Bourse snaps 8-session gaining streak on foreign fund outflow
Wednesday, 5 November 2014 00:00
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 Lankaâ€™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.
â€śMarket has slowed down. But I donâ€™t think the market will come off too much as the earnings are looking good and interest rates remain low,â€ť said a stockbroker who did not wish to be named. Tuesdayâ€™s turnover touched Rs. 1.99 billion ($ 15.21 million), more than this yearâ€™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 countryâ€™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.