ECONOMYNEXT – Sri Lanka’s shares closed up on foreign interest that pushed the sentiment and slightly recovered the market on Tuesday, an analyst said.
“The market recovered towards the end by foreign interest that was flown in,” an analyst said.
The main All Share Price Index was up 0.28 percent or 23.93 points to 8,635.31, this is the first time shares closed positively since May 11, the most liquid index S&P SL20 was up 0.60 percent or 14.58 points to 2,448.89.
There was a foreign inflow of 35 million rupees, while the net foreign outflow was 155 million rupees, bringing the total net foreign outflow to 2.4 billion rupees.
“The market is seeing more selling pressures as investors are taking a stance until more clarity is given on domestic debt restructuring assurances and interest rates are high,” an analyst said.
Sri Lanka is making progress in an International Monetary Fund agreement but improvements have to be made, State Minister for Finance Shehan Semasinghe said.
“Fresh funds and investment will come through the domestic debt restructuring assurances,” an analyst said.
Sri Lanka’s government is to disclose the stance on domestic debt restructuring towards the end of May, which is why investors have adopted a wait and see approach.
The market generated a turnover of 727 million rupees, below the market’s yearly average of 1.3 billion rupees.
Analysts said the low volumes seen in the market are due to the debt restructuring concerns, and investors are waiting for the monetary policy review for the next month.
Top gainers were Commercial Bank, Sampath Bank and Melstacorp.
“There is still selling pressure, due to the interest rates and the month coming to an end pushing investors to sell out their shares,” an analyst said. (Colombo/May23/2023)