Colombo Stock Exchange (CSE) today said that it plans to scrap the Milank Price Index (MPI), to avoid a duplication that has arisen as a result of the recent introduction of the S&P SL20 Index with effect from January 1, 2013.
“This is an important step for the CSE as we did not have a globally recognized index operating in the country previously. We feel the discontinuation of the Milanka Price Index as a result is also the correct measure to take as it would be a duplication of processes to maintain both indices.” CSE Chairman, Krishan Balendra said.
According to CSE, S&P currently represents 54 percent of the total market in contrast to the MPI's comparatively lesser representation of 22 percent.
The CSE also said that in a bid to reach out to potential investors, it will be opening four new branches in Anuradhapura, Ratnapura, Hambantota and Batticaloa.
The CSE further stated that it will formulate a joint committee with the Securities and Exchange Commission to spearhead joint initiatives to develop the capital market.