The Colombo Stock Exchange gained a lot of attention recently when it became the best performing stock exchange in the world in for the year 2009 as it jumped 125.2 percent in market capitalization during that year.
This Colombo Stock Exchange is still one of the best performing stock exchange in the entire world despite the economic crises that has hit many economies worldwide. Also referred to as CSE, is the main stock exchange in the island nation of Sri Lanka. This stock exchange is also noted for it’s fully automatic trading platform which was one of the first automated stock exchanges in the world and also one of the members of World Federation of Exchange.
For a long time this Colombo Stock Exchange was a under performing stock exchange lagging far behind than its potentiality. But after the end of 20 year long war with Separatist Tamil Tigers on 2009 the stock exchange saw a massive increase in it’s stock indexes creating new records almost every week for quite some time now. The market capitalization of Colombo Stock Exchange reached the 1 trillion Sri Lankan Rupee mark for the first time in the country’s history only few months after the war on 6th October 2009 and continued its rapid record breaking increases throughout the 2009 and still continues in 2010. It is a ideal stock exchange to invest for this reason since it is far from reaching it’s full potential market capitalization and many old large companies in the Island are yet to get listed on the exchange but hope to offer their first IPOs soon.
There are two main indexes in CSE. They are the All Share Price Index (ASPI) and the Milanka Price Index (MPI). Colombo Stock Exchange is also famous for having a very good automatic trading platform, which also happens to be one of the first fully automatic stock exchanges in Asia.
Considering all these CSE is continuously contributing to Sri Lanka’s national wealth by creating value through national securities. It also has branches in smaller cities of the island nation such as Negombo, Kurunegala, Matara and Kandy towns. There are also three main systems operated by CSE are as follows.
1. Central Depository System
2. Automated Trading System
3. Debt Securities Trading System
This is by no means a complete overview of this country’s stock exchange but I hope to write more current news about Colombo Stock Exchange on Sri Lanka News Online website in future and hope this will be a good reference about Colombo Stock Exchange for Investors and anyone interested alike.