Thursday 4 August 2016

Sri Lankan shares down on profit-taking

Reuters: Sri Lankan shares ended lower on profit-taking on Thursday, snapping five days of gains and slipping from their highest level in more than seven weeks hit in the previous session, analysts said.

The bourse has been on a gaining trend on hopes that economic fundamentals would improve after the central bank's rate hike last week.

The benchmark Colombo stock index ended down 0.51 percent at 6,478.25, slipping from its highest close since June 14 hit on Wednesday.

The central bank last week raised its main interest rates by 50 basis points each in a surprise move aimed at curbing stubbornly high credit growth that is adding to concerns about inflationary pressures.

"Today there was a bit of slowdown with lower interest from foreigners," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.

"The market started to consolidate today. Market cannot go up continuously, either it should stabilise or should go up again after some kind of consolidation."

Overseas investors were net buyers of 34.6 million rupees ($237,800.7) worth of shares on Thursday, extending the net foreign inflow during the last seven sessions to 784.3 million rupees worth of equities.

However, they have been net sellers of 4.02 billion rupees worth of shares so far this year.

Stockbrokers said the market is awaiting an economic policy announcement from Prime Minister Ranil Wickremesinghe, scheduled later this month.

Turnover stood at 504.7 million rupees ($3.47 million), less than this year's daily average of around 733.4 million rupees.

Shares in Ceylon Tobacco Company Plc fell 1.51 percent, while biggest-listed lender Commercial bank of Ceylon Plc fell 1.79 percent, dragging the overall index down. 

($1 = 145.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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