The stock market fell for the eighth consecutive market day to today after four years due to sustained uncertainty and a high interest rate regime aided by high, double digit inflation. A similar fall was last witnessed in the immediate aftermath of ‘Bloody Easter Sunday’ that took place on 21 April 2019, where the stock market fell for 10 consecutive market days, then.
Subsequently the benchmark ASPI, today over yesterday (Tuesday 25 April) fell by 0.37 per cent to 9,091.72 points and the more sensitive S&P SL 20 Index by 0.39 per cent to 2,646.48 points on a low Rs 740.53 million turnover.
Prior to today, the stock market last fell for at least eight consecutive market days was from 2 May 2019 to 15 May 2019, where it declined for 10 consecutive market days then, buffeted by ‘Bloody Easter Sunday’ which took place on 21 April 2019.
Meanwhile, market indices last registered lower figures than the above were 65 calendar days ago on 20 February with the ASPI registering value of 9,082.33 points and the S&P SL 20 Index, 2,644.27 points, respectively. A high interest rate regime is inimical to the growth of the bourse as then; investors are attracted to the fixed income market, rather than to the latter.
Nonetheless, the stock market enjoyed net foreign inflows (NFIs), albeit nominal, for the fifth consecutive market day to today (26 April), with today’s NFIs amounting to Rs 70.98 million, thereby increasing NFIs in the calendar year to date to Rs 1.64 billion.
The number of shares that changed hands today fell to a 22 calendar day low of 34.09 million. A lower share volume than this was last registered on 4 April with a figure of 25.03 million.