Financials, industrials drag shares lower as virus worries weigh

REUTERS: Sri Lankan shares ended lower yesterday, dragged by financial and industrial stocks, as a spike in domestic COVID-19 cases dented investor sentiment.

The CSE All-Share Index fell about 2.29 percent to close at 7,066.70 points.

Sri Lanka detected a new variant of the novel coronavirus over the weekend, according to media reports, as it braces for a third wave of infections.

The island nation on Monday reported its highest daily rise in COVID-19 cases of 997, the Health Ministry said yesterday.

The cabinet approved the closure of all schools in the country till Friday, the secretary to the Education Ministry said yesterday, to stem the spread of infections.

Local newspapers reported all ICU beds in hospitals were full and that the new virus variant was highly infectious and affected young people.

Insurance underwriter Ceylinco Insurance Plc and conglomerate Expolanka Holdings Plc were the top drags to the index, falling about 9 percent and 3.9 percent respectively.

Trading volumes rose to 105.7 million from 103.9 million in the previous session.

Foreign investors were net buyers in the equity market, purchasing about Rs. 56.5 million (US$ 291,237.11) worth of shares, according to exchange data.

Equity market turnover was Rs.1.95 billion, exchange data showed.

The Sri Lankan rupee LKR=LK was quoted at similar levels as on Thursday at 194 against the U.S. dollar, as of 1139 GMT, according to Refinitiv data.