The Colombo Stock Exchange (CSE) 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% ; of which nearly 28 stocks have shown a price appreciation of 25%. Similarly stocks within the S&P SL20 index have seen 7 stocks appreciate in price by an excess of 5%.
Furthermore, despite current market volatility in the stock market, Daily Average Turnover in 2015 is proving to be better than 2014. 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. 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 net foreign inflow in 2015 shows a marked improvement from 2014, despite the positive performance of 2014. Foreign investors have shown an avid interest in the market this year, with the significant political changes that have taken place. The CSE intends to capitalize on this interest and conduct a series of investor forums during the course of this year.
“Despite market volatility in the first few months of this year, it is our belief that the volatility will settle and market confidence will improve in the coming months. Therefore there is significant growth potential in the stock market. Therefore, investors should take the initiative to undertake research by understanding the financial statements of companies and investing wisely by looking at fundamentals of companies and the earning potential of companies in order to maximize their profits,” Head of Market Development, CSE Niroshan Wijesundere said.