Reuters: Sri Lankan shares edged down on Tuesday, falling for a second session amid fears of further declines due to worries over a higher budget deficit and economic growth, brokers said.
The benchmark share index closed 0.15 percent lower at 5,970.40.
Investors preferred fixed interest rate bearing assets over shares due to a rise in yields on treasury bills, which are hovering at two-year highs, and on the central bank's unexpected interest rate hike in mid-February, dealers said.
"The market should decline as the economy is running into a sharp fiscal problem. The recovery would take longer as there is no visible trigger compared to what we saw after the war," said an analyst, asking not to be named.
The island nation's economy grew at 4.8 percent last year, slowing from the previous year's 4.9 percent, government data showed on Tuesday, while it expanded 2.5 percent in the December quarter, down from a revised 5.6 percent in the previous quarter.
Foreign investors sold 16.7 million rupees ($115,331) worth of shares on Tuesday, extending the net foreign outflow so far this year to 435.4 million rupees worth of shares.
Turnover stood at 731.4 million rupees, below this year's daily average of 774.4 million rupees.
Shares in Ceylinco Insurance Plc fell 0.79 percent while biggest listed lender Commercial Bank of Ceylon Plc eased 1.23 percent.
The benchmark share index closed 0.15 percent lower at 5,970.40.
Investors preferred fixed interest rate bearing assets over shares due to a rise in yields on treasury bills, which are hovering at two-year highs, and on the central bank's unexpected interest rate hike in mid-February, dealers said.
"The market should decline as the economy is running into a sharp fiscal problem. The recovery would take longer as there is no visible trigger compared to what we saw after the war," said an analyst, asking not to be named.
The island nation's economy grew at 4.8 percent last year, slowing from the previous year's 4.9 percent, government data showed on Tuesday, while it expanded 2.5 percent in the December quarter, down from a revised 5.6 percent in the previous quarter.
Foreign investors sold 16.7 million rupees ($115,331) worth of shares on Tuesday, extending the net foreign outflow so far this year to 435.4 million rupees worth of shares.
Turnover stood at 731.4 million rupees, below this year's daily average of 774.4 million rupees.
Shares in Ceylinco Insurance Plc fell 0.79 percent while biggest listed lender Commercial Bank of Ceylon Plc eased 1.23 percent.
($1 = 144.8000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
No comments:
Post a Comment