Fitch Ratings has assigned DFCC Bank PLC’s (B+/AA-(lka)/Stable) proposed Basel III-compliant subordi

Friday, 16 March 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares extended falls on Thursday to a one-and-a-half-month closing low as foreign investors continued to reduce their holdings on expectation of an interest rate hike by the US Federal Reserve at its next meeting.

Foreign investors sold a net Rs. 56.7 million ($ 363,578.07) worth of shares, but they have been net buyers of Rs. 7.02 billion worth of equities so far this year.

The Colombo stock index fell for a second straight session and ended 0.28% weaker at 6,500.99, its lowest close since 1 February.

“Some foreigners are exiting because of the fear of Fed rate hike pencilled in March meeting. Till that, we will see some foreign selling,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC, adding that Sri Lanka saw some outflows before the last two Fed meetings.

Turnover was Rs. 806.2 million, lower than this year’s daily average of around Rs. 973.3 million.

Shares in Dialog Axiata Plc fell 2.9%, while Melstacorp Plc ended 3.7% weaker and Ceylon Beverage Holdings Plc dropped 8.9%. Analysts said a communal violence in the central district of Kandy also weighed on sentiment.