SEC welcomes 31% gain in ASPI since CSE reopening post-COVID shutdown

Wednesday, 30 September 2020 00:10 - - {{hitsCtrl.values.hits}}

Says 63% increase in account openings following digitilisation initiative, projects continued growth

The Securities and Exchange Commission (SEC) yesterday said the Colombo Stock Exchange (CSE) has demonstrated noteworthy performance recording consistent gains in the All Share Price Index of 31% and S & P Index of 27% since reopening on 11 May.

In a statement the SEC said that Sri Lanka is one of the markets that has recovered the fastest from the impact of the Coronavirus pandemic in comparison to countries in the Asia Pacific region; recording positive price returns in US Dollar terms.

This reflects the strong confidence the investors have placed in the market and the future economic growth of the country. Significant contributions to turnover has been recorded in Colombo, Gampaha, Kandy, Kurunegala, Galle, Kalutara and Matara districts.

“Local investors have recognized the potential in the market especially in terms of attractive market valuations and growth potential of Sri Lankan listed companies and contributed to approximately 68% of the total market turnover. The CSE has also noted a significant increase of over 63% in Central Depository System (CDS) account openings since the digitalization of the end-to-end operations of the market on 17 September 2020,” it added.

Digitalization of the market has afforded investors the opportunity to access the market with ease and convenience. It has contributed further to increase the depth of the market. In order to strengthen the regulatory framework, facilitate market infrastructure and increase investor confidence and protection, the SEC has taken many measures including the finalization of a new SEC Act in line with international standards, which has been presented to the Ministry of Finance. The new Act will enable the SEC to engage in effective and holistic regulation and preserve trust and confidence in the market.