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.