CSE Experiences Small Upswing

by Lorys Charalambous, Tax-News.com, Cyprus

19 August 2002

The Cyprus Stock Exchange experienced something of a resurgence earlier this month, according to a report from the Cyprus Weekly news service.

Reporting recently, the Cyprus Weekly observed that: 'Faced with an ugly dispute in the banking sector, forecasts of an economic slowdown and a growing pile of profit warnings, the CSE decided to ignore the negatives and plot a forward advance.'

In celebratory mood after three consecutive sessions on the up, the news service nevertheless refused to throw caution to the winds as it looked to the future of the Cypriot economy, and by extension the CSE, warning that the Central Bank's report on the economy had predicted 'a downturn in the growth rate from 4% to 2.5% or 2% in 2002 with inflation and unemployment also increasing'.

However, it is expected that trading volumes will increase as long as sentiment continues to rise, and there have been suggestions that the market will seek a period of consolidation during the summer period.

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