Rs 137B shareholder wealth wiped out

0
60

Rs 136.83 billion worth of shareholder wealth was wiped out from the stock market saw in the week ended Friday (6) due to sustained political instability compounded by rising interest rates.

Rising rates attract investors to the fixed income market rather than the stock market, with expectations of obtaining better returns. Consequently, the market indices, the ASPI and the S&P SL20 Index declined by 196.78 points (2.58 per cent) to 7,427.48 points and 108.03 points (4.31 per cent) to 2,401.21 points respectively,  week-on-week (WoW) to Friday (6).

However, as a consolation, the stock market enjoyed net foreign inflows for the fourth consecutive market day to Friday, with Friday’s value being Rs 135.03 million; though in the calendar year to date it has suffered a net foreign outflow of Rs 1.16 billion.

Meanwhile, turnover made by the stock market on Friday was a nominal Rs 973.91 billion on a share volume of 40.79 million.

BY Paneetha Ameresekere