CSE outperforms regional markets

Thursday, 28 June 2018 00:00 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Sri Lanka’s capital market has gained robust momentum among other markets in the region, a top official said on Tuesday, insisting buyers would continue to see immense potential as majority of the stocks holds very attractive values at present.

“I think there is fantastic value in the stocks today. The multiples and other ratios that the market is getting at is indicating a fairly strong performance among the capital markets in the region,” Colombo Stock Exchange (CSE) Chairman Ray Abeywardena said.

He pointed out that from what they have observed there is good selective buying of stocks by all discerning investors, who are actually taking advantage of the market.

“I think the ratios are very good, the valuations are very good and the corporate results are good. We hope that the foreign inflow from institutions looking for good value at these rates will be continuous,” he added.

Commenting on the US Federal Reserve interest rate increases, which analysts fear could lead to capital outflow into the US, the Chairman opined the rate hikes have already been factored in and he does not expect risk from future rate changes.

“There are other macro issues which are having broader connotations on the current market trend. These issues probably keep the market from moving up and the turnover low. However, I think there’s fantastic potential value in the stocks today, especially in S&P 20 companies.”