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IFC LAUNCHES NEW STOCK INDEXES FOR PERU AND SRI LANKA


Sonia Miklas


WASHINGTON, D.C., Oct. 5 -- The International Finance Corporation's (IFC) Emerging Markets Data Base launched stock price indexes for Peru and Sri Lanka, raising the number of emerging stock markets it covers to twenty two. The IFC Emerging Markets Data Base provides international investors with detailed statistics on stock markets in developing countries. Issued weekly and monthly to subscribers, the IFC Emerging Markets Data Base tracks more than 1,060 stocks establishing representative indexes for stock market performance. The data base was established in 1981 to stimulate the flow of private capital to emerging markets. "We have seen an increased interest among international investors in the stock markets of Peru and Sri Lanka, commented Iyad Malas, manager of IFC's Emerging Markets Data Base. "Adding Peru and Sri Lanka to the data base will both serve the needs of these investors and encourage foreign portfolio investment in these markets." The new indexes for Peru and Sri Lanka track market capitalizati
on in two ways enabling researchers to measure returns to both domestic and international institutional investors -- the Global Index and the Investable Index respectively. The indexes are calculated on an end-of-week and end-of-month basis, and also have price and total returns series. As of the end of September 1993, the 30 stock IFC Global Index for Sri Lanka had risen 21 percent in dollar terms from the end of 1992, in line with the performance of the Colombo Stock Exchange's Sensitive Index, which was up by 13 percent. The IFC Global Index constituents' market value of US$1.1 billion represents about 58 percent of the Colombo Stock Exchange's total capitalization, and accounts for about 60 percent of the US$170 million traded there so far this year. The IFC Investable Index for Sri Lanka contains five stocks, as most stocks could not meet the minimum value traded level of US$10 million per year necessary to be included in the Investable Index. The IFC Investable Index for Sri Lanka has risen 31 percent t

o date in 1993, evidencing the greater demand there for blue chip stocks. (more) Press Release No. 94/ , page 1 of 2 The IFC Global Index for Peru contains 18 stocks valued at US$2.1 billion, representing just over half of the Lima Bolsa's market capitalization and about 65 percent of the value traded there for the year to date. The IFC Global Index for Peru has risen 19 percent, which contrasts sharply with the Bolsa's IBVL index rise of 80 percent in dollar terms. The IFC Investable Index for Peru has seven constituent stocks, whose combined market value was US$1.6 billion. As with the IFC Investable Index for Sri Lanka, the minimum market capitalization and trading activity eliminated many stocks in the IFC Global Index from inclusion in the IFC Investable Index. The IFC Investable Index for Peru performed worse than the Global Index, with the IFC Investable Index for Peru up only 6.5 percent in dollar terms for the year to date. IFC plans to release an Investable Index series for Zimbabwe, and Global and
Investable Indexes for China. These new indexes will be added to the IFC Composite and regional index series with effect from January 1994. IFC, a member of the World Bank Group, is the largest multilateral source of direct loan and equity financing for private sector projects in developing countries. It is also the world's leading source of data on emerging stock markets.