Sri Lanka stock market hit by looming lockdown fears

COLOMBO: Sri Lanka stocks slipped 0.38 percent as fears over a looming lockdown in the face of spike in Covid-19 death and spreading dented investor sentiment, brokers said in a report carried by Economy Next.

Colombo All Share price index fell 30.51 points to close at 8,070.88 while S&P SL20 index of more liquid stocks fell 0.15 per cent or 4.70 points to close at 3,034.36.

“Covid of lockdown concerns dragged the market. But as far as the interest rates are low, there is no avenue for local investors other than taking a risk and invest in stocks,” a stockbroker said.

Sri Lanka stocks have been on the rise partly due to record low interest rates, excess liquidity in money markets and some businesses being disrupted due import controls triggered by money printing.

The trend of net foreign selling has been continuing since early last year.

Market participants said that news COVID-19 piling on and the government suddenly deciding an inter-province travel restriction pushed the already dampened investors to move to a selling spree.