Invest SL forums spark renewed interest among Australian investors

Monday, 8 May 2017 01:21 - - {{hitsCtrl.values.hits}}

Foreign inflows from Australia have recorded a marked improvement during April, recording a surge since the recently conducted Invest Sri Lanka investor forums in Australia.

The daily average inflows originating from Australia since the forum has marked an improvement to Rs. 23.22 million, rising from an average of Rs. 0.87 million recorded over the preceding 11 months.

In total, Australian inflows have contributed a total of Rs. 487.62 million since the events Down Under – a 94% portion of the total purchases originating from the country in 2017. The post-forum surge in investment from the country has also placed Australia as the seventh-largest contributor to foreign purchases in April, a marked improvement from its ranking of 14 prior to conducting the events in 2017 and 19 in 2016.

Commenting on the development, CSE’s Head of Market Development Niroshan Wijesundere stated: “We are pleased to see the events in Australia having a positive effect on the turnover flowing in from the county. This is consistent with a trend that we have experienced with foreign investor forums conducted in the past, where these events almost immediately rejuvenate interest in the Sri Lankan capital market. The presence of the stockbrokers who travelled with the delegation to Australia also played a vital role in following up and securing such investments.”

He also pointed out that partnering with event sponsors and the Sri Lankan High Commission in Australia, the Australian High Commission in Sri Lanka, bilateral associations and business councils was critical to hosting three successful forums in both Sydney and Melbourne.

A strong community of individuals of Sri Lankan origin was eager to examine new Sri Lankan investment opportunities and the celebration of 70 years of diplomatic ties between Sri Lanka and Australia presented the CSE with a unique opportunity to promote the capital market in Australia.

Rise in stock market indices in 2017

On another note, the share price indices at the CSE have also made consistent gains in April, with the Benchmark All Share Price Index (ASPI) crossing the 6,500 mark on Thursday, 20 April. The index closed at 6,602.44 points by the end of trading for 4 May 2017, a 6.01% increase in the index in 2017 (year-to-date).

The S&P SL 20 index, which features the CSE’s 20 largest and most liquid stocks, has also improved consistently, making an 8.26% gain in 2017 (year-to-date) and closing at 3,785.15 points by Thursday, 4 May 2017.

Overall trading activity has also improved in 2017, with the Daily Average Turnover recorded for trading in 2017 (year-to-date) marking an improvement to Rs. 901.0 million from Rs.737.2 million in 2016.