Sri Lanka’s stock market on a gradual return to normalcy
The Colombo Stock Exchange (CSE) in Sri Lanka is reportedly on a gradual return to normalcy following the slump shown during the first few days after the market reopened last Monday (11).
The CSE started to show signs of recovery from last Wednesday (13).
On Wednesday, in a convincing fashion gaining by nearly 3% as bargain hunters stepped up buying.
The All Share Price Index (ASPI) had gained by 2.8% and S&P SL20 Index improved by 2.6% whilst market capitalisation increased by Rs. 56 billion.
According to reports, this was after near 14% dip in the past two days and Rs. 151 billion in value wiped off when market opened following a seven-week shutdown owing to COVID-19 pandemic.
Turnover had amounted to Rs. 978.5 million with 42.5 million shares traded while total foreign sales accounted for 68% of the turnover whilst Acuity Stockbrokers said non-nationals were net sellers to the tune of Rs. 329.5 million in comparison to Rs. 114 million on Tuesday (12).
OSL take:
The gradual return to normalcy recorded by Sri Lanka’s stock market is an indication of the overall economic activities in the country. Sri Lanka has always shown resilience in the face of adverse economic conditions and has a proven track record in the matter. Therefore foreign businesses/investors could be assured of good returns if business/investment dealings are carried out with Sri Lanka.
| Article Code : | VBS/AT/20052020/Z_1 |