Since November 2019 the world has been under siege by an invisible enemy, a novel threat never before seen has claimed the lives 3.14 million people all across the globe and unfortunately is still continuing to rise as governments struggle to deal with the second and in some cases the third wave of the Corona virus pandemic.
The impact on the economy of the world was nothing short of devastating, production of non- essential items was brought to near zero levels and trade all across the globe was restricted. Under similar circumstances investors and market observers would correctly determine a downturn in the market, and in almost all such situations that has proven to be the case. But recent events have gone on to show that the market still has a few surprises in store for investors.
A deviation from the status quo can clearly be observed when analysing the market movements of the 28th of April, 2021. Despite a resurgence in the pandemic the Sri Lankan market reported the end of day trades in a high note. It must be mentioned that a reason or a justification cannot be expressly stated for the behaviour of the market for a particular day.
But if one was to make an assumption based on the facts at hand it could be stated that the market movements on the 28th is an absorption of the selling pressure that had been building up for the past couple of days with recorded downturns in trade.
Another possible reason for unexpected surge could be attributed companies considering the time frame the most ideal to make investments as company reports are expected to be presented next month. A visible example of such a case is was seen through LOLC Holdings PLC and EXPOLANKA Holdings PLC.
The companies showed the highest contribution to the erratic market movements with an impressive increase of 8% in market price to show for it.
Sri Lanka is not the only country to show such erratic movements today (28th, April), the Stock Market of India similarly demonstrated a high turnover in the market despite the desperate situation the country is now faced with due to the lack of oxygen in its hospitals.
The efforts of the government may also a role in the market turnover for the foreseeable future as recent programs in encouraging businesses to list in the stock market has brought about a series of a possible new investments for eager investors.
In light of recent events the lessons most suitable for investors would be that the market although may remain show decrease in trade during troubled times but
an unexpected surge is not beyond the realm of possibility and eager observation of the market movements is key for a successful investment.
No.820, Mount Cresent,Malabe,Sri Lanka