The more sensitive S&P SL 20 Index fell to a 99 calendar day low today as the stock market fell for the ninth consecutive market day 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 S&P SL 20 Index declined by 0.80 per cent , today over yesterday Wednesday to 2,625.20 points and the benchmark ASPI fell to a 69 calendar day low by declining by 0.87 per cent to 9,012.40 points on a low Rs 928.75 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, the S& P SL 20 Index last registered a lower figure than the above was on 18 January with a value of 2,607.38 points and the ASPI on 17 February with a figure of 8,848.36 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 sixth consecutive market day to today (27 April), with today’s NFIs amounting to Rs 54.85 million, thereby increasing NFIs in the calendar year to date to Rs 1.69 billion. The number of shares that changed hands today was a nominal 35.86 million.