Bourse’s dip persists

Friday, 27 March 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a fourth straight session on Thursday and closed at their lowest in more than seven months as investors sold stakes to settle margin trading ahead of quarter-end, while political uncertainty also weighed on sentiment. The main stock index ended 0.72%, or 50.20 points, weaker at 6,922.83, its lowest close since 8 Augustand further moving away from the key psychological support level of 7,000. It has lost 5.39% in the past 19 sessions. “The trend will continue until there is political uncertainty. We see the next resistance level at 6,800,” a stockbroker said on condition of anonymity. Analysts said concerns that the Government’s decision-making process would slow down, also weighed on sentiment after President Maithripala Sirisena formed a National Government incorporating the main Opposition party in a bid to push through reforms and preserve political stability. The market also shrugged off a fall in T-Bill yields at a weekly auction on Wednesday, brokers said. Yields on T-Bills fell between 17 and 19 basis points, after they dropped 31 to 44 bps last week. The Central Bank said on 18 March that the low-interest rate environment was expected to continue benefiting from lower inflation while keeping policy rates steady. Shares of the country’s biggest listed lender, Commercial Bank of Ceylon Plc, fell 2.27%, while Ceylon Brewery Plc dropped 22.12%, the biggest single-day drop since 31 May 2012. Conglomerate John Keells Holdings Plc fell 1.27%. The day’s turnover was Rs. 1.1 billion ($ 8.28 million), lower than this year’s daily average of Rs. 1.22 billion. Foreign investors sold a net Rs. 210.5 million worth of shares. But they have been net buyers of Rs. 3.12 billion so far this year.

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