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Sri Lanka stocks up but turnover at a decade low

Economy Next – 04.01.2019

ECONOMYNEXT – Sri Lanka’s stocks closed 0.1 percent up but turnover was 64 million rupees, the lowest since 64 million rupees hit in November 2009, brokers said.

The Colombo All Share Index closed up 9.18 points at 6077.66 while the S&P SL20 index closed at 3105.75 points up 14.23 percent.

Foreign investors were net buyers of 0.6 million rupees.

“Most investors are taking a wait and see approach,” said Atchuthan Srirangan, Assistant Manager Research at First Capital, a Colombo-based investment house.

“Some investors are not selling because they may think prices are too low, and buyers also think they can buy later after things settle.”

Many brokers are also on holiday, brokers said.

Sri Lanka banking system has also been hit by liquidity shortages since September due to the defence of a soft-pegged exchange rate regime.

Though the liquidity shortages have helped keep inflation at bay they also tend to depress asset prices and business activity.