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Friday, 21 September 2018 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Shares dropped to their lowest close in 30 months on Thursday as foreign investors sold market heavyweight John Keells Holdings, while a weak rupee dented sentiment.
The Colombo stock index ended 0.88% weaker at 5,922.18, its lowest close since 9 March 2016. It lost 1.4% last week, its first weekly drop in four.
“Uncertainty in the rupee currency is having an impact on the local investor sentiment. It has created a significant negative sentiment,” said broker First Capital Holdings Head of Research Dimantha Mathew.
“We saw a bit of foreign selling pressure also. Big caps started to fall again and with that the overall market saw a significant decline.”
Analyst said they expect a minor support at 5,900 levels, while stronger support at 5,800 levels.
Turnover was Rs. 547.6 million ($ 3.25 million) on Thursday, less than this year’s daily average of Rs. 795.3 million. Foreign investors sold a net Rs. 137 million worth of shares extending the year-to-date net foreign outflow to Rs. 5.2 billion worth of equities.
Earlier in the session, the rupee dropped 0.6% and hit an all-time low of 168.15 per dollar, pulled down by importer demand for scarce US currency, market sources said.
Analysts said the fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices in September for a third time in four months due to higher global oil prices and a weaker rupee.
Investors are awaiting cues from the national budget in November.
Shares of Conglomerate John Keells Holdings PLC, which touched its 30-month close during the trade, ended 3.4% weaker, Nestle Lanka PLC closed down 2.8%, Sampath Bank PLC ended 2.2% weaker, and Melstacorp Ltd. closed 2.7% down.
