|
|
 |
 |
 |
| Tuesday, 24 June 2003 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Stockbrokers overwhelmed by bull run by Ravi Ladduwahetty The stock broking community was overwhelmed by the bull run on the Colombo bourse yesterday which ended with an all-time high Rs. 896.5 million turnover and the ASPI reaching 1036.1 points. They attributed this success to the unprecedented success of the Tokyo donor conference and the LTTE's willingness to arrive at a political solution through a negotiated settlement. They also pointed out that the Government's decision to extend the tax amnesty to August 15 and prevailing low interest rates could also be tangible reasons for investments pouring into the stock market. Colombo Stock Exchange Director General Hiran Mendis said that the ASPI reached an eight-year high 1036.1 points and the reason for it was the renewed confidence in the Colombo Stock Exchange following the success of the Tokyo donor conference and the Government's management of the economy. Chairman of the Stock Brokers' Association and HNB Stock Brokers General Manager/CEO Deva Ellepola said: "The development of the Colombo bourse was online with the projections which have been made by our company under a report: "The Lion Emerges" Now the Lion has emerged. He attributed the success of the market to the commitment of the Government and also the LTTE's willingness to pursue durable peace through a negotiated settlement. He said that the striking feature about the bull run in the market was that the first twenty days of June accounted for Rs. 11.2 billion of the turnover of Rs. 34.5 billion turnover for the year to date. He said that there were indications that the Government's recent announcement of the extension of the tax amnesty would also have been instrumental in the increased inflows into the market. Investor Access Asia Managing Director/CEO Asanga Seneviratne said: " Both local and retail investors have re-rated Sri Lanka following the overwhelming response from the international community at the Tokyo donor conference and the success of the continued peace process. The market is now trading at multiples of ten of the P/E ratios, which was originally six and eight." The rise in the market is also justified in the light of the United States Deputy Secretary of State Richard Armitage stating that his Government was coming down hard on the LTTE in terms of fund raising which has given the market renewed interest, he said. He also attributed the success of the Colombo bourse to the renewed interest from investors in the region where the Indian stock markets have also shown a phenomenal rise. DFCC Stock Brokers Managing Director /CEO Ray Abeywardena said: "We are delighted that the All Share Price Index has surpassed the 1,000 mark today, although the 1,000 mark was reached on Friday when the Weighted Averages were taken, though it settled for a little below. The market was well poised to rise with the investor sentiment continuing to be strong. The ASPI rose 44 points to 1,039 points and the Milanka Price Index 113 points to 874. He said that the highlight of the trading for the last ten days was the renewed interest from local investors who yesterday accounted for Rs.760 million of the Rs. 900 million turnover. This has been amplified by the Milanka Price Index rising within the last ten days. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
