CSE broker fee changes from August 1
Charumini DE SILVA
The changes of the market microstructure of the CSE including
transaction costs will be active from August 1.
The crossing threshold will be increased from Rs 10 million to Rs 20
million. The tick size on transactions will be reduced to 10 cents
across the board. The threshold for negotiable brokerage will be reduced
from Rs 100 million to Rs 50 million. The minimum brokerage floor will
be 0.20 percent.
ASPI
crosses 5,000 level
The All Share Price Index (ASPI)
of the Colombo Stock Exchange (CSE) closed above the 5,000
level for the first time in history yesterday.
The ASPI closed the day at
the 5,138.9 gaining 139.8 points (2.8 percent).
The Milanka Price Index (MPI)
gained 159.5 points (2.8 percent) to close the day at
5.828.7 also recording the highest level in history. The
total turnover recorded during the day was Rs 3.2 billion.
The market capitalization at
the end of trading was Rs 1.68 trillion is the highest
market capitalization recorded in the history of the CSE.
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The biggest beneficiaries of this reduction will be investors
transacting less than Rs one million.
Speaking to the Daily News Business Capital Trust Securities,
Director Sarath Rajapaksa said this initiative was long overdue.
The revised transaction costs will stimulate trading in the capital
market.
The tick size on transactions being reduced to 10 cents across the
board will encourage frequent trading. There will be more trading after
August. This will also enable large increase in commissions and improve
stockbroker’s income, he said. Lanka Securities Chief Operating Officer
Kosala Gamage said this regulatory reform was very meaningful as the
capital market is performing outstandingly and the country’s economy is
stabilizing fast.
“The Government and the regulatory bodies should address to increase
the liquidity levels of the market,” he said.
The trading will increase rapidly as frequent tradings will take
place after the reforms in the CSE. The foreign investors are pleased
with the political and economic stability where the foreign investor
confidence has shown a positive trend in the trading.
This will increase the number of foreign and local investor
participation in the CSE. These developments in the capital market will
affect the country’s economy favourably, he said. Asha Philip Securities
Ltd Director/CEO Dimuthu Abeysekera said the revised transaction costs
will bring down the stockbroker’s revenue significantly. The stock
broking companies started recovering themselves only after the
restoration of peace. It would have been better if the regulators give
more time to stabilize. |