Stock market’s S&P SL20 Index marks second historic gain in a week

22 May 2020 12:00 am

• Gained 6.28% yesterday surpassing previous record of 5.25% on May 18
• Both indices returned to pre-market closure levels while recovering from negative returns 
• CSE recorded 45% higher daily average turnover in last 9 days compared to YTD average 
• Market capitalization improves by Rs.108.7bn since May 11, 2020
• CSE praises local investors for their buying appetite towards attractive valuations 

The S&P SL20 Index of the Colombo Stock Exchange (CSE) gained 6.28 percent during trading yesterday, bettering the record for the highest ever daily percentage gain of the index which stood at 5.25 percent, set on May 18, 2020.

This development marks the second occasion the S&P SL20 Index made historic gains during this week (week starting 18th May 2020). 

Having recorded negative returns on May 11 and 12, 2020 upon reopening the market for trading following an extended closure due to the COVID-19 pandemic, the All Share Price Index (ASPI) and the S&P SL20 Index have made consistent gains on trading sessions that have followed. 

The ASPI and the S&P SL20 Index which ended trading yesterday at 4,784.80 and 2,037.04 respectively, recorded the highest levels in both indices since March 13, 2020, indicating that both indices have returned to pre-market closure levels while recovering the negative returns on May 11 and 12, 2020, which were experienced immediately after recommencing trading. 

The CSE recorded high volumes in terms of turnover during the past nine days recording Rs.1.73 billion daily average turnover, which is 45 percent higher than the year-to-date (YTD) daily average of Rs.1.19 billion as of yesterday.

This is an indication of an improvement of trading activity since recommencing market operations on May 11, 2020.
The market capitalization has also improved since recommencing trading, adding Rs.108.7 billion in value to the stock market since May 11, 2020. 

The Colombo Stock Exchange in a statement said the exchange is encouraged by the resilience of the Sri Lankan stock market in the face of unprecedented times sparked by COVID-19. 

“The CSE is particularly encouraged by the interest of local investors since recommencing trading operations, who have demonstrated an appetite for the attractive valuations in the market.

The Sri Lankan stock market continues to be one of the attractive markets in the region in terms of valuations, and we are confident of continued interest in the stock market,” the CSE statement added.