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Monday, February 21, 2011

Colombo Stock Exchange: Foreign investor attitude positive

More liquidity required:

Charumini de Silva

The foreign investor attitude towards the Colombo Stock Exchange (CSE) is positive and encouraging. However more liquidity is required in the CSE with the increase of the number of large scale companies in the market.

Speaking to Daily News Business Richard Pieris Securities CEO, Jayantha Perera said the company has performed quite well during the first month of its operations in the market.

“The Colombo Stock Exchange (CSE) All Share Price Index appreciated by 10 percent and the number of trading has increased substantially. The market grew commendably during the last month and it is a good start indeed. The company also had a good impact, where the company was well positioned to perform as the number of tradings increased remarkably,” he said.

He said the company analiyzed the market trends carefully with their research team and through the recommendation of the existing clientele Richard Pieris Securities was able to build up it’s clientele. With expectation of 50 to 60 new companies entering into the stock market; it is important to analyze the market trends.

The company is targeting to achieve at least five percent of the market share.

“It is essential to have a greater liquidity in the market and large scale companies entering to the market is encouraging the foreign companies and foreign investors”.

“The Government also expects to list a part of the SriLankan Airlines catering shares and the Litro Gas shares, which is timely to build up higher volumes in the capital market. These activities are definitely encouraging the investors locally and internationally,” Perera said.

The Securities and Exchange Commission (SEC) is planning to implement many innovations such as Exchange Traded Funds (ETF) and introducing derivatives to the market, which will enhance and open many avenues for the investors.

Perera said the unit trust industry should be taken more into the people. The industry is taking off and more emphasis should be given to uplift the industry, as the funds are professionally managed. The SEC and the Government is putting a good effort in improving the industry and we hope that these two bodies support the industry to expand further with limited number of stock brokers, he said.

source - www.dailynews.lk