Colombo Stock Exchange records stellar performance in 2014

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Foreign buying highest in history: a record Rs. 106 b as at 31 Dec

The Colombo Stock Exchange (CSE) said yesterday that it recorded stellar performance during 2014. “The CSE is on an upward growth trajectory and has recorded positive growth in the past year, surpassing several previous records,” the Colombo Bourse said in a statement. In 2014 the S&P SL20 crossed the 4,000 mark for the first time since its launch, market capitalisation reached Rs. 3 trillion closing the year on Rs. 3,104.9 m and the All Share Price Index (ASPI) crossed the 7,500 mark and closed the year on 7,298.95. The daily average turnover increased by 71% over the previous year from Rs. 828 m in 2013 to 1.415 b in 2014. Most notably, foreign purchases have been the highest in history, a record Rs. 105,812. 5 m as at 31 December. Continuing its strategy of attracting high net-worth foreign investors to the market, the CSE in association with the Securities and Exchange Commission of Sri Lanka held Investor Forums in Singapore, London and New York. There is wide spread interest among overseas institutional investors as indicated through the Capital Market Conference held in October; which showcased the multifarious sectors of the capital market to over 80 international institutional fund managers and over 250 local industry participants. The primary market remained active during 2014 with over Rs. 77.7 billion being raised through equity and debt IPOs, rights issues, and private placements. During the course of 2014 there have been five equity IPOs, one equity introduction and 20 debt IPOs. The five equity IPOs raised a total of Rs. 2,693.8 million, the highest since 2011. The market is also performing positively in comparison to global markets; being within the top six best performing markets internationally and within the top five best performing markets in the region, with the ASPI showing a year to date growth of 23.4%. The technological infrastructure of the CSE has undergone numerous advancements in 2014; with the replacement of the 19-year-old legacy Central Depository System (CDS) with a new generation Central Depository System in November 2014 – laying the platform for future enhancements relating to post-trade clearing and settlement services and moving to a Delivery Versus Payment (DVP) system of settlement and a Central Counter Party (CCP) System. Investors are now able to access and monitor their investments in the stock market easily and cost-effectively as a result of a range of new services introduced by the CSE. Investors can subscribe for SMS alerts for secondary market transactions and CDS monthly statements are also available on email. Meanwhile the CSE mobile phone apps, available both on android and iOS, provides live market data. Furthermore, the CSE online properties have forayed into social media with active Facebook, Twitter and LinkedIn pages, providing users with timely information.