This was the key message during the near two-hour joint meeting between Dr. Jayasundera, the Commissioners of the SEC and Board members of the CSE.
Sources said the meeting, a direct follow up to President’s forum with capital market stakeholders on Friday, had discussed best means to revitalise the Colombo Bourse, which has been plagued by sustained bearish run and low activity.
SEC’s Acting Director General H. Dissabandara and CSE Chairman Krishan Balendra had made presentations at the meeting outlining some of their proposals, after which there had been a discussion on same.
Dr. Jayasundera had said that whilst what had been suggested was welcome, the Colombo Bourse needed more innovative new ideas for a robust rebound and sustainable development. The need for a revival via short, medium and long term executions had been emphasised.
Broker credit had figured in the discussion as well. Given the status quo of the stock market, the importance of pragmatic regulation benefitting all as well as more practical and innovative proposals for revival had been suggested as well. Dr. Jayasundera had said a further meeting would be convened as part of a continuous dialogue between the Finance Ministry, SEC and CSE.
The Colombo stock market is down 19% year-to-date with over Rs. 300 billion value wiped off on the back of an 8.5% negative return in 2011. In comparison to the Bourse’s all-time high of mid-February 2011, the loss of value is over Rs. 700 billion.
At Friday’s meeting with the President, brokers and high net worth investors listed a host of reasons for the market’s downfall and disenchantment on the part of investors, existing and prospective, whilst the SEC, CSE and a few other brokers gave their views as well.