CSE after COVID - Colombo Stock Exchange Opened for Trading After 8 Weeks

Covid-19 and many other issues made the CSE to close trading for nearly 8 weeks, for the First Time since it started in 1985. 

It in fact resumed business yesterday the 11th of May 2020. Market survived only 38 seconds for business on that day as the Prices of Stocks in the S&P SL 20 Index took a hit of 10% at Pre-Open Session, and as it moved into Normal Market Sessions the 10% circuit breaker triggered closing the market then and there. 

Today the 12th of May the 5% circuit breaker for the S&P SL 20 triggered just 9 minutes in to Normal Session of Trading and, the Market was closed for 30 minutes.  Index survived to be over 5% during the rest of the session till the closure of the Market for the Day. Finally the ASI which is the Index covering all the Listed Counters suffered a fall of 3.2%. Despite a Shortened Trading Session of 3 hours instead of the Normal 5 hours in the CSE, the Turnover and the level of Trading was commendable. Turnover for the Day was Rs. 3.6 Billion and the number of Trades were 8050. 

Many of the Major counters dropped considerably, some recovered, some didn't.

As I am more interested to update you regards the price action of the market I have shared here the Daily Chart of the ASI. As you can see in the chart we will see the market trying to test 4000 before a rebound. However as shown by the RSI the market is extremely oversold, which could help the market to re-bound. But with many things are so uncertain due to the Pandemic the said re-bound will not be able to be defended without the backing of Fundamentals.  Since the RSI is so low we might see the index rebounding before testing 4000, which is a possibility. However since there are no indications to that happening we have to see whether the ASI is falling towards 4000 before a reversal.

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