(Bloomberg) -- Sri Lanka's stocks resumed a fall on Tuesday after the Monday session ended prematurely following a 10% slump in a gauge of blue-chip shares.
The benchmark Colombo All Share Index closed down 3.3%. The nation's stock exchange halted trading for 30 minutes earlier in the day, triggered by a 5% drop in a blue-chip index that comprises 20 key stocks. Selling pressure remains strong, investors say.
READ: Limit Down, Shut Again for Sri Lanka Stocks After 51-Day Break
The stock exchange opens for shortened trading this week after being shuttered for 51 days amid an extended lockdown in the island nation's capital to prevent the spread of the coronavirus. Sri Lanka and Bangladesh exchanges were among a handful of global stock markets that halted trading in March after the Covid-19 pandemic shut down economies and pummeled equities. The Bangladesh bourse remains shut after last trading on March 25.
Kavinda Perera, head of research at Asia Securities Pvt. in Colombo, said there was likely some selling by foreign investors on Tuesday as they hardly sold anything on Monday.
The South Asian nation's stocks are down about 32% from a peak in December, missing out on a worldwide equities rebound in April after the bourse closed on March 20. They are now trading at their lowest level in about a decade.
Read: Market Closures in South Asia Leave Foreigners a ‘Bitter Taste'
“There's still a lot of selling pressure as the market adjusts to the long closure,” said Dimantha Mathew, head of research at First Capital Holdings Plc in Colombo. “It could take a few more days to settle.”
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