The statistics by Bloomberg yesterday showed that the Colombo Stock Exchange (CSE) had become the third best performing market in the world during the period from August 10, 2012 to September 10, 2012.
Since the controversial resignation of the former Securities and Exchange Commission Chairman on August 12, the market has been on an upswing with market players expecting lenient and market-friendly regulations from the new Chairman Dr. Nalaka Godahewa, who, according to independent analysts has a strong case of ‘conflict of interest’ against him, being the Chairman of a listed firm.
Unlike his predecessor who just said she was resigning to ‘uphold her principles’, Karunaratne went on record that he was under pressure to resign by a group of powerful investors, as he was trying to reopen certain investigations pertaining to market misconduct that had been put in the backburner.
Since the appointment of Dr. Godahewa on August 24, the main All Share Price Index (ASI) has risen over 13 percent amidst much retail and high net worth interest. Yet, strangely enough, since his appointment there hasn’t been any revision in the SEC regulations.
However, despite the positive sentiment, independent analysts have advised investors to be cautious about the current Bull Run, based on prior experiences, not ruling out the possibility of the creation of a bubble.
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