BY Paneetha Ameresekere
Rs 577.75 billion worth of shareholder wealth was wiped in the three consecutive market days to yesterday due to the stock market being continuously gripped with sustained uncertainty led by unrest in the island due to the shortage of essential items, coupled with rising rates because of Sri Lanka suffering over a 20 per cent inflation for a sustained period of time.
Rising rates are inimical to the growth of the stock market as investors prefer to invest in the fixed income market rather than in the stock market for better returns Consequently, the ASPI fell to a 184 day low, declining by 1,160.43 points (11.10 per cent) to 9,294.89 points in the three market days to yesterday, while the S&P SL 20 Index declined to a 219 day low, falling by 442.93 points (12.17 per cent) to 3,196.19 points in the review period. Market capitalization during the review period fell to a 188 day low of Rs 3.97 trillion yesterday.
The ASPI, S&P SL 20 Index and market capitalization last fell to lower values than these on 27 September 2021, 23 August 2021 and 23 September 2021 with figures of 9,269.65 points, 3,147.96 points and Rs 3.93 trillion, respectively.
Coinciding with this carnage, the stock market, with taxpayers’ money concluded its three day promotional investor forum in London yesterday.
Meanwhile, the stock market made a Rs 3.30 billion turnover on a share volume of 164.84 million yesterday, while enjoying a net foreign inflow of Rs 367.96 million for the third consecutive market day to yesterday aided by a weaker rupee, with expectations that it will weaken some more, though in the calendar year to date the stock market has suffered a net foreign outflow of Rs 1.82 billion.