Sri Lanka stocks up ahead of meeting with President
Sri Lanka's stocks rose more than 4.1 percent ahead of a meeting between stockbrokers and President Mahinda Rajapaksa on thin trading with markets expectations of a relaxation of credit rules.
Sri Lanka's stocks have slid sharply in recent days after rising steeply over the past two years, amid low interest rates and credit backed speculation.
Analysts say lower interest rates and liquid money markets helped push the market up, which is correcting.
Earnings by many corporates have been good but market sentiment has been hit by deteriorating property following an expropriation law and interest rates have also been rising.
Sri Lanka's stock market regulator Malik Cader was removed by the cabinet of ministers after a crackdown on microcap fraud and insider dealing. Investors who pushed for the move reportedly expected the market to bounce back after his removal.
Market representatives also met the regulator last week and there are expectations that broker credit rules would be relaxed.
Broker credit was tightened by the regulator to prevent a bigger bubble and collapse. Colombo Stock Exchange is also having a road show in Singapore.Earnings by many corporates have been good but market sentiment has been hit by deteriorating property following an expropriation law and interest rates have also been rising.
Sri Lanka's stock market regulator Malik Cader was removed by the cabinet of ministers after a crackdown on microcap fraud and insider dealing. Investors who pushed for the move reportedly expected the market to bounce back after his removal.
Market representatives also met the regulator last week and there are expectations that broker credit rules would be relaxed.
Source : LBO
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