ASPI recorded a growth of 10.5-pct in 2020; market turnover highest since 2011

Jan 01, 2021 (LBO) – The benchmark All Share Price Index (ASPI) of Colombo Stock Exchange (CSE) closed 2020 recording a growth of 10.5%, the highest annual increase the index has seen since 2014.

The ASPI ended 2020 on 6774.22 points. Meanwhile, the S&P SL20 index, which features the CSE’s 20 largest and most liquid stocks has declined by 10.1% in 2020, closing at 2638.10 points as of 31 December 2020.

The overall value of the stock market, which is represented by the Market capitalization, has improved adding Rs. 109 Billion during 2020 and more substantially by Rs. 983 Billion since 12th May.

The market recorded a daily average turnover of Rs. 1.9 Billion, this daily average turnover is the highest recorded for a year since 2011. The total turnover for the year was Rs. 397 Billion which was also the highest since 2011.

However, on the foreign investment front, 2020 has recorded a net foreign outflow of Rs. 51 Billion, largely in line with the foreign fund outflow trend recorded in emerging and frontier markets.

Sri Lankan equities attracted purchases worth Rs. 53 Billion during 2020 by foreign investors, ending close to the Rs. 56 billion figure recorded in 2019.

According to the CSE, a significant increase in CDS account openings was observed in 2020 with 17,600 new investors entering the market which is 70% higher than the number of new investors in 2019 and 56% higher than 2018.

Local investors have contributed to approx. 79% of the total market turnover in 2020 which is higher when compared to approx. 63% in 2019 and 55% the year prior to that.