Stocks extend losses to 9th session as weak rupee weighs

Wednesday, 20 June 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a ninth consecutive session on Tuesday to their lowest close in more than a year, led by losses in heavyweight John Keells Holdings Plc.

The Colombo stock index ended 0.71% weaker at 6,265.73, its lowest close since 6 April 2017.

The depreciation of the rupee, which hit a record low last week, is one of the main concerns of equity investors, said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Turnover stood at Rs. 638.6 million ($ 4 million), less than this year’s daily average of Rs. 958.3 million.

Foreign investors bought equities net worth Rs. 76.2 million, but they have been net sellers of Rs. 796.2 million of shares so far this year.

Shares of John Keells Holdings Plc fell 3.2%, while Ceylon Tobacco Co Plc ended 1.3% lower and Hatton National Bank Plc closed 2% down. The biggest listed lender Commercial Bank of Ceylon Plc ended 1.3% weaker.

Sri Lanka’s economy grew 3.2% year-on-year in the first quarter, slowing from 3.5% in the fourth quarter of 2017, the state-run Department of Census and Statistics said after the market closed.

A weaker rupee, political uncertainty and the recent fuel price hike has weighed on sentiment over the past few weeks, with local investors remaining on the sidelines as they gauge the impact of floods last month, brokers said.