Market capitalization reaches Rs.602.2 billion
Hiran H.Senewiratne
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With the dawn of peace and normalcy, the
performances in the CSE is expected to increase further and the SEC is
expecting to roll out certain development plans shortly
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The market capitalization or the wealth of the Colombo Stock Exchange
(CSE) has been increased to Rs.602.2 billion to date from Rs.513 billion
( January), which is a positive response by the investor community due
to the Government’s efforts to restore peace and bring things back to
normal in the country, Securities and Exchange Commission (SEC)
revealed.
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At the trading floor |
“With the dawn of peace and the things in the country, the CSE has
responded very positively in the recent past, while other stock markets
in the region are not doing so well.
Therefore, CSE is the best available option to invest in”, Chairman
Udayasri Kariyawasam told Daily News Business.
From early part of January to date, market capitalization increased
by Rs.100 billion, which is a tremendous achievement for the CSE in the
recent past.
This has paved the way to lift the investor sentiment or image of the
CSE a great extent, Kariyawasam said.
This trend is better to invest in stocks rather than save in banks
and other financial institutions, because when the cost of debt capital
increased automatically, opportunity to invest in equity capital is
creating. At present, bank interest rates are high as 28 percent and
under these circumstances it is prudent to invest in the CSE to raise
capital for business entities.
“The performances in the CSE is expected to increase further and the
SEC is expecting to roll out certain development plans shortly,”
Kariyawasam said.
Many steps have been taken to develop the capital market and, a
relief package has been contemplated for stock brokering community in
response to their requests made sometimes back.
Re-opening the CSE trading gallery is also part of the development
plan, which will be happening soon. For the development of the local
capital market certain statutory changes/amendments for the CSE Act are
in place, he said.
These new development plans will also encourage new listing of
companies in the CSE and to facilitate anticipated spate of listing of
companies in the future, he said.
The SEC is a body incorporated under Act No. 36 of 1987 as amended.
One of the main responsibilities of the Commission is to promote and
develop the Securities Market in Sri Lanka. |
