Stock market ends 4-day winning streak

Thursday, 4 February 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended a tad weaker on Wednesday, snapping four straight sessions of gains, led by losses in large caps amid poor sentiment due to global economic concerns.

The main stock index ended down 0.36% at 6,402.80, slipping from its highest close since 14 January hit on Tuesday.

“We expected things to be positive. But it came down earlier than we expected with the negative sentiments on global markets after the recent gains,” said Dimantha Mathew, Research Manager at First Capital Equities Ltd.

Turnover was Rs. 363.9 million ($2.53 million), well below this year’s daily average of Rs. 852.2 million.

The index had fallen 7.1% this year through Wednesday as foreign investors, unnerved by global concerns over China’s economy, cut their exposure.

Foreign investors sold a net Rs. 6.97 million worth of shares on Wednesday, extending the year-to-date net foreign outflow to Rs. 198.7 million.

Analysts said a rising trend in local interest rates has been a concern and local stocks could come under further pressure.

Yields on Treasury bills rose between 7 and 23 basis points at a weekly auction on Tuesday with yields on 182-day and 364-day T-bills rising to more-than-two-year highs, signalling a further rise in market interest rates, which move in tandem with the yields.

Shares of market heavyweight John Keells Holdings Plc eased 0.75%, Distillers Company of Sri Lanka Plc fell 1.78% and Hemas Holdings Plc lost 2.30%.