Time to buy stocks: CB Governor

2 August 2016 09:59 am - 0     - {{hitsCtrl.values.hits}}

A A A

The Central Bank Governor recently said that it is now the best opportunity to increase investments in the stock exchange. Dr. Indrajit Coomaraswamy made these comments at the Colombo Stock Exchange (CSE) just hours before the policy rates were increased by 50 basis points. “When the future is positive, one could argue that this is a buying opportunity,” he said.

The increased rates may result in investors divesting shares in favour of bank deposits and other fixed income securities. However, the prospects of a United States Federal Reserve rate hike now looks remote, given the dim global economic outlook. Asian stock exchanges, including the CSE, have been experiencing a downturn recently due to a Fed rate hike last year and expectations of further hikes this year, as well as economic woes in China.

Investors have been seen securing investments in gold. “I’m aware that I’m here with you today at a time when the market sentiment is subdued, very much subdued. If you look at the turnover, market capitalization, pricing, etc., this is not the best of times,” Dr. Coomaraswamy added. However, he said that the government’s economic plans for the future would genuinely create a stable platform for businesses to thrive and the investors would see this when Prime Minister Ranil Wickremesinghe announces his five-year economic policy in the coming weeks.

“When the market has this visibility about a better future, it is sometimes a really good ingredient for stronger sentiment,” he said. He noted that the bourse has a lot of responsibility to create a platform that can match investment opportunities for local and foreign savings, which is seeing good progress. CSE Chairman Vajira Kulatilaka noted that the CSE is likely to see a boom in 2017 and the current slump is being used very productively to bring in better trading instruments, new products and better rules and regulations so that the bourse is ready for the future. (CW)

  Comments - 0


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Two arrested with 12 T-56 assault rifles in Pitipana

Two accomplices of underworld figures ‘Kosgoda Tharaka’ and ‘Gagana’

PM, NP Governor discuss illegal boat arrivals from India

Prime Minister Mahinda Rajapaksa and Northern Province Governor P.S.M. Charle

Not wearing face masks in public Over 1,200 sent to self-quarantine

Over 1,200 people have been sent to self-quarantine for failing to wear face

President to join PM on SLPP campaign on July 3

President Gotabaya Rajapaksa would be joining Prime Minister Mahinda Rajapaks

MIRROR CRICKET