Shareholder wealth wiped out increases to Rs 289 billion

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Shareholder wealth wiped out increased to Rs 280.68 billion in the three consecutive market days to yesterday due to sustained uncertainty buttressed by over 30 per cent inflation. High inflation makes it more conducive to invest in the interest rate market rather than in the bourse for better returns.

Consequently the ASPI and the S&P SL 20 Indices recorded their lowest figures after 29 days, with the ASPI declining by 172.48 points (2.21 per cent) to 7,631.13 points yesterday over its previous market day Monday’s value and the S&P SL 20 Index by 84.58 points (3.33 per cent) to 2,454.48 points.

 Figures lower than these were last recorded on 9 May with values of 7,516.63 and 2,443.05 points for the ASPI and S&P SL 20 indices respectively. Market indices in the three market days to yesterday have seen the ASPI fall by 468.38 (5.78 per cent) and the S&P by 217.24 points (8.13 per cent), respectively, data showed.

Consequently the bourse suffered a net foreign outflow (NFO) of Rs 112.62 million yesterday, increasing NFOs in the calendar year to date to Rs 1.19 billion. Meanwhile, the bourse made Rs 1.90 billion turnover on a share volume of 95.82 million yesterday. Meanwhile,the Central Bank of Sri Lanka (CBSL) last Friday (3 June) announced its largest-ever Treasury (T) Bill auction to date, the issuance of Rs 98 billion worth of T Bills to the market today (Wednesday, 8 June). The previous highest was for the issuance of Rs 97.5 billion worth of T Bills made twice before last month (4 May) and also in the month before (20 April).

By Paneetha Ameresekere