By Hiran H.Senewiratne
The government does not have a proper direction or consistent policy to drive the Colombo Stock Exchange (CSE) to boost investor confidence, which is now dropping drastically, president, Colombo Stock Brokers Association (CSBA) Ravi Abeysuriya said.
"The government should have proper strategies and policies to meet all the government expenses and to address macro economic issues, which is now the need of the hour to salvage the economy from this bad situation, Abeysuriya told The Island Financial Review.
He said that when it comes to the CSE per se, the market is not performing well but there are some good stocks which need to be picked and choosen carefully before buying. Further, the global economic depression is adding insult to injury, Abeysuriya said.
"The All Share Price Index (ASPI) is more popular at the Colombo Stock Exchange compared with S&P Sri Lanka 20 and these two indicators play a major role in Sri Lanka's stock market performance. We can predict in which direction the Colombo Stock Exchange would move, looking at these indicators, he said.
"These indicators are useful to have an idea of Sri Lanka stock market performance but a lack of proper direction and inconsistent policies put the market into uncertainty.This makes investors to think twice before investing, Abeysuriya explained.
He also said that under these conditions it is not prudent to invest in the CSE heavily because of its high market volatility. "Therefore, my advice to the investors is don't jump in to the market without understanding value added stocks, he said.
The CSBA president also said that the IMF financial facility would bring some financial discipline to the country, because of it being a long term financial bail out.
The CSE Chief Executive Officer Rajeeva Bandaranaike said that the CSE is now in a positive improvement mode compared to the last few months. This will continue for some time.
"We have seen the market moving into positive territory, which will continue for some time. Under these conditions, foreign investors will be active in the market due to other markets in the region not performing well,he said.
The CEO said that the market will move forward due to the new government's economic policies, which will come into force in the future.
The government does not have a proper direction or consistent policy to drive the Colombo Stock Exchange (CSE) to boost investor confidence, which is now dropping drastically, president, Colombo Stock Brokers Association (CSBA) Ravi Abeysuriya said.
"The government should have proper strategies and policies to meet all the government expenses and to address macro economic issues, which is now the need of the hour to salvage the economy from this bad situation, Abeysuriya told The Island Financial Review.
He said that when it comes to the CSE per se, the market is not performing well but there are some good stocks which need to be picked and choosen carefully before buying. Further, the global economic depression is adding insult to injury, Abeysuriya said.
"The All Share Price Index (ASPI) is more popular at the Colombo Stock Exchange compared with S&P Sri Lanka 20 and these two indicators play a major role in Sri Lanka's stock market performance. We can predict in which direction the Colombo Stock Exchange would move, looking at these indicators, he said.
"These indicators are useful to have an idea of Sri Lanka stock market performance but a lack of proper direction and inconsistent policies put the market into uncertainty.This makes investors to think twice before investing, Abeysuriya explained.
He also said that under these conditions it is not prudent to invest in the CSE heavily because of its high market volatility. "Therefore, my advice to the investors is don't jump in to the market without understanding value added stocks, he said.
The CSBA president also said that the IMF financial facility would bring some financial discipline to the country, because of it being a long term financial bail out.
The CSE Chief Executive Officer Rajeeva Bandaranaike said that the CSE is now in a positive improvement mode compared to the last few months. This will continue for some time.
"We have seen the market moving into positive territory, which will continue for some time. Under these conditions, foreign investors will be active in the market due to other markets in the region not performing well,he said.
The CEO said that the market will move forward due to the new government's economic policies, which will come into force in the future.
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