The Colombo Stock Exchange’s All Share Price Index closed lower for a second consecutive session on Tuesday as investor money continued to rotate from equities into fixed income after last week’s policy rate hike.
The ASPI fell 87.39 points, or 0.39 per cent, to 22,177.65, while the more liquid S&P SL20 lost 19.55 points, or 0.32 per cent, to 6,130.65. Market turnover stood at Rs. 2.02 billion, with capital goods leading at Rs. 558.6 million.
“After rate hike, market hasn’t been doing great,” First Capital Holdings Chief Research and Strategy Officer Dimantha Matthew said, attributing the slide to a “transfer of funds from stocks to fixed income, as higher rates made the latter more attractive.”
The Central Bank of Sri Lanka raised the Overnight Policy Rate by 100 basis points to 8.75 per cent last week to head off a rising inflation profile fed by elevated fuel import costs and a weaker rupee. Governor Nandalal Weerasinghe warned on Monday that inflation could touch 7 per cent if the Middle East conflict drags on.
Haycarb gained 5.24 per cent to Rs. 155.75, Richard Pieris rose 3.33 per cent to Rs. 31, and Ceylon Cold Stores added 2.57 per cent to Rs. 139.75 — Matthew attributed the spot gains to recent earnings releases. Melstacorp slipped 1.06 per cent to Rs. 186.25, LOLC Holdings lost 1.84 per cent to Rs. 534, Colombo Dockyard fell 2.23 per cent to Rs. 131.75 and Bukit Darah dropped 2.41 per cent to Rs. 858.75.
Real estate firm Kerner Haus Global Solutions said it would raise Rs. 420.12 million through a one-for-four rights issue at Rs. 40 per share, offering 10,502,975 shares. Its stock closed 1.41 per cent lower at Rs. 41.90.
Source: EconomyNext.
