ECONOMYNEXT – The Colombo Stock Exchange opened up on Monday with both indices staying green during mid-day trading.
The All Share Price Index was up 0.36 percent or 39.14 points to 10,889.67, while the S&P SL20 was up 0.43 percent or 13 points to 3,063.20.
Turnover was at 531 million.
The banking and finance sector saw share gains, particularly Sampath Bank, Commercial Bank, LOLC and Central Finance. Hayleys PLC also was among the gainers at mid-day.
“From Friday onwards, we are seeing a bit of positivity in the market, led by the banking sector,” an analyst said.
“Things seem to be quite positive, investors have a positive mindset. However, volume is still on the lower side. There is less activity.”
The low activity is possibly because investors are waiting for some kind of confirmation on the debt restructuring, analysts said, as only the staff level agreement is confirmed as yet and that’s one of the conditions.
“There is a lot of selling pressure on the primary dealing counter. I think this is because the First Capital Treasuries share dividend went into extinct, that is the dividend finished.
“So, because of that, the share has been falling, there has been selling pressure, and that is influencing the other two shares also to come down. That is, First Capital Holdings, and Capital Alliance Treasuries.”
Last week the IMF announced that they had reached a staff level agreement which would give Sri Lanka access to bail-out funds.
The Export-Import Bank of China also said it reached a preliminary agreement with Sri Lanka on debt treatment.
On Friday Sri Lanka’s president Ranil Wickremesinghe met Chinese president Xi Jinping and Vice Premier Ding Xuexiang.
A joint statement issued by the leaders read: “China will continue to support its financial institutions in conducting friendly consultation with Sri Lanka to reach early agreement on treatment of debts related to China.
“The Chinese side is willing to work with relevant countries and international financial institutions to keep playing a positive role in helping Sri Lanka address its current difficulties, alleviate debt burden and realize sustainable development.” (Colombo/October23/2023)