Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» UBC TO HIT 24 ??
by sanjulanka Today at 2:05 pm

» AEL.N0000 is the Next AAIC.N0000 -
by Trader321 Today at 12:37 pm

» presidential election very soon ?
by Trader321 Today at 12:36 pm

» World Bank approves USD70Mn to Sri Lanka
by Sstar Today at 11:13 am

» MARKET CRASH - GUARANTEED
by Sstar Today at 11:09 am

» INSURANCE companies finally falling!
by Sstar Today at 11:04 am

» Sri Lanka shares end little changed; rupee rises
by Miss-Sangeetha Yesterday at 6:30 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 6:17 pm

» Diversification of Sri Lankan economy, must to garner more economic benefits
by ChooBoy Yesterday at 2:04 pm

» ALHP Right issue......!!!!1
by Miss-Sangeetha Yesterday at 11:47 am

» UBC.N0000- Donnt miss this
by Trader321 Yesterday at 10:13 am

» Sri lanka tourism income reached 4.4 billion USD 2019
by ranferdi Yesterday at 8:48 am

» BFN - DEAL OVER - TO BE DE LISTED SOON AFTER THE PRIVATE PLACEMENT ඩීල් එක ඉවරයි @ 19-59 - කොටස් වෙළදපලෙනුත් ඉවත් කරගන්නා බවට ආරන්චි
by sanjulanka Mon Mar 18, 2019 7:03 am

» While waiting for the market to rebound, look for bargains if you can afford the risk. Try to be active at the right time to gain something
by Asoka Samarakone Sun Mar 17, 2019 3:18 pm

» ඉතා ඉක්මනින් සේවක අර්තසාදක අරමුදල නැවත කොටස් වෙළදපල ට
by mahasona2 Sun Mar 17, 2019 3:43 am

» Central Bank targeting early return of EPF to stock market
by mahasona2 Sun Mar 17, 2019 3:24 am

» Lofc delisting??
by Bdcdman Sat Mar 16, 2019 11:16 pm

» Weekly Stock Market Roundup
by Insights Equity Sat Mar 16, 2019 5:37 am

» Today is UBC.N0000 day.
by Trader321 Fri Mar 15, 2019 11:32 am

» HVA WILL THEY RECTIFY THE REGULATORS QUARIES BEFORE DEAD LINE?
by Bdcdman Fri Mar 15, 2019 11:11 am

» ALHP WILL MOVE UP from next MONDAY
by Miss-Sangeetha Fri Mar 15, 2019 10:52 am

» GOLDEN ERA
by ranferdi Fri Mar 15, 2019 8:45 am

» ALHP WILL MOVE UP SOON
by mahasona2 Thu Mar 14, 2019 11:05 pm

» CASH RICH REXP
by Yahapalanaya Thu Mar 14, 2019 6:09 pm

» ලාංකීය හෙදියකට ලක්ශ 9 ක් ගෙවන ඇමෙරිකාව
by Uaecoindubai Thu Mar 14, 2019 3:48 pm

» BALA.N potential
by NP Thu Mar 14, 2019 2:30 pm

» EAST INTERESTING DAYS AHEAD 25+
by karuna2 Thu Mar 14, 2019 11:43 am

» රජයේ පඩි දෙගුණයක් වුන හැටි
by Uaecoindubai Thu Mar 14, 2019 9:31 am

» UBC.N0000 Vs AEL.N0000 - What will be the best
by Trader321 Thu Mar 14, 2019 9:15 am

» UBC - Stake up by big invester
by sanjulanka Thu Mar 14, 2019 7:57 am

» EFP TO start again invest in Stocks
by mahasona2 Thu Mar 14, 2019 1:10 am

» Second reading of budget passed by 119 Votes - Shows this Government is Confident
by Maharaja Wed Mar 13, 2019 11:27 pm

» UBC - What is going on
by mahasona2 Wed Mar 13, 2019 9:51 pm

» Fall of stocks - Big Players are behindThis is the time to buy and collect stocks
by mahasona2 Wed Mar 13, 2019 9:49 pm

» Government salary hike almost double..
by Uaecoindubai Wed Mar 13, 2019 9:32 pm

» COLOMBO STOCKS 5 1/2 LOW
by soileconomy Wed Mar 13, 2019 7:19 pm

» UBC.N0000 ? Expert ideas please ?
by Trader321 Wed Mar 13, 2019 2:31 pm

» UBC.N000- keep eye, something is happening
by Trader321 Wed Mar 13, 2019 2:22 pm

