40 mins ago
Capital TRUST Research
Technical Analytical Outlook
Hambantota Will Be The First Free Port In Sri Lanka!!!
Finance Act was amended on Friday to allow the establishment of the first Duty Free, Tax Free port in Sri Lanka at Hambantota and at any other locations designated by the BOI through Gazette notifications. Full currency convertibility too will be allowed at these locations to develop these as international financial centres. This is the most significant piece of legislation passed by our parliament and the most important economic milestone since the passage of the GCEC Act in 1979 and the opening up of the Colombo Stock Exchange in 1985.
Rupee started rising last week and is likely to move up faster this week as exporters decide to convert their foreign exchange earnings to Rupees in view of the IMF deliberations today on the probable release of the tranche of US$ 400 million of assistance to Sri Lanka. Rising Rupee may induce foreigners planning to invest in the market to accelerate their purchases. GREG should get soon over US $ 19.7 million (Rs.2.5 billion) held at a local bank (in US $) pending exchange being the proceeds from the sale of their investment in ERI (BVI) Ltd.
Today, with the dawn of the new financial year the forced selling would end and the market should rise.
Friday’s mixed market movement brought the RSI’s of the ASI & MPI daily charts to 47 & 57.
US market continued to consolidate on Friday and is likely to move up this week. (pl. see the index charts attachment).