CSE muted as investors await fresh cues

Reuters: Sri Lankan shares ended little changed yesterday (12 March), a week after attacks aimed at Muslim-owned properties by Sinhala Buddhist hardliners hurt sentiment, as investors awaited for fresh cues, dealers said.

The situation has improved in the communal violence-hit district of Kandy, but foreign investors were seen largely keeping to the sidelines for want of a clear direction.

Sri Lankan police on Friday (9 March) said they were investigating whether 10 suspected ringleaders of a wave of attacks on Muslims by Sinhalese Buddhists had outside funding or foreign help.

The Colombo stock index ended 0.05% weaker at 6,547.73. It fell 0.1 last week.

Turnover was Rs. 540.1 million ($3.47 million) yesterday, well below this year’s daily average of around Rs. 950 million.

“The market is holding on,” said Softlogic Stockbrokers Deputy CEO Hussain Gani. “The dampened sentiment we saw last week is not there. Foreigners were also trading in selective counters while locally, retailers traded in second tier counters.”

Foreign investors sold a net Rs. 37.8 million worth of shares yesterday, but they have been net buyers of Rs. 6.1 billion worth of equities so far this year.