The benchmark All Share Price Index (ASPI) crossed 7000 points level yesterday for the first time since 24 November 2015 closing the trading day on 7,036.76 points, the Colombo Stock Exchange (CSE) said in a statement.
The ASPI crossed the 7000 mark for the first time on 1 October 2010 and reached its highest points level recording 7,811.80 points on 14 February 2011. The Index and overall market activity continued its upward momentum from 2020 onwards with the ASPI recording a growth of 4% in the first three days of 2021, and the market generating a total turnover of Rs. 18 billion. The ASPI has recorded a 66% increase since reaching its lowest point in over a decade on 12 May 2020.
The S&P SL20 index, which includes the 20 largest and most liquid stocks which declined by 4 points yesterday has also gained 2.4% over the past three days tracking back points losses as a result of the pandemic back in March 2020 to record its highest since 25 February 2020 closing the trading day on 2,703.19 points.
The overall market capitalisation of the CSE has also grown significantly over the first three days of trading for the year adding Rs. 115 billion and closing the day on Rs. 3.08 trillion – which is the highest recorded since April 2018.
Commenting on the market performance CSE CEO Rajeeva Bandaranaike said: “We are greatly encouraged by the high volumes and market activity recorded since mid-last year which has continued into the New Year. The continued low interest rate environment has led to an inflow of funds into the stock market. We will continue to work closely with the market regulator, stockbrokers and other stakeholders to make the stock market more accessible.”
State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabral also hailed the market performance tweeting: “Happy to see @CSE_Media pass ASPI 7000 mark again. The last time it was 7000 was pre-2015. This is a reflection of the #investors’ acceptance of our Govt’s policies. Business #confidence is high despite ill-advised #rating actions @CBSL, @FitchRatings @IMFNews @MoodysInvSvc #lka”.
(FT)