Share market on a roller-coaster
“With each evolving development the share market will ebb and flow,” Murtaza Jafferjee, CEO JB Stockbrokers said. However, he also noted that the environment for equities will remain favourable in this low interest rate regime. “But with the (political) uncertainties investors are holding on to (shares),” he said. Analysts say that the lower interest rates will dampen investor appetite for long dated debentures, and they will always look to equities. Savers who enjoyed fixed deposit rates of 11-13 per cent one year back are now getting 7-9 per cent and those seeking higher returns are being attracted to equities, according to them.
Analysts say it’s a wait and see game all around in equity, currency and bonds. Mr. Jafferjee added that all these markets are slated to ebb and flow with the news. “The slightest (news of a) crossover will affect indices in the Colombo Stock Exchange (CSE),” an analyst said, adding that rumours of crossovers by government MPs to the main opposition coalition led by ‘dissident’ former Health Minister, Maithreepala Sirisena in the coming month will change the CSE movements.
“The traders are awaiting a change and selling is on top of their minds,” a CEO of a large retail base broking firm said. He said this is the hot topic of conversation, but investors are frustrated as there’s no clarity in the political climate.
Interestingly, this is only a local phenomenon as foreigners haven’t reacted to the local news on the current political brouhaha. “What we saw has been an ‘entirely’ local sell out. The foreign interest is continuing,” Deshan Pushparajah, Head of Investment Banking, Capital Alliance told the Business Times.
The All Share Index has fallen by 5 per cent since Thursday, November 20, the day before Mr. Sirisena crossed over.
www.sundaytimes.lk
- Deegoda Gamage
- Posts : 203
Join date : 2014-03-22
Re: Share market on a roller-coaster
OR
Manipulation with political and personal gains
( Fishing in trouble water)
- Ethical TraderTop contributor
- Posts : 5568
Join date : 2014-02-28
Re: Share market on a roller-coaster
- Deegoda Gamage
- Posts : 203
Join date : 2014-03-22
Re: Share market on a roller-coaster
They might planing to create abnormal upward trend after the election
Retailers should be careful
Buy any amount of fundamentally sound shares if you have money
- රිචඩ් පීරිස් හැසිරීම ගැන කොටස් වෙළඳපලට සැකයක් !, Share market pays attention to resignations at Richard Pieris
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