Stock market dips on blue chips

Friday, 1 March 2013 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan stocks fell to a two-month low on Thursday led by blue chips including market heavyweight John Keells Holdings, while foreign buying boosted turnover.

The main share index fell 0.68% to 5,635.90, its lowest since Dec. 28.

“Economic worries have hit sentiment after the IMF negative comments,” a stockbroker said on condition of anonymity. “Retailers sold shares to settle outstanding credit transactions as it is the end of the month.”

The market has fallen 3.4% in thin volume since the IMF on Feb. 13 said Sri Lanka was facing slow growth, high inflation and lower tax revenue risks.

John Keells fell 0.76% to 234 rupees, while cigarette manufacturer Ceylon Tobacco Co. plummeted 5.95% to 721 rupees in thin volume.

Foreign buying accounted for around 75% of the day’s turnover of 1.43 billion rupees ($11.22 million), more than this year’s daily average of 1.06 billion rupees.

Foreign investors sold a net 20.7 million rupees worth of shares, extending the net foreign outflow so far this year to 215.55 million rupees.

The rupee edged down to 127.43/48 to the dollar on inflows from foreign remittances, dealers said.