Sri lanka News – Sri Lanka stocks closed 2.8 percent weaker on Monday (03) to a near four-week low as investor sentiments dented over falling container freight and fuel prices, dealers said.
The stock exchange halted its operations 26 minutes before the market closed as the liquid index S&P SL20 slipped over 5 percent.
The index however settled at 3.68% or 116.46 points down at 3,048.87.
The main All Share Price Index (ASPI) fell 281.21 points to close at 9,649.86, the lowest since September 08.
“The market was dragged down by selling in Expolanka shares as global freight prices dropped,” a market analyst said.
Another market analyst said foreign buying in Expolanka has now slowed and thus the price is falling.
Profit taking in Lanka IOC shares also dragged the market following a downward fuel price revision on Saturday.
According to Maersk, one of the largest shipping and freight transportation companies in the world, container freight rates have fallen close to 3,000 dollars to December 2020 levels in Asia-Pacific region amid fears of recession in Western countries.
“Ocean spot rates are in steep decline with the Shanghai Containerized Freight Index (SCFI) dropping significantly since June to around $3,000 per TEU in September, back to the same level as December 2020,” Maersk said in it’s September report.
“The changes to the macroeconomic environment are accelerating the pace of market normalization and enabling ports to decongest, which in turn will make put pressure of the value proposition offered by carriers,” Morten Juul, Asia Pacific Regional Head of Ocean Management said in a market update.
The market saw a turnover of 2.5 billion rupees, lower than this year’s average turnover of 3.2 billion
The bourse saw a net foreign inflow of 44 million rupees on Monday. The inflow so far this year is 15.3
billion rupees after 16.7 billion rupees of net offshore buying in the last 35 consecutive sessions amid
positive sentiment over an IMF deal.
The market saw its highest monthly net foreign inflows into stock market last month in more than 10 years as some foreigners converted their dividend payment into risky assets because they could not get dollars to repatriate due to forex crisis.
The island nation’s 4.3 trillion worth stock market saw 14.7 billion rupees ($40.8 million) net foreign
inflow in September, its highest since March 2012.
The index has lost 18.6 percent so far this year 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 closed 9.3 percent lower at 197.3 rupees a share.
Lanka IOC closed 5.2 percent down at 273.7 rupees and Royal Ceramics Lanka ended 8.7 percent
weaker at 37.9 rupees a share. (Colombo/Oct03/2022)
( Information from economynext.com was used in this report. To Read More, click here | Also if you have any problem of this article or if you need to remove this articles, please email here and we will delete this immediately. [email protected] or [email protected] )