With the Colombo Stock Exchange (CSE) remaining open for trading during the curfew period between 26 October and 6 November, both of its indices saw an improvement, the CSE announced yesterday (9).
The All Share Price Index (ASPI) went up by 5.4% and the S&P SL20 Index (S&PSL20) grew by 3.2% in this period, which the CSE said was evidence for investors responding positively to its decision to operate despite curfew.
Colombo Fort, where the CSE head office is situated at the World Trade Centre (WTC), was under quarantine curfew throughout this period while the whole of Colombo was under curfew from 30 October till yesterday (9).
“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,” it said.
The CSE said stock market operations continued seamlessly with no interruptions in this period, despite several stock broker offices too being located in areas subject to quarantine curfew. However, foreign investors continued to leave the CSE, as they have done throughout the year, with net sales of over Rs. 2 billion in this two-week period.
The ASPI closed on Friday, 6 November at 6,080.09 points while the S&P SL20 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 2020. 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. 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.”
The CSE remained closed throughout the previous Covid-19-imposed curfew period earlier this year, and the seven-week market closure created uncertainties amongst market participants, particularly among foreign investors, who were unhappy that they were being denied the option of pulling out their investments in a volatile market situation. This, along with other macroeconomic conditions and a bleak outlook, has resulted in a huge outflow of foreign funds from the CSE since its reopening.
The continued operation of the CSE has been made possible due to its recent digitalisation initiative that was completed on 17 September, with the conversion of paper-based statements to electronic forms in order to facilitate companies listed on the CSE to pay dividends electronically to shareholders.
“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,” it said.
The CSE said stock market operations continued seamlessly with no interruptions in this period, despite several stock broker offices too being located in areas subject to quarantine curfew. However, foreign investors continued to leave the CSE, as they have done throughout the year, with net sales of over Rs. 2 billion in this two-week period.
The ASPI closed on Friday, 6 November at 6,080.09 points while the S&P SL20 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 2020. 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. 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.”
The CSE remained closed throughout the previous Covid-19-imposed curfew period earlier this year, and the seven-week market closure created uncertainties amongst market participants, particularly among foreign investors, who were unhappy that they were being denied the option of pulling out their investments in a volatile market situation. This, along with other macroeconomic conditions and a bleak outlook, has resulted in a huge outflow of foreign funds from the CSE since its reopening.
The continued operation of the CSE has been made possible due to its recent digitalisation initiative that was completed on 17 September, with the conversion of paper-based statements to electronic forms in order to facilitate companies listed on the CSE to pay dividends electronically to shareholders.