New Stock exchange listings anticipated | Sunday Observer

New Stock exchange listings anticipated

21 July, 2019

The improvement of the All-Share Price Index and the S&P SL 20 in recent weeks offers encouragement to the investor community and market stakeholders. “We are hopeful that these positive moves translate into a trend, where the ASPI continues into positive Year To Date returns but this would largely depend on how investors react to the recent performance as well as Macro developments in the coming weeks and months,” Chief Executive Officer Colombo Stock Exchange (CSE) Rajeeva Bandaranaike said.

“We certainly are watchful of these developments and welcome more activity in the market from both local and foreign investors,” he said.

During recent weeks, the All-Share Price Index and the S&P SL 20 have gained a fair amount of ground. Since the week starting 24th June and as at 18th July, the ASPI had gained 341.2 points or 6.4% and the ‘S&P SL 20’ had gained 250.5 points or 10.1%. “At the end of the present week, we may see the fourth straight week of trading where we have seen the indices make a weekly gain.

“During this week we also had the highest daily turnover figure so far in 2019 which was Rs.9.4 billion on Monday which was due to a large transaction . As of 18th July, foreigners are net buyers so far this year with Rs. 1.2 billion in net foreign inflows,” he said.

The Stock Exchange in partnership with the Securities and Exchange Commission of Sri Lanka (SEC) and the stock broking community, are continuing with our efforts to create awareness among both local and foreign investors on the buying opportunity the market presents at-the-moment.

“In Colombo and in areas outside Colombo so far this year we have conducted over 160 educational and awareness-driven initiatives and we anticipate conducting another 100 more before the end of the year. The CSE and SEC has also conducted its regional investor day series and plans to host the 17th and 18th events in Tissamaharama and Polonnaruwa. These forums reach out to active investors, potential investors and inactive investors and look to re-engage them to the market,” he said.

“On the other hand, we are also continuing with our efforts to attract new listings on the exchange and have approached a number of companies regarding listing on the Main, Diri-Savi and Empower Board.

“We anticipate that these efforts will also result in listings in future. On the foreign investor front, the CSE and the SEC in partnership with the stock brokers hosted an ‘Invest Sri Lanka Forum’ targeting institutional investors based in Singapore in May this year.

“These series of investor forums offer foreign investors, (some of whom are large shareholders in Sri Lankan listed companies), an opportunity to meet senior representatives of listed companies and stock exchange officials, regulators and government representatives.

“The Singapore event, given its timing was also helpful in reassuring international investors following events on April 21. We expect to continue with our efforts to reach out to investors based in other key international markets in the future as well,” Bandaranaike said.