The stock market passed the Rs one billion turnover mark for the first time after 23 market days today, boosted by the authorities’ 250 basis points rate cut. A “low” interest rate regime boosts the stock market over the fixed income market as investors would turn to the former for better returns, rather than the latter.
Consequently the bourse (stock market) made a Rs 1.34 billion turnover today, complemented by the market making gains for the second consecutive market day, with the ASPI, today over yesterday sharply increasing by 1.59 per cent to 8,691.61points and the S&P SL 20 Index by 2.02 per cent to 2,470.42 points on a nominal share volume of 46.76 million.
However, due to sustained uncertainty, the stock market suffered a net foreign outflow (NFO) for the third consecutive market day to today, with today’s value being Rs 14.49 million, though, in the calendar year to today it has enjoyed net foreign inflows totalling Rs 1.35 billion.