Stocks end steady, marking fifth straight losing week

Reuters: Shares ended steady yesterday, staying close to the 14-month low hit this week and marking their fifth straight week of losses.

The Colombo stock index ended 0.01% weaker at 6,228.15, hovering near its lowest close since April 2017 hit on Wednesday (20 June). The bourse fell 1.63% this week.

“Though the market is attractive, investors are still awaiting direction. We will see sideways movement for the next couple of days as the sell-off has stopped,” said First Capital Holdings PLC Assistant Manager – Research Atchuthan Srirangan.

Turnover was Rs. 277.4 million ($1.8 million), well below this year’s daily average of Rs. 942 million.

Foreign investors sold equities net worth Rs. 72.7 million, extending the year-to-date net foreign outflows to Rs. 934.3 million of shares so far this year. Shares of Dialog Axiata PLC ended 0.2% weaker, while Melstacorp Ltd. fell 0.9%.

Finance Minister Mangala Samaraweera on Tuesday (19 June) said the country’s economy is likely to grow around 4.5% this year, below the Central Bank estimate of 5% in a sign political uncertainty is curbing a more robust recovery after a weak 2017.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remains vulnerable to adverse shocks because of sizeable public debt and large refinancing needs.