The Colombo Stock Exchange ( CSE ) (Sinhala: ???? ?????????? , Video Colombo Stock Exchange
History
Trading of shares in Sri Lanka began in 1896 under the Association of Stockbrokers (SBA). In 1904 the SBA was renamed the Colombo Collero Association . They started auctioning shares in open land. Later a competitor evolved, the Stockbrokers Association and in 1985 Colombo Brockers & amp; The Stock Broker joins and forms the Colombo Stock Exchange.
The establishment of an official stock exchange took place in 1985 with the merger of the Colombo Stock Exchange (CSE), which took over the Stock Market of the Colombo Stock Brokerage Association. It currently has a membership of 15 institutions, all of which are licensed to operate as stockbrokers.
In 1990, the business was renamed the Colombo Stock Exchange. CSE introduced Central Storage Systems and automatic cleaning with it. In 1995 the headquarters of CSE opened in WTC, Colombo.
The Milanka Price Index was introduced in 1999 and several branches opened in the country,
Maps Colombo Stock Exchange
Current status
Financial
The Colombo Stock Exchange (CSE) has 298 companies representing 20 business sectors on January 18, 2018, with Market Capitalization of Rs. 2,944.6 Bn.
Currently there are two indexes on the Colombo Stock Exchange;
- All Share Share Index (ASPI)
- The S & amp; P Sri Lanka 20 (S & amp SL20)
(Milanka Price Index - MPI abolished after 30/12/2012)
Stock Exchanges
On September 24, 2015, the Colombo Stock Exchange declared its access to the United Nations Sustainable Trusted Union Initiative and its intention to promote Corporate, Social and Governance (ESG) issues, with the support of the United Nations Global Compact's local network.
Trading session
Exchange only works on weekdays except for national holidays in Sri Lanka. The trading market starts at 9:30 am and ends at 2.30 pm.
Technology
CSE operates 3 main systems:
- Central Storage System (CDS)
- Automated Trading System (ATS)
(After implementing the 7th version of ATS, the Securities Trading System (DEX) is removed because ATS-7 provides platform for both Debt & Equity)
Exchange Automation started in 1991 with central storage installations and electronic clearing and settlement systems for stock transactions. The trading activity was automatic with the installation of Automated Trading System (ATS) in 1997.
CSE is currently in the process of introducing a debt trading system for fixed income securities trading.
As a modern exchange, CSE now offers an "order-based trading platform" for securities trading - including stocks, corporate debt and government bonds.
Affiliate
- World Federation of Exchanges
CSE was elected as a member of the World Federation of Exchanges in October 1998 and was also the first Exchange in the South Asian Region to gain membership. The CSE is the 52nd Exchange that has been selected for Federation membership.
- South Asian Exchange Federation
CSE became a founding member of SAFE in January 2000, and currently serves as Chair of the Association. SAFE consists of 17 Exchanges from India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan. The main objective is to encourage cooperation among its members in order to promote the development of their respective securities markets, to develop an integrated regional trading system of stocks, and to offer listings and trade opportunities for securities issued in the region.
- Sustainable Stock Exchange
CSE joined the Sustainable Stock Exchanges Initiative in September 2015.
Foreign investor
Companies listed in the CSE have seen a large increase in foreign investment following a ceasefire agreement signed by the Government of Sri Lanka that ended a 30-year civil war.
Foreign investment in the stock market is allowed freely except in the case of some companies where there are certain restrictions imposed. Investments in shares in Sri Lanka and repatriation of proceeds made through External Stock Investment Accounts (SIERA) are opened with licensed commercial banks. Revenues from investments such as interest, dividends and realized profits from such investments are not subject to the Exchange Control Regulations by the Government of Sri Lanka.
Post boom agreement ceasefire
Having witnessed mediocre performances throughout the 1990s primarily because of the Sri Lankan Civil War, the ceasefire agreement signed in 2001 experienced unprecedented growth in both CSE indices. The All-Share Price Index, which was around 500 in August 2001, has surpassed 2000 after that.
This causes CSE to be consistently dubbed as one of the best performing markets in the world. In 2005 CSE has recorded a consistent annual growth of more than 30% in the Stock Price Index (ASPI) over the previous three years. That goes beyond that in 2006, with ASPI growing by 41.6%, and MPI growing by 51.4% over the calendar year. CSE recorded the highest point in history on February 26, 2007. Milanka Price Index (MPI) reached 4,214.8 points on that day.
Supported by increased investor confidence due to positive political developments and strong corporate results CSE continued to achieve strong growth in 2007, as ASPI surged past 3,000 for the first time in its history on Feb. 13, hitting record highs for the seventh consecutive day. The CSE also records the average daily turnover of Rs. 776.8 million for 2007.
Post boom war
After the end of the Sri Lankan Civil War on May 18, 2009, the CSE index increased rapidly creating new records. Market capitalization on the Colombo Stock Exchange reached a record high on October 6, 2009 when it reached Rs. 1 trillion marks for the first time in Sri Lankan history. All Stock Price Indexes (ASPI) broke previous record highs by marking 3549.27 points on January 11, 2010. CSE is the best performing bourse in the world in 2009 when it jumped 125.2 percent during the year.
See also
- List of South Asian stock exchanges
- Milanka Price Index
References
- CSE Annual Report 2004
- The Sri Lankan Trusted Investment Community
- Market Drivers and Stock Predictions for Colombo Stock Exchange (cse.lk)
External links
- Official Website
- Education Portal CSE
- Colombo Stock Watch - Investor Relations Company
- Education Website in CSE in Sinhala
Source of the article : Wikipedia
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