Colombo Stock exchange excels
Amid Asia's post-crisis boom it was the tiddlers among the region's
stock markets that surged ahead in 2010, fuelled by a flood of easy
money into emerging economies.
Among the bigger bourses Hong Kong was the standout thanks to some of
the world's biggest listings.
But the past 12 months belonged to previously overlooked markets such
as Colombo, Bangkok and Manila, with Mumbai also sprinting ahead.
Sri Lanka's stock index, enjoying in a post-civil war peace dividend,
soared 96 percent, making it the second best performer in the world
after hard-to-access Mongolia's national bourse, according to the
Colombo exchange.
Snapping at Sri Lanka's heels was Bangladesh (up 80 percent for the
year), Indonesia (46 percent), the Philippines (up 38 percent), Malaysia
(19 percent), Thailand (up more than 40 percent) and South Korea (up
nearly 22 percent).
In each case local factors played a role - disturbances near
Bangladesh's stock exchange in which bricks were hurled and furniture
was set on fire demonstrated how local sentiment can affect that market.
But a decisive factor was foreign cash flowing into the strengthening
emerging markets as investors in the West, where interest rates are at
record lows, sought out better returns for their money. The United
States' decision to effectively print more cash with its quantitative
easing also helped, weakening the dollar and pushing investors into
strengthening Asian currencies. AFP |