Bourse hit near 8-month closing low on foreign investor selling

Tuesday, 12 December 2017 00:56 - - {{hitsCtrl.values.hits}}

Reuters - Sri Lankan shares extended falls into a second session on Monday, closing at their lowest in nearly eight months, as foreign investors sold blue chips such as conglomerate John Keells Holdings Plc.

The Colombo Stock Index dropped 0.28% to 6,357.41, its lowest close since April 17. It fell 0.6% last week in its fifth consecutive weekly drop but has gained 2% so far this year.

“Market is coming down on foreign selling on blue chips... maybe foreigners are moving away from equities ahead of the U.S. Fed rate announcement and moving into fixed income (investments),” said Dimantha Mathew, head of research at First Capital Holdings.

“Local investors are not active and are on holiday mood,” he added.

Shares of conglomerate John Keells fell 1.8%, Lanka ORIX Leasing Co Plc dropped 0.8% and Sri Lanka Telecom Plc declined 1.7%.

Turnover was 282.2 million rupees ($1.84 million), well below this year’s daily average of 941 million rupees.

Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on Dec. 4 that the council polls would be held before Feb. 17, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s government had decided to contest separately in the council polls.