CSE dips to 11-week closing low ahead of holidays

Tuesday, 10 April 2018 00:20 - - {{hitsCtrl.values.hits}}

Reuters: Yesterday (9 April), Sri Lankan share index touched its lowest close in 11 weeks, pulled down by blue-chips stocks in a moderate turnover, as many market participants were on leave ahead of the traditional Sinhala-Tamil New Year this week, brokers said.

The Colombo stock index ended 0.38 % down at 6,431.10, its lowest close since Jan. 23.

The turnover stood at LKR 679.7 million ($4.37 million), below this year’s daily average of around LKR 1.2 billion.

Market sentiment has improved after Prime Minister Ranil Wickremesinghe survived a no-confidence motion last week, dealers said.

“The turnover was due to some block trade on three stocks. The market wants further direction on the political angle,” said Acuity Stockbrokers CEO Prashan Fernando. “Even before we could observe much reaction to the no-confidence vote, we are going in for a long holiday.”

Ceylinco Insurance (non-voting), John Keells Holdings and Hemas Holdings, which were mainly traded via block deals, together accounted for around 88 % of the day’s turnover.

Ceylinco Insurance ended 2 % lower, John Keells closed 0.7 % lower, Distilleries Company of Sri Lanka PLC ended 7.6 % lower, and Hatton National Bank closed down 1 %.Diversified conglomerate Hemas Holdings ended 0.8 % higher.

Foreign investors bought shares worth net LKR 102.3 million yesterday, but they have net sold LKR 788.3 million worth of equities.

Dealers expect the stock market to be tepid this week ahead of the Sinhala-Tamil New Year on April 14.

The central bank unexpectedly cut its key lending rate by 25 basis points on Wednesday (4 April), as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The index fell 0.33 % last week, and dropped 1.14 % in March.