Bourse slips to over 8-month closing low

Tuesday, 19 December 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a second straight session on Monday to hit their lowest close in more than eight months as investors offloaded plantation and telecom stocks.

The Colombo Stock Index ended 0.09% weaker at 6,346.70, its lowest close since 11 April. It lost 0.4% last week, its sixth consecutive weekly decline.

“It’s yet another dull day and we don’t have any positive news to boost the market,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings Plc.

Plantation stocks came under pressure after the Russian agricultural safety watchdog said on Thursday that the country will place temporary restrictions on imports of all agricultural products from Sri Lanka, including tea, from 18 December.

Analysts said the Russian restrictions on tea could pose a threat to long-term tea prices and it could impact the earnings of plantation companies.

Turnover was Rs. 233 million ($ 1.52 million), the lowest since 25 September, and well below this year’s daily average of Rs. 935.9 million. Foreign investors were net buyers of Rs. 71.8 million worth of shares on Monday, extending their year-to-date net equity purchases to Rs. 18.4 billion.

Shares of Hemas Holdings Plc ended 1.2% lower, while Hatton National Bank Plc fell 0.4% and Sri Lanka Telecom Plc lost 1.4%.