Shares hit more than 13-wk closing low

Friday, 4 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a sixth straight session on Thursday, their lowest close in more than 13 weeks, led by losses in hotels and diversified stocks. The Colombo stock index fell 0.21% to 6,571.48, its lowest close since 3 May. The index slipped 1.6% in July, but has risen about 6 percent this year as of close of trade on 31 July.

Shares of conglomerate John Keells Holdings Plc dropped 0.8%, while Trans Asia Hotel Plc fell 4.9% and Melstacrop Plc ended 1.67% weaker.

“Lack of foreign buying on the big counters dragged (down) the index,” said Hussain Gani, deputy CEO of Softlogic Stockbrokers. “Foreigners are looking at the market positively, but the market did not have a spark today to boost sentiment.”

Foreign investors net bought shares worth Rs. 112.9 million on Thursday, extending their year-to-date net inflow to Rs. 26.5 billion.

Turnover stood at Rs. 381.4 million ($ 2.49 million), its lowest since 26 July and well below this year’s daily average of around Rs. 893.3 million.

Sri Lanka’s Central Bank held policy rates steady before market hours on Thursday, and said tightening measures taken in the past are helping cool inflation and credit growth.

Investors in fixed-income assets may shift to equities as government bond yields are falling, analysts said.

Short-term treasury-bond yields fell between 41 basis points (bps) and 55 bps at a weekly auction on Wednesday.

In last week’s auction, the weighted average yield on a 59-month bond dropped by 99 bps, while that on an 118-month bond fell by 78 bps.