Monday, October 3, 2011

2011 YTD volume beats 2010’s full year figure

Amidst doom and gloom, there is a silver lining in the Colombo bourse’s performance so far this year – it has already beaten the record 2010 at least in terms of volume of shares traded.

In the first nine months of 2011, there had been 21.37 million shares transacted via 3.89 million trades.                     

This is much higher than 2010’s full year figures of 18.5 million shares via 3.35 million trades.

Though year to date 2.2% return wise 2011 is lagging behind the roller coaster years of 2009 (up 125%) and 2010 (up 96%), this comparison confirms the CSE has expanded significantly this year in terms of activity.

The most striking negative feature is the struggle of the Milanka Price Index, which up to September 2011 had provided a negative return of 14.4%. Some analysts point to the MPI performance as the true yardstick of measurement of the resilience of the bourse. However, this year’s dip is respectable in comparison to 2008’s fall of MPI by 50%. In 2009 it grew by 136% and last year by 83%.

Long before the current performance, most analysts anticipated that 2011 wouldn’t be a high growth year.

In terms of the breadth of the market, the number of companies listed is at an all-time high of 267 as well.

With three more months remaining for the year’s end, 2011 total turnover has achieved 84% of 2010. As at end September, the market’s turnover was Rs. 480 billion, as against Rs. 570 billion for the entirety of 2010. It is left to be seen whether the CSE succeeds to generate Rs. 90 billion turnover during the remainder of 2011 to overtake last year’s performance.

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