Shares boosted by financials; April inflation drops

REUTERS: Shares rose on Thursday, riding on gains in financial and consumer staples stocks.

The benchmark stock index, which has fallen 21.9% so far this year, closed up 2.78% at 4,784.8.

Sri Lanka’s April national consumer price index grew at 5.9% on a year-over-year basis, compared with 7% in March.

The news came a day after rating agency S&P lowered the country’s sovereign rating to “B-”, citing fiscal deterioration due to the coronavirus pandemic

S&P also forecast that the virus outbreak would push Sri Lanka’s economy into recession in 2020 Among top boosts to the index were shares of Commercial Bank of Ceylon PLC, which rose 14.2%, and Lanka ORIX Leasing Company PLC, which advanced 12.6%.

Foreign investors were net sellers in the equity market, offloading Rs. 1.38 billion ($7.40 million) worth of shares, according to exchange data.

The rupee was quoted at Rs. 186.5 against the dollar as of 1008 GMT, 0.27% stronger compared to the previous session’s close of 187, according to Refinitiv data. The currency has fallen 3.14% this year. Equity market turnover was Rs. 2.3 billion, data showed.