(News360.lk) A Sri Lankan stockbroker says the problem in the Colombo Stock Exchange is much deeper and injecting few billion rupees into it will not help resolve the problem.
The broker comments comes as the Colombo Stock Exchange on Tuesday struggled to show progress despite the Securities and Exchange Commission extending broker credit limits.
On Monday, the SEC announced that it will allow stockbrokers to extend credit to investors up to a limit of three times that of the adjusted net capital.
Despite this decision, on Tuesday the All Share price index of the Colombo Stock Exchange lost 0.08%, while the Milanka price Index lost by 0.65%.
Bartleet Religare Stockbrokers, in its daily client report said that this is a clear indication of selling pressure that persists in the markets.
“What will the key stakeholders now do to kick start the system?” questioned BRS.
It also warns that a quick fix won’t work as the problem is much deeper than a few billion Sri Lankan rupees coming into the market.
Today’s trading day saw a net foreign outflow of Rs. 76 million in the CSE while the turnover reached Rs. 1.38 billion with the main contribution coming from Asia Asset Finance amounting to Rs. 366 million.
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