The market at the Colombo Stock Exchange (CSE) gained on Thursday, following a seven-day declining streak.
The All Share Price Index (ASPI) gained 0.43% or 34.8 points to close at 8,099.51, while the S&P SL20 gained 0.62% or 16.34 points to close at 2,671.72. Day’s turnover was Rs. 1.4 billion, roughly one-third of this year’s daily average of Rs. 3.9 billion.
Foreign buying on Thursday was substantial, with foreign investors buying a net Rs. 185.9 million worth of shares. However, the market has witnessed a total foreign outflow of Rs. 957 billion so far this year.
“The market has no reason today to move up as the selling pressure, and margin calls are still very much persistent. However, after slipping for seven days, it’s just a small breather,” a top market analyst said.
Tax hikes and proposed constitutional changes also weighed on investor sentiments in addition to selling pressure amidst margin calls.
Sri Lankan stocks have already lost 33.7% so far this year despite being one of the best performing stock markets in the world last year with 80% returns. The market gained 6% in May after losing 23% in April and 14.5% in March.
Owing to speculations on fuel price hikes, Lanka IOC shares gained 6.1% to Rs. 64 a share. John Keells Holdings gained 2.6% to Rs. 126.7 a share, while Teejay Lanka ended 5.1% higher to Rs. 40.90 a share.
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