Bull -run ...

But given that overall volume of trade that has increased, then credit extension would also have increased, he noted. "The market may have run up too much too fast, so we may be in for some profit- taking soon," he added. Sentiment has changed drastically. "Shares have dropped to rock bottom prices making it one of the most attractive markets among emerging markets," noted another broker, adding that foreign inflows were pouring and all required was a trigger for the market to turnaround.

The Business Times asked Dr Godahewa for his comments which he politely declined on the grounds that he was heavily involved in work and preferred that the newspaper contact another senior official at the SEC. Danushka Samarasinghe, Director Research TKS Securities said no fundamental reason can be attributed to the rising market other than market psychology.

"The local high net-worth investor sentiment has changed positively leading to more participation in the market. Certain investment styles or stock picks are highly individualistic and hence high net- worth investor interest was seen on both blue chip large cap counters as well as small cap stocks." He said that with the country's economy expected to record robust growth the listed corporates would also mirror such prospects and hence the future for the CSE would be bright.

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"The local high networth investor sentiment has changed positively leading to more participation in the market. Certain investment styles or stock picks are highly individualistic and hence high net-worth investor interest was seen on both blue chip large cap counters as well as small cap stocks."