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.
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