Colombo stock market cautious amidst political crisis

THE Colombo stock market yesterday saw losses, though marginal, amidst moderate turnover, with analysts being wary whether the outcome was linked to political crisis following the remand of former President Ranil Wickremesinghe on Friday for allegations of abuse of State funds.

- 

The benchmark ASPI was down by over 73 points or 0.36%, whilst the active S&P SL20 declined by 0.78%. Turnover was Rs. 4.4 billion, a new low in over a week, involving 134 million shares.

Until last week, year-to-date, the ASPI has gained by 29.5% and the S&P SL20 by 25%.

Some analysts said there was a sense of profit-taking, given the high levels the indices have risen in recent months. Last week, the market was up 2%. Others opined that investors were concerned over the contentious political scene, with the Opposition ganging up against the circumstances under which former President Wickremesinghe was arrested and remanded and alleged reasons for the same.

Given the developments over the weekend, some brokers expected a big dip yesterday, whilst other analysts were hoping for a gain as upholding the rule of law is a good sign for investor confidence.