Stock market turnover witnesses significant contribution from key cities

• Gampaha, Kandy, Kurunegala, Galle, Kalutara and Matara districts key contributors apart from Colombo 
• SEC says local investors have recognised attractive market valuations and growth potential 
• Over 63 percent increase in Central CDS account openings since digitisation

Stock market regulator, the Securities and Exchange Commission (SEC) yesterday said significant contributions to market turnover have been recorded from key cities in the country apart from capital Colombo. “Significant contributions to turnover have been recorded in Colombo, Gampaha, Kandy, Kurunegala, Galle, Kalutara and Matara districts,” a SEC statement said. The daily average turnover since market re-opened on May 11 has been around Rs.1.6 billion.

“Local investors have recognised 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 percent of the total market turnover,” the SEC statement added. 

Although net foreign sales year-to-date are now topping Rs.39 billion, the Colombo Stock Exchange is on a bull run largely on the notion that local investors have enough fire power to absorb the foreign selling.

The SEC said Sri Lanka is one of the markets that has recovered the fastest from the coronavirus pandemic impact in comparison to countries in the Asia Pacific region, recording positive price returns in US dollar terms. The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) has gained 31 percent since the market reopened on May 11 while S&P SL20 gained 27 percent. Meanwhile, the SEC said the CSE has witnessed a significant increase of over 63 percent in Central Depository System (CDS) account openings since the digitisation of the end-to-end operations of the market on September 17 this year. The SEC is also mandate to strengthen the regulatory framework, facilitate market infrastructure and increase investor confidence and protection. It has taken many measures including the finalisation of a new SEC Act draft in line with international standards, which has been presented to the Finance Ministry.  The new Act is expected to enable the SEC to engage in effective and holistic regulation and preserve trust and confidence in the market.