‘Market reach’ shifting away from Western Province - CSE | Daily News

‘Market reach’ shifting away from Western Province - CSE

The Colombo Stock Exchange (CSE) despite COVID pandemic and some other economic issues last year recorded a stellar performance creating historical landmarks as well and recording a market capitalisation was Rs. 5.489 trillion up by 85.4% from end 2020.

CSE predicts this healthy trend to continue this year as well with more listings and a higher market capitalization. CSE Chairman Dumith Fernando at the CSE’s year-end review media event said that All Share Price Index (ASPI) surpassed the market return of 80% making it the highest return recorded since 2010. The S&P 20 marked a return of over 60.5%, which is the highest ever recorded.

“Over Rs. 125 billion were raised capital worth via listings while the CSE had several Initial Public Offerings set throughout the year raising over Rs 13 billion the highest ever capital raised via equity listings since 2011. Most of the IPOs launched last year were oversubscribed on the very first day stamping credibility of the Stock Exchange and also investor confidence in the corporate sector.

“The Exchange recorded a 36% market turnover in 2021 and anticipates a higher turnover this year and the contribution as a percentage to the GDP by the CSE was Rs. 7 billion last year,” Fernando said.

Asked how the market was performing over the average expectancy when the economy has some hiccups he said that one main feature for the market to maintain an upward beat is the low interest regime where inverters opt to trade in the Stock exchange rather than investing in fixed deposits and other similar investment tools, high inflation and profitability of most of the companies.

He however said that foreigners have concerns in investing in the market and they took a back stage due to the exchange and the market was not a viable option for them to invest.

“We are confident of a better year with a host of new products and measures taken to boost the market, Fernando said, adding that the Exchange performed well last year despite a challenging year,” Fernando said.

CSE CEO Rajeeva Bandaranaike said that investors have increased since the C-19 pandemic as we see more listings and more new account openings last year.

“We also observe that 80% of the new account openings were done online, clearly indicating people’s shift towards technology.”

He also pointed out that the ‘market reach’ is being broad-based and is also shifting away from the Western province.

“In 2021, 37,000 new CDS accounts were opened and over 80% of them were from outside the Western Province as against 57% opened outside Western Province in 2020.”

The new CSE Digital App, new regulations and other financial tools along with a series of education programs held in the regions are the key to this.”

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