Rs 240B shareholder wealth wiped out

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The stock market saw Rs 240.2 billion worth of shareholder wealth wiped out in the week ended Friday (17), Week-on-Week (WoW), as panicky investors exited from the market, bracing themselves for the worst amid a deteriorating socioeconomic situation, underlined by nearly mile-long queues seen at almost all fuel stations running for days in major cities, with the country running out of US dollars to make essential imports, including fuel.

Subsequently, the S&P SL 20 Index, which plots the price movement of good stocks known as blue chips fell to a 23-month low, declining by 191.92 points (7.50 per cent) to 2,368.65 points WoW, while the ASPI, which plots the movement of all stocks registered in the Colombo Stock Exchange declined by 426.54 points (5.40 per cent) to 7,472.39 points WoW to fall to a 42-day low.

Lower values than these that the market indices had registered were the S&P SL 20 recording a figure of 2,122.94 points on 15 July 2020, amid the Covid-19 pandemic and the ASPI, 7,427.48 points on Friday 6 May 2022, on the eve of the 9 May riots.

The stock market also suffered a Rs 17.29 million net foreign outflow (NFO) on Friday, increasing NFOs in the calendar year to date to Rs 1.16 billion. Meanwhile, the stock market made a Rs 1.24 billion turnover on a 62.60 million share volume on Friday. 

By Paneetha Ameresekere