Friday, January 3, 2014

CSE remains an attractive avenue for investment and emerges as a top performer among Regional Stock Markets

Colombo: 

The Colombo Stock Exchange (CSE) during 2013 provided an attractive prospect 
for investment with a 4.78 per-cent increase in the All Share Price Index (ASPI) and a 
5.79 per-cent yield on the S&P SL20 Index (S&P 20). The ASPI indicated the most 
notable increase in comparison to previous years, where 2012 and 2011 exhibited 
negative percentage changes of (-7.1) per-cent and (- 8.5) per-cent respectively. 

Bank interest rates decreased during the course of the year, following a directive by 
the Central Bank of Sri Lanka to tighten monetary policy; interest rates (Average Weighted 
Fixed Deposit Rate) have dropped from 13.21 per-cent on 31st December 2012 to 11.96 
per-cent as at 29th November 2013. 

The market witnessed certain selected stocks performing exceptionally, providing 
high yields to investors who diversified their investments over a range of equities. A total 
of 57 companies have given a total return in excess of 15 per-cent year on year for 2013 
(with 26 companies giving a return above 30 per-cent and 31 companies giving a return 
between 15 to 30 per-cent). 

The year also saw a total of Rs.119.4 Billion capital being raised through the stock 
market, with Corporate Debt amounted to Rs.68.3 Billion. The total capital raised during the 
year surpassed that of the previous year which closed at Rs.29.58 Billion. 
The CSE continued to attract foreign investors with a net foreign inflow of Rs.34.1 
Billion (excluding the net flow for corporate debt), building on the net foreign inflow of 2012 
at Rs.40.3 Billion. 
This was supported by Sri Lanka’s higher positioning in regional capital markets, 
being one of the top performers within the region ahead of the Singapore Stock 
Exchange, the Bombay Stock Exchange and the Hong Kong Stock Exchange. 

Capitalizing on the attractiveness of the market, the CSE in association with the 
Securities and Exchange Commission (SEC) will host a Foreign Investor Forum in 
Singapore on the 20th and 21st of January 2014 to attract foreign institutional investors. A 
series of local and foreign investor forums are planned for the coming months, to reach 
out to international intuitional and high net worth investors, as well as local investors
In a bid to encourage local investors and better educate existing investors the CSE 
has conducted a number of investor education programs throughout the island and will 
continue to educate the public on the various opportunities for investment available in the 

Sri Lankan Capital Market.  ( Click to Zoom)

Regional Market Performance
Graph 01   ( Click to Zoom)

ASPI & SL 20 Performance 2011 -2013

Graph 02   ( Click to Zoom)

Investor Contribution to the Marekt Turnover .


About CSE 
The Colombo Stock Exchange (CSE) operates the only share market in Sri Lanka and is 
responsible for providing a transparent and regulated environment where companies 
and investors can come together. The CSE is a company that is limited by guarantee 
established under the Laws of Sri Lanka. The CSE is licensed by the Securities and 
Exchange Commission of Sri Lanka (SEC) and is a mutual exchange consisting of 15 
Members and 14 Trading Members. All Members and Trading Members are licensed by 
the SEC to operate as Stockbrokers. For more information, please visit: www.cse.lk.  
For more information: 
Niroshan Wijesundere 
Head of Market Development 
Colombo Stock Exchange 
Level 4, West Block,  
World Trade Center, Echelon Square, 
Colombo 01.  
Sri Lanka. 
  
Direct      + 94 112356510 
Mobile    + 94 777 819999   
Fax           + 94 112445279 


Source : cse.lk







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