ASPI crosses 15,000 mark

On Dec 23, 2024

A first in over 150 years
Political stability a key driver
Credit ratings upgrade by Fitch, a contributor

For the first time in the Colombo Stock Exchange’s (CSE’s) 150-year plus history, the All Share Price Index (ASPI) crossed the 15,000-mark yesterday continuing its bullish momentum from the previous weeks.

The ASPI closed the day in green at 15,021, gaining 210 points for the 20th consecutive session, also surpassing the 15,000 points’ mark reordered earlier. Amidst multiple off-board transactions, turnover stood at LKR 8.4 billion, marking an increase of 74.0 percent from the monthly average, standing at LKR 4.9 billion.

Many stockbrokers said that Sri Lanka’s credit rating upgrade by Fitch Ratings was one of the key factors for strengthening investor confidence.

CSE Chief Executive Officer Rajeeva Bandaranaike also endorsed this and said that in addition to this rating upgrade, the progress made on the economic front and positive news in terms of debt restructuring has increased investor confidence.

“One other key factor that boosted investor confidence is the political stability by having the President and Government of the same party, with a two-thirds majority, for the next five years. This too was one key reason for the market to be positive in the recent past, he said.”

He also said with the low interest rates’ environment, people are moving from depending on fixed income to equities. People are now moving towards putting their money in the stock exchange as it can yield better returns than fixed deposits would.

“The market is still undervalued as our fees are still under 10 and this factor still offers value for investors.”

Meanwhile First Capital stockbrokers said that trading activity surged significantly exceeding 48,000 trades, driven by strong retail demand for stocks like BIL, LOFC, and AEL.

“Moreover, the Banking sector led the turnover by 25 percent, followed by the Capital Goods and Diversified Financials’ sectors jointly contributing 33 percent of the overall turnover. Foreign investors turned net buyers, with a net inflow of LKR 43.2 million amidst low participation.”

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