Sri Lanka shares rebound on broad gains ahead of rate decision

Sri Lankan shares bounced back from their worst session in five months on Tuesday, helped by advances across sectors, with investor focus shifting to the central bank’s rate verdict due on Wednesday.

The CSE All Share index rose 0.77% to 22,819.91. The benchmark had fallen 1.47% on Monday.

The Central Bank of Sri Lanka is expected to hold the key interest rate at 7.75% on Wednesday, ahead of next month’s parliamentary vote on the country’s budget and the sixth tranche of a $2.9 billion International Monetary Fund package.

Industrial Asphalts and Kerner Haus Global Solutions were the top two percentage gainers on the CSE All Share, jumping 25% and 21%, respectively.

Trading volume on the CSE All Share index dropped to 109.9 million shares from 145.9 million in the previous session.

The equity market’s turnover fell to 4.06 billion Sri Lankan rupees ($13.2 million) from 4.95 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 271.2 million rupees, while domestic investors were net buyers, purchasing shares worth 4 billion rupees, the data showed.