Trading activities of the Colombo Stock Exchange (CSE) have slowed down as policy levers that stimulate market activity are yet to be pulled, The Island Financial Review learnt yesterday.
Vajira Kulatilaka, chairman of the Board of Directors of the Colombo Stock Exchange (CSE) told the media, "As you can see, the market performance is not up to desirable levels as there are policy uncertainties which inhibit the market. This is understandable as the country is still in an ‘election mode’. We expect that things will get back on the right track once the general election is over and the policy regime is made clear."
Kulatilaka said so after the market opening ceremony held on the Trading Floor of the Colombo Stock Exchange where John Keells Holdings PLC., as the company with the highest market capitalization was invited to ring the bell and signal the start of the trading day.
The ceremony begins with the tradition of having the opening bell rung by companies within the S&P20, on the first day of trading each month.
It was attended by JKH chairman Susantha Ratnayake, Board Directors Ajith Gunawardene, Ronnie Peiris, Krishan Balendra and CSE officials, including newly appointed director Anton Godfrey.
Speaking further Kulatilaka said, "Even though the policy goal is yet to be established, a strategy for further improving the efficiency of the CSE is in progress. For instance, we’re going to have a Central Counterparty Clearing system in place. This will be completed between 18-24 months. It will create a process by which financial transactions in equities are cleared by a single (central) counterparty. This will reduce the cycle time for completing the transactions.
"The CSE would like to have a continued productive relationship with our corporate entities. The JKH has helped the CSE in many ways. Their support given to us during past Road Shows was tremendous and valuable. While this facilitates its growth plans via the CSE, it has always maintained a good relationship with their investors in good times and bad times. That’s a useful lesson we can all learn from.We look forward to JKH's support in our future Road Shows as well.
"The CSE will see a lot of positive changes in the next two years which will elevate it to be world-class, Kulatilaka said.
First Capital Research Manager Dimantha Mathew when contacted by The Island Financial Review via telephone said,"Overall, company earnings and profits have shown good results which indicate a positive outlook. But as there are political uncertainties which obscure the fiscal policy tools, everybody is adopting a ‘wait and see’ approach and this has slowed down trade activity." www.island.lk
Vajira Kulatilaka, chairman of the Board of Directors of the Colombo Stock Exchange (CSE) told the media, "As you can see, the market performance is not up to desirable levels as there are policy uncertainties which inhibit the market. This is understandable as the country is still in an ‘election mode’. We expect that things will get back on the right track once the general election is over and the policy regime is made clear."
Kulatilaka said so after the market opening ceremony held on the Trading Floor of the Colombo Stock Exchange where John Keells Holdings PLC., as the company with the highest market capitalization was invited to ring the bell and signal the start of the trading day.
The ceremony begins with the tradition of having the opening bell rung by companies within the S&P20, on the first day of trading each month.
It was attended by JKH chairman Susantha Ratnayake, Board Directors Ajith Gunawardene, Ronnie Peiris, Krishan Balendra and CSE officials, including newly appointed director Anton Godfrey.
Speaking further Kulatilaka said, "Even though the policy goal is yet to be established, a strategy for further improving the efficiency of the CSE is in progress. For instance, we’re going to have a Central Counterparty Clearing system in place. This will be completed between 18-24 months. It will create a process by which financial transactions in equities are cleared by a single (central) counterparty. This will reduce the cycle time for completing the transactions.
"The CSE would like to have a continued productive relationship with our corporate entities. The JKH has helped the CSE in many ways. Their support given to us during past Road Shows was tremendous and valuable. While this facilitates its growth plans via the CSE, it has always maintained a good relationship with their investors in good times and bad times. That’s a useful lesson we can all learn from.We look forward to JKH's support in our future Road Shows as well.
"The CSE will see a lot of positive changes in the next two years which will elevate it to be world-class, Kulatilaka said.
First Capital Research Manager Dimantha Mathew when contacted by The Island Financial Review via telephone said,"Overall, company earnings and profits have shown good results which indicate a positive outlook. But as there are political uncertainties which obscure the fiscal policy tools, everybody is adopting a ‘wait and see’ approach and this has slowed down trade activity." www.island.lk
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