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Tuesday, 17 January 2017 00:28 - - {{hitsCtrl.values.hits}}
Reuters: Stocks closed lower on Monday as investors sold financials after rising yields in short-term government securities hit sentiment, brokers said.
The Colombo stock index ended 0.26% weaker at 6,201.65, slipping from its highest close since 30 December hit on Friday.
Shares gained on Friday after the European Commission said that it had proposed increased market access or Generalised Scheme of Preferences Plus (GSP+) for Sri Lanka as a reform incentive.
“Positive sentiment on the GSP-plus is short-lived. The rising rates are hitting the market,” said Dimantha Mathew, head of research at First Capital Equities Ltd.
Yields on treasury bill auctions rose 9-19 basis points at a weekly auction last week to a four-month high, after the Central Bank Governor signalled reduced intervention to defend the rupee currency.
The day’s turnover stood at Rs. 911.9 million ($ 6.09 million).
Foreign investors net bought Rs. 78.7 million worth of equities on Monday, but they have net sold Rs. 1.62 billion worth of shares so far this year.
Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 1.41%, while Asiri Hospitals Plc fell 2.59%.
Prime Lands Ltd. yesterday bought 76% stake in Summit Finance for Rs. 510 million.
The stake amounted to 16.99 shares and was done at Rs. 30 each. The deal was first announced in early January.
The seller of the stake was Sarvodaya Development Finance Ltd, which originally acquired the shareholding when the company was known as George Steuart Finance at Rs. 22 per share in late 2014.
Prime Lands also owns 47.5% stake in HNB Grameen and the acquisition of Summit Finance will further strengthen its foray into the financial services market in addition to its growing footprint in theproperty, real estate and housing sectors. It had assets worth Rs. 1.43 billion as at September 2016, down from Rs. 1.49 billion as at March 2016. Liabilities amounted to Rs. 1.1 billion.
High net-worth but low-profile investor Dr. T. Senthilverl holds a 9.57% stake whilst public holding is 24.5% held by 977 shareholders.
