Home / Financial Services/ Stocks fall for 10th day on sectarian violence concerns

Stocks fall for 10th day on sectarian violence concerns


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 16 May 2019 00:00

Facebook


REUTERS: Shares fell for the 10th straight session on Wednesday and closed at their lowest in nearly seven years, as sectarian violence dented investor sentiment, while the rupee edged higher after four straight sessions of losses.

Police arrested more than 74 people in connection with a spate of attacks on Muslim-owned homes and shops in apparent reprisal for the Easter bombings that killed more than 250 people. 

Sri Lanka’s economic growth is expected to slump to its lowest in nearly two decades this year, a Reuters poll showed. Tourism, foreign investment and overall business activity have all dropped after the bombings. 

The benchmark stock index ended 0.45% weaker on Wednesday at 5,199.98, its lowest close since 30 August 2012. Turnover was Rs. 388.6 million ($2.21 million), less than this year’s daily average of around Rs. 555.9 million. Last year’s daily average was Rs. 834 million. 

Foreign investors sold a net Rs. 165.4 million worth of shares on Wednesday, extending the year to date net foreign outflow to Rs. 4.4 billion worth of equities so far this year. The rupee closed slightly firmer on dollar selling by exporters and banks. The rupee gained 0.3% to close at 176.20/40 per dollar, compared with Tuesday’s close of 176.75/90, market sources said. Analysts expect the currency to weaken as money flows out of stocks and government securities. 

The rupee gained 0.6% last week and is up 3.6% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. 

Foreign investors sold a net Rs. 10.8 billion worth of government securities in the week ended 8 May, extending net foreign outflow to Rs. 20.8 billion so far this year, Central Bank data showed. 

Investor sentiment was damaged at the end of last year when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved Parliament. A court later ruled the move unconstitutional, but the political turmoil led to credit rating downgrades and an outflow of foreign funds. 


Share This Article

Facebook Twitter


DISCLAIMER:

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.

COMMENTS

Today's Columnists

17 things ‘Avengers: Endgame’ teaches us about the state of our superheroes

Friday, 24 May 2019

Art imitates life. Even movies do. Maybe especially so. In these lean times, there’s nothing like a little laughter to stop the press, stem the blood pressure, ease that stress in life. So here goes. Trust you’ll take these tongue-in-cheek. Or pe


Sri Lanka needs urgent surgery!

Friday, 24 May 2019

Sri Lanka was on the slippery slope of a serious crisis, heading for a great disaster of the State, even before the outbreak of Easter Sunday attacks. Now, in the aftermath of the ruthless Easter Sunday attacks, the country’s crisis has become exac


Mangala, Monks, Mangala Sutta and Marx

Friday, 24 May 2019

In the Buddhist belief system, ‘Mangala’ means a ‘blessing’. In the abstract ‘Mangala’ denotes an ‘auspicious sign’. In the ‘Mangala Sutta’, the Buddha has enumerated 38 of the highest blessings that we must or should be guided b


Who built the Matara/Beliatta railway line?

Friday, 24 May 2019

In 2019, after 70 long years of independence, Sri Lanka succeeded in adding to the rail network left behind by the British when we extended the southern line from Matara to Beliatta, a distance of less than 20 miles. While the network left in place b


Columnists More