D.S. - 0.030

Govt. Cess tax - 0.200

Transactions over Rs. 100 Million

Divided as follows:

Minimum brokerage (floor) - 0.1000 percent

SEC Cess - 0.0450 percent

CSE Fees - 0.0525 percent

CDS Fees - 0.0150 percent

Share Transaction Levy - 0.2000 percent

Intra day Trading:

With effect from February 15, 2006, the transaction fee due to the broker, CSE, CDS and SEC on intra day trades, where a client buys and sells or sells and buys the same day through the same broker will not be charged on one side of the transaction.

Corporate Debt:

All Transactions - 2 basis points

(Divided equally among S.E.C, C.S.E. & C.D.S.)

Broker to Client - Negotiable

Government Debt:

No fees charged as S.E.C, C.S.E. & C.D.S. fees.

Broker to Client - Negotiable

* What services do they provide?

Client Registration:

* Opening of Securities Accounts

* Deposit of Securities

* Withdrawal of Securities

* Transfer of Securities

* Generation of Contract Notes

* Attending to the documentation

* Settlement of transactions

* Portfolio Management

* Execute and confirm buy/sell transactions

* Advise and facilitate takeovers and mergers

* Sponsoring listing

* Applications for companies

* Investment advise

Providing information:

* Assistance and information dissemination with regard to new issues

* Research and reports on the performance of listed companies and their securities

It is mandatory for you to obtain the services of a stockbroker in transacting in the secondary market.

How do you select your Investment advisor?

The Stockbroker should act in the client’s best interest. Therefore, he should possess the following qualities.

-Competence

He should be qualified and experienced and have a thorough knowledge of market behaviour.

The Broker should be certified by the CSE or the SEC and hold the Investment Advisor Certification.

- Integrity

The stockbroker should give fair treatment to his clients, and not for his personal gain. He must account for all transactions properly.

- Knowledge about “what’s happening around”

The Broker should possess knowledge on the needs of hte client, market behaviour and Political, Economic, Social & Technological factors.

- Forecasting

This is the process of analyzing current and historical data to determine future trends. Stock analysts use various forecasting methods to determine future stock price movements, earnings, etc.

What research services are offered by Stock Broker Firms?

Most brokers have a research unit that studies the market in general and specific companies in particular.

With this research they are able to recommend shares for you to purchase. They publish research in the form of

- Sector reports

- Daily and Weekly reports

- Company specific reports

- Daily valuation reports

The broker makes recommendations to the best of his ability and should not be liable in case the recommendation is found to be incorrect.

* Who is a Stock Broker?

A Stock Broker is a firm that acts as an intermediary for stock market transactions, offering investor a variety of services in addition to investment advice and executing buy and sell orders of investors. The Stockbroker’s fee is the brokerage.

The CSE has licensed 15 Member Firms and 6 Trading Member Firms to trade in both equity and debt securities in Sri Lanka.