The Colombo Stock Exchange’s consolidated turnover recorded for last week was Rs.9.6 billion with the ASPI and S&P SL 20 index gaining 1.04% and 2.84% respectively on Friday.A mixed sentiment was evident for the remainder of last week as well amidst high levels of trading activity recorded at CSE.
The Colombo Stock Exchange (CSE) reopened for trading on 11 May with shortened trading hours after being closed for a period of seven weeks owing to the curfew imposed by the government in its attempt to curb the spread of the novel Coronavirus.
The new three tier circuit breaker mechanism introduced by the Securities and Exchange Commission of Sri Lanka was activated within the first minute of trading breaking all three tiers on open resulting in the market being closed for the remainder of the day after the S&P SL20 Index dropped by 10%.
On the second day of trading for the week the S&P SL20 index dipped 5% triggering the first tier of the circuit breaker which halted the market 9 minutes into trading. The market which was reopened after a 30 minute cool off period showed signs of a recovery and also recorded a high turnover value of Rs.3.4 billion. This is a clear indication of the positive impact the circuit breakers have on the market, which offer an opportunity for the investors to closely consider the available information and review their investment strategies in the wake of a rapidly declining market.
Both the All Share Price Index (ASPI) and the S&P SL20 Index of the CSE recovered mid-week and ended in the green after a two-day fall with the market gaining Rs. 56 billion in value.
However some of the Index heavy blue chip stocks have continued to dip throughout the week reaching its lowest levels in a decade.
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