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No Need Of Foreigners

Jul 3, 2010 3:04:10 PM - thesundayleader.lk

The market despite corrections is seeing a boom which it had hitherto not seen, a high networth individual (h.n.w.i.) told The Sunday Leader.

Nimal Perera, adviser on investment matters to business magnate Dhammika Perera and holding key positions in several of Dhammika’s companies said that the market is virtually daily seeing turnover levels in the Rs. 2-3 billion range which it had not seen, even during the 2002-03 ceasefire period of the Ranil Wickremesinghe regime.

He said that despite the absence of foreigners, h.n.w.i.s, government administered institutions and retailers were driving the market.

“We don’t need foreigners,” he said.

Peace and a low interest rate regime are helping the market, Perera said.

However a stockbroker who didn’t want to be named said that the Colombo Stock Exchange/Securities and Exchange Commission should sponsor broking firms to go overseas and have “one to one” meetings with multinational investment banks and asset management companies to woo them to invest in Sri Lanka.

Currently what is happening is mass scale two day investment seminars in overseas markets which are insufficient to inter-act with investors, he said.

The source complemented what Perera said, saying that the prevailing low interest rate regime has induced retailers to withdraw their money from term deposits and invest the same in the stock market where they get a 10% monthly return as opposed to an annual return of 15% from term deposits.

The market weakened on Friday, with profit taking impacting on it, another source said.

Rupee gains

With exporters encashing their foreign exchange proceeds, the U.S. dollar depreciated by 15 Sri Lanka cents to Rs. 113.35 in inter-bank spot trading, a process that began on Thursday evening and continued up to Friday, market sources told The Sunday Leader.

Meanwhile yields continued to remain flat at last week’s Treasury (T) Bill Primary Auction, resisting pressure to fall, with 91, 182 and 364 day maturities fetching yields of 8.07%, 8.93% and 9.29% respectively, identical to those fetched in the previous week’s auction.