Saturday, July 31, 2021
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 CSE says stock market buoyant with 9.3% gain YTD

Market turnover achieves record turnover of Rs. 414.5 b in 5 months, surpassing 2020 full year figure of Rs. 396 b

The Colombo Stock Exchange (CSE) said the market has recorded a 9.3% growth year-to-date (YTD) at the All Share Price Index (ASPI) within the first five months of 2021.

The S&P SL20 Index fared even better with YTD growth of 13%. The market also saw record breaking YTD market turnover volume of Rs. 414.5 billion for the first five months of 2021.

The YTD market turnover for 2021 exceeds the annual market turnover of Rs. 396 billion achieved in 2020. Accordingly, 2021 YTD market turnover is already marked as the third highest in the history of CSE, and the highest recorded within a shortest period of time.

Previously, the highest market turnover volumes were recorded during the period of 2010 and 2011, where Rs. 570 billion and Rs. 546 billion were achieved.

The YTD daily average market turnover for 2021 is Rs. 4.4 billion as of 31 May and is the highest daily average turnover in history. The average number of trades per day is approximately 27,000, which is doubled compared to 2020.

CSE said another significant development in 2021 is the activation of the primary market for debt and equity. With the Government incentivising the use of the capital market, already three Initial Public Offerings (IPOs) were successfully concluded, with all three issues being oversubscribed and closing on the opening day, while raising an aggregate of Rs. 3.9 billion in equity capital.

Two of the IPO’s already commenced trading and these traded above the issued price. More equity IPO’s are in the pipeline for 2021. The CSE also saw the very first listing of a SME company on the Empower Board and the state-owned Ceylon Electricity Board issuing a Listed Public debenture.

CSE said the market digitalisation efforts also saw a significant number of new accounts being opened. Since the electronic account openings were enabled in September 2020, the daily volume of new accounts have doubled and many new younger investors are entering the stock market.

It is also noteworthy to mention that despite the significant increases in the market turnover, number of trades and the number of new accounts, the stock market is now operating remotely in view of the ongoing pandemic and the resultant travel restrictions. The CSE and all the market intermediaries have very quickly and successfully evolved to convert their operations to a digital format to operate from remote locations under a ‘work from home’ (WFH) concept in keeping with the Government health and safety regulations.