FINANCIAL CHRONICLE – On Thursday, the Colombo Stock Exchange experienced a decline as investors redirected their focus toward fixed deposits and commercial paper in response to Sri Lanka’s recent interest rate increase, according to brokers.
The All Share Price Index fell by 1.14 percent, equivalent to a decrease of 250.79 points, closing at 21,760. Similarly, the S&P SL20 index decreased by 1.08 percent, or 66.10 points, ending at 6,031.
The market turnover reached 2.78 billion rupees. Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC, noted that the market is seeing a diminished level of interest following the rate hike. He highlighted that investment is increasingly flowing into fixed income instruments, mentioning that commercial paper is now yielding 15 percent.
Despite many earnings reports indicating positive results, Mathew observed a lack of significant investor reaction. He remarked, “There’s a reduced appetite for buying. Fund managers are liquidating some of their holdings.”
