Investors still on lethargic frame of mind?

Tuesday, 8 November 2011 00:33 - - {{hitsCtrl.values.hits}}

Despite market closing affirmatively, with the indices gaining on WoW basis, overall sentiments remained gloomy, as investors have not yet sturdily regained from their lethargic frame of mind.

Both indices after shooting beyond 100 points on Wednesday, subsequent to the majorities “much awaited” announcement on the removal of the Market Regulator, did not sustain throughout the week, hence acted just as a “momentarily spurt of activity”.

With the YTD performance being -3.5 per cent, and a current market PER at 15.2x, depicts that the Sri Lankan stocks are intensely discounted. Thus, with an expectation to pose a further forward PER of circa 11x, housing a cluster of heavily discounted conglomerates makes the Colombo bourse reasonably attractive to both local and international investors hunting for healthy portfolio return. (Source: Asia Wealth Management Ltd)