ECONOMYNEXT – Sri Lanka stocks slid 0.76 percent after the ruling National People’s Power party failed to secure a majority in the local government polls, brokers said.
“Investors are slightly disappointed in the election results,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC told EconomyNext.
“According to our understanding, the escalation in tension in the region and some levels of disappointment surrounding the election are the reasons for the market to fall.”
NPP managed to secure 43 percent of the overall votes, down from 61 percent votes it received in the parliamentary election.
NPP won over 260 of 339 local authorities, though an outright majority has not been secured.
Colombo’s broader ASPI closed 119.99 points lower, at 15,841.60. The S&P SL20 of more liquid stocks ended 0.75 percent, or 34.88 points weaker, to close at 4,640.04 after a highly volatile session.
Turnover was 3.2 billion rupees.
“Blue chip companies were down, that dragged the indices,” Mathew said. “Most of the banks were down.”
John Keells Holdings closed down at 20.10 rupees, Ceylinco Holdings ended down at 2,950.25 rupees, Commercial Bank fell to 136.50 rupees, Aitken Spence closed down at 125.00 rupees, and Sampath Bank closed down at 109.00 rupees, making up the top negative contributors to the ASPI.
Buying interest was low on the export stocks, brokers said.
“Investors are waiting for somewhat of clarity as negotiations are underway,” Mathew said.
Hayleys Fabric ended down at 42.30 rupees, Teejay Lanka was down at 46.50 rupees, Dipped Products closed down at 53.80 rupees, and Haycarb fell to 81.70 rupees, while Hayleys closed up at 134.00 rupees.
In the south Asian region, tensions soared as regional superpower India launched operation Sindoor against Pakistan hours after UN secretary general António Guterres called for military restrain from both countries.
Pakistan’s KSE 100 index tanked following the attack to trade 3.13 percent weaker, at 110,012.60 while India’s BSE Sensex rose 0.13 percent to 80,746.78 and Nifty 50 grew 0.14 percent to 24,414.40.
Meanwhile, US and China officials have agreed to meet in Geneva from May 9 to 12 for tariff talks.
This led China’s SSE Composite Index to close up 0.80 percent at 3,342.66.
As at 4.05 Sri Lankan time on Wednesday, spot gold was trading at 3,404.15 US dollars, down 34.59 US dollars down. (Colombo/May07/2025)
Continue Reading
