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Join date : 2014-09-15
Stock market losses passed the Rs 100 billion mark yesterday (19), 40 days after the Government presented 'Budget 2018' in Parliament on 9 November.
New taxes imposed on the banking and telecom sectors in the Budget, made worse by the existing high Value Added Tax regime which has further dented consumer spending power are the reasons for such.
Yesterday was also the first time the market has lost Rs 100 billion for the year to date.
This Rs 100 billion loss is akin to, for example if the value of all of the stocks listed in the stock exchange was Rs 100 billion and Rs one on 'Budget Day' 9 November, which by yesterday having had seen this value come down to Rs one.
Stock market losses since 9 November was actually more than Rs 100 billion, increasing to Rs 106.26 billion yesterday, compared to a figure of Rs 96.59 billion as at 18 December, thereby reducing the total stock value by 3.56 per cent to Rs 2.88 trillion by yesterday.
Meanwhile, the benchmark All Share Price Index (ASPI), the barometer which captures the price movements of all listed stocks, fell by 241.61 points (3.68 per cent) to 6,325.46 points and the more sensitive Standard and Poor's (S&P) Sri Lanka (SL) 20 Index which captures the price movement of selected blue chips (top stocks) declined by 186.46 points (4.84 per cent) to 6,325.46 points in the review period.
Nonetheless, the silver lining was continued foreign interest in the market, with the Bourse experiencing a nominal net foreign inflow (NFI) of Rs 26.66 million yesterday, thereby taking such NFIs since Budget day to Rs 327.41 million, a 1.74 per cent increase since, whilst enjoying NFIs to the tune of Rs 19.15 billion in the calendar year to date.
Yesterday, the market made a paltry total turnover of Rs 357.61 million while the ASPI fell steeply by 0.33 per cent to 6,325.46 points and the S&P SL 20 Index fell even more sharply by 0.82 per cent to 3,662.64 points over the close on 18 December. The total number of shares that changed hands yesterday was a measely 10.87 million.
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Join date : 2014-02-28