All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) is ranked among the top 10 best-performing primary equity indices so far in 2024 with a positive price return of 12.96% in US dollar terms, Bloomberg data showed.

According to Bloomberg market data, Sri Lanka’s main index was ranked 7 among the best-performing primary equity indices as of Monday (18), surpassing Japanese and London stock market indices.

Kenya and Kazakhstan are the best-performing stock markets globally so far in 2024 with a positive dollar price return of 28.9% and 20.11% respectively.

In the last week alone, the Colombo bourse gained by 2.63% while the average daily turnover decreased by 13% to Rs 1.77 billion from Rs. 2.04 billion in the previous week as a decline in interest rates shifted investor sentiments toward equities.

The net foreign outflow for last week stood at Rs. 87 million while the Year-to-date net foreign outflow stood at Rs 5,200 million on Friday (15). 

Moreover, the main index recorded its highest in 2024 so far on Friday (15) with 11,356 points as the bourse extended its winning streak to ten sessions. While profit-taking caused some temporary dips, continued buying pressure ensured a positive session. 

First Capital expects the ASPI to range between 13,000- 14,000 by the end of 2024 owing to the anticipated moderate recovery in earnings on the back of tax revisions.

“The substantial decline in interest rates stands as a key catalyst, poised to prompt a market re-rating. This shift is anticipated to drive a notable liquidity transition from fixed income to equity portfolio potentially resulting in a market range of 13,000-14,000 for 2024E,” First Capital said in their equity strategy report.