Sri Lankan stocks slip to over 8-week closing low; lower economic growth weighs

Reuters: Sri Lankan shares slipped to their lowest close in more than eight weeks on Friday, led by beverage and telecom stocks as investors remained worried about the island nation’s slower economic growth, brokers said.

The Colombo stock index closed 0.12 percent lower at 6,443.75, marking its fourth session of fall in five. It fell 1 percent this week, in its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

“The market is moving sideways as investors are on the sidelines due to concerns over lower growth. They are also awaiting directions from the policy interest rate decision in April,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings Plc.

Turnover was 953.9 million rupees ($6.11 million), more than this year’s daily average of around 944.8 million rupees.

Shares in Lion Brewery (Ceylon) Plc fell 3.6 percent, Nestle Lanka Plc dropped about 1 percent, Softlogic Holdings Plc slumped 5 percent and Dialog Axiata Plc ended 0.7 percent weaker.

Foreign investors sold a net 58.4 million rupees worth of shares, but they have been net buyers of 7.2 billion rupees worth of equities so far this year. 

($1 = 156.0500 Sri Lankan rupees) 

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

Sri Lankan stocks snap 3 sessions of falls

Reuters: Sri Lankan shares ended marginally higher on Thursday, snapping three straight sessions of falls, as investors bought beverage and diversified stocks, brokers said.

The Colombo stock index rose 0.09 percent to 6,451.51, after it posted an eight-week closing low in the previous session.

However, investors remain worried about the island nation’s slower economic growth, said analysts.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

“We saw some of the positivity coming in after the release of GDP data. But investors are concerned over the lower growth,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“We can see some high net worth investors collecting with the index trading below 6,500.”

Turnover was 1.4 billion rupees ($8.97 million), more than this year’s daily average of around 936.4 million rupees.

Shares in Ceylon Tobacco Co Plc rose 2.9 percent, Ceylon Cold Stores Plc climbed 4.1 percent and conglomerate John Keells Holdings Plc closed 0.3 percent higher.

Foreign investors sold a net 24.9 million rupees worth of shares, but they have been net buyers of 7.3 billion rupees worth of equities so far this year. 

($1 = 156.0000 Sri Lankan rupees) 

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

Sri Lankan stocks fall to 8-week closing low on growth worries

Reuters: Sri Lankan shares fell for a third straight session on Wednesday and posted their lowest close in eight weeks, as investors sold diversified stocks such as John Keells Holdings Plc on worries over slower economic growth, brokers said.

Sri Lanka’s economy grew by 3.1 percent in 2017, the slowest pace in 16 years and well below the 4.5 percent seen in 2016, revised government data released on Tuesday showed.

The Colombo stock index fell 0.26 percent to 6,445.97, its lowest close since Jan. 24. It dropped 0.6 percent last week in its third straight weekly decline.

“The market is coming down on worries over the lower growth and political uncertainty,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“With the index trading below 6,500, it’s a buyer’s market as most of the stocks are undervalued. But political uncertainty and no visible policy direction hurt sentiment.”

Turnover was 632.2 million rupees ($4.05 million), less than this year’s daily average of around 936.4 million rupees.

Shares in conglomerate John Keells Holdings dropped 1.1 percent, Ceylon Cold Stores Plc fell 1.7 percent and Commercial Bank of Ceylon Plc, the country’s biggest listed lender, declined 2.2 percent.

Foreign investors bought a net 164.9 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.4 billion rupees worth of equities so far this year. 

($1 = 156.0700 Sri Lankan rupees) 

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

Sri Lankan stocks fall to nearly 7-week closing low on growth worries

Reuters: Sri Lankan shares fell to their lowest close in nearly seven weeks on Monday, as investors sold diversified and manufacturing stocks on worries over slower economic growth, brokers said.

The statistics department withdrew its 2017 full-year and fourth-quarter GDP data on Friday, a day after saying the economy expanded 3.1 percent last year, the slowest pace in 16 years, and 1.4 percent in the fourth quarter.

The Colombo stock index fell 0.24 percent to 6,493.63, its lowest since Jan. 30. It dropped 0.6 percent last week in its third straight weekly decline.

