The bourse fell for the sixth consecutive market day to today after a 122 calendar day lapse due to sustained uncertainty and a high interest rate regime, aided by high, double digit inflation, resulting in the benchmark ASPI sharply declining by 0.79 per cent to 9,187.29 points over its previous market day’s (Friday 21 April close) and the more sensitive S&P SL 20 Index falling more steeply by 1.01 per cent to 2,683.75 points on a low Rs 678.66 million turnover. The bourse also registered daily turnovers of under Rs one billion for four consecutive market days to today after a 287 day hiatus.
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. Prior to today’s sixth consecutive market day fall, the last time such a phenomenon took place was from 15 December to 23 December 2022, where the bourse fell for seven consecutive market days in that period.
Also, prior to today, the last time the bourse registered daily turnovers of under Rs one billion for at least four consecutive market days was from 5 July to 11 July 2022, where for five consecutive market days, the bourse recorded daily turnovers of under Rs one billion, then.
Further, prior to today, market indices registered lower values than the above were 20 calendar days ago, where the ASPI recorded a figure of 9,173.97 points and the S&P SL 20 Index 2,664.27 points respectively. Prior to today, the bourse last registered a lower turnover than the above was five calendar days ago on 19 April where it made a Rs 632.74 million turnover.
Nonetheless, the stock market enjoyed net foreign inflows (NFIs), albeit nominal, for the third consecutive market day to today, with today’s NFIs amounting to Rs 79.21 million, thereby increasing NFIs in the calendar year to date to Rs 1.32 billion. The number of shares that changed hands today was
a nominal 51.18 million.