CSE edges lower to 5-week closing low

Wednesday, 15 August 2018 00:10 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged lower in thin trade on Tuesday and posted their lowest close in nearly five weeks, as lacklustre corporate results dented investor sentiment for the island nation’s risky assets, stockbrokers said.

The Colombo stock index fell 0.26% to 6,113.00, its lowest close since 11 July and third straight session of declines. The index has declined about 3.8% so far this year.

Turnover was Rs. 380.4 million ($ 2.38 million) on Tuesday, less than a half of this year’s daily average of Rs. 837.1 million.

“There is an overall slowdown on the buying side from both foreign and local (investors). There was buying interest on select counters. John Keells dragged the overall index,” said Hussain Gani, Deputy CEO at Softlogic Stockbrokers.

“June-quarter corporate results have failed to give any bullish reasons for the market to gain.”

Global worries also weighed on sentiment, brokers said.

Emerging equities hit a 13-month low in Asian trading after disappointing Chinese data, before recovering to trade flat in the European session.

Foreign investors, however, bought shares worth a net Rs. 112.5 million, after having sold a net Rs. 2.64 billion worth of equities so far this year.

Shares in John Keells and top lender Commercial Bank of Ceylon fell 1% each.

The Central Bank left its key policy rates unchanged, as expected, on 3 August, citing its goals of stabilising inflation and fostering sustainable economic growth.

Central Bank Governor Indrajit Coomaraswamy said the economy was unlikely to grow more than 4% in 2018, falling short of an earlier estimate of 5%.