CSE sees influx in local CDS accounts
View(s):The Colombo Stock Exchange (CSE) saw a large number of new accounts opening from the day it resumed trading (May 11) after the 51-day closure.
CSE data show that from May 11 to May 27 local investors opened 705 Central Depository System (CDS) accounts while foreign investors had opened 10.
For the entire year so far, from January this year to May 27, local investors opened 4,070 accounts with foreigners opening 75.
Comparatively from January 1, 2019 to December of that year local investors opened 10; there were 106 CDS accounts while foreign accounts were 234.
Investors are seeing a lot of value in the market now and it is an excellent time for the long-term investor to buy stocks, Ray Abeywardena, Chairman CSE told the Business Times. “These are wartime prices and the Sri Lankans staying overseas are looking at the market very, very positively,” he said.
Stockbrokers said that on average per day more than five accounts are opened while they get about 10 to 15 queries from Sri Lankans living overseas.
The low interest rates have also factored into the local investor buying, Dimantha Mathew, Head of Research at First Capital noted to the Business Times. Many, he added are hoping for a V-shaped economic recovery from the coronavirus pandemic: A short, sharp collapse followed by a bounce back. Though big, the expectation is that the CSE will be ‘trampolining’ back to normal completely owing to the large local buyers as soon as lockdown restrictions are lifted. (DEC)