CSE dips to near 6-month closing low

Reuters: Shares fell for a fifth straight session on Tuesday to hit their lowest closing level in nearly six months, as investors sold telecom and diversified shares.

The Colombo stock index ended 0.06% weaker at 6,348.53, its lowest close since 22 December. The index fell 0.7% last week, its third straight weekly fall.

Shares in Dialog Axiata Plc fell 1.4%, while Sri Lanka Telecom Plc closed 0.8% weaker and Asiri Hospital Plc ended 2% lower. “The market is bottoming out and we have seen the index has been almost flat in the last two days. We expect it to bounce back once investors see any positive news,” said Hussain Gani, deputy CEO at Softlogic Securities. Most investors have adopted a wait-and-watch approach, hoping for some positive news on the economic front, analysts said. Turnover stood at Rs. 876.4 million ($ 5.50 million), less than this year’s daily average of Rs. 969.4 million.

Foreign investors net sold Rs. 33 million worth of equities on Tuesday, extending the year-to-date net foreign outflow to Rs. 527.9 million worth of shares. A weaker rupee, political uncertainty and the recent fuel price hike weighed on sentiment in the past week with local investors remaining on the sidelines as they gauged the impact of the floods last month, brokers said.

The rupee slipped to a fresh all-time low of 159.80 per dollar on Monday, pulled down by a lack of support for the local currency from exporters.