CSE a viable option for investment
The Colombo Stock Exchange (CSE) has witnessed a number of stocks
appreciate in price during the first few months of this year, with
nearly 87 stocks showing an increase in price of over five percent of
which nearly 28 stocks have shown a price appreciation of 25 percent.
Similarly stocks within the S&P SL20 index have seen seven stocks
appreciate in price by over five percent.
Despite current market volatility in the stock market, daily average
turnover this year is better than in 2014. Market conditions are
expected to improve further, with changes to the political landscape
anticipated during the latter part of the year.
Investors could invest in the stock market prudently, and not be
dissuaded by volatility; but should see current market conditions as an
opportune environment to enter the market and grow their capital in the
longer term.
With the current low interest rates, the stock market is an alternate
investment opportunity for those who wish to invest their excess income.
Investors should take into consideration that present market volatility
has not dissuaded foreign investors, but rather increased their
contribution to overall market turnover and daily average turnover.
The net foreign inflow this year shows a marked improvement from
2014, despite the positive performance of 2014. Foreign investors have
shown an avid interest in the market this year, with the significant
political changes that took place. The CSE hopes to capitalise on this
and conduct a series of investor fora during the course of this year.
Head of Market Development, Niroshan Wijesundere said, "Despite
market volatility in the first few months of this year, it is our belief
that the volatility will settle and market confidence will improve in
the coming months. There is significant growth potential in the stock
market. Therefore, investors should study the financial statements of
companies and invest wisely by looking at fundamentals and earning
potential of companies to maximise profits." |
