Sri Lanka stocks slide on profit taking; foreigners buy

ECONOMYNEXT – Sri Lankan stocks slipped in the last hour of trading on Monday (01) to close 0.3% lower, on profit taking after gaining nearly two weeks as foreign investors bought the stocks. the island nation’s risky assets, brokers said.

Foreign investors bought Rs 47million net of shares on Monday. However, the market has
suffered a net outflow of over 45.4 billion rupees this year.

Moody’s Investors Service downgraded Sri Lanka’s sovereign rating to Caa2 from Caa1, taking the
the country’s credit becomes more and more speculative as foreign exchange reserves continue to decline amid money printing
and crippled currency markets.

After Moody’s downgrade, brokers said foreigners worried about the risk of a possible sovereign default by the country, but local investors worried
only on earnings.

The benchmark Colombo All Share Price Index (ASPI) closed at 0.30%, or 30.81 points lower at
10,132.12.

The S&P SL20 index of the most liquid stocks gained 0.66% or 24.29 points to close at 3,711.85.

The day’s turnover was 3.7 billion rupees, slightly below this year’s average daily turnover of more than 4
billion rupees.

The fall of ASPI was led by Expolanka Holdings, Browns Investment and John Keels Holdings.

Market heavyweight Expolanka Holdings which reported 12 billion rupees in September profits last week

quarter, up 166% from the previous year in the context of a global recovery in trade and strong traffic to
North America. On Monday, however, Expolanka closed down 2.54% at Rs 210.75 per share.

It accounted for nearly 60 percent of the drop in ASPI.

Browns Investment, a subsidiary of LOLC Holdings, fell 2.70% to close at 10.80 rupees per share.

Diversified John Keells Holdings fell 1.17 percent to close at Rs 147.25 a share.

The stock market saw 51 stocks gain against 143 fall on Monday. (Colombo / Nov1 / 2021)


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