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| Posted: 15 Sep 2009 08:55 | ||
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Registered User Currently Offline |
Posts: 75 Join Date: Jul 2009 |
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The Colombo Stock Market (CSE) surged to its highest in 2-½ years today after government data showed signs of recovery and last week's rate cut boosted sentiment. The market jumped as much as 1.1 percent to 2,871.52 points, its highest since March 8, 2007, before ending up 0.77 percent at 2862.25 points. The Sri Lankan stock index has risen around 9 percent in eight straight sessions on declining interest rates, expectations on high economic growth, improved liquidity in the share market, and increased confidence after an IMF loan and foreign inflows. The market is one of the best performing stock markets in the world in 2009 with an average return of over 90 percent so far. It has risen 50 percent since the end of the war in mid-May. The economy expanded in the three months ended June, for the first time in three quarters, as the impact of global recession receded and economic activity picked up after the end of a 25-year civil war, the government said on Monday. Sri Lanka's central bank on Friday cut its key policy rates by a further 50 basis points, trying to force commercial banks to lower market lending rates and boost private sector credit growth. "Investors are bullish and positive," said Mohandas Thangarajah, a stockbroker at First Guardian Equities. "But some investors are concerned whether the market is over-heated, as most of the shares have gone up without any fundamental reasons." The market turnover jumped to 936.38 million rupees ($8.15 million), more than twice last year's daily average of 464 million rupees. (Reuters) |
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