Shares fall for second session, led by John Keells

Wednesday, 12 October 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended weaker for a second straight session on Tuesday, led by top conglomerate John Keells Holdings, though foreign investors’ buying and gains in financials helped to cap the fall.

Trading volume was low as cautious investors awaited direction from the budget and September-quarter corporate results.

The benchmark index of the Colombo Stock Exchange finished 0.37% weaker at 6,538.28, its lowest close since 30 September.

“There was a bit of interest in the banking sector. But the overall market is still struggling with not many people ready to invest as tight liquidity has driven up market interest rates,” said First Capital Equities Ltd Head of Research Dimantha Mathew.

“Outlook is mixed with expectations of better earnings for the last quarter and rising fixed-income returns ahead of the budget. Not many people are in for medium- to long-term investments at the moment. The market will move sideways until the budget.”

Turnover was Rs. 603.7 million ($4.12 million), less than this year’s daily average of around Rs. 750 million.

Stockbrokers said the market might see lower trading volumes as many investors await direction from the budget, scheduled on 10 November, and the government’s long-term economic policy announcement.

A number of companies are expected to report their September-quarter results later this month, stockbrokers said.

Foreign investors, who have sold a net Rs. 2.73 billion worth of shares so far this year, bought a net Rs. 246.3 million worth of shares on Tuesday.

Shares of John Keells Holdings fell 1.3%.

Banking shares gained with top lender Commercial Bank of Ceylon rising 0.47% and Hatton National Bank climbing 0.87%.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.