Trade Tips -Buy Nation Lanka(CSF)

with a new mamagement from 2012 It has made a turnaround in earnings and has successfully paid out all defaulted deposits when it was under ceylinco.

It has developed its Asset Base and has planned more capital under the merger plan by the Central bank Of Sri Lanka. technically too it is supported at this level of Rs 5

Sri Lankan Equities To Grow 25% Next 5-years

Sri Lankan equity market returns will grow 25 percent annually during the 5-years up to 2020, and the country will be flooded with foreign capital as Sri Lanka will reach investment grade status, according to an experience fund manager.According to Dulindra Fernando, the Sri Lankan economy is going to see her best 5-years since independence from 2015 through 2020, and said one could ill afford to stay out of the stock market as the 5-years ahead will never be repeated.“We expect the stock market to perform at an average of 25 percent per annum over the next 5years,” he said.According to Fernando, the current phase of super returns in the Colombo bourse will most likely be ended after 2020, as the The super returns that are currently offered by the bourse will be over by 2020 market reaches its maturity.

“The super returns that are currently offered by the bourse will be over by 2020 as the Colombo Stock Exchange (CSE) will reach maturity as a market by then.Returns could also be lower due to the high level of foreign participation. Further, Sri Lankan economy will also slow down after the rapid growth in the preceding 5-years which will also slow down the growth of listed entities,” explained Fernando who initiated the country’s first dollar bond fund.

Colombo Stock Exchange (CSE) benchmark price index, the All Share Price Index (ASPI) returns have grown by 23 percent annually during the last 5-years and the market is trading at PE multiple of 19.52 which is considered over-valued.

At 25 percent annual return, an investor who invests in Sri Lankan equities today will be able to see his investment tripling in 5-years.Fernando who is also the Ceylon Asset Management Company Limited (CAM) Managing Director urged retailers to get in to Lankan equities now than later as the opportunity is now available.Fernando also expects Sri Lanka to be upgraded from the current BB- (by Fitch) to the investment grade rating of BBB by 2020.

Sri Lanka’s current under-investment grade rating hinders most international funds, emerging market funds, pension funds etc from investing in Sri Lankan equities and bonds as they can only invest in BBB rated instruments.

“Once you get to BBB, most pension funds (US) will invest with you. Sri Lanka will be flooded with money (capital). After you go to BBB, you won’t get double digit returns,” he explained.Meanwhile the emerging market investment advisor and CAM Director, Michael Preiss however told most of the money is made during the transition period from under-investment grade to the investment grade. This is because of the relatively higher interest incomes and potentially higher capital gains an investor could make during this period.

Further, an investment grade rating will pressure Sri Lankan bond yields down further while the prices pushing up benefits  future dollar bond issuers.

At present, US $ 7.0 billion worth of Sri Lankan issued dollar bonds; sovereign, bank and corporate bonds are listed on the Singapore Exchange.

- See more at: http://www.dailymirror.lk/54979/sri-lankan-equities-to-grow-25-next-5-years#sthash.YO0cYAac.dpuf

Golden rules of investing in stock market

The stock market can be an excellent place to invest over the long term to create wealth. But in order to reap the benefits of investing in the stock market, investors should learn as much as possible about the market, before investing. Whether you are a new investor or have been investing in the stock market for a while, the following should help you to succeed in the market.

• Don’t buy on tips

A retail investor is typically the last one to know of tips. Hence, he is most likely to invest when the stock has already run up and hence, at a risk to lose money. Try and get research reports from reputed brokers. Learn to read balance sheets and understand the industry the company operates in. Ignore hype and most importantly, do not depend on ‘market tips’ your friends always give.

• Don’t invest in a company you don’t understand

Famed investor Warren Buffett often discusses the concept of a ‘circle of competence’. This circle of competence consists of all the businesses with which the investor is familiar with and thoroughly understands.
An investor who has spent the last ten years as a checker at a supermarket would have an advantage when analyzing the financial statements of a grocery store chain. He or she would be able to pinpoint the strengths and weaknesses of the business, evaluate the competitive climate of the industry and compare the performance of a prospective investment against those of an excellent grocer.
Straying from the circle of competence leads a would-be-investor into the land of speculation. Therefore, never buy a stock that you don’t understand.

