Sri Lanka stocks slide on profit taking in LOLC, JKH

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ECONOMYNEXT – Sri Lankan shares slid on Tuesday after gaining for three consecutive sessions on profit taking on retail stocks, dealers said.

The main All Share Price Index (ASPI) fell 0.18% or 16.06 points to 9,071.53 on Tuesday.

“We’ve seen retailer favorites have a bit of volatility in the market. It was down a few sessions ago, then it recovered and we are seeing selling again,” said a market analyst.

“What we’re seeing is the selling pressure going up and down in these meters, particularly from the high prices that these stocks have been trading at.”

The energy and plantations sector is picking up steam, he said.

The market generated 4.9 billion rupees in turnover, nearly double this year’s average daily turnover of 3.13 billion rupees.

It is also the highest turnover generated in a week.

Sri Lanka already declared default on its sovereign debt on April 12 this year and failed to repay its first sovereign debt in May amid a deepening economic crisis which later turned into a crisis. politics and led to a change of president, cabinet and government.

The more liquid S&P SL20 index ended 0.60% or 17.92 points lower at 2,989.78

Sri Lanka is facing its worst energy and economic crisis in its post-independence period and the economy is expected to shrink by more than 8% this year.

The main ASPI has gained 17.5% in August so far after gaining 5.3% in July. It lost 9.3% in June, 23% in April and 14.5% in March.

The stock index has lost 25.8% so far this year after being one of the best stock markets in the world with a return of 80% last year when large volumes of money were printed.

Net inflows of foreigners were 16 million rupees on Tuesday, but total net outflows of foreigners so far this year are 968 billion rupees.

Investors are also concerned about the rupee’s sharp fall from 203 to 370 levels so far in 2022.

LOLC Holdings pushed the index lower, closing 2.35% lower at 603.7 rupees per share.

John Keells closed down 1.57% to 125 rupees per share, and Sri Lanka Telecom fell 11.51% to 52.3 rupees. (Colombo/August 23, 2022)

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