CSE: Certain stocks perform well

The Colombo Stock Exchange (CSE) during 2013 provided an attractive prospect for investment with a 4.78 percent increase in the All Share Price Index (ASPI) and a 5.79 percent yield on the S and P SL20 Index (S and P 20), CSE sources said.

The ASPI indicated the most notable increase in comparison to previous years, where 2012 and 2011 exhibited negative percentage changes of (-7.1) percent and (- 8.5) percent.

Bank interest rates decreased during the year, following a directive by the Central Bank to tighten monetary policy. Interest rates (Average Weighted Fixed Deposit Rate) dropped from 13.21 percent on December 31, 2012 to 11.96 percent as at November 29, 2013.

The market witnessed certain selected stocks performing exceptionally, providing high yields to investors who diversified their investments over a range of equities. Fifty seven companies have given a return in excess of 15 percent year-on-year for 2013 (with 26 companies giving a return above 30 percent and 31 companies giving a return between 15 to 30 percent).

The year also saw Rs.119.4 billion in capital being raised through the stock market, while corporate debt amounted to Rs. 68.3 billion. The total capital raised during the year surpassed that of the previous year which closed at Rs. 29.58 billion. The CSE continued to attract foreign investors with a net foreign inflow of Rs.34.1 billion (excluding the net flow for corporate debt), building on the net foreign inflow of 2012 at Rs. 40.3 billion. This was supported by Sri Lanka's higher positioning in regional capital markets, being one of the top performers within the region ahead of the Singapore, Bombay and Hong Kong Stock Exchanges.

Capitalising on the attractiveness of the market, the CSE with the Securities and Exchange Commission (SEC) will host a Foreign Investor Forum in Singapore on January 20 and 21 to attract foreign institutional investors. A series of local and foreign investor fora are planned for the coming months, to reach out to international institutional and high net worth investors, and local investors. To encourage and better educate local investors, the CSE has conducted a number of investor education programs throughout the island and will continue to educate the public on the various opportunities for investment in the Sri Lankan capital market.