Foreign buying sinks: Rs. 1.7 bn in Apr. 2018 vs Rs. 10.8 bn in Apr. ‘17
Colombo shares, amid continued political uncertainty, have seen low foreign buying spilling into this month from April with some analysts saying the situation seems to be going down without any remission in sight.
Foreign investors bought shares worth Rs.1.7 billion in April, sharply down from the 2017 April data which showed buying worth Rs. 10.8 billion.
There’s no support to the market in terms of policy or concessions which is causing this, stockbrokers said, adding that Colombo’s share market is desperately calling for political stability and clear direction.
A host of issues including increasing liquidity, listing state-owned enterprises (SOEs), speeding the Dollar Board and the Small and Medium Enterprises Board, Delivery Versus Payment (DVP) and new products such as Exchange Traded Funds, structured warrants, REITS and equity-linked derivatives etc, are still at large. Add to this, the delay in the commissioners of the Securities and Exchange Commission (SEC) being appointed has rendered the SEC rudderless on its fourth month.
Ranel T. Wijesinha, a well-known accountant and corporate director, is said to have been appointed as the new chairman of the SEC, informed sources said but the appointment is yet to be announced. Mr. Wijesinha takes over from Thilak Karunaratne whose term ended in mid-January 2018.