Sri Lanka stocks gain ahead of monetary policy announcement

ECONOMYNEXT- Sri Lanka’s rupee opened flat at 175.55/65 rupees to the US dollar in the spot market Thursday, while stocks gained and bond yields eased ahead of the monetary policy announcement on Thursday, brokers and dealers said.

The rupee closed at 175.55/65 against the greenback on Wednesday.

Sri Lanka’s All Share Price Index (ASPI) opened 4.33 points up at 5,526.16.
 
The S&P SL20 Index of more liquid stocks opened 0.07 percent or 1.76 points up at 2,596.36.
 
The central bank will be announcing its monetary policy stance this evening.
 
First Capital, a brokerage, said that it is expecting policy rates to remain unchanged, as previous loosening may take time to materialize in the economy.
 
Central Bank Governor Indrajit Coomaraswamy was quoted in reports this week as saying that the terror-struck economy would show stronger growth in the fourth quarter of 2019.
 
The stock market has been on a general upward trend since mid-May after the post-terror plunge, with more investors switching to equities after the central bank brought price controls on fixed deposits.
 
The stock market turnover on Thursday was 25 million with 28 stocks gaining and 13 stocks declining.
 
LOLC Holdings was trading 5.60 rupees up at 101.90 rupees a share, Union Bank 50 cents up at 12.80 rupees a share and Browns Investment flat at 1.70 rupees a share, contributing most to ASPI gain. 
 
(Colombo/Jul11/2019)