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Market struggles as economic fears grow

  • 24 May 2022
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 After two consecutive days in green, ASPI closed the day in red, down marginally after mid-night fuel hike prompted by the introduction of fuel pricing formula, raised fuel prices past LKR 400.0/liter for the first time.



Further, concerns regarding the announced price hikes by other transport sector entities together with incremental costs on prices of other essential products, and thus on inflation also contributed towards the negative sentiment prevailed in the market.





ASPI opened the day higher and moved up during the first few minutes into trading, however lost steam afterwards on the back of profit-taking in selected counters.



Turnover declined to LKR 2.3Bn, led by Food, Beverage & Tobacco and Transportation sectors accounting for a joint contribution of 48%. Foreign investors turned net buyers while recording low participation.





Meanwhile bonds remained at a standstill ahead of tomorrow’s LKR 90.0Bn bill auction and activity in the secondary bond market was at a complete standstill as majority of market participants opted to be on the sidelines.



Courtesy: First Capital Research

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