Bourse recovers from over 8-month low; political woes weigh

Wednesday, 1 April 2015 00:35 - - {{hitsCtrl.values.hits}}

Reuters: Shares rose on Tuesday, recovering from a more than eight-month closing low hit in the previous session and snapping a six-session losing streak, due to window dressing ahead of the quarter-end, though political uncertainty weighed on sentiment, brokers said. The main stock index ended 0.56%, or 37.91 points, firmer at 6,820.34, after closing at its lowest level since 24 July on Monday. It lost 7.31% in the 21 sessions through Monday.

“Being the last day of the quarter, there was a bit of window dressing,” said First Capital Equities Ltd Research Manager Dimantha Mathew. Analysts expect the market to continue its negative trend with low activities through mid-April ahead of a long traditional Sinhala-Tamil New year holiday and amid political uncertainty. Shares in Carson Cumberbatch Plc rose 0.38%, while Ceylinco Insurance Plc rose 9.07% in thin volume. Market heavyweight John Keells Holdings Plc, which hit a 32-month low on Monday, rose 1.63% on Tuesday. The day’s turnover was Rs. 665.8 million ($ 3.44 million), more than half of this year’s daily average of Rs. 1.19 billion. Foreign investors were net sellers for the seventh straight session. They sold a net Rs. 72.1 million worth of shares on Tuesday, extending the net foreign selling in the past seven sessions to Rs. 445.8 million worth shares. But they have been net buyers of Rs. 2.91 billion so far this year. Analysts said concerns that the Government’s decision-making process would slow down weighed on sentiment after President Maithripala Sirisena formed a national government incorporating the main Opposition party in a bid to push through reforms and preserve political stability.