• Don’t confuse investing and trading

Trading is short term and investing is long term. Getting confused between the two can be a sure way to lose money. You must decide on what your ultimate goal is by participating in the stock market. Not many would argue the fact that a certain amount of skill and research is necessary to make good long-term investment decisions.
It is no different with trading. Take the time to learn what works and what does not. Learn from past mistakes and allow yourself to succeed. Use a trading base of capital that you are comfortable with and allow profits from your trading activity to be rolled into long positions, thus satisfying both strategies.

• Don’t panic at short-term trouble when your goals are long term

Volatility is the basic characteristic of a stock in short term. Hence, capital erosion should be considered normal. The good news is, although past performance does not guarantee future results, historically, the market has always rebounded from its losses.
If there’s one thing the current market has taught investors, it’s that diversification is important. Individuals who ignore the time-tested strategies of asset allocation and diversification do so with potentially more risk.
As long as your investments are fundamentally sound and fit your financial goals, a temporary downturn in the market should not sway you.

• If you need cash in short term, don’t invest in stocks

In stock markets, one can benefit only if one can hold on for a reasonably long period. Like the fabled tortoise that beat the hare in the race, the investor who stays in for the long term is more likely to achieve his or her goals than the investor who chases ‘hot tips’ for quick profits in the stock market.
If you have a long-term perspective, you can change investments that aren’t working for other alternatives. However, if you will need the money from your investment in the near future, a mistaken investment can create real problems in meeting your goals.
Investors that begin early and stay in the market have a much better chance of riding out the bad times and capitalizing on the periods when the market is rising.

• Don’t have excessive expectation about returns

A big part of succeeding as an investor is having the right expectations about what you can achieve by putting your money into stocks. It’s not a big secret that people invest because they expect to make money.
Indeed, many succeed. But others are disappointed either because they overestimate the return they are likely to get or because they are unwilling to risk any of their principal to earn a higher return.
As you invest to meet your financial goals, it’s critical to understand what buying securities can do for your net worth and what it may not be able to do.
Despite all the investing information that’s available, it’s unclear how many investors really understand the constant fluctuations of the securities markets and what they can reasonably expect to earn on their investments.
It’s true that historical trends show that over time, securities, stocks in particular, tend to go up in value. But the shorter the time horizon, the more difficult it is to predict even for investment professionals, what direction the market may be headed. Only one thing is certain: The values of securities will go up in some years and just as surely as they will go down in others.

• Don’t try to time the market

Market timing is an investment strategy where the investor makes investment decisions, to buy or sell investment securities, based upon predictions of the future.
Buying at the bottom and selling at the top is next to impossible. Take ‘buy’ and ‘sell’ calls based on your views on valuations.
Most would agree that market timing may be possible over short periods of time but it is more difficult to consistently and accurately predict stock market movements over long periods of time. For the average investor, a diversified portfolio, held for the long term, is the best strategy.

• Don’t invest without a plan

A well thought out plan and discipline in implementing it can safeguard your portfolio from impulsive mistakes. Good financial investment advice is to have an investment plan for investment in stock. This is an important means of controlling the potential emotional roller coaster that can be associated with stock investments.
Your success with value investing will largely depend on your temperament and to what extent you can exhibit patience and discipline to make the best investments. Sticking to a plan is part of this process. While plans may vary from investor to investor depending on age, capital available and investment time-line, most plans for investment in stock should have some common elements. These elements include having a buying strategy, a selling strategy, a portfolio management strategy and a strategy for performance management and review.

