Sri Lanka’s stock market records over 29% growth of turnover volumes in April
In Sri Lanka, the total market turnover of the Colombo Stock Exchange (CSE) has reportedly demonstrated a positive growth of 29.43% in the month of April compared to the previous month. Market turnover was recorded at Rs. 53 billion while Domestic Turnover has seen a growth of 64% indicating the sustained interest among Sri Lankan investors, according to local media reports.
According to reports, further highlights of the month had included the growth in the benchmark All Share Price Index (ASPI) closing at 7,208.20, S&P SL20 index closing at 2,869.25, the average number of trades closing at 22,037 while Market Capitalization had stood at Rs. 3.2 trillion.
The primary market has also seen a growth in Capital Raising, with the Debt issuance of the Ceylon Electricity Board (CEB) and Initial Public Offering (IPO) of Chrissworld Ltd on the Empower Board. Both issuances were oversubscribed on the first day itself and raised Rs.20 billion and Rs. 56.25 million respectively, the Daily News has reported.
WindForce Ltd was listed at the CSE in April and the company attracted a Total Foreign Investment of Rs.531 million on the very first day of trading. YTD Foreign Purchases of equity stands at Rs. 17.1 billion as at end of April 2021.
Commenting on the growth, the CEO of CSE, Rajeeva Bandaranaike has reportedly said, “We are happy to see Investor and Issuer confidence in the capital market in equal measure. This is a positive sentiment recorded at the beginning of the second quarter of the year and a continuation of the momentum demonstrated in the first quarter.”
OSL take:
The growth turnover recorded by Sri Lanka’s stock market is indicative of the strength and growth of the country’s economy in the midst of the challenges posed by the global Covid 19 pandemic. Sri Lanka’s economy has shown great resilience through the years and is once again on the path to recovery after facing the impact of the global pandemic. The country is engaged in an aggressive development programme while the private sector continues to expand. The island is also fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210510/Z_1 |