Mar 04 (Reuters) - Sri Lankan shares plunged to a two-month low on Thursday, further shrinking their early 2021 gains, as rising U.S. bond yields shook global stock markets.
The benchmark stock index dropped 2.7% to 7,002.04, its lowest since Jan. 6. With Thursday’s fourth straight of losses, the index is now well below a record high of 9,025 hit in late January, and is just up around 3% for the year.
The MSCI’s ex-Japan Asian-Pacific shares lost 1.8% and other stock markets dipped after 10-year U.S. Treasury yield, the benchmark for global borrowing costs, rose past 1.45% on Wednesday.
Earlier on Thursday, Sri Lanka’s central bank left its key interest rates unchanged and re-affirmed its commitment to maintain a low interest rate structure until the economy shows signs of a sustained recovery.
Sri Lanka, which has reported around 84,000 coronavirus infections, has approved the emergency use of Russia’s Sputnik V vaccine in the island nation, state minister Channa Jayasumana said on Thursday.
Financial services conglomerate LOLC Holdings slid for a fourth straight session, closing nearly 9% lower.
Conglomerate John Keells Holdings Plc fell 2.5% to its lowest closing level since Dec. 24.
Trading volume on the CSE All Share Index slipped to 133.8 million from 141 million in the previous session.
Foreign investors were net sellers, offloading shares worth 443.1 million Sri Lankan rupees ($2.28 million), according to exchange data.
Equity market turnover was 3.01 billion Sri Lankan rupees, data showed.
The Sri Lankan rupee was last quoted at 194.5 against the U.S. dollar as of 1058 GMT, according to Refinitiv data.