CSE records biggest drop as ASPI declines by 6.56 percent

COLOMBO (News1st): The Colombo Stock Exchange (CSE) reported its biggest drop on Tuesday, after its benchmark All Share Price Index declined by approximately 6.56 percent. All Share Price Index dropped by 561.75 basis points. The more liquid S&P SL 20 dropped by 251.77 basis points, a drop of approximately 7.32 per cent. The CSE halted trading at 1.30 this afternoon for 30 minutes after the S&P 20 Index fell below 5 percent. Shortly after opening the S&P 20 Index fell below 7.75 percent triggering a second circuit breaker till 2.17 pm. According to Industry Analysts, the decline stems after a circular was issued by the CSE last week, informing all stock brokering firms to submit a weekly declaration on the amount of credit that has been extended to top turnover companies of the CSE. The move comes after the Securities and Exchange Commission of Sri Lanka announced that it will strengthen its regulatory measures on monitoring credit exposure undertaken by stock brokers and dealers. Market Analysts say that the subdued performance of the CSE may continue in the coming days, as stock brokers and dealers take measures to reduce their risk levels, but curbing credit levels.