Friday 11 July 2014

Record Rs 119 b raised from primary market in 2013

A record Rs 119.4 billion was raised in the Primary market in 2013, while 28 Debt Initial Public Offerings (IPOs) also raised a record amount of Rs 68.2 billion. In addition secondary market activity a total turnover of Rs 2.2 billion was recorded in debt trading in 2013 as against Rs 75.1 million recorded in 2012.This was a significant increase.

According to the annual report review of 2013 the Deputy Director General and Officer in Charge, Securities and Exchange Commission (SEC) Dhammika Perera said, the CSE came fifth in the performance metrics in the greater Asian region. "Only Karachi at 56%, Vietnam at 22%, Bursa Malaysia at12.4% and Taiwan at 11.8% were placed ahead of the CSE in 2013. On the other hand, CSE's performance was tangibly ahead of India's National Stock Exchange at 3.6%, Bombay Stock Exchange at 3.3% and Hong Kong Stock Exchange at 2.9 %."

The stock market recorded a steady growth during 2013 with the benchmark All Share Price Index (ASPI) recording a growth of 4.8% and the Blue chip S&P SL 20 index recording an increase of 5.8%. The ASPI closed the year at 5,912.8 points while the S&P 20 closed at 3,263.9 points. This is as against 7.1% negative growth recorded by the ASPI in 2012. S&P 20 Index was launched in 2012.

The total Market Capitalisation of the Colombo Stock Exchange (CSE) stood at Rs 2,459.9 billion (US$18.8 billion) at the end of the year 2013, an increase of 13.4% as against the previous year end of Rs 2,167.6 billion.

A total turnover of Rs 200.4 billion was recorded in 2013 with an average daily turnover of Rs 828.4 million. Foreign investors accounted for 36.1% of the total market turnover while the domestic investors accounted for the balance 63.9%. In 2012 foreign and domestic investors accounted for 24.9% and 75.1% of the total market turnover respectively. The initiatives taken by the SEC together with other market participants to attract foreign investors have no doubt contributed to the growth of the foreign investor contribution in 2013.

Foreign investors were the net buyers in the market with net purchases of Rs 33.9 billion in 2013. (Rs 22.7 billion recorded from the Secondary market and Rs 11.1 billion recorded from the Primary Market). This excludes the net foreign flow for corporate debt.

In market mechanics the market fundamental valuations also stayed within the emerging-frontier domain. The P/E multiple was 15.9 x earnings reflecting no change in the P/E valuation from 2012.

(SS) www.dailynews.lk

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