Sri Lankan stocks fall to over 7-wk closing low; foreign exit continues

Feb 21 (Reuters) - Sri Lankan shares fell for a seventh straight session on Friday to their lowest closing in more than seven weeks, led by large caps amid foreign selling in risky assets.

The main stock index fell 0.32 percent, or 18.88 points, to 5,937.28, its lowest close since Dec. 31. It has dropped 4.97 percent in the last 13 sessions.

Foreign investors sold a net 438.5 million rupees ($3.35 million) worth of shares on Friday, extending the outflow to 5.27 billion rupees in the past 11 sessions as some offshore funds exited the market.

The bourse has seen 3.88 billion rupees of foreign outflows so far in 2014, after enjoying net inflows of 22.88 billion rupees last year.

Analysts said investors were concerned over possible further foreign outflows, though local investors are still optimistic about risky assets due to falling interest rates.

On Monday, Sri Lanka's central bank kept its policy rates steady at multi-year lows while analysts said local investors were active in the market after interest rates on treasury bills eased to multi-year lows, making fixed-income assets unattractive.

Shares of Nestle Lanka fell 3.77 percent to 2,020.90 rupees, while market heavyweight Ceylon Tobacco Company Plc declined 1.04 percent to 1,157.60 rupees.

Top conglomerate John Keells Holdings fell 0.93 percent to 212.40 rupees.

The index is still 0.41 percent up so far this year, following a 4.8 percent gain in 2013.

The day's turnover was 1.07 billion rupees, less than this year's daily average of about 1.15 billion rupees. 

($1 = 130.9250 Sri Lanka rupees) 

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

Sri Lanka stocks fall 0.3-pct

Feb 21, 2014 (LBO) – Sri Lanka stocks fall 0.32 percent for the seventh consecutive day with losses in the tobacco and diversified stocks, brokers said.

The Colombo benchmark All Share Price Index closed 18.88 points lower at 5,937.28, down 0.32 percent. The S&P SL20 closed 20.26 points lower at 3,237.27, down 0.62 percent.

Turnover was 1.07 billion rupees, up from 851.92 million rupees a day earlier, with stocks of 102 firms closing in the red against 65 gainers.

JKH closed 2.10 rupees lower at 212.30 rupees with 420.00 million rupees of an off market transaction contributing to 39 percent of the daily turnover.

The aggregate value of all off market deals accounted for 50 percent of the daily market turnover.

JKH’s W0022 warrants closed 40 cents higher at 56.40 rupees and its W0023 warrants closed 2.00 rupees higher at 61.00 rupees, attracting most number of trades during the day.

Foreigners bought 244.05 million rupees worth shares while selling 682.59 million rupees of shares.

Nestle Lanka ended 79.10 rupees lower at 2,020.90 rupees and Ceylon Tobacco Company closed 12.20 rupees lower at 1,157.60 rupees, contributing most to the index drop.

Bukit Darah ended 9.30 rupees lower at 575.00 rupees and Distilleries closed 30 cents lower at 208.00 rupees.

Commercial Bank closed 1.10 rupees lower at 114.90 rupees and Commercial Leasing and Finance closed 20 cents higher at 4.10 rupees.

Dialog closed 10 cents higher at 9.20 rupees.