Monday 29 May 2017

Sri Lankan shares fall to two-week closing low; floods weigh

Reuters: Sri Lankan shares fell on Monday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings Plc and Commercial Bank Plc while floods and landslides that hit the island nation weighed on sentiment.

Sri Lankan authorities on Monday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.

The Colombo stock index ended 0.27 percent weaker at 6,679.46, at its lowest close since May 15.

The bourse fell 0.47 percent last week recording its first weekly fall in nine weeks.

Turnover on Monday stood at 270.6 million rupees ($1.8 million), well below this year's daily average of 895.9 million rupees.

Foreign investors bought shares worth 57.1 million rupees on a net basis, extending the year-to-date net foreign inflow to 19.46 billion rupees worth of equities.

"Profit-taking that started last week is continuing. The market is coming down on low volumes," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods."

Shares in conglomerate John Keells Holdings Plc and Nestle Lanka Plc fell 0.9 percent each, while biggest listed lender Commercial Bank of Ceylon Plc fell 1.2 percent. 

($1 = 152.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

No comments:

Post a Comment