Home / Financial Services/ Shares fall; turnover hits near 3-month low

Shares fall; turnover hits near 3-month low

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 10 July 2018 00:41

Reuters: Sri Lankan shares fell yesterday and turnover slumped to a near three-month low, as many investors stayed away from the market after confusion over fuel price hike and lower economic growth outlook hurt sentiment, stockbrokers said.

Turnover stood at Rs. 154.9 million, its lowest since 16 April and less than a sixth of this year’s daily average of Rs. 921 million.

Sri Lankan state-run fuel retailer, Ceylon Petroleum Corporation (CPC), on 6 July reversed an earlier decision to increase petrol and diesel prices at its fuel stations, hours after the Finance Ministry demanded a hike to stem losses.

“The investor confidence is low. The fuel price decision could not be implemented with mixed signals and investors are also confused,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Another analyst said lower economic growth outlook also has hit the sentiment, after the Central Bank cut its estimate.

Economic growth in 2018 is likely to be between 4% and 4.5%, falling short of an earlier estimate of 5%, Central Bank Governor Indrajit Coomaraswamy told reporters on 6 July, adding that the earlier estimate was “ambitious”.

Foreign investors are selling and concerns about lower economic growth weighed on sentiment, analysts said.

The Colombo stock index ended 0.51% weaker at 6,077.32. It hit its lowest close since March 30 2017 on 4 July and has declined for a 19th session in 22 through yesterday.

The index fell 1.4% last week, sliding for a seventh straight week.

They net sold equities worth Rs. 22.9 million yesterday, extending the year-to-date foreign outflows to Rs. 2.25 billion.

Ceylinco Insurance PLC fell 5.3%, while Lanka Orix Leasing Company slipped 3.3%.

Investors are waiting for some positive news both on the economic and political fronts, said analysts, adding that the Government’s policy implementation had been sluggish since both main parties in the ruling coalition lost local polls in February.

The International Monetary Fund (IMF) said on 20 June that Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs.

Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Taking sides – on the side of the law

Monday, 19 November 2018

I am under criticism for “taking sides” in the ongoing dispute between the UNF and UPFA. Former President Mahinda Rajapaksa has accused me thus: “Yesterday a commissioner from the Elections Commission went to the Supreme Court saying that the P

Hang the House! It’s OUR country, future, etc.

Monday, 19 November 2018

I have rarely if ever empathised with the Sri Lanka Police Department. But when I saw those hapless cops ducking chilli bombs in Parliament, my heart went out to those whom I had previously seen as simply being PC Plods or Mr Goons. Sorry to say that

The only way out

Monday, 19 November 2018

Leaving aside the legalities, politicalities, constitutionalities and the complexities of the current imbroglio in which the nation is grounded (temporarily), the underlying issues in the constitutional crisis can be reduced to one single question: a

Man-made constitutional crisis: Personal vendettas should not be allowed to destroy the country

Monday, 19 November 2018

President is simply one presiding over an entity of people It all came to surface as the culmination of a personal vendetta between President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. The country at large knew of it when the Pre

Columnists More