Troubled Colombo bourse may see state intervention
View(s):Share prices at the Colombo bourse which have slumped in the past two weeks due to political uncertainty may prompt government intervention in the market next week, brokers and analysts said.
The All Share Index (ASI) and the S&P SL20 has been on a roller coaster ride since former Health Minister Maithripala Sirisena announced his shock entry as the main opposition candidate pitted against President Mahinda Rajapaksa.
On Friday, the ASI closed at 7,238 points, marginally down 0.22 per cent from Thursday’s close and from 7,150 on November 21 when Mr. Sirisena made the announcement. The S&P SL20 gained by 0.12 per cent to 4,061 on Friday while turnover for the day was over Rs. 2 billion.
Analysts said in a bid to give confidence to the market, investors and also boost the ruling party camp, speculation was rife of EPF and ETF this week to turnaround the negative trend.
Since both political camps began taunting each with accusations and counter-accusations, uncertainty has flowed across the Colombo bourse.