Portfolio investments in equity, which reflect foreign equity investment inflows excluding direct investments, recorded a marginal net outflow in 2018.
Portfolio investments in equity consist of foreign investments in the CSE other than direct investment transactions, and account for investments by non-residents, holding less than 10 per cent of the total shareholding of a Sri Lankan enterprise, according to Central Bank Annual Report 2018.
Reflecting the subdued global investor appetite in capital markets of emerging economies, Portfolio investment in the form of equity recorded a net outflow of US dollars 4 million in 2018.
This comprised a net outflow of US dollars 82 million from the secondary market and an inflow of US dollars 78 million to the primary market. According to the report there was a sharp moderation of net inflows to the CSE in 2018, in comparison to 2017 which recorded a net foreign inflow to the CSE amounting to US dollars 359 million, including net inflows to the secondary market amounting to US dollars 202 million and primary market inflows amounting to US dollars 157 million.
0 comments: