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| Sunday, 6 January 2002 |
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| News Business Features Editorial
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CSE starts 2002 on positive note by Elmo Leonard The Colombo Stock Exchange (CSE), driven by a surge in investment during the last quarter of the year 2001, ended the year as perhaps the best performing stock market in the world. Colombo's All Share Price Index (ASPI) went up by 38.7 percent from January to end-December. In comparison, the Bombay Stock Exchange, for the year 2001, experienced a decline of 17.9 percent. The Kuala Lumpur exchange went up by two percent, according to international statistics on stock markets compiled by the CSE. Karachi, during the same period, was down by 15 percent, HongKong was down by 24.5 percent, Tokyo down by 23.6 percent, London down by 16.2 percent and the New York Stock Exchange was down by 7.1 percent. The reason for the global stock market slump during the year 2001 was global recession which prevailed during the year, which also had a bearing throughout South East Asia. The global problem was compounded by the September 11 terrorist attack on America. The low ebb the Colombo stock market experienced during the past seven years could be seen when comparing the year 2000 negative growth rate of 21.8 percent, with 1993's positive growth rate of 61 percent. The ASPI grew by a mere 0.8 percent in 1994. In 1995, it reported a negative growth of 32 percent, in 1996, a negative growth of nine percent, in 1997, a growth of 16 percent and in 1998 and 1999, negative growth of 14 percent and four percent respectively. With the Colombo stock market starved for investment confidence, the dissolution of Parliament on October 10 spurred the market on. From October to December last year, the ASPI went up by 53.8 percent. Colombo's daily average turnover from January to end-September was Rs 24.2 million. Colombo's daily average turnover from October to end-December was Rs 148.3 million, according to CSE statistics. CSE also recorded its highest ever daily turnover of Rs 886.9 million on December 10. On December 7, the first day of trading following the victory of the United National Front, the ASPI moved up by 20.6 percent. This is the highest daily percentage change of the index in the history of the Colombo stock trading. CSE opened an Investor Services Centre (ISC) in Matara in 1999. During the first nine months of last year, this office averaged trading worth Rs. 360,000 per day. During the last quarter, this figure surged to Rs 6.6 million. ISC's turnover on December 7 was Rs 42 million, the highest daily turnover in its history. During the last quarter, most of the Colombo stock trading was effected by domestic retail investors, CSE's Senior Manager - Marketing and Public Relations, Rajeeva Bandaranaike said. CSE opened a public gallery in November at its premises at the World Trade Centre, Colombo. Investors can now meet brokers at this gallery, and view trading live on screen. Due to the current market sentiment, the public gallery concept is proving to be a success, CSE's Assistant Manager - Marketing, Tushara Jayaratne said. |
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