ECONOMYNEXT – Sri Lanka shares gained over 1 percent on Friday mainly pushed up by Expolanka counter after it announced it’s interest to acquire logistic companies in abroad, brokers said.
“The market was mainly pushed up by Expolanka following its disclosure on acquisition, however the overall market is on muted sentiments,” top market analyst said.
Expolanka shares rose 16.2 percent to close at 163.25 rupees a share.
It also contributed 40 percent or 648 million rupees to the turnover.
Investor confidence have also been boosted by Central Bank governor’s comment on the future of interest rates.
The main All Share Price Index (ASPI) closed 1.49 percent or 119.92 points higher at 8,148.06.
Analysts have said the market is moving into a bull-trap with short-lived buying and selling sentiments because investors are not confident in market sustainability.
In the past sessions, the index continued to fall on the speculation of a local debt restructuring although no proper decision has been taken so far.
Central bank governor said the market rates should eventually ease despite the fears of a domestic debt restructuring as inflation falls, increased liquidity in dollar markets, and the inter-bank liquidity improves.
State Minister for Finance Shehan Semasinghe told parliament during the budget debate on Wednesday that Sri Lanka will continue to pay its domestic loans and no local debt restructuring has been discussed.
The budget saw policies that will increase the cost of doing business across the board, but relieve the government from depending on excess money printing, analysts say.
The market witnessed a turnover of 1.6 billion rupees, less than half of this year’s daily average turnover of 2.9 billion rupees.
The market saw a foreign outflow of 38 million rupees, bucking an inflow trend in the last seven straight sessions.
The total net foreign inflow stood at 18.3 billion rupees so far for this year.
The more liquid index S&P SL20 closed 3.24 percent or 79.60 points higher at 2,538.18.
The ASPI has fallen 5.3 percent so far in November after losing 13.4 percent in October.
It has lost 33.3 percent year-to-date after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.
Other top gainers were LOLC gained 6.3 percent to close at 340.3 rupees, while Sampath Bank rose 4.1 percent to close at 32.8 rupees. (Colombo/Nov25/2022)