• Be diligent

The best way to ensure the safety of your money is to be diligent. Get yourself organised and keep your papers in order. If you are applying for an IPO, keep a copy of your application form and cheque. If you are buying and selling through a broker, check your contract notes and file them away safely. If you have all your documents in one place, it is easy for you to spot fraud and take action against it.
Stock market investing is fraught with risks and not for the faint hearted. But facing the risk of an intelligent and calculated transaction going wrong is one thing and having to lose your money because of greed or laxity is another. - See more at: http://www.dailymirror.lk/22686/golden-rules-of-investing-in-stock-market-#sthash.jvBB3HDe.dpuf

Amãna Bank records monthly profits with 85% growth in Net Financing Income

Amãna Bank, Sri Lanka's only licensed commercial bank operating sans interest, has commenced recording monthly operating profits since August 2014. According to the quarterly financial statements released recently to the Colombo Stock Exchange, the bank's topline performance has also showcased an impressive growth for the first nine months of 2014. The bank has achieved a Financing Income of Rs 1,798 million showcasing a growth of 43% from the corresponding period of last year, whilst Net Financing Income has recorded a growth of 85% to reach Rs 900 million. The bank achieved a total operating income of Rs 1,215 million indicating a growth of 58% for the same period.

As a result of the growing popularity and acceptance of the bank's unique business proposition, the bank's Advance and Deposit portfolios have recorded a significant growth during the nine months ending 30 September 2014.

Total advances recorded a growth of 31% to reach Rs. 19,668 million, while total deposits recorded a growth of 46% to reach Rs 26,302 million demonstrating the strengthening of customer confidence.

Speaking on the business performance, the bank's Chief Executive Officer, Mohamed Azmeer said, "I am very happy to note the performance of the bank, especially considering the challenging environment. In the first nine months of 2014 we have seen an impressive growth momentum from all business segments, which include the consumer SMEs and corporate banking along with treasury operations. As a result of this momentum, the bank has been able to achieve a break-even level of profitability on a monthly basis since August 2014. We hope to continue this positive trend in line with our plans."

Apart from the impressive financial performance, Amana Bank was recently recognized as the World's Best Up-and-Coming Islamic Bank by 'Global Finance Magazine' at the 18th Annual World's Best Banks Award Ceremony 2014 held in Washington DC, USA, which coincided with the annual IMF and World Bank Conference at the same location.

Amãna Bank is the first Licenced Commercial Bank in Sri Lanka to operate in complete harmony with the non-interest based Islamic banking model and is listed on the Diri Savi Board of the Colombo Stock Exchange. Powered by the stability and the support of its strategic shareholders including, Bank Islam Malaysia Berhad, AB Bank in Bangladesh and The Islamic Development Bank based in Saudi Arabia, Amãna Bank is making strong inroads within the Sri Lankan banking industry and is focused on capitalizing the growing market potential for its unique banking model across the country.

41 financial consolidation plans approved - CB

Ceylon Finance Today: Sri Lanka's banking watchdog, the Central Bank yesterday confirmed that 41 financial consolidation plans have been implemented of which 36 have been approved by the Monetary Board.
Central Bank Governor, Ajith Nivard Cabraal said that they are on track to achieve the targets that were set by the bank to monitor, identify and track the sources of systemic risk over time to ensure financial system stability.

He said that the biggest function that they undertook this year was the consolidation process. There are 36 confirmed consolidation plans, which have been approved by the Monetary Board and altogether 41 plans have been implemented. Cabraal said, "Over a long period of time we have seen that there were many weaknesses in our financial system. We have been responding to those weaknesses in various ways and each year we have been made improvements, but overall we have not dealt with the root causes which caused instability.

So, there were times where financial companies failed, banks were shaken, and the knock-on effect felt by the other players for a long time and this had become a bit of a habitual situation as well." Reflecting on the measures taken by the Central Bank he said, "We also took some bold decisions. One was to change the laws in order to provide the incentives for mergers to take place, engaged the key consultancy free of charge to the recipients in order to ensure fair play in the due diligence activity as well as there were no constraints as a result of fees having to be paid.

"It was a cohesive effort and not something suddenly thought through however, many thought it was ambitious, yes it was ambitious. But we have diligently worked through that, in order to make it real. Today, we have seen that those efforts are bearing fruits," he added.

10 Great Ways to Learn Stock Trading as a New Investor

New investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education. Just like riding a bike, trial and error coupled with the ability to keep pressing forth will eventually lead to success.

