CSE, the best performing market in the world

By Surekha GALAGODA

Sri Lanka's stocks closed up 2.1 percent Friday becoming the best performing market in the world, up 110.9 percent so far according to Bloomberg newswires data, beating Mongolia at 109.7 percent. Bangladesh was a distant third at 56.4 percent.

Colombo's benchmark All Share Price Index closed at 7,147, topping the 7,000 mark, and up 150.56 points.

The more liquid Milanka Price Index closed at 7,829.05, up 3.66 percent (276.34 points).Turnover was six billion rupees, according to provisional stock exchange data. Aitken Spence Hotel Holdings, which Thursday announced a deal with Six Senses for a new resort on the south coast, was the day's third highest gainer, closing at 854.30 rupees, up 134.30 rupees or 18.7 percent. Colombo Dockyard, which was heavily traded, closed at 284.90 rupees, up 11.20, with several off-the-floor deals done at 270 rupees. Last year Colombo stocks rose 120 percent, ending the year as the world's second best performing market. Sri Lanka emerged from a 30-year-conflict in May 2009, raising optimism about future growth.

CEO, Ram Ratings Lanka Ltd, Adrian Perera said that becoming the best performing stock market is a proud moment but we must continue to maintain it with proper checks and balances.

He said that regulators are mindful of this situation and are taking steps to maintain same. Perera noted that it is very important to maintain stability or else it will hurt a lot of small investors if there is a stock market crash. To avoid this situation reporting, transparency and good governance should be maintained.

He said that there should be more liquidity in the market. At present a lot of money is going after a small number of shares. It has lead to certain shares being over priced while some shares are very expensive in Sri Lanka compared to the region. Sri Lanka, Mongolia and Bangladesh are emerging markets and fund managers place a lot of emphasis on these markets. In Bangladesh, prior to a company being listed they have to get a rating. In India, companies have to get themselves rated by two companies prior to a listing. A top stock broker said that becoming the world's best performing market is a historic moment and this will attract more top investors to the country. Also it will make investors who were undecided to look at our country positively. All stock brokers are happy as we were eagerly looking forward to our stock market becoming the number one performing market in the world, he said.