Market delivered a slightly mixed result yesterday with the ASPI dipping 12 points and the S&P SL20 going up 7.4 points on a slightly better turnover of 3.8 billion. The indication is that the market is continuing to trade in a 500 point band while the larger longer term investers are cautiously accumulating on the discounted prices prevailing without upsetting it.
One must note the current economic outlook is very challenging with the dollar shortage creating a lot of scarecities and thereby increasing prices of all essential goods being imported . Market seemed to focus mainly on the LOFC, CLC and Sinhaputhra Finance merger announced earlier and speculating on the possible conversation prices ,hence the large contribution to the turnover was from these related counters.
The continuous accumulation of dollarised assets is the only hedge against an eventual devaluation of the Rupee that is now being speculated to be around 250 to the $.
