Shares fall to 4-mth closing low; blue chips drag

Reuters: Shares fell for a fourth consecutive session on Wednesday, posting their lowest close in four months, as local investor sentiment remained muted following a string of disappointing June-quarter corporate results. However, the decline was limited as foreign investors bought into equities.

The Colombo stock index fell 0.36%, or 23.50 points, to 6,417.41, its lowest close since 18 April.

It declined in 13 of the last 14 sessions, while yields on short-term government securities also fell over the past two weeks.

“The market came down on blue chips. The main reason for the market to come down is the poor quarterly earnings,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings Plc.

Foreign investors bought shares worth a net Rs. 98.3 million (about $ 641,854) on Wednesday, extending the year-to-date net inflow to Rs. 27.6 billion.

Turnover was Rs. 780.3 million, less than this year’s daily average of around Rs. 875.3 million.

Shares of market heavyweight John Keells Holdings fell 0.5%, Carson Cumberbatch Plc dropped 3.2 percent, Melstacorp Plc ended 0.8% weaker and Ceylon Cold Stores declined 0.8%.

Pan Asia Banking Corp (PABC), which had its primary dealer status suspended by the Central Bank on Tuesday for six months, fell 2.4%.