ECONOMYNEXT – The Colombo Stock Exchange in Sri Lanka halted trading at 10:36 a.m. Thursday (31) as a liquid stock index plunged more than 5% in intraday trading.
The market will resume its activity at 11:06 a.m.
This is the second consecutive session that the market has been stopped.
The broader All Share index was down 2.95%.
“Please note that the market was halted for 30 minutes due to the S&P SL20 Index falling more than 5% from the previous close, as disclosed in SEC guidance dated April 30, 2020,” the statement said. Colombo Stock Exchange on its website.
“The shutdown will be lifted at 11:06 a.m.”
The exchange also reduced its trading hours as the country extended its 10-hour blackouts, affecting stakeholders and investors, the CSE said.
Sri Lanka stocks have been falling since the central bank allowed currency flexibility. The currency has fallen more than 50% so far since being allowed flexibility on March 7.
Market analysts expect a long overdue correction amid macro concerns.
The stock was driven by accommodative monetary policy both at home and abroad. Some stocks were bought as an inflation hedge as the rupiah was expected to fall.
Others also benefited from import controls.
Sri Lanka’s accommodative monetary policy, however, led to growing external weakness which translated into supply disruptions. (Colombo/Mar 31, 2022) Trading in Sri Lanka shares halted as market plunges 5.0%