ECONOMYNEXT – Sri Lanka’s shares edged down in mid day trade on Tuesday, with selling pressure and profit taking coming in as the crisis hit island met the International Monetary Fund loan agreement for 3 billion dollars, an analyst said.
“The market is down and dull, because as expected Sri Lanka got the IMF and now investors are pushing to sell of their shares and attempting to make a profit,” Ranjan Ranatunga of First Capital Holdings said.
All Share Price Index was down 0.44 percent or 42.99 points to 9,656.97, while the most liquid index S&P SL20 was down 0.81 percent or 23.91 points to 2,828.64.
“The market was driven on speculation on basis over the IMF and when it was finally approved investors divert towards selling,” Ranatunga said.
Sri Lanka Telecom has been attracting investors as a disclosure was put out stating that the Cabinet of Ministers had approved for the divestment of the stake held by the Secretary to the Treasury in SLT. The divestment is to be implemented by the State Owned Enterprises Restructuring unit under the Ministry of Finance, Economic Stabilization and National Policies.
The top losers during 1130 hours were Vallibel Finance, National Development Bank and Royal Ceramics Lanka.
The market generated a turnover of 654 million rupees.
With the IMF agreement being approved, market analysts expect inflation to continue on its path of disinflation, balance of payment to be stabilized and interest rates being pushed downwards. (Colombo/Mar21/2023)