Maithri victory props biz confidence to all-time high

[First Guy]

LMD-Nielsen index rises to 191 points but compiler cautions a reversal likely in Feb following biz-unfriendly interim Budget

The February edition of business magazine LMD reports that the LMD-Nielsen Business Confidence Index (BCI) skyrocketed to an all-time high, in the immediate aftermath of the 8 January presidential election. “The political climate and presidential pledges hold sway over business sentiment,” it explains.

LMD also reports that “the BCI pole-vaulted to an all-time high of 194 in January, soaring by 52 points from the prior month. This latest jump in the index is second only to what was recorded when the 26-year war ended (it rose by 72 points, to 161, at the time), back in June 2009.”

“The previous high of 178 was recorded when the then government and the LTTE struck a power-sharing deal for the north and east of the island,” it adds.

Nielsen Managing Director Shaheen Cader says in LMD that the results of the latest BCI survey “shows that the business community’s expectations from the new government are massive, in terms of [the] ease of doing business, reduction of taxes and setting a more level playing field.”

A spokesman for LMD adds: “The vote of confidence by businesspeople is all the more remarkable, considering that the index was virtually stagnant in the last two months.” But he cautions, by quoting from the magazine: “It could well be that as April draws closer, there will be a degree of uncertainty, and thus volatility, as the prospect of general elections comes into focus,” adding that “a reversal is on the cards, given the impact of the recent Interim Budget on business and investment prospects.”

The magazine will be released to leading bookstores and supermarkets shortly, says a spokesperson for its publisher Media Services (for the full BCI report, go to www.LMD.lk).

http://www.ft.lk/2015/02/10/maithri-victory-props-biz-confidence-to-all-time-high/

[stocks hunterTop contributor]

Yes this should reflect in the mkt as well. But unknown parties trying their best to bring down the mkt. ASI should be in 7800+ levels by now. What is the issue here? Nothing at the end of the day but have good governance with us. That is the most important message for the business community.

So nothing to worry. Take the challenge.....

[First Guy]

We of course can see 'some' of these parties. Creating panic in the name of advising.

Of course there will be volatility when there's a regime change, policy change. The super gain tax was unexpected. But the investors should be intelligent enough to reasonably measure the impact if it. It does give some doubt if same ad-hoc taxes will be charged the following years but the amount which market went down recently is due to fear and panic compounding.

Results are good so far for most companies, and should look for coming quarters as well. As long as the companies are performing and generating profits, in the long run, short term fluctuations are nothing but opportunities.

[slstockVeteran]

Correct.

We of course can see 'some' of these parties. Creating panic in the name of advising.

Of course there will be volatility when there's a regime change, policy change. The super gain tax was unexpected. But the investors should be intelligent enough to reasonably measure the impact if it. It does give some doubt if same ad-hoc taxes will be charged the following years but the amount which market went down recently is due to fear and panic compounding.

Results are good so far for most companies, and should look for coming quarters as well. As long as the companies are performing and generating profits, in the long run, short term fluctuations are nothing but opportunities.

[HAL9000Top contributor]

http://en.m.wikipedia.org/wiki/Harsha_de_Silva

Business confidence usually soar during UNP regime. But just to get some balanced idea , I would like to say that Dr. Harsha de Silva is related to above Neilsen Research company.An undeclared conflict of interest ?

[First Guy]

http://en.m.wikipedia.org/wiki/Harsha_de_Silva

Business confidence usually soar during UNP regime. But just to get some balanced idea , I would like to say that Dr. Harsha de Silva is related to above Neilsen Research company.An undeclared conflict of interest ?

Possible, but I like the 'caution' they have mentioned. Could have done without it, noh?

[sapumal]

This is completely a bias index and index is a non sense. We know what happened during last month. What was happened to improve confident ?
1. super gain tax
2. 10000 salary hike
3. petrol reduction
4. canceling casinos
5. canceling mega infrastructure developments
6. Heavy taxes to casinos, mobile , liquor, ciggerette , tv operating companies.