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SEC welcomes CSE's record-breaking performance

18 Jan 2021

The Securities and Exchange Commission of Sri Lanka (SEC) welcomes the record-breaking performance of the Colombo Stock Exchange (CSE) as Bloomberg identifies the CSE as the second best performing equity market in the world.  As of 15 January 2021, the CSE saw 61,722 trades which is the highest number of trades in a single day and the All Share Price Index (ASPI) gained 291.34 points, which is the highest ever points gain in ASPI history. Additionally, the CSE identified its highest market capitalisation of Rs. 3.38 trillion. The turnover is believed to be a staggering Rs. 12.4 billion for the following day.  The ASPI of the CSE has recorded a significant growth of 75% during the last eight months. The blue-chip S&P SL 20 Index has surged by almost 65% since May 2020. The average daily turnover of the CSE during the first 15 days of the month of January 2021 is Rs. 7.94 billion compared to Rs. 1.8 billion during the year 2020. It is believed to be a huge leap from the daily average turnover of Rs. 711 million recorded during 2019. This performance of the CSE indicates the strong confidence the investors have on the market. It is also important to note that local investors have stepped in at a time when there has been a foreign outflow and their significant contribution that amounted to 80% of the total market turnover in 2020. There have been several contributory factors to this performance of the stock market and the main one amongst them was the incisive bank interest rates by the Central Bank of Sri Lanka last year. The stock market has become the preferred choice of a large number of investors due to this prevailing low interest rate regime. Moreover, political stability coupled with progressive steps taken by the Government to develop the capital market also contributed with positive effects. 


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