Acuity Stockbrokers’ view

Sunday, 3 October 2010 23:40 - - {{hitsCtrl.values.hits}}

Strong investor confidence in the turnaround and potential of the Sri Lankan economy has been endorsed throughout the past week with the IMF releasing its fourth tranche of US$ 212.5mn under the US$ 2.6bn stand by arrangement and the US$ 6bn+ bids for the US$ 1bn sovereign bond.

Backed by the macro economic stability the Colombo bourse continued to surge ahead with the ASPI surpassing 7000 points bringing the year to date return of the market to 111% with daily average turnover for 2010 of Rs. 2.33bn as against Rs. 0.59bn in 2009.

We expect the market to build on the current run with investor interest in blue chips and selected mid caps with room for further price appreciation backed by earnings potential to drive market activity.