Bourse down to 1-week low on banks, profit-taking

Saturday, 11 October 2014 00:24 -     - {{hitsCtrl.values.hits}}

Reuters: Stocks fell to more than one-week low on Friday, led by a decline in banking shares amid foreign outflows and selling pressure on large-caps, which gained in the recent rally. The main stock index ended lower 0.88%, or 65.08 points, at 7,321.00, its lowest since 1 October. It hit a near 3-1/2 year closing high on Friday. Foreign selling was Rs. 506 million on Friday, but foreign investors have been net buyers of Rs. 9.17 billion so far this year, exchange data showed. “The lack of foreign buying is the main reason for the market decline. There was sharp selling pressure on big cap shares as well,” manager, research at First Capital Equities Ltd. Dimantha Mathew said. “Downward pressure may continue for a few more days. The correction is good for the market. We feel the market went up unnecessarily.” Analysts said investors are awaiting the September-quarter earnings and the 2015 budget scheduled on 24 October for further direction. DFCC Bank Plc, which led the overall loss, fell 2.63%, while Commercial Bank of Ceylon Plc lost 1%. The day’s turnover was Rs. 2.81 billion ($ 21.6 million), well above this year’s daily average of Rs. 1.36 billion.