CSE doing better than most regional stock exchanges says CSE, CEO

The Colombo Stock Exchange (CSE) has not recorded a net foreign outflow and its performance is not as bad as many regional Stock Exchanges, CEO, CSE, Rajeeva Bandaranaike said.

Despite a tough global environment the CSE has performed well unlike other markets in the region such as the Chinese, Hong Kong and Singapore markets, which recorded a significant fall in the recent past, he said.

The CSE recorded a 10-12 percent fall in recent weeks which market analysts attribute to the global economic scenario. The drop in global oil prices and the slump in the Chinese economy have affected markets across the globe.

The Chinese Stock Market has fallen by around 37 percent, Singapore 21 percent and Hong Kong by around 20 percent.

“We have performed well compared to regional markets. The fluctuation in the market is a common phenomenon. We are confident the market will revive during the year,” Bandaranaike said.

The All Share Price Index (ASPI) recorded a 9.11 percent dip while the S&P recorded 11.33 percent to-date. The shareholder wealth loss has been Rs. 262.38 billion. Chairman, CSE, Vajira Kulatilaka said the outside world is not helping the CSE. The adverse global economic scenario had a negative impact on market growth. This year is full of challenges and implementations. “We have improved risk management to meet world standards and hope to make major leaps this year.”

He said the Securities and Exchange Commission Act will be amended providing a level playing field and boost capital market growth.

The CSE currently comprises 295 listed entities with Orient Finance PLC being the latest entry last week. The company commenced trading on Thursday marking the first trading day for equity shares issued by the company since its Initial Public Offering (IPO).

“We expect more to come on board this year,” a CSE official said. The CSE conducts investment promotion programs locally and overseas to boost market growth.

The regional branches in Matara, Anuradhapura, Hambantota, Ratnapura, Kurunegala, Jaffna, Kandy and Negombo will help expand services throughout the country and serve domestic investors.

Chairman, Orient Finance, Dr. D. C. Jayasuriya PC said stock markets around the world are structured on responsible investment, due compliance and good governance. These values will be upheld by Orient Finance PLC.

Dr. Jayasuriya thanked investors for the trust placed in Orient Finance and expressed his appreciation to the CSE and Securities and Exchange Commission (SEC) for the assistance provided.

“We are pleased to see an increasing number of companies showing an interest in listing on the CSE, especially considering the recent initiatives to develop the stock exchange and give it world-class status,” the CSE Chairman said.

The Sri Lanka Investment Summit conducted by FinanceAsia will be held next month in Singapore. It will explore trade and investment opportunities for Asia’s Sovereign Wealth Funds, Family Offices, Public and Private Pension Funds and other financial investors in Sri Lanka’s markets.

FinanceAsia is a Hong Kong-based publication reporting on Asia’s financial and capital markets through a daily website and monthly magazine.

- LF