SL stock market on positive path
H.D.H Senewiratne
The Colombo stock market is now growing in a positive direction due
to the coordinated effort of all stakeholders including Securities and
Exchange Commission (SEC), Colombo Stock Exchange (CSE) and Colombo
Stock Brokers Association (SBA). To enhance the market from a medium to
long term perspective, it needs to be broad-based with new listing and
encourage foreign investment in to the market, Asha Philips Securities
Vice President, Thakshila Hulangamuwa said.
“Basically, we witness a positive growth in the market index but debt
market growth and growth potentials should be in line with the market
capitalisation by increasing new listings, which goes in line with the
stability,” Hulangamuwa told Daily News Business .
He also said that the recent budget proposal that all newly listed
companies who release 20 percent shares to the public would get three
years tax exemptions was a good sign for the market's further growth. He
also said that lowering the income tax to 10 % from 28 % on Unit Trust
Management companies would also derive a positive impact towards the
market.
Since European markets are not performing well, our markets too have
a rippling effect, because we are also in line with foreign
investors/markets, Hulangamuwa said.
President Colombo Stock Brokers Association Dimuthu Abeysekera said
that the market is doing well since the market fundamentals shows a
positive growth.
Head of Sales and Marketing Lanka Securities (Pvt) Limited Eardley
Kern said that the stock market is positive because fundamentals are
showing a growth and during 2012 more than Rs 35 billion was invested in
the stock market.
He said that if this fundamental proven growth continues it will
attract more foreign investments in to the market, but only negative
factor is the high bank interest rate in the market.
Kern also said that most important thing is to stabilize the market
to become a strong stock market in the region. At present all stock
markets in the region are not performing well due to the European
economic recession. |
