Sri Lanka stocks recover on bargain hunting on fallen shares in thin trade  

ECONOMYNEXT – Sri Lanka’s stocks recovered on Wednesday (12) from a more than six-week low as bargain hunters returned to the market and bought beaten down heavyweight shares, dealers said.

The main All Share Price Index (ASPI) gained 1.24 percent or 108.66 points to close at 8,853.27, recovering lowest close since August 29.

“Market moved up on bargain hunters and with the new tax amendments being gazetted with speculations that taxes was put to rest,” a market analyst said.

However, many analysts said the market will be “volatile.”

Dealers said expected bad earnings in the September quarter triggered sell-offs by high-net-worth individuals while the declining global freight prices affected the top heavy-weight Expolanka.

The most liquid index S&P SL20 closed at 1.31 percent or 34.82 points higher at 2,687.81.

The market saw net foreign inflow of 31 million rupees on Wednesday. The inflow so far this year is 16.4 billion rupees after 17.8 billion rupees of net offshore buying in the last 41 consecutive sessions amid positive sentiment over an IMF deal.

The market saw a turnover of 2.3 billion rupees, lower than this year’s average turnover of 3.2 billion rupees.

The index has lost 10.8 percent so far this year and 27.5 percent year-to-date after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.

Expolanka, leading the index gain, closed 6.9 percent firmer at 155 rupees a share.

Ceylinco Finance ended up 4.8 percent to 2,095.5 rupees a share while Royal Ceramic Lanka closed 7 percent up at 36.4 rupees. (Colombo/Oct12/2022)

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