ECONOMYNEXT – Sri Lanka’s shares edged down in mid day trade on profit taking and selling pressures channeled after the International Monetary Fund (IMF) loan agreement had been approved, an analyst said.
All Share Price Index was down 0.04 percent or 4.20 points to 9,600.23, while the most liquid index S&P SL20 was down 0.09 percent or 2.39 points to 2,803.14.
“The market is on muted sentiments despite the IMF loan being approved, the market is down on selling pressures and profit taking, but this isn’t a massive sell off but a period of market consolidation,” an analyst said.
The market generated a turnover of 497 million rupees during the first hour of trade.
Top losers in mid day trade were Lanka IOC, Hatton National Bank and Sampath Bank.
Majority of the banks have been on slower investment trends after the IMF approval had been granted to the dollar deprived island nation on fears of domestic debt restructuring.
Sri Lanka is looking at options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announce them the International Monetary Fund said in a report.
The market saw a run up before the IMF was approved purely run on speculations, with top contributors to revenue being the banking and financial sector willing to take risks domestic debt restructuring, an analyst said.
Now a pull back is present as the market was constantly running on green and leaving investors needing more insight on debt restructuring plans.
Lanka IOC was amidst a top loser during mid day trade solely based on Power and Energy Minister’s speech at Parliament, where it was assured fuel prices were to be in April, citing falling international oil prices and ability to get a competitive prices after regained trust from suppliers due to the International Monetary Fund loan approval. (Colombo/Mar22/2023)