Surge in foreign capital inflows boosts CSE

• ASPI up by 4.93% and S&P SL 20 up 6.85% in 2017 
• Net foreign inflow of Rs. 14.3 b year-to-date in 2017, up from Rs. 383.5 m in 2016
• Net foreign inflows for 21 consecutive trading days 
• Foreign investor contribution to total turnover exceeds 50% for first time since 2008 

The Colombo Stock Exchange (CSE) has in recent weeks garnered 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 April, crossing the 6,500 mark on Thursday, 20 April. The index closed at 6,535.54 points by the end of trading for the week, a 4.93% 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% gain in 2017 (year-to-date) and closing at 3735.83 points for the week. 

CSE said 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, 21 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%, another improvement in comparison with 42.0% in 2016 and 34.4% in 2015. 

This marks the first occasion where foreign investor contribution to yearly turnover has exceeded the 50% mark since 2008, a clear indication of the growing interest among foreign investors in the Sri Lankan capital market.

CSE also said overall trading activity has improved in 2017, with the Daily Average Turnover recorded for trading in 2017 (year-to-date) marking an improvement to Rs. 877.8 million from Rs.737.2 million in 2016. The total turnover for the week ended 21 April was over Rs. 11 billion.