ECONOMYNEXT – Sri Lanka stocks closed up on Friday after domestic bond restructuring assurances had been given on the state front, in the latest Policy Review Meeting policy rates were cut and inflationary pressure was also seen to be decreasing driving investor sentiment, brokers said.
The All Share Price Index (ASPI) edged up 0.99 percent or 103.50 points to 10,595.02, this is the highest the market has been since March 14 2022, while the most liquid index S&P SL20 was down 0.02 percent or 2.58 points to 3,058.32, according to exchange provisional data.
The market has continuously being seeing gains on domestic debt optimization (DDO) since July 04, this is the sixth gain in a row on DDO.
The market generated a turnover of 2.7 billion rupees, majority of the revenue had come from the banking sector brining in 503 million rupees while the capital sector brought in 473 million rupees and the material sector brought in 356 million rupees. The daily average turnover is 1.6 billion rupees.
The banking sector and diversified financial sectors are picking up on domestic debt optimization assurances, while investors are seeking alternative investments bringing up the market on green, an analyst said.
The overall market is moving up on domestic debt optimization assurances, picking up several stock counters in the market.
The market generated a net foreign outflow of 11 million rupees.
Top gainers were Commercial Bank, Hatton National Bank, and Sampath Bank.
Sri Lanka’s central bank said it had cut policy interest rates 200 basis points 12.00 percent and 11.00 percent, in July monetary policy meeting asking banks to lower lending rates.
Sri Lanka’s inflation in June 2023 slowed to 12 percent from 25.2 percent in May 2023 data from the state statistics office showed as the central bank operated deflationary monetary policy.
Nandalal Weerasinghe, Central Bank Governor said inflation would be lowered to a singular digit in the next month. Sri Lanka has made the offer to re-structure domestic as part of efforts to meet International Monetary Fund targets to make government debt sustainable after sovereign default. (Colombo/July10/2023)