The negative publicity has caused the public to lose confidence in the Colombo Stock Exchange. We, the Colombo Brokers Association (CSBA) want to state categorically that we are unequivocally committed to the development of capital markets, while appreciating a balanced approach to market regulation.
In this regard, we very much welcome a consultative approach through which could be a majority consensus obtained before the introduction of new regulations for the market, the association said.
In the recent past, the CSBA has seriously sought some changes in policies for development strategies in the equities market and stay in line with the overall macroeconomic objectives set by the government in the post war in Sri Lanka
Towards achieving this goal, we went through a series of meetings that began with the Management Board and SSC, the Securities and Exchange Commission (SEC) and finally with the President, Mahinda Rajapaksa, who gave the CSBA's opportunity to place their proposals for consideration. All 28 registered shares of brokerage firms were invited CSE individually to attend the meeting with the President, and attended 22 of them.
We would point out that the granting of credit is a basic need in any industry and all brokerage firms in almost all countries offer margin trading facilities directly or through related companies. Our proposals were presented as an action plan to boost the participation of investors and restore confidence in the Colombo Stock Exchange. The Association would like to reiterate that we fully support the regulations and the measures taken against the wicked, and would shortly adopt a code of ethics to ensure that all members follow the rules and regulations in line with best international practices, the association said .
The CSBA has been in existence since 1995 and our members have played an active role in the Colombo Stock Exchange (CSE) and have always acted in the best interest of market development File Sri Lanka. (SJ)
Nearly £50bn was wiped off the value of Britain's 100 biggest companies on a day of global stock market mayhem triggered by a deepening of the Euro zone crisis and fears for the US economy.
After a day of massive stock market falls in Europe and the US
"For many traders this week has felt like the start of the banking crisis in 2008, which would go some way to explaining the panic selling we have seen today," said Will Hedden, sales trader at IG Index.
The fall on Wall Street is expected to cause further falls in the FTSE 100 index of leading shares on Friday, after the index fell to its lowest close, 5393.14, since September 2010 yesterday. The futures market was predicting a further 100 point fall.
Rumours were swirling around the City that hedge funds were being forced to sell assets such as gold in order to cover deepening losses on other investments. This led to a surprise 1% drop in gold, which in recent weeks had hit record highs of more than £1,000 an ounce as a safe haven bet in the eurozone and US
Anxiety over the debt crisis in the eurozone, and increasingly in Italy , set the tone for nervous trading during the London New York
Despite this week's 11th-hour agreement to raise the US
The 191.27 point drop in FTSE 100 index represented a 3.43% slump – the index's biggest daily fall in percentage terms, and the biggest points fall, since March 2009.
Banks were particularly hard hit, with falls in the bailed-out Lloyds Banking Group and Royal Bank of Scotland
The index of leading shares has now shed 422 points this week, wiping £110bn off its value. It is down 11% since April's peak. The continued weakness in the UK
The president of the European commission, José Manuel Barroso, fuelled anxiety about the eurozone debt crisis by berating European leaders about the speed at which they were responding to the debt crisis, barely a fortnight after congratulating them about their latest deal to rescue Greece
"We are no longer managing a crisis just in the euro area periphery," he said. "Euro area financial stability must be safeguarded." He urged European leaders to review "all elements" of the €440bn (£382bn) European financial stability facility and its €500bn replacement, the European stability mechanism.
The European Central Bank gave signals it was ready to resume buying bonds of troubled eurozone countries. Dealers said the central bank had been buying Portuguese and Irish bonds – but not those of Italy and Spain
Jamie Dannhauser, economist at Lombard Street Explore, said the ECB was "still in cloud cuckoo land".
"The overriding impression one gets of the ECB is of an organization unwilling to accept the reality that faces the Euro zone. In contrast to other major central banks, the ECB has recently been making hawkish noises – at least, that is, until now."
Despite the ECB interference, continental European markets suffered heavy losses. Germany
The Bank of Japan had sparked frenzied action on the foreign exchanges after intervening to drive down the value of the yen, which has been strong against the dollar.
Bond yields – interest rates – in Italy
Amid the rout, it emerged that police acting on orders from the prosecutors of Trani, a port on Italy's Adriatic coast, had raided the Milan offices of the rating agencies, Moody's and Standard & Poor's, as part of continuing investigations into their role in recent financial turmoil. The chief prosecutor in Trani told Reuters that his office was checking to see whether the ratings agencies "respect regulations".