The stock market suffered a daily turnover of under Rs one billion for the fifteenth consecutive market day to today after 1,158 calendar days, registering a miserly value of Rs 524.49 million at today’s trading alone, dogged by sustained uncertainty, high inflation and high interest rates.
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.
Prior to today, the last time the stock market made daily turnovers of under Rs one billion for at least 15 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.
Consequently, the benchmark ASPI fell for the second consecutive market day to today, this time by 0.72 per cent to 8,716.96 points and the ‘more sensitive’ S&P SL 20 Index declined for the sixth consecutive market day, this time by 1.17 per cent to 2,478.40 points.
Resultantly, the stock market suffered net foreign outflows for the second consecutive market day to today, with today’s figure alone being Rs 25.90 million, though in the calendar year to date it has enjoyed a net foreign inflow of Rs 1.46 billion. The number of shares that changed hands today was a nominal 48.50 million.