No cheers! Market cap dips low despite impressive Cabinet & Govt majority

       Apparently investors were selling out and taking profit rather than picking up shares on optimism yesterday at the Colombo bourse sending mixed signals over what described as “impressive and unprecedented cabinet and majority” of the Government in Parliament.

Both price indices dropped as the market saw LKR 7.5b of its value being wiped off. Investors sold out to make profit while others noted that market wasn’t overly optimistic about the country’s as well as corporate prospects following the appointment of new Cabinet.

Whist, some investors hailed the new cabinet saying it was very impressive especially with top UNPers in it, while others claimed that it was too big and though the Government commands majority, political stability would be under threat with UNP and JVP stepping up their pressure..

S-LankaBR

~ by Zaroff on February 8, 2007.