Business Times

Fast cash hunters shift from banks, finance firms to CSE

With the current bull-run witnessed in the Colombo bourse, a trend of funds being shifted from banks and finance firms to the share market is seen with traders on the hunt for fast cash, according to some analysts.

“Some shares have been consistently gaining 10% per day during the past few days and when one compares these gains with the 10% per annum or so paid for a fixed deposit at banks and finance companies it is much more (the yield is higher), which is a main reason for this shift,” said Sarath Rajapakse, Director Capital Trust Securities.

According to Milinda Ratnayaka, Analyst SMB Securities, strong local high net-worth and retail participation was seen in the Colombo bourse in the past month. “The Colombo bourse has pushed both the gauges to fresh highs recently on the back of strong corporate earnings, low interest rates and positive developments in the macro factors. There has been some high retail interest,” he added.
Mr. Rajapaksa noted that this shift to shares by depositors would move the indices up by over a thousand points before the year end.

Another analyst agreed saying that the All Share Index will reach 6,500 if there are progressive steps in the budget, IMF blessings, further reduction in interest rates and firms' earnings growth in September results. Nikita Tissera, Head of Research Sampath Securities also noted that there’s a shift in funds from the banking and finance firms to the shares.

Analysts also say that amongst the quick speculative profit opportunities shares such as Reefcomber, The Finance Company, Nation Lanka Finance, Hunas Falls, Abans, Merchant Bank, Odel, Pan Asia, Peoples Merchant Bank, Richard Peiris, etc were seen appreciating by around 10% during the past few trading reaching the upper boundary of the allowed price band.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
2011 budget preparation underway, 6.6% deficit seen
Now there’s peace, Coffee anyone?
World leaders discuss jobs crisis in Oslo
SEC goes after manipulators
Lanka Tiles to get Walltile’s machinery
Bankers welcome minimum capital hike by regulator
Shell Gas to be state-owned but managed privately
CMC way of tackling the dengue menace?
Comment - Business of democracy in Sri Lanka
Feature - Sri Lankan exports need a major makeover – urgently!
Feature - Sri Lanka Tourism –Exploring new options
Sampath Bank opens Keselwatte branch
210,000 PCs sold locally every year
Overcome garment quota restrictions by adding value to products: Amalean
Rohit Khosla, new Area Director at Taj Hotels, Sri Lanka
Fun at work? Helps overcome boredom, improves productivity
SL becoming known for its cost effective lab services
Industry views on CBSL's draft mobile banking guidelines
NRFC investors face lean years ahead
Tourism entrepreneurs cry foul over shoddy treatment by authorities
CCI urges government to suspend withdrawal of tax incentives on foreign investment
BoC rolls out a special loan scheme for businessmen in the North
20 volunteers from IBM in SL this year
Ogilvy Ad veterans of the world in Sri Lanka as Phoenix Ogilvy hosts 'Adchamps'
Financial sector needs to adjust to changes:Central Bank
Low grown tea firms to record profits
Show must go on regardless of price curbs
CSE to increase server capacity
CSE slaps immediate disclosures rule
Fast cash hunters shift from banks, finance firms to CSE
Finance firms to boom but lending prudence advised
Creating graduates who are employable for all including the private sector
MphasiS Lanka to enter into a contract with a multinational firm soon
Commercial Bank donates CTG machine to Kuliyapitiya Base Hospital
Sri Lankan artisans double their efforts in making jewellery with glimmer and glitter
Jaffna Open Forum takes off, looks at development in the North
5.3 mln jobs may have been affected by Pakistan floods
People's Leasing to import 1000 buses through Ashok Leyland, India


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution