Another feather in CSE's cap

by Lalin FERNANDOPULLE

The business community hailed the outstanding performance of the Sri Lankan stock market, which was ranked the second best performing market in the world last week, according to the South Korea-based Samsung Securities.The Colombo Stock Exchange (CSE) added several feathers to its cap this year as one of the world's top performing markets despite a highly volatile global business environment following the recession that had a domino effect on markets worldwide.

The CSE's recent accolade was praised by leading business people and chamber heads who were optimistic of a stock market boom in the new year.Manager-Business Development CSE, Thushara Jayaratne said the CSE has been performing extremely well following the end of the conflict and added that the upward trend of the market would continue due to the positive sentiments of the global business community.Director General, Securities and Exchange Commission of Sri Lanka, Channa De Silva said the CSE's global ranking is a positive development to attract foreign investors and fund managers to the country."A ranking of this magnitude will help introduce more vibrant market instruments such as the popular derivatives which will give a new dimension to the market", he said.

Director, Asha Phillip Securities Ltd., Dimuthu Abeysekera said the market has moved up steadily since the end of the war. The low interest rate regime and fears of the insider operation issue being dispelled are factors that enticed investors.

Research Analyst of Bartleet Mallory Stockbrokers (Pvt) Ltd., Nirodha Bohingamuwa said the slash in bank borrowing rates and the calm atmosphere in the country were the major contributing factors to the growth in the stock market.

"The year ahead would be bright for businesses.The hotel and finance sectors will benefit immensely by the reduction in lending rates", he said.

Senior banker and Stock Market Analyst, Mangala Boyagoda said there would be more investment in the region with the recovery of the global economy.

The All Share Price Index recorded an all time high, closing at 3,188.8 points on December 18. This was the highest achievement by the index in the history of the CSE, surpassing the previous record of 3,139.7 points recorded on October 13, 2009.