Stock market ends at over one-month closing low

Reuters: Shares edged down on Tuesday as investors sold banking and large cap stocks amid lack of new catalysts for buying risky assets, and on concerns over foreign investment outflows and rising interest rates.

The benchmark Colombo stock index ended 0.04%, or 2.34 points, weaker at 6,550.51, its lowest close since 29 April. The index declined 0.94% during last week.

“Not much of retail activities in the market,” said Atchuthan Srirangan, a senior research analyst at First Capital Equities Ltd.

Analysts said market sentiment was weak as investors were waiting for catalysts such as a big foreign direct investment or initial public offering or inflows from the International Monetary Fund.

Rising interest rates also weighed on the market with treasury bill yields rising between five and 27 basis points to near three-year highs at a weekly auction last Wednesday, despite the Central Bank leaving key policy rates steady for a third straight month.

Foreign investors have been net sellers of Rs. 5.58 billion ($37.75 million) worth of equities so far this year, but they bought a net Rs. 49.7 million worth of shares on Tuesday, the first net foreign inflow in five straight sessions.

Turnover stood at Rs. 700.3 million, lower than this year’s daily average of around Rs. 795 million.

Shares in biggest listed lender Commercial bank of Ceylon Plc fell 0.93% while those in Hemas Holdings Plc dropped 2.93% and Distilleries Company of Sri Lanka fell 0.92%, dragging the index down.

Shares in top conglomerate John Keells Holdings, ended steady and accounted for 48% of the day’s turnover.

Sensex edges down, still end May as Asia’s best

Reuters: Indian shares edged down on Tuesday after five consecutive sessions of gains as investors took profits, but indexes were still up for a third straight month, outperforming all regional markets.

The benchmark BSE Sensex fell 0.22% to end at 26,667.96, but gained 4.1% this month.

In dollar terms, the index rose 4% in May, overtaking the Pakistan Stock Exchange’s benchmark 100-share index as the best performer in the region this month, according to Thomson Reuters data.

The broader NSE Nifty fell 0.22% to 8,160.10.