Presidential polls will hardly have an impact in the market next week, despite some sluggishness on Monday – the day before the crucial elections and Wednesday, the day after the elections, according to market analysts.
Yadhavan Jeyaram, Manager Sales Bartleet Stockbrokers said that Presidential elections will not have an outcome on the market, but the next few days after the elections will see some sluggishness. “As the major factor was the war which is over I am certain the market will be heading towards an upward trend,” he said.
Arjuna Dassanayake, Vice President Acuitystockbrokers noted that the election results will be much clearer than the general perception currently prevailing in the capital and therefore it may not lead to much violence as was seen in the 2005 Presidential elections.
He said that it is expected that the market will settle down and the current volatility will reduce as the election results are announced by the end of the week. “The institutional and foreign trading will commence more actively once the results are clear. The key factor is the investors will learn to look at the sound management and growth potential of the companies and eliminate the political element that exists currently.
In short common sense and reality will prevail over and above the risk of speculation,” he added. An analyst said that once the ‘weak hearted players’ complete their exit from the market the indices may pick up sharply on Monday, which is a day closer to the Presidential election.
Charuka Suchendra, Research Analyst Asha Phillip noted that the election will not make any significant negative impact on stock market sentiments though there will be violence. “There might be a maximum of marginal drop in indices due to election violence if it occurs. In general investors are more confident about the Sri Lankan future as we are into a post conflict environment,” he said.