Shares slip to 1-week closing low on foreign selling

Tuesday, 11 September 2018 00:00 -     - {{hitsCtrl.values.hits}}

Reuters: Shares fell to one-week closing low on Monday as foreign investors sold blue chips such as conglomerate John Keells Holdings Plc.

The Colombo stock index ended 0.35% weaker at 6,096.54, its lowest close since 3 September. It rose 0.6% last week in its third straight weekly gain.

Turnover was Rs. 615.9 million ($3.79 million), less than this year’s daily average of Rs. 795.6 million.

“Today also, foreign selling was there and it impacted the market. 

Foreigners are exiting with the dollar strengthening,” said First Capital Holdings Plc Assistant Manager – Research Atchuthan Srirangan.

“Local investors are worried over continued foreign selling on the back of dollar strengthening globally and they are on the sidelines.”

Analysts said investors also waited for cues from the National Budget which the Government is set to unveil in November.

Foreign investors sold a net Rs. 112.1 million of shares on Monday, extending the year-to-date net foreign outflow to Rs. 4.4 billion worth of shares.

Shares of Distillers Company of Sri Lanka Plc fell 3.1%, while conglomerate John Keells Holdings ended 0.7% down and AIA Insurance Lanka Plc lost 4.4%.