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Sri lanka News – Sri Lanka stocks fell on Monday ending the month in red with the market witnessing its lowest monthly turnover in three months, dragged down by heavyweight Expolanka after lower than expected earnings in the last quarter, brokers said.

The market saw a turnover of 1 billion rupees, lowest since July 28 and lower than this year’s average turnover of 3.1 billion rupees.

The main All Share Price Index (ASPI) lost 1.45 percent or 126.44 points to close at 8,602.16.

“Today’s market was mainly dragged down by selling in index heavy Expolanka as the quarterly earnings of the company was lower than what was expected due to a steep fall in freight prices, “an analyst said.

“This triggered a selling pressure in all the counters.”

The market in general is moving on a wait and see approach as it is expecting the interest rates to adjust downward, brokers said.

Meanwhile investors are waiting for new tax reforms in the 2023 budget and the market is on a bearish sentiment.

The market saw net foreign inflows of 47 million rupees and a total inflow for 3.2 billion rupees for October, down from 14 billion in the previous month.

The total net foreign inflow so far for this year is 18.5 billion rupees.

The more liquid index S&P SL20 closed 1.96 percent or 51.84 points lower at 2,590.61.

The index has lost 13.4 percent in October and 29.6 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.

Even though the companies have shown reasonable profits in the second and third quarters of the year investors are concerned over December-quarter earnings.

Analysts said, the disposable income of the general public and the investors reducing due to rapid inflation in the country and the proposed tax hikes is the main reason for the negative expectations over the December earnings.

Expolanka, dragging the index down, closed 6.8 percent weaker at 150.3 rupees a share.

Richard Pieris fell 5.2 percent to 27.6 rupees a share while Lanka IOC closed 4 percent weaker at 183.75 rupees a share. (Colombo/Oct31/2022)

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