CSE records new heights

2010 CSE Annual Report

* ASPI up 96 percent, MPI 83.4 percent
* Annual turnover up 300.3 percent

The Colombo Stock Exchange has created a new all time record during the 2010-11 financial year with the All Share Price Index, Milanka Price Index, annual turnover, annual transactions, number of trades in a single day and market capitalization performing well.

The ASPI ended the year at 6,635.9 points, up 96.0 percent year-on-year, The MPI ended the year at 7,061.5 points, reflecting an increase of 83.4 percent,

The annual turnover reached Rs.570.3 billion, up 300.3 Percent, equity market volumes for the year rose 165.0 percent, Market capitalization as at year end was Rs.2, 210.5 billion, up 102.4 percent from the previous year’s closing of Rs.1, 092.1 billion, according to the 2010 CSE Annual Report.

CSE, Chairman, Nihal Fonseka in his statement said that "All time records were created in 2010 in respect of key equity market indicators such as the All Share Price Index, Milanka Price Index, annual turnover, annual transactions, number of trades in a single day and market capitalization. The CSE admitted eight new trading members increasing the number of broker firms to 29. The turnover velocity, which is a measure of the level of liquidity almost doubled to 34.5 percent and eight initial public offerings, added 1,688 million shares raising Rs.4.3 billion of new equity in the process. The significant increase in volume was handled with a 99.99 percent uptime in the trading system.

"The market price earnings ratio at the year-end was amongst the highest in the region at 25.2 times. This had the effect of making the market less attractive to foreigners who were net sellers to the tune of Rs.26.3 billion but in absolute terms foreign investor related market turnover also reached an all time high of Rs.106.0 billion surpassing the previous high of Rs.60.0 billion in 2008.

"However, domestic investors have firmly established themselves as the dominant investor segment, thereby increasing the depth of the market. The increase in the number of depository accounts and the more than five-fold increase to Rs.168.0 million, being 7 percent compared to 5 percent in 2009, in the average daily turnover contribution in 2010 from the five CSE branches outside Colombo including the new Jaffna Branch in the Northern Province are manifestations of increasing domestic investor interest. Although the increased domestic interest is welcome and is consistent with the national policy of broad basing share ownership, the contribution to total turnover from domestic individual investors at about 44 percent appears high in comparison to many other markets.

"There were some corporate debt listings in 2010 by state owned enterprises which raised Rs.15.0 billion in initial capital. The market value of corporate debt securities as at year end amounted to about Rs.32.8 billion which was approximately 1.5 percent of the market capitalization of the equity market."

CSE, CEO Surekha Sellahewa stated "The bullish performance speaks for the confidence that a predominantly domestic investor base has in our market. It was underpinned by a resilient economy for which 2010 marked a critical time. As anticipated during the previous year, a spirited trajectory has been forged for economic growth with Sri Lanka’s Real GDP growing at a record level of 8.0 percent in 2010.

The ensuing year and the medium term continue to bid strong for the Sri Lankan economy."

source - www.island.lk