The apparent double standards on the part of the Government and capital market decision makers is being exposed as the Colombo Stock Exchange (CSE) has remained closed for near five weeks whilst the bond market has been functioning despite the country’s battle against the spread of novel coronavirus (COVID-19).
Bond market open and buoyant but stock market closed for 5 weeks citing COVID-19
Net foreign outflow from bond market continues and far greater at over Rs. 30 b whereas when CSE closed it was only Rs. 5.4 b
Experts warn of serious repercussions on global investor confidence
Suggest declaration of stock market as an essential service too
Between 6 and 20 March ASI and S&P SL 20 dip doubled to 25.4% and 33.7%, year to date; Rs. 355 b in value wiped off
The apparent double standards on the part of the Government and capital market decision-makers are being exposed as the Colombo Stock Exchange (CSE) has remained closed for near five weeks whilst the bond market has been functioning despite the country’s battle against the spread of novel coronavirus (COVID-19).
The Colombo Bourse during the partial lockdown of the country has had a few hiccups in terms of pre-announcing definitive opening, only to be later decided otherwise.
“If the bond markets can continue, why not the stock market or is it a case of weaker hearts among the key decision makers and players in the latter?” queried a frustrated investor in listed equities.
