ECONOMYNEXT – Sri Lanka stocks closed up Thursday 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 0.01 percent or 1.52 points to 10,491.52, 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 generated a turnover of 5 billion rupees, this is the highest revenue has been since July 04, majority of the revenue had come from the consumer durables sector brining in 2.3 billion rupees while the food, beverage and tobacco sector brought in 762 million rupees and the capital sector brought in 444 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 232 million rupees.
Top gainers were Hatton National Bank, Lanka IOC and Aitken Spence.
The controlling stake in Dankotuwa Porcelain called up for a high stake in the market. The consumer durables and apparel sector drew in 2.3 billion rupees in revenue during mid day trade.
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)