Sri Lanka’s stock exchange opened on a positive note on Friday after the removal of the 10 percent price band by the Securities and Exchange Commission (SEC),analysts said here.
The market’s value swelled by 41 billion rupees (32.3 million U. S. dollars) after the announcement while the main All Share Price Index gained by 2 percent or 111 points as sentiments of investors and brokers got a boost from the SEC.
The SEC,which is the regulatory arm of the Colombo Stock Exchange,said in a statement its commissioners at their meeting on Wednesday decided in favor of the lifting of the five-market- day 10 percent price band on certain securities based on an agreed formula which takes into account volatility and volumes,with immediate effect.
Despite the removal,the SEC said it will continue to monitor the behavior of the market and the price band may be re-imposed in the future.
Most brokers made it a point to welcome the removal of the price band in addition to linking it to the market’s revival while some cautioned investors from being carried away.