The Colombo Stock Exchange suffered a 5% drop yesterday, similar to Tuesday, triggering circuit breakers that halted trading, giving time for investors to digest the sharp drop and prevent a further rout.
CSE which commenced for regular trading after the cool off period of 30 minutes recovered slightly to end the day on a 4.66% drop from previous close.
The bench mark ASPI closed on 5,019.55 points dipping 3.55% from its previous close. A Rs.514 million turnover was recorded at the CSE yesterday.
Market sources told Daily News Finance yesterday that a trading halt is imposed to allow investors to digest the drop and to give them time to consult and make an informed decision and not be caught up in panic selling.
Meanwhile, the performance of both the All Share Price Index (ASPI) and S&P SL20 Index on Wednesday despite the steep decline on Tuesday, was the best for both Indices since November 18 2019, in the aftermath of the Presidential polls.
The Colombo Stock market which declined steeply on Tuesday March 10 prompting a trading halt just ten minutes after the start, recovered Wednesday to post a gain of 82 points on the All Share Price Index and the S&P SL20 Index gained 44 points. In terms of a percentage, the ASPI improved by 1.61% and the S&P SL20 index gained 1.87% which are the biggest gains in both indices since November 18, 2019.
Stock Markets globally started the week on a negative note as investors responded to concerns of a global downturn resulting in fund flows out of the Global Markets.
These implications were even felt by major global markets, such as in the United States where the DOW Jones closed down by more than 2000 points for the first time ever, and the UK recording the Fifth biggest one day fall in FTSE’s history during trading on March 9, 2020. Global markets at large posted the biggest falls since the 2008 financial crisis.
A similar sentiment was observed in the local market as well, as the ASPI and the S&P SL20 declined by 4.1% and 4.7% respectively during trading on 10th March 2020, the first day of trading for the
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