Jan 23 (Reuters) - Sri Lankan shares fell to a one-month closing low on Friday, led by selling by foreign investors, slipping by more than 3 percent in the week on concerns over political stability concerns as the government got ready to present its interim budget on Jan. 29.
The main stock index ended 0.72 percent lower, or 52.96 points down, at 7,276.63, its lowest close since Dec. 24. It lost 3.15 percent in the latest week.
"Still there is a bit of uncertainty in the minds of people, and investors are adopting a wait-and-see approach. We believe confidence will be restored after the budget," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
There was net foreign outflow of 518.3 million rupees ($3.93 million) on Friday, the highest net offshore selling since Nov. 4. Foreign investors bought a net 22.07 billion rupees worth of stocks last year.
The day's turnover was 987.4 million rupees, less than last year's daily average of 1.42 billion rupees, exchange data showed.
The newly-elected government reappointed Thilak Karunaratne as head of the market regulator after market hours on Wednesday, and said he would investigate suspected deals in the stock market.
Stockbrokers said Karunaratne's appointment and the investigations would pull down the index in the near term, but would instil confidence over the long term.
President Maithripala Sirisena's coalition government will present an interim budget on Jan. 29 with an aim to cut cost of living.
Shares in Carsons Cumberbatch Plc fell 4.71 percent, while top conglomerate John Keells Holdings Plc fell 1.37 percent.
The main stock index ended 0.72 percent lower, or 52.96 points down, at 7,276.63, its lowest close since Dec. 24. It lost 3.15 percent in the latest week.
"Still there is a bit of uncertainty in the minds of people, and investors are adopting a wait-and-see approach. We believe confidence will be restored after the budget," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
There was net foreign outflow of 518.3 million rupees ($3.93 million) on Friday, the highest net offshore selling since Nov. 4. Foreign investors bought a net 22.07 billion rupees worth of stocks last year.
The day's turnover was 987.4 million rupees, less than last year's daily average of 1.42 billion rupees, exchange data showed.
The newly-elected government reappointed Thilak Karunaratne as head of the market regulator after market hours on Wednesday, and said he would investigate suspected deals in the stock market.
Stockbrokers said Karunaratne's appointment and the investigations would pull down the index in the near term, but would instil confidence over the long term.
President Maithripala Sirisena's coalition government will present an interim budget on Jan. 29 with an aim to cut cost of living.
Shares in Carsons Cumberbatch Plc fell 4.71 percent, while top conglomerate John Keells Holdings Plc fell 1.37 percent.
($1 = 131.7500 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)
No comments:
Post a Comment