Bourse slips from over 3-year high on fall in large caps

Tuesday, 2 September 2014 10:51 -     - {{hitsCtrl.values.hits}}

Reuters: Stocks slipped on Monday from a more than three-year high hit in the previous session, led by a decline in shares of large-caps such as Ceylon Tobacco Co Plc and Nestle Lanka Plc. Analysts said low interest rates and continued foreign buying into risky assets boosted sentiment. The main stock index fell 0.05%, or 3.20 points, to close at 7,030.89. The index has gained nearly 19% so far this year. “The market is generally holding on with a bit of profit-taking here and there. Hopefully, September could see another rally,” said a stockbroker asking not to be named. The bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, was at 74.825 on Monday, Thomson Reuters data showed. Stocks are deemed “overbought” above the 70 mark, which tends to signal a reversal in the near term. Ceylon Tobacco Co Plc, which led the overall fall in the index, fell 1.44% to Rs. 1,180, while Nestle Lanka Plc fell 2.23% to Rs. 2,100. Monday’s turnover stood at Rs. 1.04 billion ($8 million), slightly below this year’s daily average of Rs. 1.2 billion. Foreign investors were net buyers of Rs. 34.9 million worth of shares on Monday, extending the year-to-date net foreign inflows to Rs. 8.24 billion.