Upswing of share market and a boost in investor confidence

The stock market indices reached a new high giving a boost for investor confidence. Sri Lanka’s tiny, but vibrant share market is expected to be hyper active in coming days and weeks.

There was an immediate positive impact in investor sentiment at the Colombo Stock Exchange following the signing of the Memorandum of Understanding (MoU) between the SLFP and the UNP, yesterday.

At the Colombo bourse both the All Share Price Index (ASPI) and the Milanka Price Index (MPI) went up following the signing of the MoU. The ASPI and MPI went up by 32 points and 40 points respectively. A total turnover of Rs. 502 million was recorded at the end of the day.

Investor sentiment improved during the last few days and became more positive following the announcement of talks dates and the convergence of two political parties to work for a common agenda.

Most local and foreign investors were active at the floor and were positive among buyers including institutional, high networth buyers and retail buyers. Most sideline investors came in to the fray given the positive trends in the market. The market recovered to a considerable level due to these trends. Stockbrokers expect a further increase in both indices in the next few days.

Most of the companies were heavily traded at the stock market including John Keells Holdings, Touchwood, Distilleries Lanka, Lanka Milk Foods and Sri Lanka Telecom.

Ranasinghe said that 842,000 shares of JKH, 448,000 shares of Touchwood, 580,000 shares of Distilleries, 840,000 shares of Lanka Milk Foods and one million shares of Sri Lanka Telecom were traded during the day.

Analysts are optimistic that the new hype in the share market would continue giving a much needed fillip to the economy.