Bourse falls to 12-week low on foreign selling

Wednesday, 2 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for the fourth straight session on Tuesday to their lowest close in more than 12 weeks, led by losses in beverage and diversified stocks, as foreign investors turned net sellers for the first time in 14 sessions and a rights issue hurt liquidity.

The Colombo stock index fell 0.5% to 6,604.71, its lowest close since 4 May. The bourse fell 1.6% in July, but had risen about 6% this year as of 31 July close. Shares of Ceylon Cold Stores Plc fell 3.7%, while conglomerate John Keells Holdings Plc lost 0.8, and Lion Brewery Plc dropped 4.4%.

Turnover stood at Rs. 1.22 billion ($7.95 million), its highest since 18 July and more than this year’s daily average of around Rs. 893.3 million.

Private lender Sampath Bank Plc said it would issue one new share for every six existing shares.

“The rights issue mopped up the liquidity, but market is looking positive,” said Hussain Gani, Deputy CEO of Softlogic Stockbrokers.

Foreign investors were net sellers of shares worth Rs. 192.4 million on Tuesday, but have bought Rs. 25.6 billion worth of shares so far this year on a net basis.