Bourse cheers Gota, Ranil’s resignations

Date:

The bourse, in the first day of trading after the announcements of both President Gotabaya Rajapaksa’s and Premier Ranil Wickremesinghe’s resignations due to Sri Lanka’s economic crisis, made ‘superlative’ gains, with the benchmark ASPI increasing by 3.13 per cent (221.46 points) to 7,302.15 points and the more sensitive S&P SL 20 Index by 4.14 per cent (92.84 points) to 2,337.67 points at yesterday’s trading.

 Further, shareholder wealth gained at yesterday’s trading was Rs 108.84 billion (up 3.54 per cent). Yesterday was also the second consecutive market day that the bourse made gains, though, on pyrrhic turnover levels. In the last market day prior to yesterday which was Friday, turnover made was Rs 385.88 million and yesterday’s Rs 811.15 million respectively. The number of shares traded yesterday was 52.92 million.

Further, the bourse enjoyed a nominal net foreign inflow (NFI) at yesterday’s trading, Rs 3.34 million,  though in the calendar year to date it has suffered a net foreign outflow of Rs 1.09 billion. In the 115 market days that have transpired in the calendar year to date, the bourse has made gains in 64 (55.65 per cent) of those days. Trading hours these days have been restricted due to daily power cuts as the Government doesn’t have sufficient finance to provide electricity round the clock.

“Spot” Unchanged 7th Day

The benchmark, albeit administered market “spot” closed   yesterday to be trading unchanged for the seventh consecutive market day at Rs 360/364 to the US dollar in two way quotes, market sources told “Finance Today.”

However, year on year (YoY) to yesterday, the administered market ‘spot’ was down by between 78.22-79.31 per cent (Rs 158-161) year on year (YoY), thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy, sources said. In like developments, the administered ‘spot’ for official purposes, such as for trades involving CBSL, GoSL and/or CBSL, GoSL and the market, YoY to  yesterday has depreciated by  80.77 per cent (Rs 161.45).

 Yesterday, the value of this official administered ‘spot’ was fixed at Rs 361.35 to the dollar, while a year ago it was Rs 199.90. Meanwhile, the straitjacketed, inflexible administered market ‘spot’ a year ago was fixed at Rs 202/203 to the dollar in two way quotes for the fourth consecutive market day to Friday 9 July 2021. 

By Paneetha  Ameresekere

Popular

More like this
Related

Sri Lanka to temporarily ban all ‘open account’ transactions

Sri Lanka has decided to further tighten its non-essential...

ETI, AAFA extend support to apparel industry 

As Sri Lanka struggles under the weight of the...

CIPM Sri Lanka establish  International Study Centre in Bangladesh

Sri Lanka is currently facing its worst economic crisis...

Sampath Bank’s 1H 2022 profit takes hit from massive impairment charges

Despite the prevailing economic turmoil, Sampath Bank posted a commendable PAT...