S&P SL 20 Index marks second historic gain in a week

Friday, 22 May 2020 00:00 - - {{hitsCtrl.values.hits}}

Index gains 6.28% during trading, tops record established on 18 May
Says latest gains indicate indices have returned to pre-closure levels
Market capitalisation improves, Rs. 108.7 b in value added
CSE chuffed by market resilience and domestic appetite

The S&P SL20 Index of the Colombo Stock Exchange (CSE) gained 6.28% during trading yesterday, bettering the record for the highest-ever daily percentage gain of the index, which stood at 5.25% set on 18 May, the Colombo Stock Exchange (CSE) said in a statement.

This development marks the second occasion the S&P SL20 Index has made historic gains during this week.

Having recorded negative returns on 11 and 12 May upon reopening the market for trading following an extended closure due to the COVID-19 pandemic, the All Share Price Index (ASPI) and the S&P SL20 Index have made consistent gains on trading sessions.

“The ASPI and the S&P SL20 Index, which ended trading yesterday at 4,784.80 and 2,037.04, respectively, recorded the highest levels in both indices since 13 March, indicating that both indices have returned to pre-market closure levels while recovering the negative returns on 11 and 12 May, which were experienced immediately after recommencing trading.”

The CSE recorded high volumes in terms of turnover during the past nine days, recording Rs. 1.73 billion daily average turnover, which is 45% higher than the YTD daily average of Rs. 1.19 billion as of yesterday. This is an indication of an improvement in trading activity since recommencing market operations on 11 May.

Market capitalisation has also improved since recommencing trading, adding Rs. 108.7 billion in value to the stock market since 11 May.

The CSE, in its statement, said the exchange is encouraged by the resilience of the stock market in the face of unprecedented times sparked by COVID-19.

“The CSE is particularly encouraged by the interest of local investors since recommencing trading operations, who have demonstrated an appetite for the attractive valuations in the market. The stock market continues to be one of the attractive markets in the region in terms of valuations, and we are confident of continued interest in the stock market.”