Due to macroeconomic restraints, the CSE fell in the first hour of trading yesterday after beginning in the green, according to stock market observers.
Most commercial and business operations have been impacted by the current acute fuel shortage. Market analysts said that the Fed Reserve (US Central Bank) has boosted 75 basis points and that the US monetary regulator will increase another 50-70 basis points.
The US Federal Reserve raised interest rates for the first time in 30 years the day before, in an effort to keep growing consumer prices under control. The federal government said that key interest rates would be raised by three quarters of a percentage point, to a range of 1.5 to 1.75 percent.
Furthermore, stock market analysts said that China’s zero Covid-19 policy has an impact on the global supply chain in practically all sectors. Supply side inflation is apparently visible in a negative sense in the global context.
With high global inflation, most economies, particularly those in Europe, are tightening and changing their monetary policies, which has had a detrimental influence on the global equities market/stock market, including the Sri Lankan stock market. Both indices fell as a result of these developments. The All-Share Price Index fell 66.8 points, while the S & P SL20 down 24.6 points. With a crossover, the turnover was Rs 786 million. JKH, which passed 200,000 shares worth Rs 25 million, was the first to record the crossing.