Corona virus impacts market behaviour ; Analysts point out downwards trend

COLOMBO (News 1st):- Market analysts said a downward trend has been seen throughout the week with heavy selling pressure in the market. They added the market saw the overall index falling significantly due to the fear created by the coronavirus. Foreign selling pressure was at its heaviest during the week, as the market saw continuous outflows. Analysts opine that with the increase of the turnover came the decline in the market. Analysts added that the net foreign outflow also gradually increased throughout the week, mainly with the coronavirus fears that came about. During the week ending 6th March this year, the outstanding stock of Treasury bills and Treasury bonds held by foreigners decreased by 9.03% or Rs. 8.236 billion, bringing the total to Rs. 19.6 billion in foreign outflows during the past two weeks. During this week crude oil prices showed a mixed performance. At the beginning of the week, crude oil prices increased amid expectations on possible monetary stimulus to offset the impact of COVID-19 virus outbreak in affected countries and hopes for OPEC output cuts. However, prices decreased later mainly due to worries about lower demand for fuel and non-OPEC producers not yet agreeing to cut outputs. Overall, Brent and WTI prices marginally increased by US$ 0.1 per barrel and US$ 1.1 per barrel, respectively, during the period. The reserve money increased compared to the previous week mainly due to the increase in currency in circulation and deposits held by the commercial banks with the Central Bank.