Sri Lanka stocks down for second session on profit taking after gaining rally
ECONOMYNEXT – Sri Lanka stocks slipped for the second session on Tuesday after ending upward rally that saw nearly 20% gain in 12 consecutive session as investors booked profits, dealers said.
The main All Share Price Index (ASPI) lost 1.97% or 178.89 points to 8,907.35. On Tuesday, it fell from its highest
close since March 30.
Market analysts said investors have been looking for profit taking after the index gained nearly 2,000 points in the 12 cnsecutive sessions through Monday.
Investors, however, have been shifting from top liquid shares to energy and plantation sectors now, analysts said.
The market generated 3.77 billion rupees in turnover, more than this year’s average daily turnover of
3.14 billion rupees.
Sri Lanka already declared sovereign debt default on April 12 this year and failed to pay its first sovereign debt in May amid a deepening economic crisis which later turned into a political crisis and led to a change in the president, cabinet, and government.
The more liquid S&#38;P SL20 index dipped, closing at 2.98% or 90.59 points weaker at 2,847.00.
Sri Lanka is facing its worst fuel and economic crisis in its post-independence era and the economy is
expected to contract 7 percent this year.
The main ASPI gained 15.2 percent in August so far after gaining 5.3 percent in July. It lost 9.3 percent in
June, 23 percent in April, and 14.5 percent in March.
The market index has lost 27.1 percent so far this year after being one of the world’s best stock markets
with an 80 percent return last year when large volumes of money were printed.
Net foreign inflow was 77 million rupees on Wednesday, but the total net foreign outflow so far this
year is 1.17 billion rupees.
Investors are also concerned over the steep fall of the rupee from 203 to 370 levels so far in 2022.
LOLC dragged the index down, closing 6.8 percent weaker at 570.0 rupees a share.
Commercial Bank closed 3.9 percent down at 213 rupees a share, and Browns Investments slipped 6.9
percent to 8.1 rupees. (Colombo/Aug17/2022)