Bourse dips to near 5-month low as JKH tumbles

Thursday, 29 August 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Stocks fell nearly 3% on Wednesday to close at a near five-month low, led by market heavyweight John Keells Holdings after it announced a large rights issue to fund a resort project, dealers said. The main share index fell 2.9%, or 170.14 points, to 5,753.20, its lowest close since early April. Top conglomerate John Keells plummeted 10.2% to Rs. 208 a share after saying it would raise Rs. 39.83 billion ($ 299.14 million) from selling rights and warrants to help fund an $ 850 million resort project. “The market came down with panic selling of John Keells,” said one stockbroker who asked not to be identified. Analysts said investors also were cautious over further falls in the rupee and a weak earnings outlook. The local currency hit an all-time low on Wednesday amid panic buying by importers, dealers said, but the Central Bank Governor said the moves were exaggerated by thin volumes and insisted the currency would stabilise soon. Foreign investors were net buyers of Rs. 202.6 worth of shares, extending net inflows so far this year to Rs. 18.35 billion worth of shares. Turnover was Rs. 694.2 million, well below this year’s daily average of about Rs. 912.6 million.

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