Surge in foreign capital inflows boosts CSE

„ASPI up 4.93% and S&P SL 20 up 6.85% in 2017 „Net foreign inflow of Rs.14.3bn year-todate in 2017 compared to Rs.383.5mn in 2016 „Net foreign inflows for 21 consecutive trading days „Foreign investor contribution to total turnover exceeds 50% for firs

The Colombo Stock Exchange (CSE) in recent weeks 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 indices.

The benchmark All Share Price Index (ASPI) recorded consistent gains over the month of April, crossing the 6,500 mark on Thursday the 20th. The index closed at 6,535.54 points by the end of trading for the week, a 4.93 percent increase in the index year-to-date. The S&P SL 20 index, which features CSE’S 20 largest and most liquid stocks has also improved consistently, making a 6.85 percent gain yearto-date and closing at 3735.83 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 Rs.14.3 billion, a vast improvement compared to previous years, which recorded an inflow of Rs.383.5 million in 2016 and an outflow of Rs. 5.3 billion in 2015.

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 year 2008, a clear indication of the growing interest among foreign investors in the Sri Lankan capital market.

Overall trading activity has also improved in 2017, with the daily average turnover recorded for trading year-to-date marking an improvement to Rs. 877.8 million from Rs.737.2 million in 2016.

The total turnover for the week that ended on 21st April 2017 was over Rs. 11 billion.