Stock Market falls to 18-month low

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The Stock Market fell to a near 18-month low yesterday, due to a combination of sustained uncertainty and high inflation, inimical to its growth.

Consequently, the benchmark ASPI fell for the fifth consecutive market day to yesterday, this time declining by 0.64 per cent to 7,424.56 points. The last time the stock market suffered a lower figure than this was on 31 December 2020 with a figure of 6,774.22 points, led by the uncertainty caused by the Covid-19 pandemic, then. 

Subsequently, investors extended their losses in the five market days to yesterday to Rs 254.89 billion, while the ‘more sensitive’ S&P SL 20 Index which plots the price movement of good stocks known as blue chips also declined for the fifth consecutive market day to yesterday, decreasing by 0.16 per cent to 2,364.92 points, a 23 month low. A figure lower than this last took place at the height of the Covid-19 pandemic on 15 July 2020 with a value of 2,122.94 points, data showed.

The Stock Market also suffered net foreign outflows (NFOs) for the fifth consecutive market day to yesterday, with yesterday’s figure being Rs 40.00 million; thereby increasing NFOs in the calendar year to date to Rs 1.20 billion. Meanwhile, the bourse made a Rs 822.68 million turnover on a 38.59 million share volume yesterday. 

BY Paneetha Ameresekere