Sri Lanka 22 day trading volumes exceed annual activity of several years: CSE
ECONOMYNEXT – Stock trading volumes in the first 22 days of 2021 had exceeded the annual trading volumes seen in 2012, 2013, 2016, 2017, 2018 and 2019, the Colombo Stock Exchange said.
Sri Lanka’s stock market remains one of the best performing in the world with 119 billion rupees in valued recouped after a record single day losses of 245 billion rupees, the bourse said.
“The resurgence of the Sri Lankan stock market has taken place during a period of unprecedented challenges, sparked by a global pandemic,” CSE Chief Executive Rajeeva Bandaranaike said in a statement.
“It is important to note that local investor interest and engagement has been a great strength to the Sri Lankan stock market, at a time when Asian and frontier market equities have experienced foreign capital outflows in-line with global investment trends.”
“The ASPI rising during this period and continuing to be one of the best performing indices in the worldis a positive development for investors, all stakeholders in the Sri Lankan capital market and for Sri Lanka.
“As the global economy recovers from the impact of COVID-19 and foreign capital flows into frontier markets return, the progress achieved during this period will place Sri Lankan equities in a strong position to potentially attract the interest of foreign investors and further consolidate on this growth.”
Sri Lanka stock rise has been helped by money printing which has discouraged savings in banks while also putting pressure on the balance of payments, analysts say.
Meanwhile import controls have also helped some firms.
Foreign investors however had exited. (Colombo/Feb08/2021)