FINANCIAL CHRONICLE – The Colombo Stock Exchange in Sri Lanka experienced a decline during midday trading on Monday, following a positive start to the day, according to data from the CSE.
The All Share Price Index decreased by 0.34 percent, equivalent to a drop of 70.94 points, settling at 21,046.48. Similarly, the S&P SL20 index fell by 0.30 percent, or 17.87 points, reaching 5,857.82. Overall market turnover was recorded at 342 million rupees, with the capital goods sector leading the turnover at 73.84 million rupees.
Many banking stocks experienced declines after the National Development Bank (NDB) disclosed a significant fraud incident amounting to 13.2 billion rupees. Key stocks that contributed to the downturn included Commercial Bank, which fell by 1.24 percent to Rs.199.25, Sampath Bank, down 0.85 percent at Rs.145.25, and Hatton National Bank, which decreased by 0.63 percent to Rs.397.00.
In its announcement, NDB confirmed that the fraud, perpetrated by employees, resulted in a substantial financial loss. “The Bank acknowledges the seriousness of this situation and is addressing it with utmost urgency, making concerted efforts on various fronts to recover the lost funds, with assistance from law enforcement agencies,” the bank stated in a market disclosure.
As a result of the ongoing investigation, trading of NDB shares on the CSE has been suspended. Additionally, the Central Bank of Sri Lanka (CBSL) has instructed NDB to halt the payment of a cash dividend that was due to shareholders on April 6. This payment was set to be credited directly to the accounts of shareholders who had provided banking instructions, while those without such instructions would receive their dividends via mail before April 21. However, the scrip dividend will continue as scheduled.
In other news, Brent crude futures remained below 110 dollars per barrel on Monday, amidst tensions as the United States threatened potential military action against Iranian civilian infrastructure if they do not facilitate access to the Strait of Hormuz.
