CSE snaps losing streak to end slightly firmer

Reuters: Sri Lankan shares ended marginally higher yesterday, edging up from their 30-month closing low hit in the previous session, as investors picked up battered shares, while sentiment was weighed down by weak rupee and continued foreign selling.

The Colombo stock index ended 0.06% firmer at 5,974.75, edging up from its lowest close since 15 March 2016 hit on 18 September. It lost 1.4% last week, its first weekly drop in four.

“Strong buying came to the market after the sharp drop. Bargain hunting and value buying were witnessed,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.

Turnover was Rs. 657.2 million ($3.94 million) yesterday, less than this year’s daily average of Rs. 796.7 million.

Foreign investors sold a net Rs. 207.8 million worth of shares, extending the year-to-date net foreign outflow to Rs. 5.1 billion worth of equities.

Earlier in the session, the Sri Lankan rupee dropped 0.6% and hit an all-time low of 166.95 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 ended 1.2% higher, a day after they hit a 30-month low, Commercial Leasing and Finance Co. PLC ended 7.4% firmer, and Melstacorp Ltd. closed 2.8% higher.