The bourse (stock market) suffered a daily turnover of under Rs one billion for the eleventh consecutive market day to today after 1,151 calendar days, registering a miserly value of Rs 785.79 million recorded in today’s trading alone, dogged by sustained uncertainty, high inflation and high interest rates.
Prior to today, the last time the stock market made daily turnovers of under Rs one billion for at least eleven consecutive market days was more than three years ago when the COVID-19 crisis first hit Sri Lanka. Subsequently for 25 consecutive market days, ie from 30 January 2020 to 6 March 2020, the stock market made daily turnover levels of under Rs one billion. A high interest rate regime is inimical to the growth of the stock market as then; investors are attracted to the fixed income market, rather than to the latter.
Subsequently the benchmark ASPI, today over yesterday (Thursday (11 May) fell by 0.25 per cent to 8,927.74 points and the ‘more sensitive’ S&P SL 20 Index declined by 0.62 per cent to 2,587.89 points. Consequently, the stock market suffered a net foreign outflow of Rs 38.42 million today, though in the calendar year to date it has enjoyed a net foreign inflow of Rs 1.48 billion. The number of shares that changed hands today was 94.67 million.