Bourse snaps 8-session gaining streak on foreign fund outflow

Wednesday, 5 November 2014 00:00 -     - {{hitsCtrl.values.hits}}

Reuters: Stocks slid on Tuesday from the over three-week high touched in the previous session, ending an eight-day gaining streak on anticipated results of market heavyweight John Keells Holdings and selling by foreign investors. Top conglomerate John Keells Holdings Plc, which reported after market hours a 29% year-on-year rise in September quarter net profit, led the fall with a 1.57% decline to Rs. 253.10. Foreign investors turned net sellers for the first time in six sessions, offloading a net Rs. 969.7 million ($ 7.41 million), the highest outflow since 30 September Foreign funds have been net buyers of shares worth Rs. 14.28 billion so far this year, exchange data showed. Sri Lanka’s main stock index closed up 0.44%, or 32.26 points, at 7,320.89, slipping from its highest closing level since 9 October that it reached on Monday. Leading mobile phone operator Dialog Axiata fell 2.42% to Rs. 12.10. “Market has slowed down. But I don’t think the market will come off too much as the earnings are looking good and interest rates remain low,” said a stockbroker who did not wish to be named. Tuesday’s turnover touched Rs. 1.99 billion ($ 15.21 million), more than this year’s daily average of Rs. 1.38 billion. Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates. The country’s central bank has kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards. The yields on the 364-day t-bill were steady at 6.00% at a weekly auction, while the 182-day t-bills yielded 5.84%, 39 basis points below the rate at which it was last accepted.