Shares finish a splendid year at record levels

• Best year since 2010; single-handedly led by local investors 
• ASPI clocks in whopping 80% gain while  S&P SL20 index gains 60%
• Daily average turnover for 2021 was Rs.4.9bn, compared to Rs.1.9bn in 2020
• Total market cap as at end-2021 at Rs.5.5tn
• Net foreign outflow however tops Rs.52bn, compared to Rs.52bn in 2020

Sri Lanka’s shares closed at a record high yesterday, logging their best year since 2010, in a year battered by the COVID-19 pandemic, Reuters said in the stock market story.

For the year, the CSE All-Share Price Index (ASPI) clocked in a whopping 80.45 percent gain and was up 1.72 percent on the last day of 2021, at a record level of 12,226.01 points at the closing bell.

Meanwhile, more liquid S&P SL20 index gained over 60 percent to close at 4233.25, yesterday. 

According to Lanka Securities Research, the daily average turnover for the year 2021 was Rs.4.9 billion, compared to Rs.1.9 billion in 2020.

Financial services provider Senkadagala Finance, conglomerate Expolanka Holdings and Lanka ORIX Leasing Company were among the top-performing Sri Lankan stocks this year, Reuters said. The total market capitalisation as of the final trading day of 2021 was Rs.5.5 trillion. Meanwhile, Energy Minister Udaya Gammanpila said yesterday that Sri Lanka would sign a deal with Lanka IOC PLC to restore 75 oil tanks, as the country moves to secure a US $ 500 million fuel credit line from India. Energy stocks were the top boost to the CSE index yesterday.
However, this super performance of the stock market was almost solely led by local investors, as foreign investor participation throughout 2021 stood at just 5 percent.

The foreign net outflow for the year was Rs.52.6 billion, compared to Rs.51.3 billion in 2020. Global ratings agency Fitch downgraded Sri Lanka’s sovereign rating deeper into junk amid a growing risk of debt default in 2022 earlier this month. 

The Central Bank however has reassured of a comfortable forex reserve position throughout next year. The market turnover yesterday was Rs.8.24 billion, according to stock exchange data. Trading volume rose to 858 million shares, from 509.5 million shares in the previous session. Foreign investors were net sellers offloading shares worth Rs.77.6 million.

Sri Lanka has reported 586,746 coronavirus cases and 14,962 deaths, as of yesterday, data from the country’s health bureau showed.

About 63.48 percent of Sri Lanka’s population has been fully vaccinated, according to data from Johns Hopkins University.