Sri Lanka All Share Price Index gains 2%

COLOMBO: Sri Lanka’s stock index posted its best gain in five weeks as investors bought cautiously in a thin trade bargain hunting after some shares had steeply fallen in the last few sessions, brokers said.

The day’s turnover hit a near a seven-week low as large investors switched to wait and see mode amid worries over the island nation’s economy, debt repayment, and the government’s policies, dealers said.

The main All Share Price Index (ASPI) gained 2.07 percent or 252.34 points to close at 12,459.80 points.

It was the highest gain since Jan. 5, bourse data showed.

“Although the market was positive today, the volumes were not that strong,” a top market analyst said.

“It is a positive turn around. But we will have to wait a couple of days more to see if the buying sentiments will continue and if it can be sustainable. Currently the market sentiment is investors are on a wait-and-see approach.”

Market has lost 2.3 percent this week.

Investors have questioned the sustainability of earnings with the ongoing forex crisis most companies going through, analysts have said.

S&P SL20 of the more liquid index up 3.02 percent or 124.19 points to 4,238.90.

Foreign investors, who are highly worried about possible sharp depreciation or devaluation in the currency, sold a net of 39.1 million rupee worth pf shares on Friday after being net buyers for three consecutive session.

The foreign sales so far this year has been 3.36 billion rupees. In 2021, the Sri Lanka stock market suffered a net foreign outflow of 50 billion rupees.

Analysts had predicted that the economic concerns would drag the market from time to time until the government finds a sustainable solution for the country’s looming debt crisis.

The day’s turnover was 2.9 billion rupees, its lowest since December 24 and less than half of this year’s daily average of 7.3 billion rupees.

LOLC Holdings, Expolanka and Royal Ceramic pushed the index up on Friday for the second session.

LOLC Holdings gained 7.6 percent to 1,182.25 rupees a share, while Expolanka, the market heavyweight which has export and freight businesses, gained 5 percent to close at 334.00 rupees.

Royal Ceramics moved up 5.8 percent to 71.30 rupees a share.