CSE trading floor reopened:

Investors keen on more stockbrokers

Harshini Perera

Investors want more stockbrokers to enter the stock exchange trading floor which was re-opened yesterday at the World Trade Centre (WTC). The trading floor of the Colombo Stock Exchange (CSE) was closed for investors from April 2008 due to security reasons.

The stock exchange floor will create a platform between investors and stockbrokers and enable investors to engage in their transactions more conveniently.

“Any investor can get information of top performing companies in the Colombo Stock Exchange. There are 236 companies registered in the Colombo Stocks Exchange representing all industries. Of the total population in Sri Lanka, only five percent invests in the CSE. Hence, there is a huge potential for expansion because people living in rural areas are unaware of the CSE.

Therefore, educating people in rural areas on the CSE can result in the expansion of the Colombo Stock Exchange. With the improvement of the economy, we can expect a growth of investors in diversified sectors,” the investment advisor of Asha Phillip Securities Ltd, Lakshan Leitan told Daily News Business.

“Since the interest rates of banks have decreased, many investors may invest in the CSE rather than in a bank,” he said.

The investment advisor, Bartleet Mallory Stockbrokers (Pvt) Ltd, Channa Fernando said that retailers’ participation in the market is essential. As soon as they are provided identity cards they could enter the premises and continue their usual activities.

Steps have been already taken to issue identity cards for investors to make it convenient for them to enter, said a stockbroker.

An investor said that the re-opening of the trading floor provides more convenience for investors. They can transact their businesses at one place rather than visiting each and every stockbroker daily. The security of their investments is high when compared to the bogus financial companies and a guarantee is given for their money, he said.

The screen displaying the stock prices for the information of investors should be replaced like earlier, said one of the investors. He said this will also create a meeting point with fellow investors where they can get to know one another and discuss the economic situation.

The trading floor will function as a widespread information resource and it’s another method of promoting the stock market. There will be more foreign interest as well as local investors as this would be the best opportunity to invest their money.

The public gallery will be an advantage to the trading floor whereas in other countries the public gallery enables people to walk in and engage in their transactions, said an investment advisor, Acuity Stockbrokers (Pvt) Ltd., Vino Ramasamy.