A Sri Lankan stock broker says the Colombo Stock Exchange cannot expect a major rally up until early part of next year.
Murtaza Jafferjee of JB Securities speaking to News360.lk says, for the market to see a real rally, the interest rates should start coming down thus making the stock market an attractive place to invest.
“I don’t see a major rally, because interest rates should start to come down for that to happen” points out Jafferjee.
“Turn in the cycle will only happen next year” the acclaimed stock analyst added.
Jafferjee’s claims come amidst a 19% rise in the Colombo stock Exchange’s main index during the past four week’s time, which ended yesterday.
Stock Brokers say this trend is on the back of increasing interest in blue chip stocks and wider retail participation.
Thursday also saw the All Share Price Index of the CSE reaching a 7 month high.
However Jafferjee, who is the Managing Director of Colombo based JB Securities says, in any market there will be rallies.
He believes the current trend in the market is not an indicative of a major turnaround in the Colombo bourse.
“Turn in the cycle will only happen next year” added Jafferjee.
He says, this is a traders market and the long-term investors should look for stocks with value.
“People should understand what they are buying. If you don’t understand what you’re buying, you’re speculative” he concluded.
Reporting by: Prasanna C. Rodrigo
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