Colombo’s stock exchange index recovers after falling over 6%

COLOMBO: Sri Lanka’s main All Share Price Index and the much liquid S&P SL20 Index saw its worst plunge since October 2020 as investors dumped shares amid fuel shortage led power cut amid margin calls forced investors to sell at a lower price.

Colombo’s stock exchange was halted twice within a one-hour time as its most liquid index plunged below 8 percent.

It was halted at 11.17 am when the S&P SL20 index fell over 5 percent and and again at 12.13 pm when the same index fell more than 7.5 percent.

The broader index fell to the intraday’s lowest at 10,811.27 points losing 6.74 percent or 781.03 point.

However the market picked up slightly following this plunge to settle at 11,179.04 at 2.30 pm, provisional data showed.

S&P SL20 of the most liquid stocks was at 4.35 percent or 171.28 points to 3,756.68 points.

Analysts had been predicting a nosedive as margin calls kicked in and the economic crisis in the country worsened as extended power-cuts amid a fuel shortage and a dollar crisis.

Analysts said this eroded investor confidence in the market.

Stockbrokers said LOLC and Expolanka accounted for nearly 50 percent of the market plunge.

Expolanka, LOLC Holdings, and Browns investments were the forerunners at Wednesday’s plunge.

Expolanka Holdings, the market heavyweight slipped 8.90 percent to close at 261.00 rupees a share, while LOLC Holdings down 8.93 percent to close at 909.75 rupees a share. provisional shortage.Browns Investment fell 13.08 percent to close at 11.30 rupees a share.