Lankan shares fall with world markets

Sri Lankan shares plunged to a twomonth low yesterday, further shrinking their early 2021 gains, as rising U.S. bond yields shook global stock markets.

The benchmark stock index dropped 2.7 percent to 7,002.04, its lowest since January 6. With Thursday’s fourth straight of losses, the index is now well below a record high of 9,025 hit in late January, and is just up around 3 percent for the year.

The MSCI’S ex-japan Asian-pacific shares lost 1.8 percent and other stock markets dipped after 10-year U.S. Treasury yield the benchmark for global borrowing costs, rose past 1.45 percent on Wednesday.

Earlier yesterday, Sri Lanka’s Central Bank left its key interest rates unchanged and re-affirmed its commitment to maintain a low interest rate structure until the economy shows signs of a sustained recovery.

Sri Lanka, which has reported around 84,000 coronavirus infections, has approved the emergency use of Russia’s Sputnik V vaccine in the island nation, State Minister Channa Jayasumana said yesterday. Financial services conglomerate LOLC Holdingsslid for a fourth straight session, closing nearly 9 percent lower.

Conglomerate John Keells Holdings PLC fell 2.5 percent to its lowest closing level since December 24.

Trading volume on the CSE All Share Index slipped to 133.8 million from 141 million in the previous session.

Foreign investors were net sellers, offloading shares worth Rs. 443.1 million, according to exchange data.equity market turnover was Rs.3.01 billion. The Sri Lankan rupee was last quoted at 194.5 against the U.S. dollar as of 1058 GMT, according to Refinitiv data.