Bourse down despite foreign buying

Thursday, 6 February 2014 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell to a two-week low on Wednesday, led by declines in diversified and banking shares despite foreign buying, though stockbrokers expect the Bourse to gain due to a lower interest-rate regime. The main stock index fell 0.70%, or 43.71 points, to 6,175.63, its lowest level since 21 January. “Signals are good for the market, but investors are awaiting quarterly earnings and what might happen in the upcoming UNHRC session in March,” said a stockbroker, asking not to be named. Some stockbrokers said investors will shrug off political risks from renewed pressure by the US to bring a fresh resolution against Sri Lanka at a UN Human Rights Council meeting in March, because the market had been expecting the worst. Foreign investors were net buyers of Rs. 63.8 million ($ 488,400) worth of shares on Tuesday, extending year-to-date net foreign inflows to Rs. 1.39 billion. They bought Rs. 22.88 billion worth of stocks last year. Shares of conglomerate John Keells Holdings PLC fell 1.10% to Rs. 232.20, while Commercial Bank of Ceylon PLC, the biggest listed lender on the Bourse, fell 5.20% to Rs. 120.40. Stockbrokers said retail and institutional investors were active in the market after interest rates on Treasury bills eased at a weekly auction on Wednesday to multi-year lows, making fixed-income assets unattractive. The index has risen 4.45% so far this year, following a 4.8% gain in 2013. It fell in the previous two years. The day’s turnover was Rs. 1.17 billion, more than last year’s daily average of about Rs. 828.4 million.

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