Shares drop over 2% as Omicron arrival spooks investors

REUTERS: Sri Lankan shares dropped over 2 percent yesterday to extend losses for the third straight session, as sentiment was soured by the discovery of the first Omicron variant patient in the country.

The CSE All-share index fell 2.35 percent to end at 10,988.3, marking its worst session in two weeks. The index also fell 1.9 percent for the week, though it continued to hover near record levels. Commercial Leasing and Finance PLC and LOLC Finance PLC were the biggest drags on the index, dropping 23.6 percent and 8.6 percent, respectively. The losses were led by financial and industrial stocks.

The country’s Health Ministry said the new coronavirus variant was identified in a Sri Lankan national who had recently returned from South Africa.

Meanwhile, large parts of the island nation suffered a power outage as state power workers scrambled to get a key transmission line operational.

On Thursday, the country’s Central Bank unveiled a plan to encourage migrant workers to remit funds using formal channels.

The equity market’s turnover was Rs.7.08 billion (US $ 35.22 million), according to stock exchange data.

Trading volume rose to 305.8 million shares from 252.4 million shares in the previous session.

Foreign investors were net buyers in the equity market, picking up shares worth about Rs.86.7 million, as per exchange data.

The island nation reported 738 new coronavirus cases in the last 24 hours, taking the total to 565,471, data from the country’s health bureau showed.

About 63.08 percent of the country’s population has been fully vaccinated so far, according to data from Johns Hopkins University.