Credit: Burak The Weekender
BusinessLounge.lk speaks to NDB Capital Holdings Ltd's Senaka Kakirwaragodae to know his views on and sentiments on the current capital market outlook.
Compared to 2023, the fundamentals of the market are currently stronger. Interest rates have significantly decreased from as high as 30% to below 10% for treasury bills, potentially leading to a capital market boom. Cheaper capital and demand-driven revenue growth will positively impact earnings. Until April 2024, the market showed positive growth, though recent months have been volatile.
The PE ratio is at 10 times, with room for improvement. Investors should understand that equity investment is a long-term game, despite short-term market impacts. Political uncertainty and upcoming elections may cause investor reluctance until clarity is achieved.
On the debt side, more fund-raising activities are expected. The market will likely see more debentures as businesses aim to secure funding for future growth and expansions before the elections.
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