Bourse dips to over 12-week closing low

Reuters: Shares fell on Monday to a more than 12-week closing low in thin trade as investors sold telecommunication and beverages stocks and as a right issue mopped up liquidity, but foreign investors were net buyers for a thirteenth straight session.

The Colombo stock index ended 0.43% weaker at 6,637.39, its lowest close since 4 May. The Bourse fell 1.63% during the month, but is up 6.57% so far this year.

Shares of large cap Ceylon Tobacco Company Plc fell 0.87%, while Dialog Axiata Plc lost 2.54% and Valibel One Plc ended 4.04% weaker.

Turnover stood at Rs. 508.2 million ($ 3.31 million), well below this year’s daily average of around Rs. 893 million.

Private lender Sampath Bank Plc announced a rights issuance of one new share for every six existing shares.

“The market dipped a bit on telecoms. The rights issue mopped up the liquidity, but market is looking positive,” said Hussain Ghani, associate director at Asia Securities.

Foreign investors net bought shares worth Rs. 121.8 million on Monday, extending the year-to-date net foreign inflow to Rs. 25.8 billion.