Rs 65 Billion Shareholder Wealth Wiped Out

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Stocks fell for the fourth consecutive market day to yesterday due t the uncertain political and socioeconomic environment prevailing in the country.

The last time the bourse fell  for four consecutive days was 20-days ago from 4 July-7 July leading up to the masses booting out President Gotabaya Rajapaksa two days later on 9 July because of the prevalence of a similar environment.

Consequently, shareholder wealth wiped out in the four market days to yesterday amounted to Rs 64.56 billion. Subsequently, the ASPI fell to a nine day low of 7,626.69 points and the S&P SL 20 Index to a 12-day low of 2,409.12 points at the end of yesterday’s trading.

The last time that the ASPI and the S&P SL 20 indices made lower values than those of yesterday were on 18 July and 15 July with figures of 7,536.61 and 2,400.17 points respectively, statistics showed. Turnover made yesterday was Rs 1.05 billion on a 54.26 million share volume

However the bourse enjoyed a net foreign inflow of Rs 282.33 million yesterday, though, in the calendar year to date it has suffered a net foreign outflow of Rs 493.6 million.     

“Spot” Unchanged

The benchmark, albeit administered market “spot” closed unchanged for the eighteenth consecutive market day at Rs 360/364 to the US dollar in two way quotes yesterday, 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.

Paneetha Ameresekere