Tuesday March 10, 2020 17:09:21
ECONOMYNEXT – Sri Lanka stocks plunged 4.14 percent Tuesday with the benchmark all share index falling to an eight year low in one of the biggest one day falls on record amid continued foreign selling and weak domestic sentiment, while global market were also in turmoil, brokers said.
A global epidemic of Coronavirus had hit global trade, with Sri Lanka’s exporters, importers and construction firms also expected to take a hit as supply chains are disrupted.
Oil prices have also fallen, which is generally expected to be good for consumers and energy using companies.
But Sri Lanka’s stocks have taken a beating in recent months with foreign investors steadily cutting positions they have held for years in blue chip companies.
“There is selling pressure but not enough buying interest,” a broker said.
Colombo stocks are down 16 percent over 2020 and 8.4 percent from February.
Domestic investor sentiment was also weak, with some panic selling seen, brokers said, though shares were at bargain prices.
Colombo Stock Exchange was halted for 30-minutes after the S and P 20 Index of liquid shares fell 5-percent at soon after opening.
All Share Price Index finished the day at 5,121.91 points, hitting the lowest since August 29, 2012, when it was at 5,114.15 points.
The S&P SL20 Index of most liquid stocks closed down 4.75 percent or 117.86 points to end at 2,361.75.