Shares extend rally on consumer staples strength

Reuters: Shares ended higher for a 14th straight session and sixth straight week on Friday, led by gains in consumer staples stocks.

The benchmark stock index ended up marginally at 6,614.56 and has gained 7.9% so far this year.

S&P slashed Sri Lanka’s credit rating to “CCC+/C” on Friday, citing concerns that risks to the island nation’s debt servicing capacity have risen as the COVID-19 pandemic has squeezed the Government’s ability to generate earnings. Trading volume on the CSE All Share Index fell to 305.87 million from 476.73 million, compared to the last full trading day.

Melstacorp Plc and Hemas Holdings Plc were the biggest boosts to the index, gaining 14.1% and 4.1%, respectively.

Foreign investors were net sellers in the equity market, offloading Rs. 184.1 million ($987,660.94) worth of shares, according to exchange data.

The Sri Lankan Rupee was last quoted at 186.35 against the US Dollar as of 10:44 GMT, 0.3% lower for the day compared to last session’s close of 185.8, according to Refinitiv data. The currency is down 2.79% so far this year.

Equity market turnover was Rs. 2.93 billion, data showed.