Stocks slip to over 8-week closing low; lower economic growth weighs

Reuters: Sri Lankan shares slipped to their lowest close in more than eight weeks yesterday (23 March), led by beverage and telecom stocks as investors remained worried about the island nation’s slower economic growth, brokers said.The Colombo stock index closed 0.12% lower at 6,443.75, marking its fourth session of fall in five. It fell 1% this week, in its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1% in 2017, the slowest pace in 16 years and well below the 4.5% seen in 2016, revised Government data released on Tuesday (20 March) showed.

“The market is moving sideways as investors are on the sidelines due to concerns over lower growth. They are also awaiting directions from the policy interest rate decision in April,” said First Capital Holdings PLC senior research analyst Atchuthan Srirangan.

Turnover was Rs. 953.9 million ($6.11 million), more than this year’s daily average of around Rs. 944.8 million.

Shares in Lion Brewery (Ceylon) PLC fell 3.6%, Nestle Lanka PLC dropped about 1%, Softlogic Holdings PLC slumped 5% and Dialog Axiata PLC ended 0.7% weaker.

Foreign investors sold a net Rs. 58.4 million worth of shares, but they have been net buyers of Rs. 7.2 billion worth of equities so far this year.