Investors respond positively as the stock market remained accessible amidst curfew

Tuesday, 10 November 2020 00:55 - - {{hitsCtrl.values.hits}}

Stock market operations continued seamlessly with no interruptions between 26 October and 6 November amidst an environment where some offices of the Colombo Stock Exchange (CSE) and several Stock broker Offices were located in areas subject to quarantine curfew.

CSE said in a noteworthy development, trading activity during this period indicates that investors have responded positively to the noteworthy initiative taken by all capital market stakeholders to continue to operate the market completely remotely with considerable investor engagement being recorded during this period.

Both Stock Market indices have improved between 26 October and 6 November, with the All Share Price Index (ASPI) improving by 5.4% and the S&P SL 20 Index (S&PSL20) improving by 3.2%. The ASPI closed on Friday November 6th at 6,080.09 points while the S&PSL20 closed at 2,370.30. The period also saw the ASPI crossing the 6,000 mark on 5 November, and reaching its highest point since 6 January. The improvement in the index has also contributed to Rs. 138 billion of value being added to the market’s market capitalisation.

Investors have also actively engaged in the stock market during this period with a daily average turnover of Rs. 2.4 billion, which is considerably higher than the daily average turnover for the rest of the year which is Rs. 1.7 billion. Over 208,000 trades have been recorded during this period, marking strong market participation by investors even during a period of limited economic activity and mobility.

Commenting on the development, CSE CEO Rajeeva Bandaranaike stated: “The positive sentiment among investors continuing even during a period marked by limited economic activity is certainly encouraging. It indicates that investors continue to acknowledge the potential offered through the market at present.

“Investors are continuing to look towards the stock market given the relatively low interest rate environment. The positive trading activity during this period also indicates that investors continue to believe in the resilience and potential of our listed companies and their ability to rise through the pandemic. We are pleased to see that investor sentiment remains positive.”