It is been timely discussion I guess! The election heat is really on and how it effects the stock market of Sri Lanka is a key question we all must assess at this juncture.
On last Friday, equities reflected mixed investor sentiment, with the Benchmark Index shedding 6.64 points or -0.09% to close at 7370.60. However, the Blue chip Index advanced today, with the index gaining 5.36 points or +0.13% to close at 4097.22.
The ASPI has almost increased by 450 basis points since 7th July 2015 up to now due various positive sentiments created through number of political propaganda's and ha-hos. Most investors and brokers went on bullish over the way forward for the next 5 years assuming that present regime will win.
However prior to a week to the General election how would all stakeholders in CSE would behave? Will they be on the sidelines or bullish? Of course there is less chances for a bearish sentiment. I personally believe that market would adjust for some profit taking since we already gained 450 points presuming the election results.
Open for a discussion !!!