Barbarian at the CSE

The Rs. 407 billion rise in the Colombo stock market’s overall value in three months or since its lowest level year to date in June gives the impression of a bust to boom scenario. Amidst septicemic and concerns by some, the blue chips joining the rally has given greater credence to the unprecedented rebound of late.

 

If some felt the Bourse has gained too much too soon, then the 100 points each rise by both the ASI and MPI yesterday was telling. The rise in the ASI between its lowest level of 4,738 on 6 June and yesterday was 1,040 points or 22%, whilst in terms of market capitalisation it is Rs. 407 billion. The recent rebound has reduced the ASI’s year-to-date dip to below 5% by yesterday as opposed to 22% in early June. ASI is now at 8-month high. If the momentum persists, which many expect whilst some don’t, the CSE with a few more months for year end is just short of Rs. 400 billion to surpass the all-time-high market capitalisation of Rs. 2.6 trillion achieved on 2011 Valentine’s Day.

Is the Stock Market above the law ?

Former SEC chairmen Dr. Thilak Karunaratne , Economist UNP MP Dr.Harsha De Sliva explains.