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Saturday, 31 October 2015 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Stocks ended lower for a second straight session on Friday as foreign investors sold shares in conglomerate John Keells Holdings Plc amid uncertainty after the US Federal Reserve revived expectations it may raise interest rates by year-end.
Turnover, however, was boosted to a more than two-month high due to block deals in John Keells Holdings, Commercial Bank of Ceylon Plc, Distillers Sri Lanka Plc, Hatton National Bank Plc and Vidullanka Plc.
Foreign investors were net sellers of Rs. 257.5 million ($1.83 million) worth of shares on Friday, extending the year-to-date net foreign outflow to Rs. 3.7 billion.
The main stock index ended down 0.4% or 28.07 points weaker at 7,042.06, further moving away from its highest close since 12 October hit on Wednesday.
The day’s turnover was Rs. 1.93 billion ($13.70 million), the highest since 26 August and well above this year’s daily average of Rs. 1.1 billion.
Shares in conglomerate John Keells Holdings Plc fell 2.51% while Dialog Axiata Plc fell 0.88% and Commercial Bank of Ceylon fell 0.38%, leading the fall in the overall index.
“Market came off with the foreign selling and we have seen some margin calls being the month end and Friday,” said Dimantha Mathew, a research manager at First Capital Equities Ltd. “The foreign selling which started off with the potential rake hike in September is continuing.”
Another analyst said foreign investors may come in at low prices after the budget.
Stockbrokers also said the market is waiting for some clear direction from the government.
Prime Minister Ranil Wickremesinghe is expected to announce the country’s economic policy on 5 November, Government sources said, outlining the Government’s economic priorities ahead of the 2016 Budget scheduled for 20 November.
