Despite sentiment driven high on Wednesday upon hearing that Securities and Exchange Commission (SEC) Director General (DG) Malik Cader was leaving to take up an appointment at the Treasury, the Colombo bourse subsequently witnessed a steep crash with analysts saying that his resignation cannot sustain an upward trend at the Colombo bourse.
“It was an initial reaction and the market is back to square one. So it’s not Malik, (the cause of the Colombo Stock Exchange’s downfall), but the market (dynamics playing up),” an analyst told the Business Times.
The view on Wednesday by many investors that Mr. Cader moving out from the share market led to the surge didn't hold water in the next two days as it came 'tumbling down', he said.
Investors said that the market's downfall on Thursday and Friday, following Wednesday's retailer euphoria over Mr. Cader leaving the SEC which sent the indices shooting up is ample testimony that his resignation won't keep the indices up. "It was definitely an artificial rise, which may have been instigated by some brokers,” a second analyst added.
Meanwhile, many names are being flaunted in stock market circles for the 'coveted' SEC post.
A top official from the Shipping Corporation, along with two senior CEOs of stockbroking firms and even a former SEC DG are said to be on top of the list as the 'next' in line. "It'll probably be a week or two before this vacancy is filled," a source close to the SEC told the Business Times.
Mr. Cader, now wrapping up things at the SEC told the Business Times that he is pleased about the promotion. He was also grateful to SEC Chairperson, Indrani Sugathadasa, the SEC Commission and the entire Secretariat at SEC.
"The Chairperson, Mrs. Sugathadasa was a tower of strength and I'm grateful to the Commission and the Secretariat for standing by their principles," he said. |
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