Bourse falls for second straight session

Wednesday, 25 July 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares extended fall for a second straight session on Tuesday, easing further from a three-week closing high recorded late last week, but foreign buying helped limit losses.

The Colombo stock index ended 0.02% weaker at 6,183.64. The index, which is down nearly 3% in the year so far, had on Friday recorded its highest close since 29 June.

Turnover stood at Rs. 273.8 million ($ 1.72 million), less than a third of this year’s daily average of Rs. 873.1 million.

“Though there is selling pressure in the market, the decline is not huge,” said Dimantha Mathew, head of research, First Capital Holdings.

“Foreigners are net buyers and that creates some positive sentiment.”

Foreign investors bought equities worth net Rs. 90.3 million on Tuesday, but they have been net sellers of stocks worth Rs. 2.4 billion so far in the year.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have said.

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 said earlier this month.

Shares in conglomerate John Keels Holdings Plc ended 0.7% down and Hemas Holding Plc ended 1.1% lower while Sri Lanka Telecom Plc shed 1.6%.