Sri Lankan shares slump to 7-week low as financials slide ahead of rate decision
- The benchmark stock index ended down 2.1% at 7,193.09, its lowest since Jan. 11.
- The index is off around 20% from its lifetime high hit on Jan. 29, when it saw the best start to the year for any stock market in the world.
Sri Lankan shares dropped to their lowest in more than seven weeks on Wednesday as financial stocks slid ahead of the central bank's decision on interest rates.
The benchmark stock index ended down 2.1% at 7,193.09, its lowest since Jan. 11. The index is off around 20% from its lifetime high hit on Jan. 29, when it saw the best start to the year for any stock market in the world.
Sri Lanka central bank's monetary board is due to release its decision on policy rates and its stance at 0200 GMT on Thursday.
The bank has held key rates steady in its previous four monetary policy reviews, after having aggressively cut rates to lift the island nation's economy from the coronavirus pandemic.
On Wednesday, financial services conglomerate LOLC Holdings tumbled 5.5%, stock exchange data showed, hitting its lowest since Feb. 17.
Trading volume on the CSE All Share Index climbed to 141 million from 66.7 million in the previous session.
Foreign investors were net buyers, purchasing shares worth 420.6 million Sri Lankan rupees ($2.16 million), according to exchange data.
Equity market turnover was 2.43 billion Sri Lankan rupees, data showed.
The Sri Lankan rupee was last quoted at 194.5 against the US dollar as of 1058 GMT, according to Refinitiv data.
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