ECONOMYNEXT – Sri Lanka shares gained over 1 percent on Tuesday on positive sentiments that creditors India and China likely to support debt restructuring plans.
“Commencing the week, ASPI reverted to the green zone while recording the highest intraday gain in 1 ½-month boosted by the speculation on India likely to support Sri Lanka’s debt restructuring plan which provide the confidence of finalizing the IMF program in the 1Q2023,” First Capital Market research said in a daily note.
“In response to that, investor interest was witnessed in Banking counters while retailers pounced on battered stocks (mainly EXPO and LIOC) after a steep fall during the past few days.”
The main All Share Price Index (ASPI) closed at 1.38 percent or 113.72 points higher at 8,376.30.
The index has already lost 1.9 percent within the first two weeks of trade.
The most liquid index S&P SL20 closed 3.14 percent or 79.43 points higher at 2,607.51.
First quarter of 2023 is expected to be negative with the taxations going in to effect from January 1st and there are talks of a hike in electricity tariffs, which has gained Cabinet approval and is waiting for recommendations by the Public Utilities Commission of Sri Lanka.
Whereas the second quarter was expected to be more positive with the anticipation of IMF getting through and with the interest rates expected to ease as the taxes starts to generate funds.
Sri Lanka is expecting a further contraction in the economy after a negative growth in 2022, Cabinet Spokesperson Bandula Gunawardena said at the Weekly Cabinet Press Briefing.
The market witnessed a turnover of 1.2 billion rupees, lower than this month’s 1.9 billion rupees average daily turnover.
It is also comparatively much lower than 2022’s daily average turnover of 2.9 billion rupees.
The market saw a net foreign outflow of 41 million rupees. The net foreign inflow for the first two weeks of January is 200 million rupees. The total foreign inflow of 2022 was 31 billion rupees.
Expolanka pushed the index up to close at 11.9 percent higher at 192.5 rupees.
Browns Investment gained 6.4 percent to close at 6.7 rupees and Lanka IOC closed 8.5 percent higher at 192.5 rupees a share. (Colombo/Jan17/2023)