ICBI 2015

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10527

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End date: 2015Subject: search.filters.subject.All Share Price Index

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    The Effect of Foreign Exchange Market Returns on Stock Market Performance in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Perera, M.
    Exchange rate is one of the most influencing macroeconomic variables on stock returns in most of the countries. Thus, main objective of this study is to identify the effect of foreign exchange market returns on stock market performance in Sri Lanka. In order to evidence the study, researcher used publicly available secondary data from Colombo Stock Exchange and Central Bank of Sri Lanka. According to Guneratne (2011), exchange rate has a strong explanatory power in determining the stock market returns of the country. All share price index percentage changes are observed as dependent variable and the respective percentage changes of USD/LKR, EUR/LKR and GBP/LKR exchange rates as independent variables of this research. Exchange rate data for the period of 2002 to 2014 are considered for the research. A linear multiple regression model is developed to find the relationship between selected variables and following Noel & John (2009), correlation between variables are tested. Results of the research discloses that USD/LKR and GBP/LKR exchange rate returns have a strong explanatory power to All share price index (ASPI) returns. At the same time USD/LKR returns exhibits a negative correlation while other two exchange rates have a positive but weak correlation to ASPI returns. Findings of this research provide valuable information to investors in equity markets, to forecast potential stock returns with reference to exchange market fluctuations.
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    Stock Market Performance under Different Presidential Terms: Evidence from Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Piyananda, S.D.P.; Fernando, P.N.D.
    Colombo Stock Exchange (CSE) plays a vital role in the growth of the key sectors of Sri Lankan economy. Even though there are several macro and firm specific factors effect on stock market performance, the main focus of this study is to examine the performance of CSE under different government leadership in Sri Lanka during the period from 1994 to 2014. This study mainly consider about the stock market indicators such as, All Share Price Index (ASPI), market turnover, market capitalization, turnover ratio, average market return etc. under different presidential terms. The sample period has divided in to four main presidential terms. Based on the indicators calculated to reflect the average market return, volatility and risk for each presidential term and based on the statistical analysis performed for each presidential term it was revealed that performance of stock market is superior under presidential term II (from 1999-2005).
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    The Relationship between Earnings, Dividend and Stock Returns in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Silva, N.L.C.
    Sri Lankan banking sector which was primarily led by the continuation of relaxed monetary policy and improved macro-economic performance, remained robust in the recent past. Sri Lankan banking sector is administered by the Monetary Law Act and Banking and Exchange Control Act. Three forms of financial institutions are legalized under Banking Act and the Finance Companies Act to function in Sri Lanka by the Central Bank of Sri Lanka. Those three pillars are Licensed Commercial Banks, Registered Finance Companies and Licensed Specialized Banks. Sri Lankan stock market experienced various fluctuations and this resulted in a decrease in the individual investments since this made difficult for individual investors to make their investment decisions. The purpose of this study is to make the individual investment decisions by considering the financial variables. This study will help the individual investors to their decision making process, using financial variables other than the economic variables. Researcher intend to collect secondary data from audited financial statements of Sri Lankan Licensed Commercial Banks and from the All Share Price Index (ASPI). To calculate the earnings, dividends and stock returns the researcher will use Earnings per Share (EPS), Dividend per Share (DPS) and Average Stock Price. To test the stated variables researcher will use the Ohlson model (Ohlson, 1995). The expected outcome of this study would be a positive relationship between earnings, dividends and stock return of licensed commercial banks of Sri Lanka.