Value-weighted price return index for plantation sector of Colombo Stock Exchange of Sri Lanka
by B.T. Katangodage; A.W. Wijeratne
International Journal of Agricultural Resources, Governance and Ecology (IJARGE), Vol. 12, No. 1, 2016

Abstract: Plantation sector plays a vital role in Colombo Stock Exchange (CSE) in Sri Lanka. This study constructed a Plantation Sector Index (PSI) for comparing the performance of the sector during war and post-war periods. Results indicated a significant decline in PSI during war period and a growth in post-war period. Further, the comparison of PSI with All Share Price Index (ASPI) of CSE showed PSI's defensive stock behaviour during the two periods. Finally, the study employed best-fitted ARIMA (1,1,0) model and seasonal ARIMA (0,1,1) × (0,1,1)30 model of post-war period to forecast PSI compared to Holt-Winters method. Holt-Winters method provided a significantly best prediction for PSI during post-war period with the level (α = 0.2), trend (β = 0.2) and the seasonal (γ = 0.2) components under 95% confidence interval. Therefore, PSI would be recommended for financial analyses, and investment decision making in plantation sector.

Online publication date: Fri, 12-Feb-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Agricultural Resources, Governance and Ecology (IJARGE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com