Following drop in bank interest rates, conducive
CSE active with investors
Most fund managers and high net-worth investors are very active in
the Colombo Stock Exchange (CSE) following the drop in bank interest
rates and the improved internal environment in the country.
Due to these developments the All Share Price Index (ASPI) declined
by 50 percent compared to its peak level in 2007.
During its peak in 2007 the ASPI, which went up to the 3016-point
range dropped to 1800 points.
It is now on an upward trend due to the improved internal
environmental conditions, CSE sources said.
Chief Executive Officer, Ceybank Unit Trust, Chitra Sathkumara said
they have witnessed that the equity market or the stock market is active
with high net worth individuals, local institutions moving up the market
and improved business sentiment.
Once the A9 road is opened many rehabilitation and infrastructure
projects are expected to be launched in the Northern and Eastern
Provinces, which will result in increased business activities in the
country. Therefore, the CSE will be more active than never before,
This positive trend will help to move up values of blue-chip
companies followed by small valued companies in the market from the
medium to the long-term perspective, he said.
Fund Manager, National Asset Management, Ravi Amarasinghe said there
is cross buying in the market these days which has renewed interest
among fund managers and high net worth clients in the CSE.
He said that the market is heading towards an upward trend with the
drop in bank interest rates on a few occasions and the improved internal
environment prompted high net worth and institutional investors to be
active in the market.
With these developments certain sectors including hotels,
manufacturing, infrastructure and rehabilitation will improved in the
future and the demand for certain selective stocks will increase in the
future, he said.
Sri Lanka being a small country, it is easy to revamp the economy
within a short span of time with the reconstruction and rebuilding
activities in the Northern and Eastern parts of the country, Amarasinghe