Stock market rebounds

REUTERS: Crisis-hit Sri Lanka’s stock market climbed over 1% on Friday and clocked a second consecutive weekly gain, boosted by heavyweight industrial and financial stocks, as the island nation appointed nine new Cabinet members.

The CSE All-Share index closed 1.12% higher at 8,265.61 and was 2.1% stronger for the week.

For the year, the index is down 32.4%, as the island nation battles its worst economic crisis in history.

The equity market turnover was Rs. 1.98 billion. Trading volume fell to 65.13 million shares from 69.2 million shares in the previous session.

Foreign investors were net sellers in the equity market, offloading shares worth Rs. 304.6 million while domestic investors were net buyers with Rs. 1.79 billion worth of shares bought, according to exchange data.

Sri Lanka on Friday appointed nine new Cabinet members, among them ministers for the critical portfolios of Health, Trade and Tourism.

Earlier on Friday, Fitch downgraded Sri Lanka’s rating to ‘restricted default’ after the grace period expired on coupon payments that were due on 18 April on two international sovereign bonds.

The Group of Seven economic powers support efforts to provide debt relief for Sri Lanka, G7 finance chiefs said on Thursday, as the country faces shortages of essential goods and social unrest.

Sri Lanka’s Central Bank held its key interest rate steady on Thursday following a massive 700 basis points increase at its previous meeting.