ECONOMYNEXT – Sri Lanka stocks closed steady at a new all-time closing high on Monday (29), led by shares in the firms which have export businesses on speculation over possible rupee depreciation, but gains were limited by fear over new variants of the Covid 19 virus emerging around the world, brokers said.
“After President over the weekend said he will have to take a lot of unpopulour decisions, investors expect there could be a rupee depreciation,” a Colombo-based stockbroker said.
“Concerns over fuel shortage also having an impact on the sentiment.”
A currency depreciation will help companies with export business to earn more profit in local currency.
With the new Omicron variant being identified and the fear of other businesses getting affected, more investors seemed to move for health sector and export oriented stocks, another stockbroker said.
All Share Price Index ended narrowly shaved with a 0.04 point gain to close at 11,202.09, a record closing high.
The S&P SL20 index of the most liquid share rose 0.36 per cent or 13.81 points to close at 3,836.42.
Foreign investors, however, sold a net of 12.3 million rupees’ worth of shares, extending the net foreign inflow to 49.09 billion rupees so far this year.
Analysts have 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.
The day’s turnover was 8.1 billion rupees above this year’s average daily turnover of 4 billion rupees.
The gain was led by Expolanka, Dipped Products and Hayleys Plc.
Expolanka, the market heavyweight which has a significant component of export and freight business, gained 6.57 percent to close at 263.50 rupees a share.
Dipped Products closed 10.72 percent up at 53.70 rupees a share while Hayleys Plc up 2.69 percent to close at 109.00 rupees a share. (Colombo/Nov29/2021)