“It’s a dull day as most of investors were on the sidelines and worried over the GDP,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Turnover was 396.5 million rupees ($5.29 million), the lowest since March 7 and well below this year’s daily average of around 966.8 million rupees.

Shares in Vallibel One Plc fell 1.7 percent, Carson Cumberbatch Plc ended 2.8 percent weaker, Sri Lanka Telecom Plc lost 1.4 percent.

Foreign investors bought a net 58.1 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.2 billion rupees worth of equities. 

($1 = 155.9500 Sri Lankan rupees) 

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

Sri Lankan stocks recover as investors buy select blue chips

Reuters: Sri Lankan shares rose marginally on Friday, recovering from a one-and-a-half-month closing low hit in the previous session, as investors bought select blue chips in low volumes while lower economic growth weighed on the market.

The statistics department said after markets hours on Thursday that the economy grew at 3.1 percent in 2017 and 1.4 percent in the fourth quarter of last year.

The Colombo stock index rose 0.13 percent to 6,509.46, snapping two consecutive sessions of declines, and edging up from its lowest close since Feb. 1 hit on Thursday.

It dropped 0.6 percent this week in its third straight weekly decline.

“Market is up in low-volume trades in some blue chips,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC, adding that investors were worried about the lower economic growth in 2017.

Turnover was 824.6 million rupees ($5.29 million), lower than this year’s daily average of around 966.8 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 0.9 percent, Carson Cumberbatch Plc gained 5.3 percent, Trans Asia Hotels Plc jumped 6.9 percent and Hemas Holdings Plc edged up 1.6 percent.

Foreign investors bought a net 111.6 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.1 billion rupees worth of equities.

($1 = 155.9500 Sri Lankan rupees) 

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

Sri Lankan stocks fall to 1-1/2-month closing low on foreign selling

Reuters: Sri Lankan shares extended falls on Thursday to a one-and-a-half-month closing low as foreign investors continued to reduce their holdings on expectation of an interest rate hike by the U.S. Federal Reserve at its next meeting.

Foreign investors sold a net 56.7 million rupees ($363,578.07) worth of shares, but they have been net buyers of 7.02 billion rupees worth of equities so far this year.

The Colombo stock index fell for a second straight session and ended 0.28 percent weaker at 6,500.99, its lowest close since Feb.1.

“Some foreigners are exiting because of the fear of Fed rate hike pencilled in March meeting. Till that, we will see some foreign selling,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC, adding that Sri Lanka saw some outflows before the last two Fed meetings.

Turnover was 806.2 million rupees, lower than this year’s daily average of around 973.3 million rupees.

Shares in Dialog Axiata Plc fell 2.9 percent, while Melstacorp Plc ended 3.7 percent weaker and Ceylon Beverage Holdings Plc dropped 8.9 percent.

Analysts said a communal violence in the central district of Kandy also weighed on sentiment.

($1 = 155.9500 Sri Lankan rupees) 

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

Sri Lankan stocks fall on foreign selling

Reuters: Sri Lankan shares fell on Wednesday from their highest close in nearly two weeks hit in the previous session, as selling by foreign investors weighed on sentiment, brokers said.

Foreign investors sold a net 183.3 million rupees ($1.18 million) worth of shares, but they have been net buyers of 7.1 billion rupees worth of equities so far this year.

The Colombo stock index ended 0.54 percent weaker at 6,519.48.

Falls in large cap Ceylon Tobacco Co Plc dragged down the overall index, said Dimantha Mathew, research head at First Capital Holdings.

“The market came down on small quantity of CTC trade and some banks also came down as investors think the earnings could be hit on some tough regulatory compliance,” he added.

Turnover was 1.6 billion rupees, more than this year’s daily average of around 973.3 million rupees.

Shares in Ceylon Tobacco ended 4.8 percent weaker, Ceylinco Insurance Plc fell 7.6 percent and Commercial Bank of Ceylon Plc slipped 0.22 percent. 

($1 = 155.8000 Sri Lankan rupees) 

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