Bourse slips on profit-taking

Thursday, 20 November 2014 01:02 -     - {{hitsCtrl.values.hits}}

Reuters: Stocks ended a six-day gaining streak on Wednesday after hitting a more than 3½ year high earlier in the session as investors booked profits in diversified and telecommunications stocks. But continued foreign buying, low interest rates and hopes of better corporate earnings prevented further falls, traders said. The main stock index fell 0.31%, or 23.13 points, to 7,525.10 after hitting a high of 7,562.52, the highest since 18 April 2011. “The market is down on profit-taking and uncertainty ahead of the election announcement,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd. Analysts said investors were waiting to see the direction of market after President Mahinda Rajapaksa declared a snap election in January, aiming for an unprecedented third term. The market has been in the overbought region since 13 November. The relative strength index, a momentum indicator tracked by chartists, was at 71.784 on Wednesday above the upper neutral range of 70, but slipping from Tuesday’s 76.644, Thomson Reuters data showed. The Central Bank of Sri Lanka kept key policy rates steady at record lows for a 10th straight month, and said stable inflation and steady credit expansion should help the economy grow by around 8% over this year and next. Turnover was Rs. 1.83 billion ($ 13.97 million), exchange data showed, more than this year’s daily average of Rs. 1.44 billion. Foreign investors were net buyers of Rs. 144.2 million worth of shares, extending net foreign buying so far this year to Rs. 18.57 billion, exchange data showed. Shares in Ceylon Tobacco Company Plc fell 1.57% to Rs. 1,131, leading overall fall, while Dialog Axial Plc fell 0.80%.