Sri Lanka stock market gains momentum with John Keels trading
Friday, 17 Sep 2021

Sri Lanka stock market gains momentum with John Keels trading

25 March 2021 09:53 am

Sri Lanka stock market has gained momentum once again as stocks jumped 1.6 percent yesterday to a more than three-week high on institutional buying of blue-chips stocks like John Keells Holdings PLC in an oversold market after the Central Bank kept policy rates stable and static .

Market heavyweight and the top conglomerate John Keells Holdings gained 2.14 percent to Rs.186, while top private lender Commercial Bank of Ceylon gained 0.4 percent to Rs.100.90.

The day’s turnover was Rs.427.8 million ($3.24 million), the highest since June 7, but less than the daily average of Rs.943 million this year.Foreign investors were net sellers of Rs.4.23 million worth of shares.

Chairman of John Keells Holdings PLC Krishan Balendra said the stock market had ‘overheated’ in January and the recent correction did not reflect the change in fundamental values.

While addressing an economic conference in Colombo he stated that what happened in January in the stock market was not really reflective of the business value.

He said: “The market fell quite rapidly as it opened after the first lockdown. Then we saw gradual recovery, which reflect the recover in business.  

And also the lower interest rates and more liquidity in the market. What happened in January was not really reflected of business value. 

The Central Bank maiantains the key policy rates unchanged and the Colombo Stock Exchange’main index rose 1.61 percent or 78.23 points to end at 4,923.02, its highest since May 28.

 The market fell 10.8 percent in May due to economic and political worries. It has recovered 2 percent in June.

Chairman of John Keells Holdings PLC Krishan Balendra said the stock market had ‘overheated’ in January and the recent correction did not reflect the change in fundamental values.

While addressing an economic conference in Colombo today (23), he stated that what happened in January in the stock market was not really reflective of the business value.

He said: “The market fell quite rapidly as it opened after the first lockdown. Then we saw gradual recovery, which reflect the recover in business. 

 And also the lower interest rates and more liquidity in the market. What happened in January was not really reflected of business value. 

He noted that the market got carried away and there was a lot of speculations. The recent correction doesn’t reflect the change in fundamental values. It was in January the market got overheated. “



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