CSE ends marginally lower

Reuters: Sri Lankan shares edged lower for a second straight session yesterday, led by market heavyweight John Keells Holdings, as the absence of any positive triggers dampened appetite for the island nation’s risky assets.

The Colombo stock index fell 0.21% to 6,128.82 points, moving further away from its highest close since 25 July hit on 9 August. The index has declined about 3.8% so far this year.

Turnover stood at Rs. 242.2 million ($1.51 million) yesterday, less than a third of this year’s daily average of Rs. 840 million.

“There was no market moving news, both on the political and economic fronts,” said Acuity Stockbrokers CEO Prashan Fernando.

Global equities fell yesterday as Turkey’s worsening currency crisis persuaded investors to dump equities and flee to safer assets such as Government bonds and the US dollar.

Foreign investors bought shares worth a net Rs. 36.8 million, after having sold a net Rs. 2.75 billion worth of equities so far this year. Shares in John Keells fell 2.1% while those of top mobile phone operator Dialog Axiata fell 0.7%.

The Central Bank left its key policy rates unchanged, as expected, on 3 August, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central Bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4% in 2018, falling short of an earlier estimate of 5%.