Sri Lanka’s CSE says 25-pct price appreciation in 28 companies

May 28, 2015 (LBO) – Sri Lanka’s stock exchange has witnessed a number of stocks appreciate in price during the first few months of this year, with nearly 87 stocks showing an increase in price of over 5 percent, of which nearly 28 stocks have shown a price appreciation of 25 percent.

Releasing a midyear statement, Colombo Stock Exchange (CSE) said stocks within the S&P SL20 index have seen 7 stocks appreciate in price by an excess of 5 percent.

“Daily Average Turnover in 2015 is proving to be better than 2014 (as indicated in graph 1),” the CSE said.

“Market conditions are expected to improve further, with changes to the political landscape anticipated during the latter part of the year.”

Investors could look at investing in the stock market prudently, and not be dissuaded by volatility; but should see current market conditions as an opportune environment to enter the market and grow their capital in the longer term, the CSE said.

“With the current low interest rates, the stock market is an alternate investment opportunity for those looking to invest their excess income,”

Potential and existing investors should take into consideration that present market volatility has not dissuaded foreign investors, but rather increased their contribution to overall Market Turnover and Daily Average Turnover, the CSE said.

The net foreign inflow in 2015 shows a marked improvement from 2014, despite the positive performance of 2014 (as indicated in graph 2).

The CSE intends to capitalize on this interest and conduct a series of investor forums during the course of this year, the statement said.

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