Tuesday Nov 05, 2024
FT
Tuesday Nov 05, 2024
Monday, 21 September 2020 00:25 - - {{hitsCtrl.values.hits}}
The value of the Colombo Stock Exchange (CSE) rose by Rs. 123 billion last week bringing the total increase since early May to a whopping Rs. 442 billion.
When the CSE resumed trading following the COVID-19 induced shutdown, the market capitalisation on 11 May was Rs. 2,044 billion and by Friday last week it had risen to Rs. 2,486 billion, reflecting a near 21.6% increase. In the previous week, the figure was Rs. 2,363 billion.
Last week’s sharp rise was following a stellar performance with both price indices gaining by over 5% and average daily turnover topping Rs. 3 billion mark for the first time post resumption after CSE was shut down as part of measures to curb the spread of COVID-19.
Performance of the Colombo bourse so far has prompted some brokers to refer as ‘Super September’.
Whilst the rally post-COVID-resumption was driven by local high-net-worth investors and institutions, last week the retailers joined in picking mid-cap stocks.
Brokers attributed the strong momentum last week to a host of positive news from policymakers as well as from corporates.
During the week, the ASPI and S&P SL20 gained 5.18% and 6.49%, respectively.
Since 11 May, the ASPI has risen by 1,325 points or 30% and the S&P SL20 by 750 points or 42.7%.
The only disturbing development is year to date net foreign outflow topping the Rs. 37 billion mark last week but capital market prompters are taking strength from the fact the depth, resourcefulness and positive outlook of the local investor base by absorbing the foreign selling.
