ECONOMYNEXT – Sri Lanka shares ended firmer on Friday (17) in moderate trading volume after losing in the last two sessions as investors moved back into dollar earning companies due to depreciation, brokers said.
Foreign investors sold shares on a net basis owing to possible rupee depreciation in the near future, brokers said.
“Market wrapped up the week on a positive note with the key indices returning to green territory amid recording a relatively moderate turnover as investors remained subdued ahead of the upcoming holiday season” a Colombo-based analyst said.
Analysts said, the market fall observed in the past two sessions were due to profit taking ahead of the holidays.
Foreign investors sold a net of 48 million rupees’ worth of shares on Friday (17). The bourse has suffered a net foreign outflow of 50 billion rupees so far this year.
All Share Price Index gained 0.64 percent or 74.79 points to close at 11,753.44.
The more liquid S&P SL 20 index gained 0.98 percent or 41.38 points down to close at 4,253.67.
Central bank’s official data showed that foreign reserves have depleted to their lowest in more than a decade, concerning investors who hold shares of the companies that deal with rupee currency over possible depreciation.
The day’s turnover was 4.7 billion rupees, slightly above this year’s average daily turnover of 4 billion rupees.
The gain was mainly led by Expolanka, LOLC Holdings, and Senkadagala Finance.
Expolanka, the market heavyweight which has a significant component of export and freight business, gained 1.95 percent to close at 378.75 rupees a share.
LOLC Holdings gained 1.37 percent to close at 1,130.75 rupees a share and Senkadagala Finance closed 24.98 percent up to 412.75 rupees a share. (Colombo/ Dec 17/2021)