Business

Market forced to shut within first minute with record low volumes

The brand new circuit breaker system at the Colombo Stock Exchange (CSE) was activated within the first minute of opening today, bringing the market to a close with turnover at a meager Rs. 24 million.

The S&P SL20 fell 196.93 points or 10.11% to 1,750.49, triggering the circuit breaker and closure of the market for the day, on the first day of trading at the CSE after a seven-week closure.

The All-Share Price Index (ASPI) fell 179.20 points or 3.92% to 4,392.43.

The CSE debuted a new circuit breaker system today to stop the expected hemorrhaging if it got out of hand. The Securities and Exchange Commission of Sri Lanka (SEC), which regulates the CSE, on 30 April, introduced a new system under which the market will automatically close for the day if the S&P SL20 drops by 10% or more.

The curfew imposed in the evening on 20 March had made the CSE the stock market that had been closed for the longest period in the region due to Covid-19. In fact, only the Dhaka Stock Exchange in Bangladesh has been closed for a somewhat similar period, having shut its doors on 29 March. Despite many countries around the world being in a state of lockdown or curfew, the stock exchanges of these countries have generally been open for trading.

To be updated…..