Stockbroker profits down to Rs 406 M in 1H

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By 2017-11-15

Sri Lanka's stockbroker profits have declined to Rs 406 million during the first half of this year, compared to Rs 447 million in the first half of 2016, a decrease of nearly 9.2%.

However, according to latest industry statistics, the broker industry's net profit before taxes improved during this period to Rs 35 million, from recorded losses of Rs 121 million at end June 2016. The net capital of the stock-broking sector increased by 22.6% to Rs 5.6 billion during the first half of this year, compared to Rs 4.5 billion in the last year.
Capital requirements for stockbrokers were upgraded to risk-based capital adequacy ratio and minimum liquid capital in March 2017, from the previous requirement of minimum net capital. All stock-broking companies, except for one, have met the net capital requirement in the first six months of 2017.

Meanwhile, the Unit Trust sector recorded a contraction in terms of number of units in issue, while the net asset value of the Unit Trust sector marked a decrease of 18.5% on a year-on-year basis to Rs 103.3 billion by the end of 2017.
The market capitalization of the Colombo Stock exchange increased by 4.1%, reaching Rs 2,898 billion by the end of August 2017.

During the first eight months of 2017, the total equity turnover amounted to Rs 139 billion, an increase of 15.83% compared to the same period of 2016. The cumulative values of foreign purchases and foreign sales amounted to Rs 77.4 billion and Rs 50.7 billion respectively in the first eight months of 2017, resulting in a net inflow of Rs 26.7 billion.

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