Sri Lankan shares fall for 3rd straight session on rising yields

Reuters: Sri Lankan shares fell for a third straight session on Tuesday to their lowest close in nearly 19 months due to rising yields and as investors sold their holdings to settle margin trading, brokers said.

The main stock index pared early losses and closed 0.65 percent, or 41.37 points, weaker at 6,283.24, its lowest close since June 27, 2014.

The stock market had shed about 8.9 percent this year through Tuesday's close due to foreign outflows, triggered by global concerns over China's economy.

"Market is coming down because of overacting of local investors and the fall has little to do with the fundamentals," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd, adding margin calls were seen as local investors sold in response to foreign selling.

Foreign investors, who have sold a net 2.35 billion rupees worth of equities so far this year, bought a net 5.5 million rupees ($38,194.44) on Tuesday.

Stockbrokers said some foreign funds have already started selling blue chips, including market heavyweight John Keells Holdings and lender Commercial Bank of Ceylon .

Turnover was at 765.3 million rupees ($5.31 million).

The yield on 91-day t-bills rose 40 basis points to a more than three-month high of 6.78 percent in three weekly auctions since the Dec. 30 monetary policy announcement.

Shares of Cargills (Ceylon) Plc fell 5.88 percent, Bukit Darah Plc dropped 5.48 percent and Hatton National Bank Plc declined 0.41 percent.

Sri Lanka Telecom Plc fell 1.23 percent, Commercial Bank of Ceylon Plc dropped 0.85 percent and John Keells shed 0.50 percent. 

($1 = 144.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan shares fall to near 19-month low on rising rates

Reuters: Sri Lankan share index fell about 2 percent to near 19-month low on Monday due to rising yields and as investors sold their stocks to settle margin trading, brokers said.

The main stock index ended 1.89 percent, or 121.59 points weaker, at 6,324.61, its lowest close since June 27, 2014.

The market has lost about 8.3 percent this year through Monday's close due to foreign outflows triggered by global concerns related to China's economy.

"On one hand, large quantities of foreign selling is available in the market. But on the other hand nobody is coming forward to buy the market," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

"The fall has already triggered margin calls for everybody. There is also lack of positive news and there is nothing concrete taking place on the government side, while interest rates are also slowly on the rise though the central bank is tightly holding them," he said.

Foreign investors sold a net 151.3 million rupees ($1.05 million) worth of equities on Monday, extending net outflows to 2.36 billion rupees so far this year. Last year, the island nation saw a net outflow of 4.43 billion rupees.

Stockbrokers said some foreign funds have already started selling blue chips including the market heavyweight John Keells Holdings and lender Commercial Bank of Ceylon .

The turnover was at 812.7 million rupees ($6.81 million).

The yield on 91-day t-bill rose 40 basis points to an over three-month high of 6.78 percent in three weekly auctions since the Dec. 30 monetary policy announcement.

Conglomerate John Keells fell 2.7 percent, while Lanka Orix Leasing Co lost 7.2 percent, dragging the overall index.

($1 = 144.0000 Sri Lankan rupees) 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Anand Basu)