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Thursday December 9th, 2021
Markets

Sri Lanka stock index closes at fresh peak; monetary policy awaited

ECONOMYNEXT – Sri Lanka’s share index gained for a second straight session with a 1.03 percent rise on Tuesday (23) mainly driven by LOLC holdings while investors hoped for a market adjustment in the next two days ahead of the central bank’s monetary policy announcement, brokers said.

All Share Price Index rose 111.39 points to close at new all-time closing high 10,928.60.

S&P SL20 index of the most liquid share gained 1.56 per cent or 57.62 points to close at 3,755.74.

Analysts cautioned about signs of market peaking off because of heavy speculative trading amid expert investors are moving aside while newcomers are driving the herd mentality with speculators are cashing out or moving into more fundamentally strong counters.

“There was some volatility in the market but despite that the market kept going up. The LOLC was the biggest contributor of the day” a broker said.

With the central bank’s monetary policy announcement later this week, analysts expect the interest rates to be increased at least 25 basis points.

“With the monetary policy review it is expected to see some market adjustment tomorrow and day after tomorrow”

Foreign investors, however, sold a net of 155.9 million rupees’ worth of shares, extending the net foreign inflow to 47.7 billion rupees so far this year.

The day’s turnover was 6.6 billion rupees above this year’s average daily turnover of 4 billion rupees.

The gain was led by LOLC Holdings and its subsidiaries – Browns Investments, Brown and Company.

LOLC Holdings PLC gained 16.44 percent to close at 907 rupees a share.

Browns Investments gained 3.6 percent to close at 11.7 rupees a share while Brown and Company gained 7.74 percent to close at 215.75 rupees a share. (Colombo/Nov23/2021)

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