Stock market falls for 9th session; further weakening seen

Reuters: Shares fell for a ninth straight session on Thursday to their lowest close in nearly 22 months as rising domestic interest rates and global economic worries dented investor sentiment.

The main stock index edged down 0.19% at 6,208.89, its lowest close since 29 April 2014. It has fallen 2.87% in the last eight sessions to Wednesday.

“The market is waiting for direction. But that direction has not come yet. Investors are waiting for direction on both economical and political side,” said Danushka Samarasinghe, Research Head at Softlogic Stockbrokers.

“We expect the market to weaken further until we see some direction.”

The key index has fallen around 10% this year through Thursday, amid a rise in market interest rates.

Yields on 91-day T-bills rose 13 basis points at a weekly auction on Wednesday to a more-than-two-year high, signalling a further rise in market interest rates.

Turnover was Rs. 534 million ($3.7 million), less than this year’s daily average of Rs. 706 million.

Foreign investors were net sellers of Rs. 81.6 million worth of shares on Thursday, extending the net foreign outflow to Rs. 283.3 million worth of shares so far this year.

Among the decliners, Bukit Darah Plc fell 2.2% while Nestle Lanka Plc lost 1.5%.