Market bouncing back

Hiran H. Senewiratne

BOURSE: With the downward trend in the Colombo Stock Exchange (CSE) during the last few weeks with no particular reasons, the market is now getting technically corrected, market sources said.

Although the volumes were still thin yesterday, it is satisfactory compared to the previous week’s performance in the market, the market indicators show.

Both indices went up yesterday. The All Share Price Index went up by 21.40 points and the Milanka Price Index up by 37.44 points. With the satisfactory performance in the market, the total turnover recorded Rs 123 million while the number of shares traded in volumes was 7,105,123.

Further; with this volatile market situation the stock market prices are attractive in the market with improved performance in the market.

The heavily traded stocks yesterday were Touchwood, Dialog, JKH NDB, Hayleys, Pelwatte Sugar Company being some of the few stocks.

One of the distressing features is that local big buyers are not active and do not capitalise when the market performance is down, while foreign investors are active and are in the buying side in the event of a weak performance, an analyst said.

“However, the market is resilient and could bounce back at any moment, which seems to be a healthy sign.

“Despite these conditions prices of fundamentally sound stocks remain high in the market.

“Further, with the high inflation rate in the country, investing in the stock market is the best possible option to invest in as it gives a higher real return , he said.