The stock market fell to a 64 calendar low by declining for the seventh consecutive market day to yesterday after a 123 calendar day lapse due to sustained uncertainty and a high interest rate regime aided by high, double digit inflation.
Subsequently the benchmark ASPI sharply fell by 0.67 per cent to 9,125.32 points over its previous market day’s (Monday 24 April close) and the more sensitive S&P SL 20 Index declined by one per cent to 2,656.87 points on a low Rs 1.14 billion turnover. Prior to yesterday, market indices last registered lower figures than the above was on 20 February with the ASPI registering a 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 stock market as then; investors are attracted to the fixed income market, rather than to the latter.
Meanwhile, prior to yesterday’s seventh 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.
Nonetheless, the stock market enjoyed net foreign inflows (NFIs), albeit nominal, for the fourth consecutive market day to yesterday (25 April), with yesterday’s NFIs amounting to Rs 241.60 million, thereby increasing NFIs in the calendar year to date to Rs 1.56 billion. The number of shares that changed hands yesterday was a nominal 61.31 million.