Sri Lanka’s stock market, the Colombo Stock Exchange (CSE), has garnered a keen interest among foreign institutional investors, with a surge in foreign activity contributing to a strong showing in both daily turnover levels and the performance of the stock market index.
The local Benchmark All Share Price Index (ASPI) recorded consistent gains over the month of April, crossing the 6,500 mark last Thursday.
The index closed at 6,535.54 points by the end of trading for the week, a 4.93 percent increase in the index in 2017 (year-to-date).
The S&P SL 20 index, which features the CSE’s 20 largest and most liquid stocks has also improved consistently, making a 6.85 percent gain in 2017 (year-to-date) and closing at 3,735.83 points for the week.
Consistent foreign inflows have been a standout feature of the performance of the market in recent weeks, with net foreign inflows for 21 consecutive trading days by the end of trading on Friday the 21st of April.
Foreign investor activity in 2017 so far, has marked a net foreign inflow of 96.2 (Mn U.S. dollars) year-to-date in 2017, up from 2.6 (Mn U.S. dollars) in 2016 and an outflow of 38.9 (Mn U.S. dollars) in 2015.
The CSE said that foreign investor contribution to total turnover in 2017 stands at 51.4 percent, another improvement in comparison with 42.0 percent in 2016 and 34.4 percent in 2015.
This marks the first occasion where foreign investor contribution to yearly turnover has exceeded the 50 percent mark since the year 2008, a clear indication of the growing interest among foreign investors in the Sri Lankan capital market. (Courtesy Xinhua)