Sri Lanka bourse launches sector indices with S&P
ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange has launched sector indices with S&P Down Jones Indices, which officials said will make international comparisons more accurate and help the bourse in its drive to be a regional hub.
Ten sector indices have been developed on Global Industry Classification Standard (GICS).
Indices are published on Energy, Materials, Industries, Consumer Discretionary, Consumer Staples, Health Care, Financial Sector, Information Technology, Telecommunications and Utilities.
CSE Chairman Vajira Kulatilake said with GICS there was no danger of companies being mis-classified due to different criteria being used in Colombo.
"These indices will elevate Sri Lanka’s equity market and help making it a regional hub."
There will also be two dozen industry group indices. Within the consumer staples, there were indices covering Food and Staples Retailing Industry Group Index, Food, Beverages and Tobacco Industry Group Index and Household and Personal Products Industry Group Index.
The family of indices will help better benchmark with other markets, CSE Chief Executive Rajeeva Bandaranaike said.
Ravi Abeysuriya, Chief Excuctive of Candor Holdings and President Colombo Stockbrokers Association said the indices can be used to compare the performance of individual companies with the sector and help develop Exchange Traded Funds dealing with specific sectors.
"Sri Lanka is a unique economy with numerous opportunities left untapped ad we have seen growing interest in Sri Lanka equities from both domestic companies and international investors in recent years," Alka Banerjee, Managing Director, Product Management at S & P Dow Jones Indices said. (Colombo/Apr06/2016)