“This isn’t a proper market as some call it. There are many external factors at play with the plausible culprit being the interest rates which are currently attractive, that people won’t put money anywhere else other than the financial institutions,” a CEO of a stock-broking firm who didn’t want to be quoted (lest he was deemed unpatriotic for citing these reasons for the downward trend in the stock market), told the Business Times.
He said that locals don’t have any confidence in this market. “They don’t have any money to put in the CSE.
More than that they don’t want to take a chance by pulling their cash from (high yielding) fixed deposits, which translates into them not having any confidence in this market,” he added.
Another stockbroker, who remained anonymous for the same reasons of being branded by the ‘mafia’ (as he called it) said that the interest rates rise as of Thursday would make canvassing investors to the CSE more difficult. When questioned on why the foreigners are net buyers, if confidence is low, he said, “Most of money that’s coming through foreign investment cannot be blindly deemed as ‘foreign’. What I’ call it is ‘external’ money which cannot be identified.”