(UTV|COLOMBO) – The Colombo Stock Exchange (CSE) is set to resume trading on Monday (11 May 2020) after its longest ever shut down aimed at combating the COVID-19 pandemic.
This decision has been taken consequent to the announcement made by the Government that both public and private sector entities in the districts of Colombo, Gampaha, Kalutara and Puttalam should re-commence work from Monday onwards, the CSE said in a disclosure.
However, the market will not operate under normal trading hours from 9.30 am to 2.30 pm on Monday, CSE’s Chief Regulatory Officer Renuke Wijayawardhane said.
Accordingly, The revised Trading hours are set out below;
Pre-open session – from 10.30 a.m. to 11.00 a.m.
Open Auction – at 11.00 a.m.
Regular Trading – will commence after the Open Auction at 11.00 a.m.
Market close – at 1.00 p.m.
The Colombo Stock Exchange (CSE) has been remain closed for trading since 16 March 2020 following the curfew imposed by the government in order to contain the COVID-19 pandemic, only opening for a curtailed trading period on 20 March 2020. However, as the market opened; the trading was halted for 30 minutes after Standard and Poor’s Sri Lanka 20 Index of liquid stocks plunged 5%. Again the curfew was imposed that evening and there has been no trading.
Thereafter, The CSE was scheduled to reopen for trading on 22 April 2020, in line with the Government’s decision to lift the curfew in certain areas of the six high-risk zones including Colombo for brief periods. However, after the Government reversed its decision and extended the curfew, the CSE stated that it too would remain closed.
Meanwhile, once trading recommences on Monday (11 May 2020), a new system will be in place where the CSE market will be automatically close for the day if the S&P SL20 index drops by 10%.
This Three Tiered Circuit Breaker structure was announced by the Securities and Exchange Commission of Sri Lanka (SEC) last week in order to strengthen the capital market and ensure that precautionary measures are in place to eradicate distortion in the S&P SL20 Index by providing a layered approach.