ECONOMYNEXT – Sri Lanka stocks closed firmer on Monday (29), led by shares in the firms which have export businesses with freight services after increase in air freight rates, brokers said.
“Air freight rates are continuing to pick up. It increased to an record high last month.,” a Colombo-based stockbroker said.
Air freight rates typically increase in the fourth quarter each year due to the holiday demand and then taper off after the New Year
“That is probably why export oriented businesses such as Expolanka gained.”
All Share Price Index ended with a 0.42 points gain to close at 11,034.41.
The S&P SL20 index of the most liquid share rose 1.61 per cent or 62.43 points to close at 3,947.00.
Foreign investors purchased a net of 23.3 million rupees’ worth of shares. However, the bourse has suffered a net foreign outflow of 49.38 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 6.7 billion rupees above this year’s average daily turnover of 4 billion rupees.
The gain was led by Expolanka, LOLC Holdings and Brown and Company.
Expolanka, the market heavyweight which has a significant component of export and freight business, gained 5.26 percent to close at 297.50 rupees a share.
LOLC Holdings closed 1.92 percent up at 993.50 rupees a share while Brown and Company up 10.05 percent to close at 315.00 rupees a share. (Colombo/Dec 06/2021)