Sri Lanka trading halted as stocks plunge 7.5-pct

ECONOMYNEXT – Trading in Sri Lanka’s Colombo Stock Exchange was halted Thursday as an index of liquid stocks fell 8.13 percent triggering a 7.5 percent circuit breaker.

The Colombo Stock Exchange halted trading 12.18 hours for the second time after a earlier halt when the index fell 5.0 percent.

Colombo’s benchmark All Share Index fell 6.47 percent or 500 points.

Brokers said there was heavy selling pressure.

Stock buyers who had bought on margin or credit were also trying to cut positions.

The index had been going up partly due to low interest rates amid record excess liquidity in money markets.

Many investors are also sitting on capital gains after a 30 percent gain in January 2021.
Some firms have also reported strong profits.

(Colombo/Feb11/2021)

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