One great advantage of stock trading lies in the fact that the game itself lasts a lifetime. Investors have years to develop and hone their skills. Strategies used twenty years ago are still utilized today. The game is always in full force.

So for new investors wanting to take their first steps, I offer 10 great answers to the simple question, “How do I get started?”

1. Open a Stock Broker Account
Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools offered to clients only. Some brokers even offer virtual trading which is extremely beneficial because you can trade with play money. You can find a list of brokers that support virtual trading on StockBrokers.com.

2. Read Books
Books provide a wealth of information and are usually inexpensive. Here on the site I have a full list of 20 great stock trading books for investors to consider. My personal all time favorite is How to Make Money in Stocks by William O’Neil, founder of CANSLIM Trading(find more books written by William O’Neil).

3. Read Articles
Articles can serve as a fantastic resource and are usually easy to understand and follow. Our free Stock Education page here on Stock Trading To Go lists over 100 unique investment articles broken down into categories. Everything from ETFs to margin tradingand technical analysis basics are covered. I also recommend checking outinvestopedia.com.

4. Find a Mentor
A mentor could be a family member, a friend, a past or current professor, co-worker, or any individual that has a fundamental understanding of the stock market. A good mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough. All successful investors of the past and present have had mentors during their early days.

5. Ask Lots of Questions
Having a place to ask questions and receive answers is a huge asset for any new investor. In school asking questions to a teacher/instructor/professor or leveraging online stock forums there is always someone readily available to help the cause. Some popular stock forums include Elite Trader and Trade2Win.

6. Browse Financial News Sites
News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors. By reading headline stories investors can expose themselves to different stock terms for example. Pulling quotes and observing fundamental data can also serve as another good source of exposure.

7. Consider Paid Subscriptions
Paying for research and analysis can be both educational and useful. Some investors may find watching or observing market professionals to be more beneficial than trying to apply newly learned lessons themselves. There are many paid subscription sites available including Dan Zanger, Investors.com, and Morningstar just to name a few.

8. Watch TV
When the stock market is open CNBC is the #1 source for financial news. Even turning on CNBC for 15 minutes a day will broaden an investors knowledge base. Don’t let the lingo or the style of news be a nuisance, just simply watch and allow the commentators, interviews, and comments to soak in. Note though, over time you may find that a lot of the investing shows on TV are more of a distraction and overall full of crap. This is a natural occurrence; you are not alone!

9. Go to Seminars
Seminars can provide valuable insight into the overall market and specific investment types. Most seminars will focus on one specific aspect of the market and how the speaker has found success utilizing their own strategies over the years. Note all seminars have be paid for either. Some seminars are provided free which can be a beneficial experience, just be conscious of the sales pitch that will almost always come at the end.

10. Sign up for our Free Daily Market Recaps
Join over 17,000 other investors and receive our daily posts via email using the subscribe box below or on the sidebar, or subscribe via a reader. I invite all new investors to make StockTradingToGo a part of their daily investment routine

Business Today TOP TWENTY FIVE recognises top corporate performers

Having reached middle-income status, Sri Lanka now envisions a growth where the country will reach the status of an advanced economy by 2035.

