Bourse dips on profit taking

Tuesday, 16 September 2014 00:19 - - {{hitsCtrl.values.hits}}

Reuters: Stocks fell on Monday from a more than three-year closing high hit in the previous session, as investors booked profits mainly in diversified and financial stocks in an overbought market, while foreign investors sold risky assets. The main stock index fell 0.61%, or 43.71 points, to 7,174.97, slipping from its highest close since 10 June 2011 hit on Friday. “The market is down with some selling pressure on big cap counters which have gone up recently. There was profit-taking,” said First Capital Equities Ltd. Research Manager Dimantha Mathew Brokers said the market would continue its bullish run with foreign buying, low interest rates and good earnings expectation, despite profit-taking in some counters. The index has gained 21.35% so far this year. The Bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, fell to 78.972 on Monday compared with Friday’s 87.190, Thomson Reuters data showed. Stocks are deemed “overbought” above the 70-mark, signalling a reversal in the near-term. Shares in Sri Lanka’s biggest listed lender, Commercial Bank of Ceylon Plc, which led the overall fall in the index, ended 3.29% weaker at Rs. 156, while Carson Cumberbatch Plc declined 3.32% to Rs. 439.90. Shares in Ceylon Tobacco Co Plc fell 0.85% to Rs. 1,170, while market heavyweight John Keells Holdings Plc fell 0.46% to Rs. 258.30. The day’s turnover was Rs. 1.57 billion ($ 12.05 million), more than this year’s daily average of Rs. 1.24 billion. Foreign investors were net sellers for the first time in 12 sessions. They have sold Rs. 117 million worth of shares on Monday, but they have been net buyers of Rs. 10.34 billion so far this year.

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