» How about EAST @ 10/= end of march
by karuna2 Wed Mar 13, 2019 2:21 pm

» CHOU.N0000
by Shiranleet Wed Mar 13, 2019 11:16 am

» Why Access might be over Rs. 2000/ per share valued along with Banks by 2049, due to New Budget Proposals on Joint Venture Construction projects
by Chanaka303 Wed Mar 13, 2019 9:58 am

» HPWR-Unnoticed Gem?
by Chanaka303 Wed Mar 13, 2019 9:57 am

» What is going on with TFC.N0000
by Gihan04 Wed Mar 13, 2019 9:45 am

» DIST.N0000
by Bdcdman Wed Mar 13, 2019 1:13 am

» Sri Lanka largest Foreign Direct Investments realizer and Deal Maker: Union Bank connected Alex Lovell might own and control over US $ 40 billion worth properties by 2025 in Sri Lanka, around over 30% of Sri Lanka's GDP of US $ 120 billion
by JosephMark Wed Mar 13, 2019 12:40 am

» Hpfl and rhtl
by Yahapalanaya Tue Mar 12, 2019 7:58 pm

» Exit out from EAST, Valuations are low. Dont wait till the month end.
by charithaa Tue Mar 12, 2019 12:33 pm

» EAST.N0000 - Huge loss...Donn't get into these traps.
by investo Tue Mar 12, 2019 12:05 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Central Bank targeting early return of EPF to stock market

Central Bank targeting early return of EPF to stock market

Go down  Message [Page 1 of 1]

mahasona2


Stock Analytic
Stock Analytic
Central Bank targeting early return of EPF to stock market
March 16, 2019, 8:26 pm 


The two trillion rupee Employees Provident Fund (EPF), the country’s richest investment fund holding the retirement funds on non-public sector employees, is targeting an early return to the now depressed Colombo Stock Exchange where it has been inactive since 2016, well informed sources said yesterday.

This has been actively pushed by market players and investors who believe that the EPF’s return to the CSE, even in a relatively small way, would help catalyze particularly retail sentiment in the market.

"This has been long talked about with even Central Bank Governor Indrajit Coomaraswamy saying as far back at October last year that the Central Bank which overlooks the EPF was setting up the necessary checks and balances for the fund’s re-entry into the market in a prudent and proper manner," an analyst said.

It has been argued from the time of former governor Nivard Cabraal that opportunities for the EPF to invest in government debt are reducing, with the present governor on record saying that "in the future, the government domestic funding requirement will get lower."

Coomaraswamy estimated the numbers late last year as peaking at Rs. 980 billion and expected this to reduce to Rs. 600 billion this year and to between Rs. 400 to Rs. 500 billion thereafter.

Necessary safeguard like CCTVs, voice recorders etc. are already in place and staff has been trained. The bond scam investigation surfaced alleged links between some EPF staffers and dealers and this has signaled similar risks where stock trading is concerned.

Stockbrokers say that the fences that have been built are protection against corruption. "They are terrified and don’t want to do anything," one broker said.

Analysts say that the role of the EPF is not to help the stock market but to maximize returns for its own members. It has been pointed out that the present depressed market conditions provide buying opportunities and the possibility of future capital gains.

Governor Commaraswamy is one record saying several weeks ago that there are buying opportunities in the stock market due to what he then called "a fire sale of corporate Sri Lanka at the moment."

The situation has sharply deteriorated since his remarks at the October Monetary Policy briefing last year.

"The governor has been talking of the EPF coming into the market but not said when," a big market player said. "It’s now been a long time and nothing has happened,"

There has been a sharp outflow of foreign funds from the CSE this year with nearly Rs. 6 billion going out up to now against an outflow of Rs. 27.5 billion last year. This compared with an inflow of Rs. 17.65 billion in 2017.

The EPF has about 2.5% of its investment portfolio in listed shares but is unlikely to go above 5% the governor has said.

There has been no major acquisition of shares by the EPF since the present government came into office in 2015. But in 2016 during the tenure of Arjuna Mahendran as Governor of the Central Bank, there was selling of blue chips from its portfolio to raise funds to make part refunds of EPF holdings of members’ funds for housing purposes.

The EPF was holding Rs. 10.8 billion in private (unlisted) equity investments made between the previous regime’s tenure between 2010 and 2015. These include buying equity of SriLankan Airlines as has emerged in the current Commission of Inquiry proceedings SriLankan.

Large EPF investments in unlisted equity include Rs. 5 billion in Canvil Holdings, Rs. 2.9 billion in West Coast Company, Rs. one billion in SriLankan Catering, Rs. 500 million in SriLankan Airlines, Rs. 495 million in Cargills Bank, Rs. 450 million in Weligama Hotel Properties, Rs. 350 million in Jetwing Symphony (since listed) and lso in Fitch Ratings.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum