Investor confidence boosts stock market

by Jayantha Sri Nissanka

The stock market showed a rapid increase during the week as a result of investor confidence stemming from political stability.

This follows the landmark cohabitation pact between the two major political parties the SLFP and the UNP and the resumption of the derailed peace talks in Geneva.

The market capitalization was up by Rs. 3 billion from Rs. 767 billion on Monday to Rs. 770 billion on Friday. The All Share Price Index (ASPI) rose to 2511.41 points on Friday from 2503.61 points on Monday. The Milanka index also increased to 3214.53 points on Friday from 3190.09 points on Monday. The turnover recorded Rs. 2,388 million during the four-day trading. Foreign purchases recorded Rs. 312 million and sales were Rs. 634 million. "The investor confidence boosted after the cohabitation pact and the resumption of peace talks in Geneva", a Stock market analyst said.