Colombo stock market activities have bounced back encouraged by the positives and future upside State Minister for Finance Ajith Nivard Cabraal revealed.
He told capital market players that if it can succeed in securing 1% of Rs. 10 trillion deposit base of banks and finance companies, the Colombo Stock Exchange (CSE ) will benefit by Rs. 100 billion in captive funds.
“This is the true potential of the CSE, and stakeholders must harness it,” he said. Cabraal also recalled that even in its best effort, State funds such as the EPF invested only Rs. 70 billion
State Minister Cabraal said the Colombo Stock Exchange has so much value as stocks are grossly under-priced,”
. Acknowledging that it is true that foreign investors have sold out to the tune of over Rs. 30 billion, Sri Lankans have reinforced confidence by buying foreign holdings, and he emphasised that it reflected the actual depth of the local investor base.
‘On the foreign investment front, 2020 has recorded a net foreign outflow of Rs. 34.9 Billion, largely in line with the foreign fund outflow trend recorded in emerging and frontier markets around the world.
However, the market has continued to attract foreign purchases too with investors continuing to acknowledge attractive valuations compared to 2019, with foreign purchases YTD of Rs. 45 Billion in 2020.’
“It is fine that Sri Lankans are buying in at a bargain, and foreign investors will eventually return and the sellers will be Sri Lankans who bought earlier,” Cabraal said.
the Colombo stock market has recorded a noteworthy turnaround in recent months, driven by a progress of the indices and improved investor interest, CSE said.
(LIN)