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Friday January 21st, 2022
Markets

Sri Lanka bourse gain 80 pct in 2021; sees highest IPO

ECONOMYNEXT- Sri Lankan stocks gained around 80 percent for the year and saw the highest Initial Public Offers in the year as excess money printing to maintain lower interest rates left investors with no other options.

On Friday, the main stock index gained for a third straight session, hitting an all-time high, helping the index to end 1.72 percent up for the year.

The main stock index gained 206.26 points, to 12,226.01, its highest close ever, increasing 80.5 percent from the previous year’s end of 6774.22 points.

The market traded for 249 days this year.

The bourse suffered a net foreign outflow of 51.8 billion rupees this year compared with 22.8 billion rupee net foreign inflow last year.

On Friday an 11.64 percent gain in Browns Investment and a 159.49 rise in LOLC General Insurance, which saw the debut trading after the Initial Public Offering, helped boost the index with foreign investors buying a net 4.5 million rupees worth of shares.

Speaking at the LOLC General Insurance trade launch ceremony, the CEO of the Colombo Stock Exchange Rajeeva Bandaranaike said 2021 was a record year for the bourse’s primary market, and over 118 billion rupees in terms of capital has been raised from debt-equity, rights issues, and private placements.

“We have had 13 equity issues this year, raising nearly Rs. 12 billion. The CSE is seeing a healthy appetite among local investors for equity IPO.”

The day’s turnover was 8.2 billion rupees, way about this year’s daily average of around 4 billion rupees. Last year’s daily average turnover was 828.4 million rupees.

(Colombo/Dec31/2021)

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