Chief Guest Secretary to the Ministry of Defence and Urban Development Gotabaya Rajapaksa and Special Guest Chief Justice Mohan Pieris with John Keells Holdings Chairman Susantha Ratnayake, Commercial Bank of Ceylon Chairman Dharma Dheerasinghe, Commercial Bank of Ceylon Managing Director/CEO Jegan Durairatnam, Ceylon Tobacco Company CEO Felicio Ferraz, Bukit Darah Director Chandima Gunawardena, Hatton National Bank Chairperson Dr. Ranee Jayamaha, Distilleries Company of Sri Lanka and Aitken Spence Chairman Harry Jayawardena, Dialog Axiata Group Chief Operating Officer Azwan Khan, Sri Lanka Telecom Chairman Nimal Welgama, Sri Lanka Telecom Group Chief Executive Officer Lalith De Silva, Lanka IOC Senior Vice President Dhananjay Srivastava, Lanka IOC Senior Vice President Saurav Mitra, Aitken Spence Deputy Chairman J.M. S. Britto, Hayleys Chairman/CEO Mohan Pandithage, Sampath Bank and Vallibel One Chairman Dhammika Perera, Nestlé Lanka Vice President of Finance and Control Jagdish Singla, People’s Leasing & Finance Company Director Wasantha Kumara, People’s Leasing & Finance Company DGM Sanjeewa Bandaranaike, Central Finance Managing Director Eranjith Wijenaike, DFCC Bank CEO Arjun Fernando, Representative of LOLC Susan Bandara, National Development Bank Chairman Sunil Wijesinha, Access Engineering Managing Director Christopher Joshua, Chevron Lubricants Lanka Managing Director/CEO Dr. Kishu Gomes, Hemas Holdings Chief Financial Officer Malinga Arsecularatne, Seylan Bank Chairman Nihal Jayamanne, Tokyo Cement’s Praveen Gnanam, Ceylinco Life Managing Director/CEO R. Renganathan and Ceylinco Insurance Managing Director/CEO A.R. Gunawardena

On this path of progress, the private sector plays a crucial role in ensuring that the nation’s journey in growth is unstoppable. As such Business Today TOP TWENTY FIVE recognised the top corporate performers of Sri Lanka for the financial year 2013-2014 for their resilience in trying circumstances and their contribution towards the economy of Sri Lanka.
The Chief Guest at the occasion was Gotabaya Rajapaksa, Secretary to the Ministry of Defence and Urban Development while Chief Justice Mohan Pieris was the Special Guest. Ioma Rajapaksa and Priyanthi Pieris were also present at the occasion. The event was further graced by many distinguished guests including politicians, corporate leaders, foreign dignitaries, diplomats and members of the armed forces of Sri Lanka.
Gotabaya Rajapaksa addressed the gathering during the award ceremony. Staged performances and entertainment during the evening also shed light on the new strides and ventures of BT Options.
John Keells Holdings managed to retain their number one position in Business Today TOP TWENTY FIVE, yet again establishing their place as a leader among the corporate sector of the country. Total revenue of the group recorded an increase of 5% to reach Rs. 89.26 billion while their PAT increased by 9% to Rs. 12.54 billion. The group’s growth was attributed to their food and retail, leisure, transportation and financial services sectors.
The second and third positions were secured by Commercial Bank of Ceylon and Ceylon Tobacco Company respectively. Being the largest private bank in Sri Lanka, Commercial Bank recorded a PAT of over Rs. 10 billion while contributing Rs. 57,534 million of interest income to the economy. The Ceylon Tobacco Company reported a top line growth of eight percent to reach Rs. 89.4 billion and a 12% growth in PAT to Rs. 9.1 billion.
Bukit Darah came next at number four while Hatton National Bank, Distilleries Company of Sri Lanka, Dialog Axiata, Sri Lanka Telecom, Lanka IOC and Aitken Spence comprised the top 10 companies of Business Today TOP TWENTY FIVE.
The ranking of the top 25 companies of Sri Lanka continues with Hayleys at 11, Sampath Bank 12, Nestlé Lanka 13, People’s Leasing & Finance 14, Central Finance Company 15, DFCC 16, Lanka Orix Leasing Company 17, National Development Bank 18, Vallibel One 19, Access Engineering 20, Chevron Lubricants Lanka 21, Hemas Holdings 22, Seylan Bank 23, Tokyo Cement Company (Lanka) 24 and Ceylinco Insurance at 25.
The Business Today TOP TWENTY FIVE companies were selected on the basis of their financial performance during the financial year ending 31 December 2013 and 31 March 2014. It is strictly based on the published information of companies listed on the Colombo Stock Exchange. Financial criteria considered include share turnover, revenue, profit after tax, return on equity, earnings per share, market capitalisation, value of shares transacted and value addition.
Since 1998, Business Today has recognised and awarded top corporate performers annually for 17 years, acknowledging their contribution to the economic development of Sri Lanka.