Rs 15 billion shareholder wealth wiped out

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Foreign buying at bargain prices due to the depressed state of the economy saw shareholder wealth worth Rs 14.71 billion wiped out at yesterday’s trading.

Complementing these developments, the consecutive gains that the market made for 12 consecutive market day to Monday was stopped in its tracks, with the ASPI, yesterday over Monday falling by 1.15 per cent to 9,086.24 points, its lowest in two market days, while the S&P SL 20 Index declined by 1.93 per cent to 3,037.59 points, also its lowest in two market days.

Turnover made was Rs 5.41 billion yesterday, the eighth consecutive market day that the bourse made a daily turnover of over Rs three billion. The last time prior to yesterday that the market made over a Rs three billion daily turnover for  a minimum of eight consecutive market days was more than six calendar months ago, where for 31 consecutive market days, from 27 December 2021 to  10 February 2022, it made daily turnovers of over Rs three billion.

Yesterday, the bourse enjoyed a net foreign inflow (NFI) of Rs 136.8 million after a lapse of three market days, though in the calendar year to date it has suffered a net foreign outflow of
Rs 1,379.4 million.

 “Spot” unchanged 31st day

The benchmark, albeit administered market “spot” closed unchanged for the thirty first consecutive market day at Rs 360/364 to the US dollar in two way quotes to yesterday (Tuesday 16 August), market sources told “Finance Today.”

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, they said.

The band in which the “guided market ‘spot’” may currently operate is fixed at +/- three per cent of the officially administered “spot” value, where the latter is applicable for transactions involving the GoSL, CBSL and or between the GoSL and/or CBSL with the market, which was fixed at Rs 360.97 to the dollar yesterday.

They further said, trades in the administered market “spot” (Rs 360/364) yesterday were mainly restricted to “bank-client” outright trades, while the interbank foreign exchange (FX) market was however dominated by swaps, which were outside the domain of the FX market for this purpose.

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  80.50 per cent (Rs 160.99).

Yesterday, the value of this official administered “spot” was fixed at Rs 360.97 to the dollar, while a year ago it was fixed at Rs 199.98. Meanwhile,  the straitjacketed, inflexible administered market “spot” a year ago was fixed at Rs 202/203 to the dollar in two way quotes, unchanged for the twenty sixth consecutive market day to  16 August 2021.

BY Paneetha Ameresekere