Sri Lanka’s Colombo Stock Exchange closed lower on Thursday, with the All Share Price Index falling 0.89 percent — or 191.45 points — to 21,270.02, dragged down by losses in heavyweight banking counters, EconomyNext reported. The more liquid S&P SL20 ended 0.77 percent, or 46.11 points, lower at 5,939.31.
Market turnover came in at Rs. 1.67 billion, with capital goods leading at Rs. 444.3 million. The session’s biggest negative contributors were DFCC Bank, which slipped 2.14 percent to Rs. 125.50, Commercial Bank of Ceylon (-0.75 percent at Rs. 199), Dialog Axiata (-1.14 percent at Rs. 43.50) and National Development Bank (-1.82 percent at Rs. 107.75). On the positive side, Ambeon Holdings rose 6.54 percent to Rs. 39.10, Melstacorp added 0.71 percent to Rs. 178.50, and Asiri Surgical Hospital jumped 20 percent to Rs. 0.60.
Brokers attributed the banking-sector weakness to lingering pressure from the CBSL’s 100-basis-point Overnight Policy Rate hike in May and renewed concern over net-interest margins amid moderating credit growth, plus continued external-sector uncertainty after the partial closure of the Strait of Hormuz. The CBSL itself this week briefed legislators in a Parliament-floor session on the rate-policy stance and rupee outlook.
Separately, Asia Asset Finance announced a Rs. 1.5 billion rights issue, offering 4 new shares for every 11 held at Rs. 33.30 per share — a total of 45,162,012 shares — to meet the Central Bank of Sri Lanka’s revised Tier 1 capital adequacy requirements for non-bank finance companies. The non-bank finance sector has been under sustained CBSL pressure to bolster regulatory capital amid the higher-rate environment.
The CSE also flagged that Hela Apparel Holdings will be suspended from trading from June 18 unless the company resolves an auditor’s disclaimer of opinion tied to its failure to restructure debt.
Sources: EconomyNext — Sri Lanka stocks close down amid banking losses.
