By Hiran H.Senewiratne
The Colombo Stock Exchange (CSE) had fallen by 10 to 12 percent, which is not too bad compared to other stock exchanges in the region. The main reason for this setback is the current global economic scenario.
"This downturn is mainly due to the global scenario and has nothing to do with domestic issues. The main reasons are, the considerable drop in world oil prices, a probable US Federal Reserve adjustment on interest rates and printing of money by other countries. These factors have impacted many stock markets, president, Colombo Stock Brokers Association Ravi Abeysuriya said.
Under these circumstances, the CSE will continue to slip further in the future. However, Sri Lanka's situation is quite good compared to other stock markets in the region, Abeysuriya said.
He said major stock markets in the region, including the Chinese stock market, have dropped; the Chinese by 37 percent, Singapore 21 percent, Hong Kong 20 percent. "Sri Lanka is not badly affected compared to other markets in the region."
Abeysuriya said that many foreign investors are exiting the CSE and investing in other developed markets, due to this condition.
The low oil prices have affected many oil producing countries. Therefore, Saudi Arabia, Russia, Qatar and Venezuela said they would lead an effort to freeze output at January levels, he explained.
OPEC nations will freeze production at January levels, which were 43.1 million barrels of oil per day.This is interesting, considering January levels were a record and OPEC was producing 1 million barrels a day above demand, observers noted.
They added: "The stock market moved closer to equaling the dubious record of having had fallen for several consecutive market days at the beginning of the calendar year. Therefore, domestic and external factors continued to weigh on the market.
"In the calendar year of the CSE to date, shareholder wealth loss has been recorded at Rs 262.38 billion. The ASPI during this period has declined by 9.11 percent and the S&P by 11.33 percent.
"China's securities regulator also issued new rules to restrict the percentage of shares major shareholders in listed companies can sell every three months, in an attempt to stabilize markets. Shareholders are not allowed to sell more than 1 percent of a company's shares in that period.
The new measures came before the six-month share reduction ban on large shareholders which is set to expire this week.
www.island.lk
The Colombo Stock Exchange (CSE) had fallen by 10 to 12 percent, which is not too bad compared to other stock exchanges in the region. The main reason for this setback is the current global economic scenario.
"This downturn is mainly due to the global scenario and has nothing to do with domestic issues. The main reasons are, the considerable drop in world oil prices, a probable US Federal Reserve adjustment on interest rates and printing of money by other countries. These factors have impacted many stock markets, president, Colombo Stock Brokers Association Ravi Abeysuriya said.
Under these circumstances, the CSE will continue to slip further in the future. However, Sri Lanka's situation is quite good compared to other stock markets in the region, Abeysuriya said.
He said major stock markets in the region, including the Chinese stock market, have dropped; the Chinese by 37 percent, Singapore 21 percent, Hong Kong 20 percent. "Sri Lanka is not badly affected compared to other markets in the region."
Abeysuriya said that many foreign investors are exiting the CSE and investing in other developed markets, due to this condition.
The low oil prices have affected many oil producing countries. Therefore, Saudi Arabia, Russia, Qatar and Venezuela said they would lead an effort to freeze output at January levels, he explained.
OPEC nations will freeze production at January levels, which were 43.1 million barrels of oil per day.This is interesting, considering January levels were a record and OPEC was producing 1 million barrels a day above demand, observers noted.
They added: "The stock market moved closer to equaling the dubious record of having had fallen for several consecutive market days at the beginning of the calendar year. Therefore, domestic and external factors continued to weigh on the market.
"In the calendar year of the CSE to date, shareholder wealth loss has been recorded at Rs 262.38 billion. The ASPI during this period has declined by 9.11 percent and the S&P by 11.33 percent.
"China's securities regulator also issued new rules to restrict the percentage of shares major shareholders in listed companies can sell every three months, in an attempt to stabilize markets. Shareholders are not allowed to sell more than 1 percent of a company's shares in that period.
The new measures came before the six-month share reduction ban on large shareholders which is set to expire this week.
www.island.lk
No comments:
Post a Comment