Sri Lanka stocks up after CB keeps rates steady; foreigners exit

ECONOMYNEXT – Sri Lanka’s share returned to green on Thursday(25), gaining 1.06 percent after the central bank kept key policy rates steady against speculation of a possible rate hike, brokers said.

Foreign investors, however, sold a net of 934 million rupees worth of shares, extending the net foreign inflow to 48.8 billion rupees so far this year.

There was some uncertainty in the market on Wednesday ahead of the monetary policy review as investors were speculating a rate hike.

All Share Price Index gained 115.67 points to close at 11,025.73

Brokers said the market nosedived to an intraday low at 10,887 within the first 30 minutes the market opened, but shot-up later and crossed 11,000 points.

S&P SL20 index of the most liquid share down 0.44 per cent or 16.35 points to close at 3,767.41.

Analysts have cautioned about signs of market peaking off because of heavy speculative trading amid expert investors are moving aside while newcomers are driving the herd mentality with speculators are cashing out or moving into more fundamentally strong counters.

The day’s turnover was 9.9 billion rupees above this year’s average daily turnover of 4 billion rupees.

The gain was led by Browns Investment, Expolanka and Vallibel One.

Browns Investment gained 9.24 percent to close at 13.20 rupees a share. Expolanka closed 3.29 percent up at 235.25 rupees a share while Vallibel One up 5.49 percent to close at 65.30 rupees a share.

(Colombo/Nov25/2021)

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