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Saturday April 20th, 2024

Sri Lanka stock close at new 8-year low on Coronavirus fears

ECONOMYNEXT – Sri Lanka’s stocks closed at a new 8-year low Thursday amid panic selling by investors after domestically transmitted Coronavirus patient was found and fears spread over school children getting infected brokers said.

The Colombo All Share Price Index closed 194.97 points down at 5,019 points. The ASPI hit 5,009 points reached in May 2012, according to stock exchange data.

The S&P SL 20 Index of liquid stock closed down 4.39 percent, after falling over 5 percent in intra-day trading triggering the second circuit breaker for the week.

Turnover was thin reaching 514 million rupees with 21 stocks gaining and 169 falling.

Index-heavy John Keells Holdings closed down 4.70 rupees at 131.00 rupees, contributing most to the ASPI’s fall.

Sri Lanka Telecom closed at 2.70 rupees down at 24.10 rupees and Browns Investments fell 1.20 rupees to 2.20 rupees a share.

Many stocks are trading at decade lows and are considered attractive though sentiment is weak. Sri Lanka also slashed value added tax spooking rate agencies and foreign investors.

On Wednesday the country’s price control agency, Consumer Affairs Authority a contributor to regime uncertainty that hits private investment slammed controls on chicken meat, potentially hurting poultry stocks on top of Coronavirus fears.

Bairaha Farms closed at 85.00 rupees down 5.0. Three acre farms closed at 93.0 rupees, down 5.80.

Sri Lanka’s tourism stocks, which were just recovering from Easter Sunday attacks have been further hit by the virus.

The Banks Industry, which was the most active, fell 4.7 percent.

The Capital goods industry which was also active fell 4.8 percent.

Regional markets also fell, with Tokyo down 4.4 percent, Shanghai down 1.5 percent and Hong Kong fell 3.7 percent. (Colombo/Mar12/2020)

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Sri Lanka discussing giving extra land, water for Chinese oil refinery

ECONOMYNEXT – Sri Lanka is in discussions with China’s Sinopec to give extra land and assure water supplies after the company decided to expand the capacity of a planned oil refinery in Hambantota, Energy Minister Kanchana Wijesekera said.

“There are concerns on how the water supply is going to be provided for the refinery,” Minister Wijesekera told reporters Friday.

The refinery will need more land and also revise conditions in a Board of Investment agreement, he said.

Read more
Sinopec to double capacity of new refinery in Sri Lanka’s Hambantota

Recommendations and decisions from Sri Lanka’s side had already been sent and Sinopec is expected to revert back in May.

“We are hoping to sign the agreement once everyone has agreed,” Wijesekara said.

The principle agreements are expected to be signed by June, he said.

The refinery could sell up to 10 percent of its output in the domestic market.

“There is no commitment by the government to purchase anything,” Minister Wijesekera said. (Colombo/Apr19/2024)

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Sri Lanka rupee closes weaker at 302.00/50 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 302.00/50 to the US dollar in the spot forex market on Friday, down from 301.50/302.00 a day earlier, dealers said.

There was increased demand for dollars after the central bank bought 715 million dollars from forex markets. In the previous two months it was buying on average about 200 million US dollars, leaving market participants and bank in a ‘oversold’ position.

There were some official dollars sales Friday dealers said.

READ Sri Lanka rupee quoted wide to US dollar as peg inconsistencies flare up

Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed at 11.30/40 percent down from 11.35/40 percent.

A bond maturing on 15.09.2027 closed at 11.95/12.05 percent up from 11.90/12.05 percent.

A bond maturing on 15.12.2028 closed stable at 12.15/25 percent.

A bond maturing on 15.09.2029 closed stable at 12.30/40 percent.

A bond maturing on 01.10.2032 closed stable at 12.40/50 percent. (Colombo/Apr19/2024)

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Sri Lanka stocks close down, banks trade down

ECONOMYNEXT – The Colombo Stock Exchange closed down on Friday, data on its site showed.

The broader All Share Index closed down 0.38 percent, or 44.80 points, at 11,753; while the S&P SL20 Index closed down 0.53 percent, or 18.46 points, at 3,456.

Turnover was at 1.4 billion. The diversified financials (Rs366mn) and banks (Rs266mn) sectors continued to see selling pressure.

“This was possibly due to uncertainty around the bond discussions,” market participants said.

With the exception of Sampath Bank Plc (up at 77.50) all other banks traded down in the day. Commercial Bank of Ceylon Plc was down at 104.50, Hatton National Bank Plc was down at 188.50, and DFCC Bank Plc was down at 77.00.

LOLC Finance Plc saw the most trades and closed up at 6.40. Another LOLC company, Browns Investments Plc, also saw high traded volumes and closed up at 5.60.

Softlogic Capital Plc was up at 7.00, and Softlogic Holdings Plc was up at 11.20. A trading suspension imposed on SHL.N0000 was lifted effective today as the company submitted the annual report for the year ended 31st March 2023.

However, shares of the Company will remain in the Watch List “due to Qualified Audit Opinion and Emphasis of matter on going concern in the Independent Auditor’s Report in the Audited Financial Statements for the year ended 31st March 2022.”

Dialog Axiata Plc, which announced its merger with Bharti Airtel Thursday, saw its share price close up at 11.90.

“There was some traction on index heavyweights,” market participants pointed out.

Top contributors to the APSI included Aitken Spence Plc (up at 134.50), Ceylon Tobacco Company Plc (up at 1,245.25, and Lion Brewery (Ceylon) Plc (up at 1,048.50).

There was a net foreign inflow of 5 million. (Colombo/Apr19/2024)

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