Bourse slips from 34-month high on profit taking

Thursday, 24 July 2014 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Stocks slipped on Wednesday from their 34-month closing high hit the previous day as investors booked profits in diversified and banking shares, brokers said. The main stock index ended 0.18%, or 12.39 points weaker at 6,783.98, slipping from their highest close since 20 September 2011, hit on Tuesday. It has gained 6.35% so far this month. The index had surged in the previous session as local investors moved funds from fixed income to riskier assets in view of the low interest rates. “Today’s fall is led by Keells, but the market is bullish. We are expecting earnings to be good and the economy to have slightly picked up which will give a bit of a boost for earnings also,” said a Dimantha Mathew, Manager Research at First Capital Equities Ltd. Turnover was Rs. 1.03 billion ($7.91 million), in line with this year’s daily average of about Rs. 1.09 billion. Foreign investors were net buyers of Rs. 242.8 million worth of shares on Wednesday, extending the year-to-date net foreign inflow in shares to Rs. 10.32 billion. Shares of conglomerate John Keells Holdings Plc fell 1.88% to Rs. 239.90, while biggest listed lender Commercial Bank of Ceylon Plc fell 0.28% to Rs. 144.50. Lower interest rates have prompted local investors to buy shares and move away from unattractive fixed assets, analysts said. Yields on Treasury bills edged down further at a weekly auction on Wednesday. The index has been in the overbought region since 3 July. It has risen 14.73% so far this year. Foreigners have been buying risky assets because they see value in them, analysts said.

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