ASPI tops 6000 mark

Historic milestone, signal of a new era:

Charumini DE SILVA

The Colombo Stock Exchange (CSE) All Share Price Index (ASPI) exceeded the 6,000 milestone for the first time in the history yesterday.

The ASPI closed at 6,023.4 points moving up by 60.8 points as against the previous day. The ASPI of the CSE has recorded a growth of 77.9 percent for this year , Colombo Stock Exchange Business Development Manager Thushara Jayaratne told Daily News Business.

Daily News Business interviewed some of the stockbrokers for their view.

LR Global Lanka Asset Management Company Managing Director, Channa de Silva said it is a historic milestone and the CSE has now become a matured market. It is a signal of a new era in the CSE. It is vital to ensure that the underline support is given to take the country to the next level and that the market will grow continuously.

He said this encourages the unlisted companies to enter into the capital market. It is crucial that five to ten sizable companies need to enter the market within the next six months, as the supply is less.

“If more companies get listed in the CSE, there will be less pressure on the existing companies. At present, most of the investors are investing in limited stocks with more companies getting listed will provide a better selection for the investors. It will also help to raise capital while making a huge impact on the increasing the market capitalization of the CSE and add liquidity in the market,” de Silva said.

Sri Lanka has been re-rated. The earning potential of the country has been escalated.

The international fund managers are looking at the CSE. As the capital market performs well we should now look at attracting more Foreign Direct Investments (FDI) while increasing the portfolio investments.

The CSE should be ideally consolidated. The entire world is watching at the CSE market movements. Enterprises should tap the capital market to fund infrastructure for projects.

The Managing Director said political stability and its continuation has been encouraging for the stock market activities as investors are concerned about risk factors. “The Government has been totally development oriented during the post war scenario,” he said.

“Infrastructure development is the phenomena of the Government, which is very supportive to the entire country.

These development projects have a direct effect on all economic activities. Local entrepreneurs and the investors should also be part of the economy,” he said.

The Government needs to support the local entrepreneurs for credit access, which would help them to start new business projects. The foreign investors have also leveraged the economic activities. It is important that the Government create employment to people and uplift the economic condition.

Asha Philip Securities Ltd., Director/CEO, Dimuthu Abeysekera said low interest rates, increased confidence levels of people and political stability were major factors for this situation and we expect that the capital market will further grow. The participation of local investors has been aggressive.

“The liquidity of the market should be addressed. Higher capitalized companies are needed to attract more international fund managers”, he said. Lanka Securities (Pvt) Ltd Chief Operating Officer, Kosala Gamage said there are only very few vibrant economies like Sri Lanka. Top businessmen setting up business and paying visits to the country of the opportunities and the potential of the country are indicating the interest of the foreign investors.