Around 75 firms to list in Colombo Stock Exchange
Sri Lanka's Securities and Exchange Commission (SEC) said on Tuesday
it aims to boost the Colombo Stock Exchange's capitalization by 45
percent to a 3.3 trillion rupees ($ 29.67 billion) by the end of 2011.
Most growth will come from listing up to an additional 75 companies
to try to boost liquidity and increase the proportion of shares
regularly traded, SEC Director General Malik Cader told Reuters in an
interview.
"There will be one trillion (rupee) in new market cap by 2011," Cader
said. "This is a very easy and reachable target for the simple reason
being the listing of anything between 60 to 75 companies," he said.
Five large companies in which the Government has a large stake, will
be listed in a move to replicate on a smaller scale India's success in
raising more than US $ nine billion from the sale of stakes in state
companies.
Local retail investors and Government funds have been aggressive
buyers of the market.
Cader said 35 finance companies and some small private firms will be
listed by June. All insurance firms will be made to list to help
increase liquidity and transparency.
The current market capitalization is 2.3 trillion rupees ($20
billion), having doubled in the first 10 months of 2010.
"We expect a lot of foreign inflows particularly next year," Cader
said.
To entice overseas money, the SEC might consider increasing the
foreign holding limit in the stock market slightly from the current 20
percent limit.
Reuters
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